Are you also a Spexy?
Spexy is the new sexy!
Sometimes back in time wearing glasses was not a trend. Those who have glasses/ lenses due to sight issues, felt uncomfortable with it and were called “Chashmish”. But being “Chashamish” has become a trend today. Most of the young generation wears glasses/ lenses to look fashionable, to outshine and look cool.
The varieties and choices available for the users have a vast range. From different shapes to colours to brands, eyewear glasses have become a cool looking apparel for the youngsters.
In the eyewear craziness one the brand has made a great name and controls a significant share in the eyewear market.
Luxottica!
Talking about India Lenskart, Titan are some of the well known brands in the eyewear Industry. They capture a major market of the Indian eyewear Industry.
Luxottica is an Italian eyewear company which solely captures most of the eyewear market of the country.
Are you excited to know about this eyewear giant which has a monopoly in the Italian Eyewear Industry?
This article will let you know about this eyewear player running the Italian eyewear market.
Company’s Profile
Luxottica is an Italian eyewear conglomerate founded in 1961 in Agordo, Italy. Today the company has a headquarters in Milan, Italy. Initially the company manufactures and sells sunglasses under its own brand name. The company operates through retail stores which are owned by the company, Target Optical, Lenscrafters, Sunglass Hut, Pearle.
Company manufactures sunglasses frames for very well known sunglasses brands in the world. The company owns Rayban, Persol, Oakley brands which are the top selling and trusted eyewear brands in the world.
Founder’s Wall
Luxottica was founded by Leonardo Del Vechhio in 1961. He was born on 22 May 1935 in Milan, Italy. He grew up in an orphanage as his father died before his birth. He started as an intern and apprentice to a tool and die maker in Milan.
Acquisition
SInce it inception in 1961 the company has made many successful acquisitions and investments to expand the business and operations in the world.
In 2014, the company partnered with Google for the development of Google glass.
In 2011, Company acquired Erroca , a trendy designer eyewear company for Euro 20 millions.
In 2007, Luxottica acquired Oakley (a sports performance equipment and safety glass manufacturing company) for $2.1 billion.
In 2001, Luxottica acquired Sunglass Hut (An Italian sunglass and accessories manufacturer).
In 1999, Company acquired RayBan (A luxury sunglass and eyewear brand).
Moreover, the company also owns Eyemed, one of the largest vision health insurance providers.
Luxottica Merger
In 2017, Luxottica merger with Essilor (a French based international ophthalmic optics company) was announced where Essilor would buy Luxottica. Combinedly both the company controls 25% of world’s value sales of eyewear. Essilor is engaged in creating Varilux, the world’s first progressive lens. It corrects the problems of presbyopia and offers a clear vision. The combined market capital of the company was around 57 billion euros. Essilor was founded in 1849 in Charenton, France. It owns a bundle of brands working in the similar industry of opticals.
Monopoly price
Luxottica charged a premium price from their customers for their products. For the well known brands like Ray-Ban and Oakley the prices charged are comparatively very high than other competitors. The company sells some of the big sunglasses and eyewear brands along with the International distributed retail stores, eye insurance groups, which permits the company to keep prices high. The company was accused for its monopoly power in the industry as the company has acquired all the vertical integration companies and stores.
The company accounts for 10% of the world’s frame market and 20% of the USA. The company enjoys the benefit of a kind of monopoly because of its integration and acquisitions which allows the company to charge a premium price for their products.
Financials
In FY 22 the company reported an annual revenue of Euro 24.5 billion around 13.87% up from previous year revenue of Euro 21.51 billion.
Adjusted operating margin of the company was up by 70 bps at 16.8% in FY22. Dividend payout is ar Euro 3.23 per share up by 29% from previous year. The company is showing a positive growth in terms of revenue and margin. In the last few financial years, the profitability and revenue generated by the company has been growing at steady rates.
Challenges
Though the company enjoys the monopoly in the market, it still faced many challenges during the operations. In 2021 the company faced a data breach which leaked information of more than 70 million customers. The data contains customers address, mail, personal info, and other information.
Future Plans
The company is planning to build a practice management platform of the future to simplify the life of ECPs. The company has launched a new division Helix, focusing on helping the ECPs provide modern technology to improve their efficiency. It will help the eyecare experience of the patient and doctors. Company is also planning to launch a virtual experience digital showroom which will allow users to get the experience of the future of eyewear. It will provide effortless interaction to the users while exploring the company’s products. The company is a great step in the eyewear industry to offer a unique experience to their customers.
Website of the company
Customers can find the best match for their glasses, sun glasses, computer glasses, and other accessories through the official website of the company. One can order, track shipping, payment refund status on the website. The website is user friendly and offers a simple user interface. The brand’s product of the company can be purchased from the websites of the respective brands or from e-commerce platforms.
Conclusion
Along with offering the premium products in the eyewear market Luxottica enjoys the benefits of a monopoly. The company has captured a significant market in the eyewear industry not only in the home country but in the world. The company is looking to offer the best experience to the customers in the eyewear market. The company is gradually working to make the eyecare and checkup efficient and comfortable for the doctors and patients.
Luxottica has a big name all over the world and the brands it owns are demanded by the customers even at premium price due to the luxury and cool designs the company manufactures.
