Monday, June 16, 2014

I Can See Clearly Now

Yesterday I saw a very interesting piece on 60 Minutes.  I just bought a pair of Ray Bans so this story couldn't have came at a more perfect, or maybe, a more worse time.
Luxottica, a name you and I have most likely never heard of is a Monopoly; and I'm not talking about the popular board game in which I've never played.
Luxottica Group manufactures and sells sunglasses.
So, what's the big deal?
They rule the whole sunglasses world. No exaggeration. Unless you're buying sunglasses from some tween/ teen store, virtually every pair of sunglasses you see are made by Luxottica.
Prada, Versace, Dolce and Gabbana, or Chanel, Ray Bans... the list continues. Not only does Luxottica make sunglasses, but they sell them. Ever heard of Sunglass Hut, Lens Crafters or Pearl Vision? Even, Sears and Target optical are run by- you guessed it, Luxottica. You can physically not go anywhere without falling into Luxottica's marketing ploy.
One company is putting a price restriction on an entire market. Because Luxottica owns everything in its particular chain of work, they can price glasses at unimaginable prices with no backlash.
This whole situation spells monopoly.
But Sarah, aren't monopolies illegal?
It depends on what type of Monopoly a brand is considered. In this case, Luxottica has- yet- to break any anti trust laws so they are in the clear.
And here's the sucker punch: Those $200 pair of sunglasses that you, I, numerous people just bought realistically only takes $30 to make. Particular names sell and Luxottica knows it. They also know we're blind enough to buy them.
Something to think about on this Monday morning. 

No comments:

Post a Comment

Thanks for stopping by! Tell me what you think: