The video explores the eyewear industry, exposing the high markup on glasses relative to their production costs. It focuses on EssilorLuxottica's extensive control over the market, covering both manufacturing and retail aspects. Explains why Ray-Ban glasses cost so much. Are you over paing for your Ray-Ban glasses?

Today, we're diving into a topic that affects millions of people worldwide: the price of eyeglasses. You might be surprised to learn that what you're paying for those stylish frames might be a lot more than you think.

Now let's peel back the layers of the eyewear industry. It's a world of big brands, high prices, and one company that seems to dominate it all.

Let's take a quick trip back in time. Eyeglasses were once a simple tool, a necessity for those with vision problems. But over centuries, they evolved into fashion statements, and today, they're often luxury items.

EssilorLuxottica. You may not know the name, but chances are, you own at least one of their products. It’s a behemoth that has dominated the eyewear industry.

This behemoth controls almost every aspect of the eyewear industry. From the lenses you wear to the stores you buy them in, they're likely involved.

The eyewear industry is unique. It's a blend of fashion and function. While the technology behind lenses has improved, the basic structure of a pair of glasses hasn't changed dramatically. Yet, prices have skyrocketed.

Manufacturing costs for a basic pair of glasses are surprisingly low. The cost to manufacture quality frames can be as low as $2, while designer frames may cost around $10. So where does the markup come from?

From the iconic Ray-Ban sunglasses to high-end designer frames, the company behind them is EssilorLuxottica. It’s a name that’s become synonymous with eyewear. But how did this company become so powerful?

The journey begins in the 19th century with two separate entities: Essilor in France and Luxottica in Italy. Essilor focused on lenses, while Luxottica mastered the art of frames.
Luxottica was the brainchild of Leonardo Del Vecchio, a self-made billionaire who transformed a small workshop into a global empire. His business acumen and relentless drive propelled Luxottica to the forefront of the eyewear industry.

Luxottica’s strategy was simple yet effective: buy, build, and dominate. They acquired iconic brands like Ray-Ban, Oakley, and Persol, expanding their reach and influence.
In 2018, a seismic shift occurred. Essilor and Luxottica merged, creating a colossal eyewear giant. The combined entity, EssilorLuxottica, now controlled almost every aspect of the eyewear industry.

From manufacturing lenses and frames to owning retail chains like LensCrafters and Sunglass Hut, EssilorLuxottica has an iron grip on the market. This vertical integration allows them to control prices and margins at every step of the supply chain.

EssilorLuxottica's market dominance is staggering. They control a significant portion of the global eyewear market, giving them immense power over consumers and competitors. They own more than 11,000 patents in the eye ware industry.

The company's strategy of partnering with high-end fashion brands has been a masterstroke. By aligning themselves with luxury labels, they’ve elevated the perception of eyewear as a fashion accessory, driving up prices.

EssilorLuxottica's dominance in the market gives them immense power. They can dictate prices, limit competition, and control the narrative.

EssilorLuxottica owns or controls all these brands and more. Ray-Ban, Oakley, Persol, Oliver Peoples, Vogue Eyewear, Arnette, Alain Mikli, Costa, Bliz, Native Eyewear and Bolon. Prestigious licensed brands are also part of the EssilorLuxottica family, including Giorgio Armani, Brunello Cucinelli, Burberry, Chanel, Coach, Dolce&Gabbana, Ferrari, Jimmy Choo, Michael Kors, Moncler, Prada, Ralph Lauren, Starck Biotech Paris, Swarovski, Tiffany & Co., Tory Burch and Versace.

Consumers are often unaware of the markup on eyeglasses. They're paying a premium for the brand, not necessarily the product. What do you think about the dominance of EssilorLuxottica in the eyewear industry? Share your thoughts in the comments below.
Luxottica controls 80% of the major brands in the $28 billion global eyeglasses industry. This monopolistic structure of the market leads to profits that are “relatively obscene,” says Tim Wu, a professor of law at Columbia University.

Thank you for watching! Now you know why you're Ray bans cost so much more. If you found this video informative, please hit that like button and subscribe to our channel for more financial insights. Share this with someone who wears glasses. Let's build a community of savvy consumers together!

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