Forecasting Sunglasses

In: Business and Management

Submitted By shashank634
Words 1713
Pages 7
Sunglasses

After the onset of 1990s with the opening up of the Indian markets to foreign companies, one of the several products which gained prominence was sunglasses. The credit for enlivening the Indian market must go to the global player, Bausch & Lomb (B&L), the producer of the global brand, Ray Ban. There did exist an Indian market, fairly large. But this was limited basically to low-end or medium range products. Small quantities of high-end glasses were imported.
In the recent years several others like Safilo of Italy, Ciba Vision, Johnson & Johnson have entered the market.
The total market, estimated at around 4.0 mn pairs in 1990-91 had expanded to a little over 12 mn pairs in 2003-04. The organised segment, constituted of the branded ones, claims a 25% share. The small players are still very active in the lower end of the market.
Bausch & Lomb, the Rochester-based American visioncare enterprise for contact lenses and other lens and eye-care products and eye-care solutions established a manufacturing base at Bhiwadi in Rajasthan and commenced production in 1993. This marked the foray of MNCs into the production of sunglasses, contact lenses, spectacle frames and lenscare solutions. B&L was originally formed as a joint venture company with equal equity participation from Montari Industries, an Indian group and Bausch & Lomb of the US. Montari Industries pulled out of this venture.
The company landed into rough weather and within first four years it accumulated losses of Rs 210 mn. B&L put in place a strategic marketing package with a host of new launches and the company managed to break even in 1997. By end 1998-99, it recorded a 156% growth in profits at Rs 136 mn. The company is doing well since then. The company's sunglasses sold under the Ray Ban brand name, has around 400-450 styles available in the international market; only…...

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