How industry consolidation affects you: eyeglasses

Luxottica is in the news in the digital realm right now for its forthcoming collaboration with Google on Glass-wear.

Google went straight to the top on this one, as Luxottica is by far the industry leader in eyewear. The company makes eyewear under 27 different brand names, for both its own brands, such as Ray-Ban and Oakley, and a variety of high-profile licensees like Chanel and Prada.

Luxottica has the market pretty well covered on the retail side, too: if you’ve ever set foot in a Lenscrafters, Pearle Vision or Sunglass Hut, you’re on their turf. The company also takes care of the eyeglasses at Sears and Target, among others.

In total, Luxottica has roughly 80% of the major eyewear brands under its control. Main competitor Safilo has an impressive portfolio of licensing partners but a much smaller footprint and fewer known in-house brands.

Me, I’ve been wearing American-made Bevel glasses of late, and independent ic! berlins before that. But it’s interesting to know that when I made a big switch a number of years ago from Oliver Peoples to Paul Smith, I wasn’t really changing much of anything.

This is the latest in a series of summaries of industries whose corporate consolidation has led to a small number of players controlling the majority of a sector, creating oligopolies in the mass market. Previously