Eyewear Industry: Google vs Luxottica

Eyewear Industry: Google vs Luxottica: Before 3 years none would place Google near to Luxottica. They were providing different products and services. So different that the onl...

The hidden factors for fashion trends

          "Vintage style" usually refers to clothing that imitates the style of a previous era. But in eyewear it is something beyond old fashion. It is the recycle of materials!

          Have you notice that each fashion trend in eyewear is based on a different material? If you are a final consumer you can barely see this. But if you are an insider of the industry you definately see clearly the facts.
          The materials that are used  for each trend and fashion style each decade in the recent past was a clear mirror of the values of the society.

          In 50's and 60's the main material for eyewear was plastic. But why plastic? It is the period with the fast expansion of new oil products like plastic. The industry is based on this cheap raw material. During this period the trend makers try to improve the eyewear products by giving new styles and making combinations with the clothes.
          In 70's & 80's oil gets more expensive therefore the manufacturers are heading for other raw materials and mainly for metal alloys with materials of easy supply and strong durability like steel and nickel. The metal fashion is expanding in order to achieve a lighter and more modular product. Many patents have been invented during this period as the metal parts give more opportunitites for research.
          In 90's the freestyle design give the opportunity to combine metal and plastic. China enters the international economy and from the late of 90's becomes the #1 manufacturer worldwide. The same problems that occured in other markets like clothes and shoes started to show in eyewear industry. The low cost production becomes the cheap quality production. Quality is sacrifized for internaitonal profits taking advantage of the low cost labour in China.
          In the new millenium the ecological problems are taking strong position. Now the material has to be eco-friendly. New materials take more share in the market like wood, natural plastic with less oil share in the alloy. Less chemical and more ecological coatings.
          After 13 years in the millenium today we have the plastic raw material to rule the marker so far. Oil is still in fashion, but in order to achieve high quality which is the issue of these days, the material that is used is not made only from oil. Wood, oil and other friendly chemicals are combined to create a known material from the past but in high demand nowadays, Celluloise Acetate.
          After this short historical review it is obvious that fashion trends are guided by other factors than fashion that the end consumer does not know at all.

         What could be the next fashion trend till 2020? Oil heads up and gets more expensive. If we study the circles of fashion materials chronologically we will notice that metallic materials are expected to show up soon. But what could be the reason for this to happen? Is it only the cost of oil?
         
          No it isn't. The main reason for this change would be technology. Electronics is the future of eyewear industry and electronics used conductors and semiconductors. In order to be compatible and energy sustainable the materials that should be used cannot be plastic. As we all know plastic is suffering from high temperatures. So the electronic industry is expected to change the way eeywear industry is thinking!
          The best example is Google's the Glass Project but i am sure that they will follow more high-end brand names.

Google vs Luxottica

Before 3 years none would place Google near to Luxottica. They were providing different products and services. So different that the only common thing between these companies was the fact that they were in the Wall Street Stock Market in different indexes.

This has changed a couple of years ago, since Google has announced The ProjectGlass!  Of course when they announced the new product none would also say that these companies were going to meet each other. But how will they react when it's time to face each other?

I think that the first answers have come recently when we heard the intention of Google to team up with Warby Parket e-commerce rival of Luxottica and bring to life The Project Glass with a fashionable way!

Luxottica has not sit with crossed hands. Oakley, a division of Luxottica and a well-known brand name worldwide and especially in US, has already started to develop paraller technology to The Glass of Google, in order to stand the future competition and follow the new hi-tech trends of eyewear.

Of course it is obvious that for Google is easier to team up with Warby Parker who are a small but with potential eyewear company, rather than Luxottica who is the giant of Eyewear industry.

Googlehas 265 billion in market capitalization and Luxottica is 10 times lower to 25billion.

But what about the high-end brand names? Armani, Versace, DKNY and many more fashion designers will they stay outside the Augmented Reality trend? Does Luxottica know how to do it with Oakley or still they will have to make an agreement with Google?

One thing is for sure. The Project Glass will create as big impact in the eyewear industry as the trend will go on. For Luxottica this is the second hard bunch since Warby Parker has entered the eyewear business.

What should be the strategy of Luxottica to defend their monopoly? They have already takes actions some years ago! They go massively to retail since 2002 by making several acquisitions and mergers with medium to large retail chains, like SunglassHut, Specsavers, Pearle, Aspen and recently to Salmoiraghi  & Vigano in Italy.

What are your thoughts on Luxottica strategy?