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Luxottica, an Italian company, produces designer frames for 80% of the eyewear industry, including big names like Prada and Versace. They also own retail outlets such as LensCrafters and Sunglass Hut, causing concerns of a monopoly and high prices.
Have you ever wondered why a pair of prescription glasses or sunglasses can cost upwards of $500 USD? The answer probably has to do with the fact that an estimated 80% of designer frames are made by just one company, even though you probably won’t see its name on the label. Luxottica is an Italian company that produces designer frames for most of the big names in the industry, from Prada and Versace to Ralph Lauren and Tiffany. Luxottica estimates that at least half a billion people worldwide wear glasses. That equates to a healthy $28 billion annual share of the eyewear industry. Detractors argue that this huge market share constitutes a monopoly, giving consumers only the illusion of choice and forcing them to pay high prices.
One company, thousands of looms:
Luxottica also gets its hands on the retail market. The company owns a number of retail outlets including LensCrafters, Sunglass Hut, Pearle Vision, Sears Optical and online retailer glass.com.
Leonardo Del Vecchio founded Luxottica in 1961 in Agordo, Italy. The company is now based in Milan.
WarParker is one of the best known independent online retailers. The company allows customers to try on multiple frames before purchasing. Other non-Luxottica brands include Zenni Optical and Eye Buy Direct.
