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    Hoya And Other Foreign Brands Are Exposed To Price Monopoly.

    2013/7/25 17:54:00 10

    Foreign BrandsBrandsEnterprises

    Many brands of International glasses, including France's vision Road, Germany's Cai Si and Japan's Heuer, have price controls on dealers and retailers. They are suspected of violating the "anti monopoly law". The story of China's "antitrust investigation" is still continuing, and it seems that P is far from the end of the drama.

    < /p >


    < p > July 24th, according to relevant media reports, a number of International glasses brands including France's Yi Lu Road, Germany Cai Si, Japan's Hoya, and so on, control price of dealers and retailers, suspected of violating the "anti-monopoly law".

    According to the relevant statement, the above international brands in China to formulate a unified national retail price system, in addition to the special requirements of each store, it can be appropriately discounted 15% off of the authority, under normal circumstances, can not discount sales.

    < /p >


    < p > the proportion of foreign brands is 35% < /p >


    < p > according to the relevant media survey, in the Chinese market, foreign brands according to inventory and sales situation, the lens price is 2 to 60 percent off of the retail price set by the manufacturer.

    For example, the price of French eyeglasses for a spectacle is generally about 75% off of the retail price the manufacturer makes, and the customized film is 50 percent off. If the gross margin is calculated, the former can reach 50%, and the latter is at least 30%.

    < /p >


    P, a local optical store seller, even complained that the sale price of goods could not be carried out according to the price system of the industry, which had been blocked by the industry, especially the high-end lens suppliers.

    Another Wuhan local retailer said that in order to guarantee the price system of some high-end brands, manufacturers and distributors would work hard to "knock out" retailers who did not comply with the price system.

    < /p >


    "P" and a strict eyeglasses retailer who has been implementing the brand price system has admitted to the media that this is the most basic requirement for selling these products.

    If someone sells at a lower price, there will be vicious competition. The price of retail terminal will be lowered and the profit margins between manufacturers and distributors will be squeezed. Therefore, most retailers are willing to execute this.

    "Many dealers and sellers want to jump out of this circle and follow their own price system, and they end up being eliminated."

    < /p >


    < p > however, according to the relevant lawyers, according to the anti trust law of the People's Republic of China, "the following monopoly agreements are prohibited between the operator and the counterparty, namely, fixing the price of the resale of the third party, and limiting the lowest price of the resale of the third goods."

    < /p >


    For this reason, relying on this special price system, the market share of foreign brands in the domestic market has gradually increased. P

    Data show that the gross output value of China's eyewear industry in 2012 is 16 billion yuan more than that in 2011.

    It is predicted that about 300 million of the population in China needs vision correction, and the retail sales of domestic glasses will be about 23 billion yuan.

    "The market for lenses is 50%, and the proportion of these brands is 35%."

    An industry source pointed out to the media that foreign brands are still accelerating in the domestic market.

    For example, Yi Road has acquired some shares of the company such as Kami and Pauli, and Cai Si has also bought some of its shares.

    < /p >


    < p > layer by layer price increase, raise terminal price < /p >


    < p > according to the "2013-2017 year Market Research Report on China's spectacles products" released by Shang Pu consulting, China's glasses market has certain development potential.

    A preliminary survey conducted by China, the United States and Australia on the prevention of children's myopia shows that the incidence of myopia in China is 33%, and the number of nearsightedness in the country is close to 400 million.

    Faced with such a large demand for spectacles, the eyeglasses industry is known as the gold industry.

    Behind the rising trend is the lack of standardization in the management of the glasses industry and the lack of public knowledge of glasses.

    < /p >


    < p > reporters noted that the huge profits of China's spectacle market were also surprising.

    The industry believes that once a certain industry has formed a price monopoly, it is hard for the hard ice to be broken by the disadvantaged consumers, and consumers have no choice.

    < /p >


    < p > Jiangsu Changzhou Wei Cun glasses market is the most famous eyeglasses purchase place in the country. Because of its low price, local and even foreign consumers are in hot pursuit.

    There are thousands of spectacle brands, and wholesale prices range from tens of dollars to hundreds of dollars. There are many famous brands, such as Seiko, Tyrannosaurus, Yi Lu, Ray-Ban, Mercedes Benz, Porsche, Gucci and so on.

    Earlier, reporters came to the place to buy glasses, and in the conversation with local operators, there were two kinds of spectacle frames and lenses: one was marked price and the other was not marked price.

    If dealers buy more goods, those lenses and frames without price can go back to the price tag.

    < /p >


    < p > the operator said that the cost of a few dollars of spectacles would be 5 to 15 times the profit in the urban area.

    It says that the optical store in central city generally rises 35 times from purchase price to retail price.

    As the main city area rental, decoration, personnel, equipment and other inputs larger, the general store gross profit in 50% to 70%, net profit of about 20%.

    < /p >


    < p > "the main profit of the eyeglasses industry is not in the factory, but in the hands of agents and retailers."

    Yesterday, a salesperson at the dairy store of the East glasses chain told the international finance daily that the price of raw materials for spectacles has gone up and down. When manufacturers encounter low prices, they may get a little better in raw materials, and if the price of materials increases, the profits will not be high.

    The salesperson said that the difference between ex factory price and market retail price is so large that besides brand effect and foreign brand price monopoly, it is related to the increase of agents to retailers.

    From a factory to a consumer, a pair of glasses must go through the links of manufacturers, first class agents (distributors), two levels of agents and retailers.

    < /p >

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