However, all of the other eyewear producers combined don’t add up to the revenue that Luxuttica brings in annually.ģ. On the tail end of the spectrum are De Rigo, Marchon Eyewear, and Marcolin, holding licenses with Calvin Klein, Chloe, Salvatore Ferragamo, and Valentino.
The company earned $1.33 billion in revenue this past year, which is a mere fraction of Luxottica. This company holds licenses for Fendi, Celine, dior, and Marc Jacobs. While Luxottica owns a majority of the market, Safilo Group trails behind as a distant second. Because the company has control over so many different chains, it is able to set prices where it wants to. Needless to say, the company’s profits are tremendous. Brand dominance has earned the company 80% control of major sunglasses brands, which is part of a total $28 billion eyeglasses industry. Currently, over 500 million people around the globe wear glasses made by Luxottica. The company now makes Google Glass, which will become increasingly popular in 2016. By building a strong brand, Luxxottica has been able to expand out of the sunglasses industry and into tech. When people trust a brand and see it as valuable, they will desire products with that brand. Companies like Oliver Peoples, Rayban, and Chanel are able to charge so much for a simple pair of sunglasses because people are buying the brand. Once your logo is established and recognized, this logo provides a huge competitive advantage. Pricing products high inflates your worth and makes people believe that you have high quality items. To build a brand, establish your cost high. This is a lesson for marketers and branders. Head quartered in Italy, the company creates sunglasses and frames for Prada, Dolce & Gabbana, Tiffany, Versace, Oakley, and a variety of other vendors. Most sunglasses are manufactured by the same company, called Luxottica. How are they able to charge so much with such high margins? The answer is monopoly.
The company is a large part of why frames can cost upwards of $500, even though the product itself cost $25 to make. One company dominates the sunglass industry and is able to charge ridiculous prices for just a sticker. With so many companies providing a similar product and value proposition, often what distinguishes one from another is its ability to sell itself. Sunglasses which do not protect against UVB and UVA rays do not provide protection for your eyes, and present a hazard for your health.īranding is critical for sunglass companies. When purchasing sunglasses, look for a pair that offers a high percentage of UV protection. While it is easy enough to do, many people neglect to acquire proper eyewear. Without being protected from the sun, your eyes can suffer vision complications if they are exposed. While many individuals wear sunscreen to protect themselves from the sun, fewer take the same precautionary measures for their eyes. A pair of sunglasses that protect your eyes is one that you should purchase. Sunglasses need to be durable and ideally block UVA and UVB.
Quality sunglasses need to be durable and promote healthy vision. Branding without quality will help you make initial sales, but when people realize that your quality is low they will stop buying sunglasses. Branding is only valuable if it maintains the integrity of the company by only projecting true facts.
In an age of growing tech, sunglass quality and innovation is becoming crucial for the industry. Here are three things to know about branding in the sunglasses industry. While branding is important for the public relations, marketing and sales for most companies, for the sunglasses industry it is especially impactful. For company’s that brand effectively, they can achieve success and even dominance in the industry. Branding is often the determining factor and difference between a company’s success or failure. A sunglasses company’s ability to effectively market itself and articulate its value proposition to its prospective customers is critical for its sales. Of this market, sunglasses represent 40% of the total purchases.For the sunglasses industry, branding has been critical for success. Including frames, sunglasses, and contact lenses, the total industry is worth roughly $90 billion, and is projected to hit $140 billion by 2020. With 2015 coming to a close, 2016 will be an exciting year of innovation in the sunglasses industry.
0 kommentar(er)
