The term fashion not only refers to clothing items. It refers to accessories as well. Accessories can make or break an outfit. Amongst the different kinds of accessories that available in the market, sunglasses are a widely used accessory. The popularity of sunglasses is undeniable. It’s one of the most popular daytime accessories to look like a fashionista. The Luxottica Group has monopolized the sunglasses market by taking advantage of the popularity of sunglasses as a fashion accessory.
About Luxottica
The Luxottica Group is a company based in Italy. It specializes in producing and manufacturing eyewear. It is the biggest company in the eyewear industry. This company was founded by Leonardo Del Vecchio. The current CEO of the company is Francesco Milleri. This company is responsible for manufacturing eyewear for most of the known eyewear brands in the world. This company has a market share of approximately 70 percent. They have collaborated with a French company called Essilor. Together, they are responsible for producing a large percentage of luxury, sports, and premium eyewear. This company not only manufactures sunglasses, but prescription eyewear as well.
How have they monopolized the eyewear industry?
Think about a few eyewear brands. Ray-Ban, Giorgio Armani, Chanel, Vogue Eyewear, Oakley, Prada and many more popular brands that sell eyewear are all owned by the Luxottica Group. Having ownership of a good deal of popular eyewear brands makes Luxottica a monopoly. This means that a huge percentage of the world’s population are buying eyewear that has been manufactured by this company. Owing to the Luxottica dominated market structure of the eyewear industry, this company will always make a lot of profit. The secret behind this company’s success lies in the fact that they can manipulate the price of the eyewear sold by all these popular eyewear brands.
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The consequence of this monopolization
The success of this company boils down to basic economics. Luxottica’s ownership of so many popular eyewear brands means that they can set any price for their eyewear. People will be bound to pay more money for their eyewear if most of the brands increase the overall price of their eyewear products. This is how Luxottica has become the most successful eyewear company.
