Lie: Eyewear Companies like Ray Ban, Chanel, Dolce and Gabana, Prada, Versace and Tiffany all make their own products in their own factories.
Have you ever heard of a company called Luxottica?
Luxottica is the world’s largest eyewear company which controls over 80% of the world’s chief eyewear brands.
Founder- Leonardo Del Vecchio
Leonardo Del Vecchio started the company in 1961 in a small town in Italy. Today, the company is set in Milan.
In 1967, Del Vecchio started selling complete eyeglass frames under the Luxottica brand, which proved to be quite successful. By 1971, he ended other businesses he was involved in; focusing solely on Luxottica.
The company listed in New York in 1990 and then became listed in Milan in December 2000. The listing raised money for the company and allowed it to use its shares to acquire other brands, starting with Italian brand Vogue in 1990, Persol and US Shoe Corporation (LensCrafters) in 1995, Ray-Ban in 1999 and Sunglass Hut, Inc. in 2001. Luxottica became very prosperous, acquiring Sydney-based OPSM in 2003, Pearle Vision and Cole National in 2004.
According to Luxottica, they revolutionized how we see glasses. They renamed glasses, eyewear; making them ‘cool’ to wear. Mostly all eyewear are designed by them, even the most well-known and expensive brands. The fashion houses send in sketches of their new collections as inspiration and the factory floor works hard to differentiate the brands. For instance, plain plastic pieces are put through a painting machine and come out Versace. Stones are inserted one by one onto the Dolce and Gabana frames and leather is carefully threaded into frames for that Chanel bag look.
Dolce and Gabana
Truth: Luxottica is the biggest eyewear company on earth which shuns publicity.
The shocking details:
· Luxottica is a $20 billion company.
· It makes eyewear and sells them.
· 500 million people wear its products.
· 65 million pairs were sold in 2012.
· Most people who buy from these stores are unaware of this truth.
· It owns glasses stores LensCrafters, Pearle Vision, Oliver Peoples, Sunglass Hut and many others.
· It even owns Eyemed, the nation’s most popular vision insurance company, which makes it difficult to crack down on their corruptness.
Truth: “Because it owns so much of the eyewear industry – from supply chain to distribution – Luxottica is able to charge very high prices for the glasses it sells.”
The average frame plus lenses costs the consumer about $300 at Lens Crafters which is about 20 times more than it even costs to make them.
Question asked to LensCrafters President Mark Wickle: Since Luxottica owns LensCrafters; does the consumer get a break by the glasses made by them which are sold in LensCrafters? No, customers do not get a break.
1. Luxottica’s prices are unfair rip-offs.
2. Luxottica is a monopoly that cannot be defeated.
Take a Stand!
A New York-based startup company called, Warby Parker, wants to destroy the $20 billion dollar company that rips off its customers. The company is on a never-say-die mission to destroy Luxottica.