The eyewear industry continues to take the world by storm, with Grand View Research reporting that the sector’s market value was at $183.36 billion in 2022 and is expected to grow until 2030.
According to the same report, increasing brand awareness of eyewear products is a critical factor in the industry’s steady growth momentum. This brand awareness can be attributed to the continuous expansion and innovation of leading market players, potentially attracting new customers. One particular player currently enjoying a period of expansion is the eyewear conglomerate EssilorLuxottica.
The eyewear giant, which owns and manufactures several leading eyewear brands, reported strong revenue growth at the start of the year, hitting €6.335 billion ($6.880 billion) at constant exchange rates, which marks a 5.5% increase in consolidated revenue compared with the previous year. This solid growth can be attributed to EssilorLuxottica CEO Francesco Milleri’s decisions to expand and secure more opportunities for the company. Below, we look at how EssilorLuxottica’s growth marks a new era for the eyewear industry.
Regional expansion
EssilorLuxottica’s growing presence can be attributed to the company’s growing portfolio of brands and regions. One example is its move to tap into the Canadian market through glasses retailer Clearly, which provides both luxury and consumer specs as well as eye exams. In 2022, Clearly CEO Arnaud Bussiers expressed the company’s plans to open around 12 to 15 more brick-and-mortar stores throughout Canada within the next two years, including stores in Edmonton, Ottawa, and Mississauga – marking a significant leap from the previous number of four physical stores in the country. Regional expansion efforts like these have allowed EssilorLuxottica to introduce its products to a wider range of global consumers.
Tech ventures
EssilorLuxottica has also ventured into innovations that have allowed the company to expand into the realm of technology. Its collaboration with tech giant Meta led to the creation of the Ray-Ban Meta smart glasses, an upgrade from the previous smart glasses iteration Ray-Ban Stories that allows users to capture photos, livestream directly from the frames to their followers on Facebook and Instagram, and leverage assistive technology through Meta AI. The smart glasses garnered commercial success, selling more in a few months than the old model did in two years. This tech expansion marks a game-changing development in the future of the eyewear industry.
Acquiring apparel brands
Expanding the product offerings of a brand is an excellent way to bolster growth, such as in the case of the Korean fashion business company MUSINSA, which started as a shoe retailer. Today, MUSINSA has expanded its offerings to provide consumers with a diverse range of accessories and clothing, including local, in-house, and foreign designer brands. Last year, global investment firm KKR led a $190 million Series C funding for MUSINSA, effectively scaling its operations and boosting its market presence.
Similarly, EssilorLuxottica is expanding its niche, as seen in its recent acquisition of streetwear brand Supreme this year. The eyewear giant will pay $1.5 billion in cash to acquire Supreme, which VF Corp. previously bought for $2.1 billion in 2020. EssilorLuxottica has reported that it was intrigued by Supreme’s 100% direct-to-consumer business model, and CEO Milleri vows to preserve the model while leveraging the brand’s unique identity. Milleri also said that Supreme can complement the optical giant’s growing licensed portfolio. Expanding its offerings by tapping into the apparel industry pushes the boundaries of what the eyewear sector can offer, allowing the conglomerate to grow its product and customer base further.
By venturing into previously untapped markets and niches, EssilorLuxottica is ushering in a new era of expansion in the eyewear industry. The eyewear giant’s growth is opening up a wide range of opportunities for the sector to extend its services and introduce game-changing innovations to consumers everywhere.
