Eyewear (spectacles, Sunglasses) Industry – Competitive Market or a Monopoly

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Contents

1.        Introduction        

2.        Is it a competitive Market?        

3.1        Price Taking        

3.2                

3.3        Product Homogeneity.        

3.        Luxottica Group SpA        

4.1        Current Mission and Strategy        

4.2        Future Strategy for Luxottica        

4.        Reference :        

1. Introduction

The industry was valued at US $81 billion In 2011 and is expected to reach US $130 billion by 2018. Eyewear industry is segmented into following Product type :

• Spectacles

• Spectacles Lenses & Frames
• Sunglasses.

• Contact Lenses.

Like any other industry Eyewear industry operates under different manufactures, brand, distributors & retailers. Different brands available in these segments. If we focus only on Spectacles Lenses & frames and sunglasses, major brand operating in the market are:

ARNETTE, BROOKS BROTHERS, BURBERRY, COACH, DKNY, MICHAEL KORS, MIU MIU, OAKLEY, OLIVER PEOPLES, PAUL SMITH SPECTACLES, PERSOL, POLO RALPH LAUREN, PRADA, RALPH LAUREN, RAY-BAN, TIFFANY & CO., TORY BURCH, VERSACE, VOGUE EYEWEAR, Chopard, Escada, Fila, Tous, Orla Kiely, AGONONA, DIESEL, VIVA, SAVVY, GUESS, TIMBERLAND etc.

The journey of these frames from manufacturing units to customer is through Retail chains like:

DAVID CLULOW, GLASSES.COM, GMO, ILORI - OPTICAL SHOP OF ASPEN, LAUBMAN & PANK, LENSCRAFTERS, OPSM, PEARLE VISION, SEARS OPTICAL, SUNGLASS HUT, TARGET OPTICAL, GENERAL OPTICA, MAIS OPTICA, OPMAR OPTIK, BOOTS OPTICIANS ,

Major manufacture are: LUXOTTICA, DE RIGO, MARCOLIN and SAFILO.

A fashionable frame at Lens Crafters store cost around $400, which would cost around $30-50 in a manufacturing plant. So how does the selling prices being set.