If you’ve been buying sunglasses, you should have at one point wondered why the price of the eyewear has remained high. One of the major reasons why the glasses are so expensive is monopoly. So, who is playing the monopoly game here?
Well, it is Luxottica, the largest eyewear company in the world. The Italian firm controls a large chunk of this business. Most of the high quality shades or specs worn across the world are made by this company.
Luxottica glasses are 100% functional and 100% aesthetical. They are the kind of glasses that can be worn for 15 hours a day. The company has put a lot work behind the eyewear to make them exceptional. It has revolutionized how people see glasses, and this is one of the reasons for many people going for their products.
Luxottica creates high quality, stylish glasses for a number of brands and labels, including Prada, Chanel, Dolce Gabbana, Versace, Burberry, Ralph Lauren, Tiffany and Bulgari. Controlling so many brands and labels, Luxottica has the power to set the prices of the eyewear. Since the company believes their brands are luxurious, they have no problem when setting high prices for their products.
In 1990s, Ray-Ban was a popular brand that had affordable sunglasses before Luxottica bought it. Luxottica refurbished everything about this brand and fixed the prices at $150 and more. Today, Ray-Ban is the world’s most popular sunglass brand. The eyewear company also bought LensCrasfters of North America. A pair of LensCrasfters specs used to cost as low as $30 before the eyewear retail chain was purchased by the Italian firm. Today, the cheapest pair of specs sells at $150.
Someone would ask why the medical insurance companies are not complaining about the high costs of the glasses. The insurance companies can’t help because Luxottica also owns a large vision-care plan called EyeMed. The price of glasses is likely to increase after Luxottica signed a deal with Google to make and sell Google Glass.