Danish premium eyewear brand 'Lindberg,' known for the glasses worn by former President Moon Jae-in, will raise domestic supply prices by 10% starting next month. This follows a 6% increase in 2023 and is the second increase in two years. Along with Lindberg, the eyewear and lens industry has been experiencing a general price increase relay this year.
According to ChosunBiz's coverage on the 14th, Lindberg recently notified domestic transaction points that it would raise supply prices by 10% starting in April due to rising raw material prices and increased logistics costs. With a 10% increase in supply prices, consumer prices are expected to rise by more than 10% once retailer profits are added.
This price increase marks the second since Kering, a group that owns numerous luxury brands, acquired Lindberg in 2021. Kering holds famous brands such as Gucci, Saint Laurent, and Balenciaga.
This price hike aligns with the overall trend in the domestic eyewear and lens market. Notably, in the contact lens market, major brands have raised their prices by up to 20% since the beginning of this year.
Alcon Korea raised the prices of major products, including Aqua Myopia & Astigmatism, by about 10% last January. CooperVision Korea increased the prices of its daily use lenses, such as Clarity and MyDay, for the first time since its establishment in February.
Following that, Interojo will increase the prices of Claren brand products by up to 20% in March, spreading the price increase domino effect throughout the industry. The 'value-for-money lenses' known as Mikwang Contact Lenses will also raise the prices of some Clear Lab disposable lens products by 11-20% starting on the 1st of next month.
◇ 'Cheaper than abroad' vs 'Opaque price increase'
Regarding the price increase, the eyewear industry argues, "When viewed on a global scale, the prices of eyewear in South Korea are still very low."
A representative from an optical store noted, "The prices of main materials like titanium and nickel have risen by 14% and 15%, respectively, over the past two years, and with the increase in labor costs due to exchange rate rises, the manufacturing cost of eyeglasses has surged by nearly 40-50%."
Due to the densely populated domestic market, the industry claims that excessive competition has led to prices being set too low.
However, from a consumer standpoint, there is considerable dissatisfaction regarding eyeglass prices. Eyeglasses and lenses are essential items for vision correction, making it difficult to find alternatives if prices increase.
Particularly for consumers with high prescriptions or severe astigmatism, expensive lenses are necessary. Considering the volume of lens consumption, representatives from consumer groups said that a 10% price increase would raise the annual vision correction expense by over 100,000 won per household.
◇ "Eyeglass prices, severe information asymmetry between consumers and sellers"
The opaque pricing structure in the eyewear industry is also problematic. Even if suppliers raise prices by 10%, consumers have no idea how this will be reflected in final consumer prices. It is common for the same product to have price differences of 30-50% among optical stores.
For example, the Lindberg's representative model, Morten, is sold for 30-40% cheaper at optical stores in the heart of Tokyo, Japan, compared to domestic prices. Lindberg glasses can cost as much as 1 million won for just one frame. This has led to instances of people traveling to buy Lindberg products.
Experts in the distribution industry evaluated that recent acquisitions of cosmetic, eyewear, and accessory brands by fashion groups that own numerous luxury brands have led to a focus on expanding sales through price increases. In the process, the practical benefits for consumers have diminished, and pricing has continued to raise the premium of the brand.
There were also calls for the domestic eyewear market to structurally increase pricing transparency.
A representative from the Citizen's Council for Consumer Sovereignty said, "Optical stores have a widespread practice of raising prices by adding their own profits, citing reasons such as 'wholesale prices have increased,' making it difficult for consumers to compare prices due to the long-term usage nature of eyeglasses, leading to serious information asymmetry problems between consumers and sellers."