[carsongross]

But, given the traditional understanding of markets, one wonders how the cartel (really, this appears to be more of a monopoly) is able to sustain itself. There does not appear to be very high barriers to entry, and with obvious online sales channels available... This seems like a great industry to disrupt.

[bydo]

It's the vertical integration.

There may be obvious online sales channels, but optical prescriptions are only available in person, and Luxottica has done an excellent job at making sure the most convenient optometrist is also an affiliate stocking their eyewear.

They don't only own the Lens Crafters peddling Chanel and Prada frames, but also Sears and Target Optical selling "discount" versions with only slightly reduced margins.

There's also a law requiring a prescription less than one year old to purchase eyeglasses or contact lenses, to send consumers back to the sales floor as often as possible.

See above for people discussing how difficult it can be to even get a copy of your prescription to order online with, despite it being federally mandated.

[shillster]

What about buying out the competition? The "consolidation" in the industry is what has led to a decrease in competition.

[carsongross]

Sure, but the typical logic applies: margins get high enough and new competitors come in.