Sirf ek company ka eyewear market par control, aur hum 1000% zyada paise de rahe hain! Prada, Ray-Ban ya Michael Kors — sab ek hi factory se bante hain! Nazar Ya! ki iss episode main jaaniye kaise Luxottica ne pura eyewear market apne kabze mein kar liya, aur hum sabko unke chashme khareedne par majboor kar diya?
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00:00This one is for 14,000 and this one is for 4,000.
00:15There must be a difference, right?
00:17Actually, not at all.
00:19Whether it's Ray-Ban or Vogue,
00:21Prada or Michael Kors,
00:23they all are made by the same company.
00:25Their customer base is so big
00:27that they can make a country as big as India.
00:29And their 1.4 billion people
00:31unknowingly depend on Luxottica's products.
00:34To make a quality frame,
00:36it takes Rs. 350 to Rs. 1,500.
00:38So why do we spend more than Rs. 15,000 for them?
00:41Luxottica has put its eye on the entire industry.
00:45In this episode of First Day Fashion,
00:47we will understand the rise of Luxottica
00:49and see why we buy glasses at a thousand times more price.
00:54Maybe it's Luxottica
00:56which started with a small workshop
00:58and today controls more than 80% of major eyewear brands
01:03like Ray-Ban, Oakley, Prada, Versace and God knows what.
01:07Funny part, this company doesn't even put its logo on them
01:11when glasses were only needed for medical purposes,
01:13not fashion accessories.
01:15People were forced to wear glasses
01:18and there was also social stigma on it.
01:20At that time, production was also done by external subcontractors
01:24and this is where the story of Luxottica begins.
01:27Luxottica was founded in 1961
01:30in a village in Italy by Leonardo Di Vecchio.
01:33At that time, Di Vecchio was a skilled craftsman
01:36who made small parts and tools for spectacles.
01:39He saw that there was a lot of potential in the eyewear industry
01:42and with this vision, he established Luxottica
01:46which means light and optics.
01:48Luxottica had already understood that
01:51if you want dominance in the market,
01:53vertical integration is necessary
01:55which is very common these days
01:57but it was a unique thing in the 70s.
01:59This concept means
02:01controlling the entire production chain
02:04from design to manufacturing and distribution.
02:07By buying distribution companies,
02:09he controlled his entire supply chain.
02:12But there was still a big problem.
02:15His glasses looked like other competitors
02:18and they were also sold at normal prices.
02:21Di Vecchio understood that
02:23if his glasses are linked to a luxury brand,
02:26people will spend more money on them.
02:29Then came the age of television
02:31and everything changed.
02:33Celebrities made glasses a style statement.
02:36Tom Cruise's top gun aviators,
02:38John Lennon's round glasses
02:40and Men in Black and The Matrix's all-black sunglasses
02:44made glasses a part of fashion.
02:46Del Vecchio took advantage of this trend
02:49by partnering with designer brands.
02:51He approached major fashion houses
02:53proposing a unique deal.
02:55You give us license fees
02:57and we will give you your brand's logo glasses.
03:00This is how it started with Giorgio Armani.
03:03After 30 years,
03:04hearing the name of their partnerships,
03:06it seems that we have come to Paris Fashion Week.
03:09Prada, Chanel, Burberry, Michael Kors,
03:12Ralph Lauren, Tiffany, Versace
03:14and on and on.
03:15Del Vecchio bought U.S. Shoe Corporation
03:18because they had the largest optical retail chain in the US,
03:21LensCrafters.
03:22After that,
03:23they filled Luxottica's glasses there.
03:26In 1995,
03:27only 5% of sales from here were from Luxottica.
03:30Today, more than 90% of LensCrafter's sales
03:33are from Luxottica's glasses.
03:35This was a genius move.
03:37But we didn't call them evil geniuses.
03:40First, U.S. Shoe rejected the offer.
03:43Del Vecchio brought the board members to his side
03:46in his clever ways
03:48and bought them again.
03:49By giving the products a perfect placement,
03:51he tried to attract the customers
03:53directly to his glasses.
03:56While he completely ignored the competitors.
04:00But there was a problem.
04:02They had to give royalty to the fashion houses.
04:05For more profits,
04:06Del Vecchio wanted to buy the brands himself.
04:09Like Ray-Ban and Oakley.
04:11Even in this story,
04:12we see their evil genius.
04:15Oakley made its niche among extreme sports enthusiasts.
04:19But Luxottica acquired Sunglass Hut.
04:22Where Oakley's maximum glasses were sold.
04:26On top of that,
04:27they made a carbon copy of Oakley's best-selling models.
04:30Eventually, Oakley lost to Luxottica
04:32and merged with them.
04:34Luxottica's disproportionate size and power
04:37is stopping the industry competition.
04:39This industry has a lot of profits.
04:42And there has been no serious innovation for years.
04:45In 2018, Luxottica merged with Essilor Group.
04:49They were the world's largest lens manufacturer.
04:52Del Vecchio's plan was simple.
04:54Control the lens-making supply chain
04:57and finish off their competitors on another front.
05:00By making Essilor's lenses in-house,
05:02they launched a masterstroke
05:04to reduce costs and gain full control over pricing.
05:08They choose affordability, eco-friendliness and sustainability
05:11over luxury branding.
05:13New competitors are emerging to meet this demand shift.
05:17Like Lenskart,
05:18which is offering stylish designs at a lower price.
05:21And is challenging Luxottica's monopoly.
05:25We are slowly becoming a lens-wearing species.
05:28We may need screens, LED lights,
05:30or an aging population.
05:33But demand is increasing everywhere.
05:36Today, 70% of adults in developed countries need lenses.
05:40And every other child in India.
05:43Are so many prices justified in the name of luxury?
05:47Let us know in the comments.
05:49And if you think twice before buying Prada or Ray-Ban
05:53because of this video,
05:55then a like and subscribe is a must.
05:58I am Osanaka.
05:59I'll see you soon.
06:06www.osanaka.com