It is the season for designer sunglasses, and people can spend a lot of money on their next eyepieces. Some of these glasses cost around $500 to a thousand dollars, and that is if they do not need prescription lenses. Even moderate designer labels can cost a couple of hundred dollars.
Luxury sunglasses are a big business, even in today’s economy. We always hear about modern frugality, but we do not see much of it when we take a stroll to the mall. The industry sales in the United States amount to $4.138 Billion and are expected to grow 6.6{496112f4e2fea7f3f9cbf1b3b8ca5c6f3a45951b4a79953f4f9c2516cb7e881b} annually.
But are these expensive products worth it? How much better are these luxury glasses compared to the cheaper $25 eyepieces individuals can get in their local gas station. Before spending a lot of money on these things, here are some things people need to know.
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Most of these glasses are designed and made by the same organizations
These sunglasses are made by an Italian manufacturer – Luxottica. Whether they are Oakley, Ray-Ban, Salvatore Ferragamo, or Dolce and Gabbana, they are designed and made by one company. This manufacturer is one of the biggest consumer firms that people have never heard of. This company also makes luxury sunglasses for brands like Channel, Burberry, Paul Smith, Vogue, and other designer brands. They manufactured at least 70{496112f4e2fea7f3f9cbf1b3b8ca5c6f3a45951b4a79953f4f9c2516cb7e881b} of these brands in Italy, China, and the United States.
However, it does not mean that they all follow the same standards. They all have specific processes that they follow when manufacturing products making each product unique and not a copy of each other.
In some cases, the same companies also sell the public their glasses
Luxottica also owns Sunglass Hut, Pearle Vision, and LensCrafters. It is called extreme vertical integration. Eye experts are professionals telling their patients that they need a new pair of eyepiece, people in-charge of sales that are helping these clients, will choose the design as well as the company who make the sunglasses.
These professionals usually work for the same organization. It is like hiring a financial advisor that was actually working for a mutual fund organization that they recommend for your portfolio.
But there is nothing wrong with that, it’s called a strategy. However, do not think that eye professionals would just sell something that they don’t believe in. With these people results are important because that’s how they get their patient’s trust so the fact that they chose a specific brand to represent means that they are confident with its effectivity.
Markups are quite big
Everyone knows that eyepieces like Dita Sunglasses, can be a bit expensive. However, the price does not compare to the labor and material used in creating these. The material used has to be ground and made precisely.
Even after deducting advertising and sales costs, overhead cost, as well as brand licensing royalties, they are still making at least 50 cents a pop. That is some good margin. While the brand’s return on equity has dived because of the global pandemic, they still managed a respectable more or less 5{496112f4e2fea7f3f9cbf1b3b8ca5c6f3a45951b4a79953f4f9c2516cb7e881b} sales growth.
Which just shows that regardless of the current situation, people will still prefer quality products than cheap knock offs.