In a market increasingly dominated by EssilorLuxottica, the cost of eyewear has surged due to significant markups and limited price competition. Cedric Rossi delved into this issue on a recent episode of the Freakonomics podcast, providing a comprehensive analysis of the factors driving up prices.

“EssilorLuxottica owns roughly a quarter of the global market for prescription eyeglasses and more than half the market for lenses,” states Rossi. He goes on to discuss how the interplay of branding, manufacturing expenses, and consumer perceptions contributes to the steep costs associated with eyeglasses. He highlights that while EssilorLuxottica’s dominance allows them to set higher prices, the lack of competitive pressure in the industry further exacerbates the issue.

The discussion then turns to the success of eyeglass disruptor Warby Parker, whose low-cost yet high-fashion $95 eyeglasses have won customers over. “They found a very interesting niche, which is a transparent pricing model,” notes Rossi.

The conversation also touches on the broader implications for consumers and the eyewear market, offering valuable insights into why vision care is becoming increasingly expensive. Rossi’s observations reveal how entrenched industry dynamics and strategic pricing contribute to the high costs we see today.

Listen to the full Freakonomics podcast here

Bryan Garnier’s NextGen Consumer team plays a crucial role in providing comprehensive insights and strategic advice to clients looking to navigate the complexities of the retail market.