Yesterday my favorite television news program, 60 Minutes, aired a story about Luxottica Group. This company (which few know about) produces, designs, and sells pretty much every brand of glasses and sunglasses on earth. What was once a small tool shop making frames out of goat horns in Agordo, Italy, is now the biggest controller of the eyewear market. Luxottica turned glasses around from being an uncool medical device to being fashionable face jewelry. In 2011 they made 65 million pairs of sunglasses and raked in eight billion dollars. Some of the brands Luxottica produces for include, but are not limited to, Prada, Chanel, Dolce Gabbana, Versace, Ralph Lauren, Tiffany, and Bulgari. The company owns two brands itself, Oakley and Ray Ban. They also own LensCrafters, Pearle Vision, Oliver Peoples, Sunglass Hut, and several boutique chains. They also run Target Optical, Sears Optical, and the largest eye care organization in the United States, EyeMed.

This news story took me by surprise. It seems there isn’t exactly a free market in eyewear. The variety of brands and choice is simply an illusion and the prices are completely controlled by Luxottica. This isn’t exactly appealing to me as a consumer.

See the video here: Sticker shock: Why are glasses so expensive?

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In Comm 101 we have touched on a few issues and news items related to the auto industry. It is widely known that the “Big Three” or “Detroit Three” (General Motors, Chrysler, and Ford) have suffered drastically from diminishing sales due to a rise in fuel prices. This mainly took place in the past four years. It is just recently that these giants are making a significant recovery. A Globe and Mail article by Greg Keenan points out some significant increases in sales. Despite a still relatively weak US economy, September was the best month for some manufacturers in over a decade. The Ford Focus Compact sales rose by 91% from a year earlier, helping Ford to reach the number one spot in the Canadian sales race. GM’s sales of fuel efficient cars rose 97% leading to a 12% increase overall. Chrysler reported a 12% increase in sales while car sales alone rose 42%. It seems that these auto makers are finally catching up with consumer demands. With the gas price around $3.80 US a gallon, people are looking for more fuel efficient vehicles. It has taken the Detroit Three a while to make adjustments but change is here and now.

Sources:

Article here

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