Am I the only one noticing that Luxottica bought Glasses.com.
Am I the only one noticing that Luxottica bought Glasses.com.
Luxottica to Acquire Glasses.com and Its Try-On Technology; WellPoint to Divest 1-800 CONTACTSBy Staff
Tuesday, January 07, 2014 4:09 PMMILAN, Italy and INDIANAPOLIS, Ind.— Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), announced this evening it has entered into an asset purchase agreement to acquire Glasses.com from WellPoint Inc. (NYSE: WLP).
“Today we are announcing the agreement to acquire a technology which we believe will benefit the overall eyewear sector and the optical industry in North America, a crucial market for our group and one we remain strongly committed to,” said Andrea Guerra, CEO of Luxottica. The company’s statement added that Luxottica “will invest in innovations to create an enhanced online experience that will be accessible to independent practitioners in North America.”
Stated Guerra, “This acquisition will function as a starting point to shape an independent, digital platform through which the North American market can and will access the unique domain, innovating the shopping experience and improving the quality of products and services available to consumers.”
Concurrent but separate from Luxottica’s announcement, WellPoint, one of the nation's largest health benefits companies, announced late today that it will divest itself of 1-800 CONTACTS.Glasses.com has been operated as a division of 1-800. WellPoint has signed a definitive agreement to sell its online contact lens retail subsidiary 1-800 CONTACTS to private equity firm Thomas H. Lee Partners.
The purchase price and financial terms of both transactions were undisclosed but are subject to customary closing conditions, the companies said, adding each transaction is expected to close in the first quarter of 2014. The acquisition of glasses.com will not have a material impact on Luxottica's consolidated financial statement, Luxottica said.
Said WellPoint CEO Joseph R. Swedish, "1-800 CONTACTS has strong brand recognition and a leading direct-to-consumer model. However, as we prepare for the coming changes to the health care system, we are focused on our core growth opportunities across both our commercial and government business segments. Proceeds from this transaction will support our continued capital deployment strategies."
WellPoint purchased 1-800 CONTACTS and its Glasses.com business in June 2012 from Fenway Partners, as previously reported by VMail. Glasses.com launched its virtual try on app last spring.
Luxottica’s statement pointed out, “The eyewear industry in North America is estimated today to be a $35.5 billion market with the opportunity to grow to $44 billion to $47 billion by 2020, according to Vision Council and company estimates. Demographic factors, such as an increase in the number of individuals needing vision correction products, the projected increase in eye exams each year, and the greater penetration of premium eyewear are all expected to drive continued growth.
“Luxottica believes that the investment in technology and the development of an accessible digital platform for the North American trade are crucial next steps in developing the market to its full potential. By investing in online innovation and providing accessibility to independent practitioners, Luxottica can offer both the doctor and the consumer a unique seamlessly integrated, superior experience,” the company’s statement added.
WellPoint serves health care benefits members in 14 states as an independent licensee of the Blue Cross and Blue Shield Association, and customers in other states through its Amerigroup and CareMore subsidiaries. Glasses.com’s proprietary virtual try-on technology uses a three-dimensional image of the consumer’s face and enables the customer to see the frame in detail from multiple angles. It also allows customers to send frame options to friends and family for their input and opinion, leveraging social media tools. Use of the technology is available direct to customers via free iPhone and iPad apps.- See more at: http://www.visionmonday.com/vmail-he....cqBYc2br.dpuf
Will this be another step to drive customers to LC stores?
We are getting so immune to the BIG getting BIGGER and controlling our industry from all angles that we are speechless (or write-less in this case).Originally Posted by LENNY
My thoughts. As EyeMed continues to drive private practice away from their plans by placing restrictions on lab selection, frame and lens selection, they must realize that there aren't enough Lux Retail locations to handle what they predict will be a big increase in traffic. So, logic says that they can attract the younger demographic (20-40 year olds) to online options. That's the demographic that is very comfortable with online purchasing and who are more likely to be SV wearers who also purchase eyewear more frequently.
Glasse.com is what Lux wanted .........................................
Glasse.com is what Lux wanted and now has. It is the 8th largest online retail optical and Lux does not want to stay behind Essilor that already owns some of the 3 largest ones.
There all and soon will not be any need of B&M retailers, as they are looking to the future were they believe that the optical retail will become a mass market.
Virtually try on glasses in 3D .......................................
Actually I just went on their website and found :
Virtually try on glasses
in 3D with our new app -
now for Android
check it out at --------------------> http://www.glasses.com/virtual-try-on
the whole thing makes perfect sense. You buy your glasses on line. You pay for your glasses on line....and you pick them up at LC, Pearle or Target.
"Coimhéad fearg fhear na foighde"
If the post office or UPS will deliver direct, why even go into a store? Keeps payroll expenses low and eventually reduce location size.
Coastal Contacts is next on their acquisition list.
yeah, we've noticed at work. I'm sure we'll be getting the "you need to take pd's and give them out for free for everyone coming in with an order invoice from glasses.com. Please shoot me now.
Luxottica makes a lot of money selling frames to ECPs, who mostly stock a big number of their products. With or without glasses.com, if they cut out or alienate ECPs such that sales to us drop, that will cause a super big hole in their income statement. It is possible, but I doubt their plan would be to do that. I think they want to take wind from WP, CC and Essilor, less so from ECPs. Just a (hopeful) suspicion.
In any event, independents can buy all the frames they want from outside of the lux ecosystem, and buy them at virtually any price point they want. While we sell lots of lux, there is a growing % of non-lux, factory-direct frames on our boards at super aggressive prices.
I believe that in OPTICAL, brand names are way less important to consumers than look/fit/feel/price. In Plano Sun of course, brands are everything and without rayban our sun sales would plummet.
on another note, how many optical frame companies, retail or wholesale, have as their "exit" strategy, a sale to luxottica? Just like Oliver Peoples, Oakley, any of your favorite "non-lux" brands likely would LOVE to get a phone call from Mr. Guerra !!!! So build your own Private Label collection already!
Brand Names
I don't think that the acquisition will hurt Luxottica. ECP's are brainwashed to think that they can't live without Luxottica's brands.
Until ECP's wake up and smell the coffee Luxottica will continue to jam them up the ***.
Regards,
Golfnorth
They will purchase other on-line opticals in the near future.........................
Dont keep your hopes up .....................................Luxottica has it all planned ahead.
1) They can sell their older left over models easier through the web.
2) They have followed Essilors model who has studied the markets world wide and are looking to the future.
3) They will purchase other on-line opticals in the near future.
4) They + and the others will soon sell the majority of "bread and butter" glasses.
5) The ECP will become the specialist for specialised glasses and better be good at it.
6) The ECP's better become good glasses adjuster that will charge for services, repairs and better start gearing up for that moment.
7) There is no way anybody can stop the internet short of shooting down the satellites that are the carriers.
This thread is like reading the rise and fall of the Roman Empire. I'm rosining up my bow waiting for the flames >=)
Somehow i don't think "glasses adjusters" will be able to pay retail space rents anywhere....
Maybe if the glasses adjusters team up with shoe shine boys or maybe the cell phone cover sales kiosks in the flea markets....
I doubt that really. We sell tons of contact lenses and those have been available via the net and 1-800 for a very long time. I am told that amounts to no more than 15% of total contact lens sales. How do glasses get to over 50%??
Bingo! I've been saying this for years. There's no way eye glass sales will surpass CL sales over the net. There are others whom do not think this out logically.
( But of course, IOL's we're going to put us out of business too, just like all the other "big changes" to our industry.)
IOLs, and now especially multifocal IOLs, definitely have had an impact on RX eyewear sales. Many surgeons tell patients to simply buy dollar store readers and no need to see an OD or optician for expensive glasses. LASIK and other refractive surgeries, contact lenses, the internets (all of 'em), surgical reversal of presbyopia --- all these existential threats to opticianry/optometry....i still see new storefronts opening, new graduates getting jobs right out of college at nearly 100% and lots of eye exam demand......but maybe the cliff is just around the next bend? I don't see it....
Something to keep in mind is how huge the eyecare market is and especially how there is and will be for some time a growing demand. For every person who gets lasik or IOL's there are 10 new patients in need of vision services/corrections. Also, lasik is not what it's advocates nor their commercials say; "Get rid of glasses and contacts forever!" We see folks all the time that had lasik or radial K years ago now in need of eye wear. (lasik ain't forever folks...)
There have always been bottom feeders just as there has always been luxury purchasers and the vast middle. There are also those among us that practice with a more medically oriented patient base. Net sellers will surely grow, but so will the B&M's. As the saying goes, a rising tide lifts all ships.
I will give my prediction on how the internet will affect B&M's in the future; As frames become seen as more of a commodity, the net and competition will drive down traditional mark-ups on frames. B&M's will need to move in a little different direction on how to market and sell their eye wear. We more than likely will move to keystone mark-ups and increase the sale by selling warranties and after care (adjustments, screws, nosepads, ect.) Which some have already moved towards.
The internet affects all segments of commerce. But there are certain items the public prefers to purchase in person. Due to human vanity, anything that affects their personal appearance is high on the list. B&M Opticals will be among the last storefronts standing in the apocalyptic future of an internet world.
Of course!
Over the past few years, many glasses.com customers have asked where they can get their frames adjusted. Truth is many pairs of glasses do not need to be adjusted. But for those of us who do need, or at least prefer, some adjustments, we have some good news!
Glasses.com is excited to announce that we’ve teamed up with LensCrafters to provide all glasses.com customers convenient access for any frame adjustments. Simply drop into one of the almost 1000 LensCrafters stores nationwide, give the LensCrafters associate your receipt from glasses.com, and they’ll gladly help with any adjustments or fittings you need. Any pair. Any style. Any time. And, the best part, it’s all done at no cost to you.
LensCrafters loves eyes. So go ahead and let them show that love to your new amazing glasses, from glasses.com.
Click here to find the LensCrafters store nearest you.
................another reason for LC to drop their onsite lens surfacing labs and become service centers for their merged online opticals which will be the largest group ever, owned by the largest optical manufacturer Essilux.
They will not only be the largest online optical retailer, they will also be the largest optical supplier to the conventual optical store.
Same products ................different retail selling price.
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