Friday, May 03, 2013

Why Are Glasses So Expensive?

Because one company, Luxottica, owns or controls most of the world's eyeglass business. Luxottica owns LensCrafters, Pearl Vision, Sunglass Hut, Sears Optical, Target Optical, and some vision insurance companies, e.g. EyeMed. They own Ray-Ban, Oakley, Vogue, and numerous other brands. They also make eyeglasses under license for designer labels such as Chanel, Coach, Prada, Dolce & Gabbana, Ralph Lauren. The list of businesses they control related to eyewear, from brands to retail outlets, is staggering. Their strongest competitors in America are Walmart, Costco, and Warby Parker.

Here's a 60 Minutes segment that aired in 2012 highlighting Luxottica's extensive holdings and their ability to keep prices high ... $200-$300 for eyeglasses that cost about $30 to make.


1 comment:

Bix said...

I wonder how Luxottica will get along with Google Glass, assuming Glass decides to accommodate the millions who wear corrective lenses.