EssilorLuxottica is a French-Italian eyewear industry giant. Following the success of Ray-Ban Meta, a collaboration with Meta Platforms released in 2021, it’s now gaining attention in the technology sector.
Why this matters. The company is expanding its scope: moving from traditional optics to body technology and wearables. Its initial success attracted interest from big players like Google and Meta.
Some context:
- EssilorLuxottica was formed by the merger of French company Essilor and Italian company Luxottica in 2018.
- Although technically Essilor bought Luxottica, EssilorLuxottica’s chairman and CEO is Luxottica CEO Francesco Milleri.
- The parent company, Essilor, is the largest eyewear manufacturer globally and owns popular brands like Ray-Ban, Oakley, and Persol since 1999.
- EssilorLuxottica launched the first smart Ray-Ban, Ray-Ban Stories, in 2021, and its 2023 version has been even more successful.
- The company has also made strategic acquisitions in the medical technology and urban fashion sectors.
More importantly, EssilorLuxottica follows a vertical integration strategy, like Apple or Nintendo: It controls everything from lens manufacturing to retailing.
Now it also controls integrated technology and has a multi-brand strategy resulting from years of acquisitions in various sectors such as retailers, sunglasses, sports eyewear, and specialized lenses.
Latest moves:
- Meta is considering making a multibillion-dollar investment for a 5% stake in EssilorLuxottica, as the Financial Times reported and later Reuters confirmed.
- In mid-July, EssilorLuxottica acquired Supreme for $1.4 billion.
- Also in July, it purchased 80% of Heidelberg Engineering, a German company specializing in eye surgery technologies.
- Additionally, Google is in talks with EssilorLuxottica to integrate Gemini into future models of smart glasses, as The Verge reported in July.
Impact on the market. The market reacted strongly to Meta’s interest in EssilorLuxottica, with shares soaring nearly 7% to reach an all-time high of $212 per share and achieving a record high on the Paris stock exchange. As of the time of writing, the shares are trading at almost $209.
So far this year, EssilorLuxottica has appreciated by 15%, and by 60% in the last five years. This is quite impressive considering that other fashion giants like LVMH or Kering have experienced falls of 15% and 34% respectively so far this year.
In summary. EssilorLuxottica has positioned itself as a major player at the intersection of fashion, technology, and eye health, which has drawn the attention of technology giants who see this intersection as a significant business opportunity.
The company is also expanding its portfolio beyond traditional eyewear, venturing into urban fashion, technology, and the medical field. This diverse approach sets the stage for a future in which the potential of eyewear as the next great consumer technology product becomes increasingly clear.
This article was written by Javier Lacort and originally published in Spanish on Xataka.
Image | Meta
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