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Luxottica Group SpA Message Board

  • barspin@sbcglobal.net barspin Oct 8, 2012 7:39 PM Flag

    Something smells fishy here

    I could never for a million years or dollars for that matter... Get me head around ( no pun intended )
    why ray bans cost so dang much... They have doubled in price in 3 years...

    Well now.. Let's see they own the brand, own the factory, own the stores they sell the product, and did I get this right from the story last night 60 minutes " they won't sell to other stores that they don't own " maybe I missed something... And the CEO comes off a bit I don't know what to call it..? But maybe Wolf in the hen house or cat that ate the bird kinda vibe I was picking up... Poor guys at oakly seem like they got the sharp end of the stick..

    Oh well I noticed 7 times normal trading volume today.. Are people heading for the doors on this one ????.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Let's look at the facts, instead of the hype.
      1) Lux sells to anyone, including the competition. Anyone carrying Ray Bans or Oakleys is competition, and they bought their glasses from Lux. Of course they'll sell to anyone who wants to buy. That's how you make money.
      2) Lux didn't put Oakley out of business or force them to sell. The two mutually stopped doing business in fall 2001when they couldn't agree on purchasing terms. They started doing business again in 2002 when both realized they needed each other, and Oakley was acquired 2007 for 2.1 billion. Not exactly holding them hostage.
      3) Ray Bans haven't doubled in price in three years. That's just silly. There was a price increase this year, and they've added polarized lenses and some lens treatments which are more expensive, but that's like comparing a stripped down Ford Escort to a souped up Mustang.
      4) Monopoly? Hardly. There's no way my market share guess would be above 10% of US optical retail. A larger manufacturing share, probably, but only because others (Safilo) are struggling and the public is demanding designer frames.

      You also have to love how these shows frame things. I loved this quote "Luxottica usually shuns publicity, but they invited us in." What does that mean? How does a publicly traded company shun publicity? And the implication that they're duping the public by operating stores under different names? Most large optical companies have stores in multiple department chains, discounters, or stand-alones with different names. Does anyone accuse Walmart of trying to dupe people with Sam's Club? How about the Limited brands? General Motors?

 
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