Luxury Eyewear in France

PROSPECTS

Reste à charge zéro could impact luxury spectacle frames negatively

The new regulatory change Reste à charge zéro, or RAC 0, introduced in 2018, plans to cover up to 100% of the cost for lenses and frames under certain eligibility criteria by 2021. Although not everyone would be eligible and not all frames and lenses would be covered by this reimbursement scheme, RAC 0 is expected to put pressure on unit prices across the board.

Shifting retail landscape

Another potential threat to luxury eyewear growth is the fragile situation in the dominant distribution channel – namely optical goods stores, which are facing increased competition from online players and have been trying to compete on prices. In future, price wars are expected to continue between chains that are developing heavy discount strategies (for instance Optical Discount by Afflelou) at the expense of independent retailers and small chains.

Luxury sunglasses a more accessible option

As their purchase does generally not depend on any reimbursement or subsidies, luxury sunglasses are less exposed to RAC 0 than corrective spectacles are. In addition, value sales of luxury sunglasses have increased in the past 10 years.

COMPETITIVE LANDSCAPE

Luxottica dominates luxury eyewear

Luxury eyewear has one of the most atypical competitive landscapes of luxury goods, with a strong contrast between the oligopoly of spectacle frame manufacturers and hundreds of licensed luxury brands. Frame manufacturer Luxottica France is the undisputed leader, far ahead of second largest player Safilo France.

The Luxottica-Essilor merger changes the landscape

The main event of early 2017 was the merger between Luxottica Group, the global leader of spectacle frames, and its corrective lenses global leader counterpart Essilor, which holds a leading position in France. The Luxottica-Essilor consolidation could reinforce the already leading position of Luxottica France in optical goods stores.

Dior establishes its first optical shop in Paris

For the first time, a haute couture brand has opened an optical store entirely dedicated to its eyewear collections. Opened in January 2018, the Dior boutique offers all of its optical and solar eyewear ranges, as well as limited editions inspired by vintage models or exclusive frames.

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