How does Luxottica dominate Optical industry

Written by Optician Club on . Posted in Optician News

Though Luxottica did't make an appearance in latest Silmo 2012 Pairs, they basically own the frame industry, Let's see how Luxottica dominate Optical industry . They own manufacturing facilities in Europe and Asia. They own licenses to any or all the key Eyewear Brands like Chanel, DKNY, Ralph Lauren. Then when you get those brands, you're buying from a company that's just licensing and paying a royalty to those brands. Those brands aren't even designing those frames or manufacturing it and even selling it

Luxottica dominate Optical industry

A key for the industry-standard overpricing is the fact that an individual corporation — Luxottica, the world’s largest eyewear firm
Luxottica owns many retail eyewear chains and many popular eyewear brands. Operating out of Milan, Italy, Luxottica owns and operates LensCrafters, Sears Optical, Target Optical, Pearle Vision, Sunglass Hut, Ilori, and other chains in the United States, in addition to yet more chains throughout Asia, Europe, Africa, India, the Antipodes and the Middle East.
Luxottica owns Ray-Ban, Oakley, Oliver Peoples, Vogue, and other brands, and makes glasses under license for over 12 designer labels including Versace, Prada, Bulgari, DKNY, Burberry, Ralph Lauren, Dolce & Gabbana, Donna Karan, Tiffany, and much more. And once you get those brands, you're buying at a company that's just licensing and paying a royalty to people brands. Those brands aren't even designing those frames or manufacturing it or even selling it.

Like that isn’t enough, Luxottica is also the parent company of an vision-care benefits program, EyeMed. benefits program
Eyewear quote prices in brick-and-mortar stores stay artificially high, Mitchell says, due to “the possible lack of real competition, in approximately Luxottica owns massive manufacturing, licensing, retailing and insurance interests” — albeit EyeMed is “not so much insurance like a marketing ploy to have visitors to pay for their stores for much less and also to force the residual independent stores to buy Luxottica controlled frames. But, again, so many people are unacquainted with this.”
Luxottica dominate Optical industry
And once you look at an industry and you see that there's that one company that's doing roughly $7 billion annually in revenue and we're finding that those glasses are being marked up greater than 20 times what they cost to fabricate

Because one company holds a near-monopoly on brick-and-mortar eyewear stores, “pricing models are somewhat static through the wide range of them. There is also a knack for making use of the mattress sale model … constantly running sales that seem too good to pass up a lot reality they’re still making enormous profits.”

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