Oakley -lux

[Jimbabwe]

Do you have a link to the Documentary you mentioned?

When I get home I can find it and comment it

The 60 Minutes segment....a perfect example of 'don't believe everything you see on TV'. The show made deal more scandalous than what it actually is. Lux did have the distribution superiority but at the time of the buyout the Oakley stock was on the upswing and Lux paid a premium on top of that for the shares. Everyone got paid relatively well in the deal and JJ remained a Lux shareholder after the dust cleared. Don't know if he is still a shareholder though with all the moves Red Digital is making.

This being said Lux does use strong arm tactics like many businesses with that type of leverage. Survival of the fittest.

thats why I asked for input. I don't believe everything I read, I post d hopeing people like all that have commented would have input. Thank you for all your replys. Lux still blows, outsourcing poor quality control and uncaring.

 

[Jon the Don]

When I get home I can find it and comment it

thats why I asked for input. I don't believe everything I read, I post d hopeing people like all that have commented would have input. Thank you for all your replys. Lux still blows, outsourcing poor quality control and uncaring.

Thanks bro.

 

[Oakley G]

thats why I asked for input. I don't believe everything I read, I post d hopeing people like all that have commented would have input. Thank you for all your replys. Lux still blows, outsourcing poor quality control and uncaring.

here is more reading material for you that counters some of the 60 Minutes 'facts'.
The 60 Minutes Luxottica Show Was Fake News | The Optical Vision Site

 

[Hawksfan]

I have no doubt there is a lot of sensational journalism going on, but the fact is Lux is clearly and absolutely a monopoly. In fact I can think of nothing like them. I studied economics for 4 years got a BA in it and it's kinda my hobby and what they got going on is crazy. Take Microsoft which many think is a monopoly isn't even close to Lux, for it to be comparable to Microsoft, Microsoft would have to own intel, amd, as well as Best Buy, staples and at least 1 more big box that sells computers. They own the whole stream when it comes to the eyewear industry. I'm a capitalist, but even in capitalism, monopolies are unexceptionable. The company needs to be broken up.

 

[Oakley G]

IMO the reason Lux hasn't had to fight the monopoly battle yet is because they don't pose the same barrier to entry or competition Microsoft did. Lux is a very dominant force with extremely strong vertical integration and is certainly a Price Maker, but it doesn't prevent competitors from entering the market. In fact there are tons of eyewear companies that enter the industry every year.

The problem I think the industry encounters is that all the competitors are tiny so much so it is not worth stamping all competition out. Lux with Essilor has something like 27% of the market but their next biggest competition has something like 4-5% Then there are hundreds of smaller independent companies out there producing eyewear. Also despite their strength in distribution it is said they only control 20% while independent retailers and Costco and Walmart control the rest, at least in the United States. Those aren't too horrible of numbers to start moving against them with anti-trust aligations. If Lux did something to stop competitor entry I think the regulators would step in.

 

[Hawksfan]

It's also relative competition, they have almost none. Yeah there is plenty of $5 glasses out there, but who is out there that puts out the type of product they do that they don't own, Costa? Not much and that's sunglasses, once you get into prescriptions I can't think of any higher end real competition. Also, I wouldn't be surprised if Costa isn't bought out. Also, what they did with Oakley is pretty hostile, yeah it's not like JJ didn't get his, but at the end of the day they were looking to get rid of their only real competition. The $5 glasses they really don't care about.

 

[Jimbabwe]

Thanks bro.

 

[Oakley G]

It's also relative competition, they have almost none. Yeah there is plenty of $5 glasses out there, but who is out there that puts out the type of product they do that they don't own, Costa? Not much and that's sunglasses, once you get into prescriptions I can't think of any higher end real competition. Also, I wouldn't be surprised if Costa isn't bought out. Also, what they did with Oakley is pretty hostile, yeah it's not like JJ didn't get his, but at the end of the day they were looking to get rid of their only real competition. The $5 glasses they really don't care about.

I think the big holdout nowadays specifically for sunglasses brands is Maui Jim. They turned down Lux's buyout offer. Lux kept their product in SGH due to public demand. For prescriptions, I think the big players other than the big box stores is Nikon and Zeiss.

 

[Jon the Don]

Thanks mate. I will watch that later.

 

[Noffie79]

I think the big holdout nowadays specifically for sunglasses brands is Maui Jim. They turned down Lux's buyout offer. Lux kept their product in SGH due to public demand. For prescriptions, I think the big players other than the big box stores is Nikon and Zeiss.

Don't get me wrong, I love every pair of Oakley's I have. But my Maui Jim's hold a special place in my heart. I've owned them longer than any pair of Oakley's, but I also like that they're not owned by Lux.


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