Transcript
Introduction
Zack
In this episode, we break down EssilorLuxottica, a global leader in the eyewear industry formed by the merger of Essilor and Luxottica in 2018. The business today sports a nearly €130 billion market cap. EssilorLuxottica represents a vertically integrated business encompassing design, manufacturing, distribution, and retail operations across both vision care and eyewear fashion segments.
We will analyze the strategic rationale behind the merger, assessing how it shaped the company's competitive advantages. We will discuss the economics of prescription lenses, high-fashion sunglasses, and iconic brands like Ray-Ban and Oakley. Furthermore, we'll discuss the impact of emerging technologies like smart glasses, the Ray-Ban Meta glasses, and evolving consumer preferences on the eyewear market, as well as the competitive impact of upstarts like Warby Parker.