Luxottica owns and licenses Armani, Brooks Brothers, Burberry, Chanel, Coach, DKNY, Dolce & Gabbana, Michael Kors, Oakley, Oliver Peoples, Persol, Polo Ralph Lauren, Ray-Ban, Tiffany, Valentino, Vogue and Versace.
Italy’s Luxottica also runs EyeMed Vision Care, LensCrafters, Pearle Vision, Sears Optical, Sunglass Hut and Target Optical. It also merged with the world’s leading maker of prescription eyeglass lenses and contact lenses, to form EssilorLuxottica.
The acquisitions make Luxottica a major player in the seller’s market (production, distribution) and the seller’s market (vision insurance). EssilorLuxottica controls about 30% of the global market share.
While the true price of acetate frames is \(\ge\) $10, the average cost of the finished product is \(\approx\) $231. Precision work for lenses is automated too. Reasons given for the markup: fit, comfortability, precision work.
In the 90s, producing quality frames cost \(\approx\) $10 - $16 and lenses went for \(\approx\) $5 - $15. LensCrafters then sells these at $99, and independent opticians then increase the price too. Despite advancements, LensCrafters now sells at hundreds of dollars. $800 is just a total rip-off.
Why are glasses so expensive? The eyewear industry prefers to keep that blurry. David Lazurus. https://www.latimes.com/business/lazarus/la-fi-lazarus-why-are-eyeglasses-so-expensive-20190122-story.html . Jan 22, 2019.
Column: How badly are we being ripped off on eyewear? Former industry execs tell all. David Lazurus. https://www.latimes.com/business/lazarus/la-fi-lazarus-glasses-lenscrafters-luxottica-monopoly-20190305-story.html . Mar 5, 2019.
Luxottica - Criticism. https://en.wikipedia.org/wiki/Luxottica#Criticism .