Demographic Scan: The sunglass industry views middle to high-class male and female millennials as the most popular segment to target. The two main reasons individuals purchase sunglasses is for the aesthetic appeal and for functional reasons. Aesthetics encompass how the sunglasses look and how they make the individual feel. More than four in ten Millennials agree that it is important to buy products that make you feel good about yourself and one in four Millennials buy products that make them “stand out” (Mintel Group Ltd. #1). Functionality also is important when it comes to consumers choosing a product in the sunglass industry. Durability, quality, and adequate UV protection are factors that help consumers narrow down their purchasing decisions.
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Luxottica has operations in 150 countries, and North American sales make up about 80.0% of their global sales (IBIS World). Luxottica is a market leader in North America and in the Asia-Pacific. The company has a significant edge against its competitors, like B-Shady (IBIS World). Direct competitors of B-Shady are, Ray Ban, Oakley, and in-store brands like Zara, H&M, and Aldo Accessories. The higher end brands Luxottica owns are not direct competitors due to their astronomical purchase price, high profit margins, and their high income target market (Exhibit 1). B-Shady’s direct competitors have similar profit margins of 30% (Luxottica). B-Shady has a lower purchase price ($60-$80) than Ray Ban and Oakey ($120+) and the company focuses on long lasting relationships that in-store brands do not have. Online and in-store companies like Zara, H&M, and Aldo tend to carry cheap and inexpensive products that lack durability. B-Shady will have the upper hand on those companies because they will have the appropriate mix of high quality, value, and branded sunglasses that will encourage increased purchases and a loyal customer base (IBIS World). Consumers are also more likely to trust, and would rather purchase sunglasses from a specialty sunglasses store (Exhibit 3). Ray Ban and Sunglass Hut are …show more content…
One way these emotional needs are fulfilled is by seeking out the newest/coolest trends through pop-culture news following. Being perceived as fashionable and wearing “luxury” products leads others to think of you as that “cool”, trendy, and wealthy person you want to be seenas. Overall, Millennials are spending more than the average consumer every year on food, entertainment, clothes, and travel. This market is also very different than prior markets like boomers seeing how, about half of Millennials use their smartphone daily to go online (Mintel Group Ltd.) (Exhibit 6). Younger Canadians are significantly more likely than older Canadians to have made an online purchase in the past year and average amount of reported spending annually for online purchases in Canada is $954 (Tonejuzzi, M). With a growing target market of millennials that use online services there is a growing market of online sales that are not being satisfied. Online sales are providing increased competition for brick and mortar retailers, as 13% of vision correction consumers have purchased eyewear online within the past five years. Consumers are looking for better prices and more options that they just can not find in person (Mintel Group Ltd. #3). Also, the fashion industry online has been growing at a steady pace since 2011 (Mintel Group Ltd. #4) (Exhibit 7). The result is a large group of tech savvy, high
Luxottica has operations in 150 countries, and North American sales make up about 80.0% of their global sales (IBIS World). Luxottica is a market leader in North America and in the Asia-Pacific. The company has a significant edge against its competitors, like B-Shady (IBIS World). Direct competitors of B-Shady are, Ray Ban, Oakley, and in-store brands like Zara, H&M, and Aldo Accessories. The higher end brands Luxottica owns are not direct competitors due to their astronomical purchase price, high profit margins, and their high income target market (Exhibit 1). B-Shady’s direct competitors have similar profit margins of 30% (Luxottica). B-Shady has a lower purchase price ($60-$80) than Ray Ban and Oakey ($120+) and the company focuses on long lasting relationships that in-store brands do not have. Online and in-store companies like Zara, H&M, and Aldo tend to carry cheap and inexpensive products that lack durability. B-Shady will have the upper hand on those companies because they will have the appropriate mix of high quality, value, and branded sunglasses that will encourage increased purchases and a loyal customer base (IBIS World). Consumers are also more likely to trust, and would rather purchase sunglasses from a specialty sunglasses store (Exhibit 3). Ray Ban and Sunglass Hut are …show more content…
One way these emotional needs are fulfilled is by seeking out the newest/coolest trends through pop-culture news following. Being perceived as fashionable and wearing “luxury” products leads others to think of you as that “cool”, trendy, and wealthy person you want to be seenas. Overall, Millennials are spending more than the average consumer every year on food, entertainment, clothes, and travel. This market is also very different than prior markets like boomers seeing how, about half of Millennials use their smartphone daily to go online (Mintel Group Ltd.) (Exhibit 6). Younger Canadians are significantly more likely than older Canadians to have made an online purchase in the past year and average amount of reported spending annually for online purchases in Canada is $954 (Tonejuzzi, M). With a growing target market of millennials that use online services there is a growing market of online sales that are not being satisfied. Online sales are providing increased competition for brick and mortar retailers, as 13% of vision correction consumers have purchased eyewear online within the past five years. Consumers are looking for better prices and more options that they just can not find in person (Mintel Group Ltd. #3). Also, the fashion industry online has been growing at a steady pace since 2011 (Mintel Group Ltd. #4) (Exhibit 7). The result is a large group of tech savvy, high