Originally Posted by
Pete Hanlin
What about the vertical integration down the road?
= Total dominance and takeover of the retail market.
Any independent optician's or optometrists hair should stand up straight just by thinking about it. Retailers will all be employees of ESSILOR and HOYA in 10-20 years and can form the UNITED OPTICIANS UNION and negotiate employment contracts.
If anyone is in a position to completely vertically integrate, it is Lenscrafters/Luxottica, not a lens manufacturer. Just for kicks, let's assume LC/Lux purchases Sola tomorrow morning.
You would have a company that could use lenses it produces, fitted to frames it manufactures, sold in locations it owns. Even given this example, I fail to see the threat. LC/Lux/Sola would sell certain products at certain locations just as they do now and would have to compete against other companies creating products and selling services- just as they do now.
Its called free enterprise and it has a way of working in cycles. Just as WalMart is obliterating K-Mart, some new concept in "superstores" will emerge someday to rain on WalMart's parade... everything changes always! BTW, LC/Lux works with several frame and lens manufacturers and represents a great avenue through which to sell all sorts of ophthalmic products.
Besides, it seems to me that anyone wanting to vertically integrate in the ophthalmic goods market would want to first establish the retail sales division and then acquire the manufacturing capabilities. With all due respect, the notion of Essilor purchasing a chain of retail locations is rather unlikely.
After all, our number one brand- Varilux- is predicated on the independent practitioner.
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