Who controls the Eyeglasses industry?
How many of you have eyeglasses on? I believe 60-70 percent of folks are wearing them. These days wearing eyeglasses is very normal, but do you know who controls your eyewear? There is an Italian firm that is the world’s largest glasses maker. They don’t only create ordinary eyewear; they also make Chanel, Prada, Dolce Gabbana, Armani, and Bvlgari.
They manufacture a wide range of specs. It is likewise designed in a single plant. Meaning, when you talk around proudly proclaiming, “I’m wearing this brand,” it’s clear that it’s not the same as yours. There hasn’t been any change. It’s created by the same company and is produced under the same roof. It’s being designed by the same individual. This is the underside of the glasses business.
What do I do when there are so many styles to pick from? Right now, how many individuals on the planet are wearing eyeglasses? Because a single corporation controls a significant portion of the market.
What is Luxottica?
Luxottica is a fascinating brand that started back in the 1960s. In Italy, a metallurgist decided to perform some manufacturing work and decided to create eyewear. He negotiated a deal with wholesalers. In the 1980s, He signed a contract with distributors.
Glasses are a medical instrument. You can see well if you maintain an instrument in front of your eyes. However, the eyewear was not being marketed at that point. What’s the difference between someone buying something and everyone wearing it?
Medical Instrument or Jewelry
Eyeglasses were only medical devices. This firm and the 1980s trend did one thing: they began referring to spectacles as eyewear rather than specs. As a result, it fell into the jewelry category from the medical instrument. There are various styles to choose from, as well as a lot of money.
They started minting it, so mint it as much as you can. Armani, you must have heard of Armani suits; he was alive at the time. Then came Prada, Dolce Gabbana, Chanel, Tiffany, and Bvlgari, who all struck deals with him. He chose to produce eyeglasses for them after signing a deal with them all.
The RayBan Story
Bausch Lomb, an American brand, was founded in 1999. They used to create Ray-Ban eyewear for the US military. Its purpose was to protect the user from the sun while being trendy. They were affordable to the general people. This firm was purchased, and Ray-ban was taken off the market for a year. When they reintroduced eyeglasses on the market, the prices were raised by 4x-5x, and profit began to flow. Ray-ban is now the most popular eyewear brand in the planet. Luxottica’s acquisition of Ray-Ban is only a minor component of the company. Everything in the United States is under their control, from distribution to insurance.
I’ll show you but, first and foremost, you should be aware that the situation outside of the United States is quite different. They work with partners outside of the United States. In India, they have several partners, including TATA’s Titan and Eye Plus. Luxottica’s growth means that its partners must be expanding as well. You can invest in their partners if you wish to be a part of their big success.
Control on Distribution
How Luxottica works Distribution and insurance under strict control. Luxottica’s acquisition of Ray-Ban was only the beginning. They decided since we manufacture the frame of spectacles. We will now be in charge of distribution. As a result, they began purchasing eyeglasses distribution companies in the United States.
Do you know what benefit that control provides? You’re a glassmaker who solely sells your products. If anybody else is creating eyeglasses, they must contact you to market their products. If they reject to cut, you can take a significant cut from them, but their eyewear will not be sold. As a result, you may purchase them as well. This is precisely what occurred with Oakley, a sports eyewear company.
How does one company acquire all eyewear brands?
They refused to make any cuts. As a result, all of their eyeglasses were shelved, and Oakley was destroyed once Luxottica purchased Oakley after a year. Another factor in this approach is that you created the eyeglasses and sold them. However, the individual who purchases it is covered by insurance. That insurance business can claim monopolistic status.
We have a major problem with this industry, and we’re going to the Federal Trade Organization to find out what’s going on. They also acquired that business. Luxottica currently owns Eye Med, the second-largest glasses insurance company in the United States. Consider your options carefully. One firm manufactures eyewear, sells them, and also provides insurance. The whole monopoly is managed from a single location.
Illusion of Choice
You’d think I’d never heard of Luxottica before. So, what exactly are you saying? How will we be able to tell? There’s one additional tactic at work here. The illusion of choice is the name given to this tactic. You believe you have a lot of options, yet there are 50 different types of eyeglasses in front of you. You’ll believe you can get any of them.
What are the benefits of purchasing Luxottica? That is the cause behind it. They don’t mention Luxottica anywhere; instead, they present you with a variety of brands to choose from, depending on whether you want to buy a budget model or a high-end one. Money will be given to a single firm. When I realized what was going on, I was taken aback. What was going on? Why isn’t anyone talking about it?
I watched a couple of 60-minute videos. I received one BBC interview and gathered material from those sources; I’ll provide a few links.
Read more about Luxottica on Wiki.
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