Easy question = easy answer. Foe and puppet master.
Easy question = easy answer. Foe and puppet master.
There is only one way to stop Essilor: through the bureaucracy of Washington DC.
If they get enough complaints of monopolistic behavior from competition, the Justice Department will be forced to look into the matter.
If they get enough complaints of monopolistic behavior from consumers, the FTC will be forced to look into the matter.
If either one gets involved, the other will usually join in.
Here in the St. Cloud area, which used to be 100% independent, Essilor now owns or controls about 85% of the total production, including the production of semi-finished glass and plastic lenses at X-Cel Optical. X-Cel is the last domestic manufacturer of glass lenses. (Yes, Vision-Ease still produces glass, but it's all done in Indonesia.) What happens if Essilor decides to shut down the glass division? There are products that X-Cel makes that are available nowhere else, for example, plano base bifocals. You need them for diving masks. Last I saw, V-E makes an 0.50 base and that won't work. Prism segs. Extra thick blanks. All those things could go the way of the dinosaur because they aren't 'meat and potatoes' products. They don't have a large production value. And if they go away, a whole segment of the Rx spectacle market is not going to be served.
Mike- Just to prevent the other side of the coin, doesn't the government usually stop a monopoly before it happens by not approving the purchase of a business? Although the breakup of the bell monopoly 30+ years ago was a famous example of the break-up of an existing business, that was an entirely different story. Doesn't E get federal approval before making major acquisitions?
Again, just to be contrarian, E can show there is competition. Hoya, Zeiss, and Wallman all own significant lab networks. Plus, there are still a few other independent labs out there with multi state coverage. In other segments of optical where E operates, are they really the dominant player. Examples: lab software, surfacing equipment, coating equipment or edging equipment? Again, just asking the questions.
Stan- just to point out a few things. The FTC does not approve the lab acquisitions due to labs not selling direct to the consumer. Most lens companies purchased by E are handled in other countries. If you recall when Essilor bought out Signet there was a holdup and investigation, due to the transaction being in the US. That may be why E is only buying controlling interest in the past few lens acquisitions. And, remember that Essilor is based out of France not the US like Bell. Also Hoya and Zeiss only own lens and labs, not lens, labs, equipment, software, and consumables.
Stan - many times these purchases fall under the radar. When a company is in private ownership, like X-Cel was, it doesn't have to have any "oversight" or "permission" to purchase the company. There are no filings with the SEC as there would be with a publically traded entity, so until E files its own documents, usually when it's a done deal, there's nothing to be done.
What could be done, however, would be a break up similar to what the Government forced on Ma Bell. They could force divestiture of certain segments of its business.
I guess it all comes down to what you call "competition". On an lab for lab basis, E owns the largest share as compared to the others you listed. The others H, Z, and W, combined are probably less than 25% of the production capacity E owns and/or controls.
E is going for vertical integration in the mode they use in Europe, where they control everything from start to finish.
And when will we see this on 60 Minutes?!
Not soon enough. I have a lot of patients asking me about the luxottica thing. I have even had some people coming in and saying they don't want a luxottica product. Surprised me. That being said...some still want their name brands!Originally Posted by cwinma
Give Mike Wallace a call!
Essilor is nothing like Bell. Bell DID have almost totally exclusivity in phone lines/transmissions/service in the US. There is still way too much competition in optical labs in the US by comparison. Also keep in mind consolidation is the norm in the business world of today. The independent mom and pop anything will only be a fond memory in the future.
You can still do business outside of the Essilor Empire. So therefore Essilor is not a monopoly. You can even do business outside Luxottica Land. Better yet you can do business outside both!
Remember these are mulit-national corporations with brigades of bean-counters and armies of accountants, they are watching every penny/euro cent. You don't have to and don't need to feed the "beasts" as they are called here in order to do quite well in our profession.
More energy needs to be expended on keeping the PRO in our profession.
Clinton Tower
The intellect to live free is in short supply
ALT248=°
I admire Essilor on their business savvy!
I also can step up and admit and admire all that they have done to educate the dopey masses of uneducated, unmotivated, apathetic so called "opticians" in this business! I have yet to see any other company provide the amount of educational material that Essilor does.
I believe that too many of us are too worried what everybody else is doing and at how the The Big Gorillas are ruining the industry and are poised to pound us into oblivion.
GET OVER IT! WORRY MORE ABOUT HOW YOU CAN BECOME THE VERY BEST AT WHAT YOU DO.......AND DO IT!
Where is the standing ovation smiley?!?!
Right on Fezz!!!! Who gives a rip what the big guy is doing. If you don't like it, don't use it! There are plenty of fish in the sea. Join the school of other guppies, or be yourself and do something different, but for goodness sake, learn about everything that is available and educate yourself.
You have to work much harder on your paper. It misses a lot of information about Essilor!
So before you publish it please verify the info.
I understand you are upset, but this is not the complete picture. The picture is much much bigger!
Good or Bad I dont know, but agree with Fezz learn how to use it in your own advantage!
And I was thinking you are sending him to Mike Walach.... LOL
Right on Fezz, this is a demon everyone has to face on their own. Big E is like fast food always a new McVarilux or McCrizal, they package it well, sell it well and when numbers slump rinse and repeat.
They educate more people with high quality information about cutting edge things like Nanoptics, Synchronise, ESPF factors, etc.
I would personally encourage every optical professional to buy essilor, that means less people clogging up the few good labs.
BTW, I have been selling my own branded PAL (lasered with our office logo) for a few months now with greater success than I have ever experienced with PALs. Not a single non-adapt and we see low vision and reduced acuity patients all day, that means 3.00 adds adds and up with again 100% success. The only lens that promises the same rate of success from E that I am already experiencing costs almost 8x more my cost.
*THE CONTENT BELOW IS NSFW OR RIGHT WING BIBLE THUMPERS READ AT YOUR OWN RISK*
And its only 1099 virgins because the born again doesn't count (what can I say I like at least one chica with experience)
I already stayed that everything in the letter was verified. I did state the Polycore was completely owned, but they are 50% owned by E.
I am not upset or worried about Essilor, I have a very successful lab without using hardly any Essilor. I agree they do a great job of educating a lot of opticians, but I assure it is not only to benefit the optician. But they also do a great job of marketing a lot of very misleading information. Like the Crizal UV, seriously if ar has 99.6% light transmission how much UV exposure can you possibly get from 0.4% reflection from the back side of a lens? And how much of that 0.4% is harmful UV? But yet you pay more for this and charge your patients more. If you want to know the truth behind this whole concept, I will let yon in on a little secret about the backside UV ar. We have it too, and you all have to do is flip your last 2 ar stacks. No new oxides, magic sauce, or top coats needed but you pay more. This was the same thing with the 360 (not enhanced) lenses. Your where charged extra for a "freeform" lens that was simply a molded pal processed with a soft lap processing. Depending on which eloa lab that was used up to 80% of the lenses where processed this way anyway.
These are some of the reasons I have "issues" with E. Also the huge misconception that Essilor is here to " help me" the whole time they are taking a serious amount of your retail $.
For years I always thought the US Gov would step in (they are monopolizing) but I guess its wishful thinking...
Depends on the definition used for monopoly, and there are many.
Essilor is here to " help me ................................................
......................... and start thinking if the same pricing applies to the 2 of the 10 largest on-line opticals they own outright, ...........and as of today they have full control of Transition Optical.
I want what your drinking Fezz...
Essilor has avoided the monopoly designation by buying many companies at the 50% threshold, for example, they only owned 50% of Transitions until PhotoFusion came out, now they can buy the other 50% (which they did). Monopoly money is not a factor until you own over 50%. Shamir and Nikon are in the same boat... We know what they do, but no government action can kick in... by law. 50% of something, by law = zero monopoly money.
Insurance only pays so poorly, because providers are willing to accept it. EVERY optical insurance company is lowering reimbursements (in clever ways) and with each change they monitor their provider drop outs. When few drop, they lower again. They will not stop lowering payments until they reach a point where they have so few providers they can't meet their contractual needs. Short of that insurance is a sinking ship that has not hit the bottom. YOU can be very successful without insurance, Dentist did it about 15 years ago. Most Dentists in this area take zero Dental insurance, and yet, they are still thriving. Insurance co.s are not the problem, we are.
I believe that you are right...........................why fight in a well covered market, when the worlds largest single market has opened up over the last 10 years. India is becoming the new China.
Essilor already dominates the lab scene there and the on-line opticals, while Zeiss has already opened part if the planned 500 optical retail stores.
.
I guess this letter may need to be updated monthly or weekly even. Since the letter was written 2 major changes have occurred. One Essilor has purchased Transitions from PPG and now the sole owners of Transitions Optical. Second, Essilor now has controlling interest in Classic Optical in Ohio. Classic is running around 3,000 jobs a day and was in the top 10 independent labs in the USA. Maybe the buying will continue, and people will see why independents are so important to a healthy business ( I just hope it is not too late for several of the labs out there.)
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote
Bookmarks