A Closer Look at the $13B Premium Eyewear Market
businessoffashion.com
businessoffashion.com
Luxottica retail brands: http://www.luxottica.com/en/retail-brands
Luxottica eyewear brands: http://www.luxottica.com/en/eyewear-brands
Luxottica vision insurance: http://www.luxottica.com/en/node/6336
See 60 Minutes story on Luxottica: https://www.youtube.com/watch?v=gDdq2rIqAlM
Edit: Ok, here we go downvoter. From memory: I could get a Perry Ellis frame out of the Frames catalog for about $10. Sola would sell me bifocal CR-39 lenses for ~$3.50/pair. A bottle of dye to tint lenses was about $4.00 and would last a week. A bottle of UV solution was $12 and it too would last a week. We'd sell the Frames for $150, the lenses for $125 and $10 a pop for tint and UV. This was early 90's before Luxottica bought everyone. I know I was in the business and, well, stayed in the business even after they bought the company I worked for. I'm not defending Luxottica. I don't like them, but it paid for my education and I have a pension coming in 10 years or so. Anyway, it was expensive _before_ them. My point stands. The one hour shops all had more to do with the prices going up than Luxottica did at that time.
In turn, Essilor has ownership in Shamir, Eyebuydirect, FramesDirect, Coastal, Coolwinks, Costa Del Mar, Elens, Eotica and Foster Grant, https://www.essilor.com/en/the-group/activities-and-distribu...
If EU regulators allow the merger to go through, one $50B company will own the most online channels for eyeglasses and contacts, in addition to lens manufacturing & retail storefronts & vision insurance.
I am honestly curious if this is primarily a materials, vendor, distribution, design personnel or intellectual property bottleneck.
That said, the frames are totally hit or miss, with some of them feeling like they aren't worth the $10-20 or whatever they cost. I find though, its no so much materials as attention to detail. The materials themselves withstand a beating. One of my favorite pairs _rattled_ when I got it because the little plastic nose pieces, and the little plastic piece that fit over the end of the arms was lose. Drop of glue in the ear pieces, and a softer nose piece and they are now my favorite glasses.
OTOH, I also owned a half dozen pairs of ray-bans before I switched to zenni, and probably 3/4 of them had finish problems within the first couple years. The coating on the plastic pieces started to disintegrate leaving a sticky residue on one pair, and three pairs with metal frames had the clear varnish like substance start to crack and peel from the metallic finish. Another started to discolor after a couple years. I guess at least rayban has perfected planned obsolescence...
Mykita founder split from ic berlin (screwless frames). If you look at their designs, there does seem to be IP/patent avoidance. Both are comparably priced. There are supposedly cheap clones available, maybe they can be found on Alibaba.
Edit: see https://news.ycombinator.com/item?id=15431180
Edit2: ic berlin patent (expired?): https://www.google.com/patents/US5418581
Also a big fan of Etnia Barcelona -- they're in a similar price bracket (as far as I know they're independent, but I'll admit to not having researched it)
The same thing is true, IIRC, of Scottish tartans. All the nice plaid represents some clan or another.
I've had similar experiences with dress shirts as well. Plain nice shirts end up costing more than elaborate designs because that's the one people actually want
I always assumed that, when it comes to logo covered clothing, you were getting a subsidized price in return for "repping" e.g. Nike.
I can't find the source online, but I remember reading in "The Luxury Strategy" [0] that the cars at the lower end of the Mercedes line-up had badges 2" larger than those on the premium cars (e.g. A vs S Class), and the LV on the lower end Vuitton bags was larger than the higher end ones - specifically so they could be seen more easily to heighten the ego of the owner.
[0] Kapferer: https://www.amazon.co.uk/Luxury-Strategy-Break-Marketing-Bra...
Patterns that people are willing to pay more for are more expensive because there is more money chasing them, not because they are more expensive to create.
So Luxottica stopped distributing Oakley's products in Sunglass Hut, etc.. which deprived Oakley of the majority of it's revenue, causing their stock to crash.
Oakley then accepted a buyout offer from Luxottica.
So to answer your question, why are there not better Luxottica competitors.. because when someone produces a good product, they'll become large enough to attract Luxottica's attention...
If Luxottica controls the distribution channel.. what options do you have if they want to play hardball? No good ones.
One could have argued similarly for Gillette. Then Dollar Shave Club went direct to consumers.
Likewise, I referenced an independent distributor who stocked non-Luxottica frames. Margins in this business are wide enough that economies of scale, alone, are an insufficient explanation.
When I bought my Oakleys last year, most of my research was by browsing in the two Oakley retail stores in my city. Some was from browsing at surfwear stores (as far as I know, Luxottica don't own Rip Curl or City Beach).
A small portion of my shopping research was on my (Luxottica-owned) optometrist's website, but I ended up buying from the Oakley Factory Outlet store.
https://seekingalpha.com/article/40333-oakley-luxottica-grou...
thats kinda sorta the whole point of marketing a branded commodity product...
Can you imagine Comcast owning most of the media production companies, all of college/professional sports broadcast rights, internet access for home/business, AND forcing you to rent all personal computers you can use at home?
This is exactly what's happening with the eyewear industry.
Clearly because of this monopoly there is no innovation from within industry except for designs. There is no substantial feature development around glasses, lenses or frames, again Silicon Valley has to step in and do innovation by combining two different industries.
Seems like this problem will never get solved.
Governments seem to be just surrendering to Corporate all over the world. Clearly Corporate have more buying power and they take care of themselves and not the general public. So there is no entity to take care of general public's interest.
:(
Here is one in some remote place in a small third-world country: https://www.facebook.com/vakay.eyewear/
Their eyewear is not cheap but it works out the same as Luxottica after you add import tariffs.
Edit: It is important to mention that it is handmade.
https://en.wikipedia.org/wiki/Hawkers_(company)
"In 2014 the company's revenue exceeded 15 million euros,increasing to 40 millions the following year, and in 2016 Hawkers projected 70 million euros in sales."
As noted elsewhere in this discussion, it was expensive before. Independent opticians feel attacked on one side by e-commerce, and on the other side by Essilor/Luxottica, chains in general, and big-box stores The real issue may be that they can't see the value in changing how they have always worked or that even if individual opticians are open to change, they are stuck in a supply chain that may hold exactly the opposite view.
1. augmented reality could get real and good very fast. Lots of people will be comfortable testing glasses at home instead of checking the optician. Visiting the optician is the most awkward shop I go to.
2. How long before we have advanced cameras and the eye test could be done online? Well, I think a bit longer than I'd think but that's in the realm of possibilities.
Also some conditions such as glaucoma can be difficult to test (http://www.glaucoma.org/glaucoma/diagnostic-tests.php). I remember one of the tests is to use a tonometer to check pressure by firing a puff of air at the eye, so for any of the tests today that give output values, these could feasibly be administered at home but wouldn't form a complete picture of our eye's health.
Interesting to think what an "opticians" could be in 20 years from now.
As I understand their logic is that the PD is part of the fitting process for the glasses and not the optical prescription.
Perhaps they obtain frame measurements at the same time as they measure PD. But the machine is capable of measuring PD alone.
Try another store/human.
I don't doubt that it could be measured as part of the optical prescription process but it isn't as far as I've seen. I'm in the UK.
They're set up to handle tourists, and will handle duty free as well.
JINS PC (blue-light blocking) glasses were an industry marketing breakthrough, selling almost 1 million units in the first year, https://corp.jins.com/jp/en/company/history. Their success prompted eyeglass lens makers to launch blue-blocking coatings, now widely available.
A HN comment set me looking for some blue-blockers for night driving: https://news.ycombinator.com/item?id=14170975
My locally-owned sunglass shop stocks yellow blue blocker safety goggles that fit over my glasses. They turn obnoxious blue headlights green. I give them a 'blue headlight obnoxiousness reduction factor' of 85%.
The orange safety goggles ("uvex") I ordered from Amazon first were better (95%), but they block out too much green to be safe for night driving.
http://cocoonseyewear.com/find_a_dealer/ - overx.com (imprinted on my yellow glasses) redirects to this site, but what I have isn't shown on their site...
For computers, Flux (http://justgetflux.com) offers more control of blue light, and it does make a difference. Also, increase your blinking, periodically focus on distant objects (use a timer if needed) and don’t look at a bright screen in a dark room without ambient light.
I had an eye test onsite, picked frames, and picked up glasses all within 75 minutes. Awesome experience! I think they are off Powell and O’Farrell, and I’m wearing them right now.
In France, the "not 2-inch thick" lenses alone end up costing that, with me ending up paying over $300 + the habitual 2 month waiting period just to go to the optometrist...
So even if you have some special needs, they'll often be able to accommodate (though sometimes you need to wait a day so it won't be same day)
I remember around 15 years ago in Bangkok my friend broke his glasses so went to the first opticians he found in a mall. He didn't have his prescription so they took some eye tests, he then picked out his frames and lenses and then was asked to return later that day for pickup. Absolutely blew our minds that this was possible
JINS actually starts at $50 (price includes eye exam+frames+lenses, and you can drop by whenever afterwards to have them cleaned/adjusted), and when I had mine made it only took one hour. I saw the machines they have in the back that prepare the lenses on-the-spot. In effect lens 3D printers. Neat stuff.
I bought many over the last 5 years.
Sofia, BG.
Edit: spelling
My experience with Zenni was of the "you get what you pay for" variety.
They work fine, but it's like buying anything else designed to be disposable. Make sure you have a few pairs on hand for backup
I sleep on them, drop them, subject them to all kinds of mistreatment, and they don't break!
Ok, they eventually break, but it takes a few years of mistreatment. I get my $12.95 out of them!
Oh, wait that was Rayban and it was inhaled by the same company.
YMMV.
It takes a bunch of time to check sizes and narrow down the options but 100% worth it. I have 3 pairs that cost $80 total and paid for extra alike high index and anti-glare.
are these numbers public? source?
"...the company is still averaging about $3,000 per square foot of retail space, a figure that’s in the same breath as Tiffany’s estimated $3,043 ... stores are not profit centers as much as marketing collateral, giant advertisements for Warby Parker’s website. “They’re synergistic,” he says, noting that 85% of Warby retail buyers have already browsed online."
If Google opened up a retail shop I'm sure their profit per square foot will be quite high....
The steel ones are exceptionally light and easy to clean. Design is subjective, but the 'studio' line is generally rather inoffensive (I do have a pair of the Damir Doma ones, too - https://my.mixtape.moe/ffhahq.jpg). Their screw-less hinges are pretty great. The prices are high, but they're low volume objects and there is probably a lot less gouging going on. There are other non-luxottica boutique makers, too.
Boutique frames are not usually available online, only from authorized B&M retailers. Because of the cost, opticians only carry a few models. Sometimes older models show up on Amazon and eBay. A few models are available at http://www.pretavoir.co.uk/us/ and http://framesdirect.com (owned by Essilor, soon to be Luxxotica).
- frame width (temple to temple)
- bridge size (nose width)
- A size (width of lens)
- B size (height of lens)
- temple length (arm that goes over ear)
- base curve / frame wrap angle
- panto (vertical incline of lens)
Frame manufacturer's web site has some info, at least [lens width - bridge - temple] are provided. To determine frame fit, you need sizes from current frame or model numbers from frames tested at a B&M store.An optician will measure where your eyes are located horizontally (pupillary distance) and vertically in the frame (fitting height). This determines where the optical center (clearest vision) of the lens will be located in the frame. Most online sites for single vision lenses do not have an input field for fitting height, using averages instead. But they often have a "special instructions" field where you can enter custom instructions, including fitting height. HN thread on PD measurement: https://news.ycombinator.com/item?id=15154066
Progressive (varifocal) lenses are complex to buy even at B&M, never mind online, because fitting and use-case analysis matter more than with single vision lenses.
Since FramesDirect is owned by Essilor, they use Essilor lenses, which are well known. Other online sites don't say much about their lens manufacturer. http://eyeglasslensdirect.com (US) and http://specsdirect.ca (Canada) sell branded premium lenses at discount prices, online reviews are mixed. There are 1700 old msgs about cheap online glasses at https://groups.google.com/forum/m/?hl=en#!forum/glassyeyes
If the Luxxotica-Essilor merger goes through, retail stores like LensCrafters may start providing fitting/adjustment for online stores. A better outcome would be for independent opticians to unbundle their fitting/adjustment pricing, so you can buy your frames at one store (or reuse a high quality frame), a premium branded lens at another store/online, and obtain your frame fitting at a B&M optician.
The hardest part is getting the distance-to-pupil that you need to input in millimeters. I just asked last time I went to a physical store and they measured it with the little machine.
LENS Local labs (and increasingly regional labs) mass customize these lens blanks based on frame and prescription details. - $7-11: For a pair of single vision lenses - $35-40: For a pair of transition lenses with progressive prescription - A couple dollars for labor AT MOST - A couple dollars for additional high end treatments that isn't already backed into the blanks (large CapEx now involved in these treatment machines hence the regionalization of these labs).
VISION INSURANCE - More of a discount program than insurance - Labs are often what "vision insurance" own with a discount program that is extended to you via these services at your local optometrist. - Medical insurance (not your vision insurance) covers anything serious...generally when you need to go see an Opthamologist or a Eye surgeon
LUXOTTICA They are aggressive, smart, license a good chunk of the luxury brands, AND vertically integrated to the nth degree. And yes, they own one of the largest "vision insurance" companies too, EyeMed.
I have pretty bad vision, -9.0 and astigmatism so the optometrist recommend I get 1.74 high index lenses from Nikon [1], because according to him, it would be "harder/more impact resistant" and the quality would be better.
I also got additional coatings, like anti-reflective, blue light, UV, etc...
So I'm just wondering, if the brand actually matters or are they also all made by a single large factory? Are Nikon lenses that much better than the generic ones from Warby Parker?
1. http://nikonlenswear.com/products/see-series/seecoat-plus
Here is a chart on lens materials: http://64.50.176.246/tools/materials.php
I don't think Luxottica has anything going for them apart from monopoly. All their glasses are made with same technology, RayBan did not change last 50 years.
Without condemning anyone, the US has a very stratified class system. Those lower on the socio-economic ladder may not invest in vision care, which is a more complicated and expensive proposition in the US than it is in Europe. Among those that do, the US population probably has more disposable income than their European counterparts.
I love Europe, but saying that Americans hate nerds and Europeans are intellectual is just lazy. Many European policies, especially in terms of monetary policy and immigration policy, are not what I would call thoughtful or logical.
Which reminds me how Woody Allen once said, when asked why he was so beloved and respected in Europe, that apparently they might think he is an intellectual, since he's wearing glasses :)
People have more money now of course, but the impression remains that contact lens are a luxury, not a necessity. Plus, the big rise in salaries in my city happened precisely at a time when spectacles were suddenly in fashion. Distribution of the lenses and lens cleaning products remains poor, and if you need a prescription for astigmatism, you can expect to wait 1–2 months for the special order.
In Germany, they used to cover glasses till 2003, tho you still had to pay for the frame yourself. They also covered contacts but only in special cases, so getting those on prescription was quite a bit more of a hassle.
2003 has been a while ago, but I have no doubt that plenty of people still have their prescription glasses from back then around, I do.
It's got either something to do with that or there's some societal difference which allows American people more easily to touch their eyes because that's usually one of the main reason people don't wear contacts, at least from my anecdotal experience.
As a customer, you don't really care, its mostly free for you of course, or worst case scenario you will have to do the deductible. When you go to a store with your prescription, they don't even bother talking about the cost side of things, all they want to know is what insurance you have. In a way it has a few similarities with the US health care system, prices are ridiculously high, often very opaque, sort of like in a legal mafia. In addition to this, the few people who have cornered this business have made sure it's hard to buy contacts or vision glasses in the next country. To give you an idea, just the glasses typically cost something like 200, except per glass, and as you know you will need two. They also have no problem charging you all kinds of useless options you don't need, the classic for example, consists in automatically adding the anti glare coding option by default if the client is an older person.
This is completely illegal but every shop does it (suggests it without prompting from customers).
It's all insane but there seems no way to stop it.
Many online shops have started to appear but they too charge a lot (all reimbursed by public/private insurance). There doesn't seem to be really cheap options.
Recently, I happened to visit a store to look for a new pair of frames (& glasses). The frames were so insanely expensive I had to ask the guy: "Why are they so expensive?". The guy's short reply was: "It's the brand". When I pressed further to explain, he couldn't say anything meaningful.
Moreover, the quality of these "branded" glasses from my tactile inspection felt subpar (as in, I was wondering: "will they even last a couple of years?").
/me is still on the look out for a reliable way to find something reasonable without shelling out an arm and a leg. (Don't mind paying for good quality.)
If you find a model number that you like, do a web search for "modo model_no" to find out the exact size and normal price. Make sure the size is close enough to a frame that you have tried and found to be a good fit.
If you have a strong prescription, you'll want a frame with a narrower lens width, otherwise the edges of the lens will be thick, even with hi-index materials.