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Warby Parker - Disruptive innovation in the high priced eyewear industry

Published: May 2013 · Publisher: MarketLine
Warby Parker, thanks to its cost-efficient and customer-oriented strategy, managed to turn a small $100,000 investment into a viable business opportunity. The company proves that it is possible to build long term profitability by ...
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages27
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-6144
Price € 369,00
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Introduction

Warby Parker, thanks to its cost-efficient and customer-oriented strategy, managed to turn a small $100,000 investment into a viable business opportunity. The company proves that it is possible to build long term profitability by delivering customer satisfaction, whilst keeping prices at a reasonable level.

Features and benefits

* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

Despite a high level of product differentiation and large number of players, the competition within the retail eyewear market in the US is not forcing prices down. The near- monopoly situation in the production and distribution of eyewear results in high mark-ups.
Warby Parker company saw the existing situation as a business opportunity and aims to create a beneficial alternative to the overpriced designer glasses. The company keeps its costs low and sells directly to consumers. Warby Parker has been exceeding its sales targets. Its existing customer base is one of the largest drivers of its growth.

Your key questions answered

* How much is the US eyewear market worth and what are its most lucrative segments? What are the drivers of the eyewear market and risks to consider?
* Why are designer glasses so expensive? Who maintains an effective degree of monopoly in the eyewear market and where is the competition coming from?
* Is it possible to build long term profitability by delivering happiness? How to open a completely new market in the long established industry?
* What are the simple ways to knock down manufacturing and licensing costs?
* How to secure online shoppers to get more business and lower percentage of returns?
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OVERVIEW
Catalyst
Summary
DEVELOPMENT OF THE US EYEWEAR MARKET AND REASONS BEHIND ITS HIGH PRICES
The US eyewear market recovered from the effects of economic downturn
Glasses lenses and frames were the most lucrative eyewear business in 2012
Population aging will drive the US eyewear market growth
From a simple commodity to an important article of fashion
Luxottica maintains an effective degree of monopoly in the eyewear market
High concentration of the US eyewear market boosts price markup
Traditional sales channels dominate but face increased competition from alternative distributors
Eyewear market’ risks to consider
VISION OF AN AFFORDABLE EYEWEAR MARKET
Eyeglass designer aiming to build long term profitability by delivering happiness
How loss of expensive glasses led to a vision of affordable eyewear market
Investment of $100,000 brings more than 20,000 customers in return
Warby Parker’s $95 glasses and designers’ $500 glasses come from the same production lines
Venture capital of more than $40m, despite turning down big investors
Estimated over $1m in sales revenues
Opening of a completely new market in the long established industry
WARBY PARKER’S BUSINESS MODEL DISRUPTING THE ESTABLISHED EYEWEAR INDUSTRY
Warby Parker’s way to improve classic internet business model
Simple ways to knock down manufacturing and licensing costs
Bypassing retail channel crates viable business while keeping prices low
More ways to secure online shoppers resulting in lower percentage of returns
Meeting customers where they already are
Happy customers drive Warby Parker’s growth and bring savings
The only carbon-neutral eyewear brand in the world looking to serve larger community
TURNING A CHALLENGE INTO A BUSINESS OPPORTUNITY
Focus on quality, reasonable price and extended customer service can create a viable business
APPENDIX
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Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.