EssilorLuxottica & Ray-Ban

Why Ray-Ban Glasses Are Hot Property for Meta and Google?

"Ray-Ban Meta" has sparked a renewed excitement in the AR industry, showing that smart glasses might just be the winning form of AI hardware we've all been waiting for.

Recently, there was buzz in the media about Meta planning to invest billions to acquire about 5% of EssilorLuxottica, a giant in the eyewear industry worth 88 billion Euros. Now, while EssilorLuxottica might not be a household name, you've probably heard of Ray-Ban. Meta has partnered with Ray-Ban to develop two generations of smart glasses: "Ray-Ban Stories" and the newer "Ray-Ban Meta." According to some reports, the latter has already sold over a million units. During Meta's last earnings call, Mark Zuckerberg mentioned that several styles had even sold out.

These impressive sales figures clearly show the public's love for "Ray-Ban Meta" and hint at a new direction for the future of smart glasses. With cutting-edge AI technologies backing them, tech companies can provide the tech capabilities while leaving the hardware design and sales to successful brands. And it’s not just Meta thinking this way.

Reports suggest Google is also in talks with EssilorLuxottica to integrate its Gemini AI Assistant into future smart glasses. This move could potentially edge Meta out of a key partnership, pushing Zuckerberg to act fast.

But why the scramble over Ray-Ban? Aren't there other eyewear companies out there? What's so special about EssilorLuxottica that both these tech giants can't seem to let go?

Who is EssilorLuxottica?

EssilorLuxottica was born from the merger of Essilor, the world's largest lens maker, and Luxottica, the world's largest eyewear manufacturer, back in 2017.

Essilor, founded in 1972 in France from a merger between Essel and Silor, already had a global presence in 115 countries before the merger. Luxottica, established in 1961 in Milan, Italy, boasts one of the largest retail networks for eyewear, covering 130 countries, and is also the largest sunglasses company in the world.

Essilor focused on optical technology, while Luxottica was renowned for its stylish sunglasses, representing brands like Bvlgari, Burberry, Chanel, Dolce & Gabbana, Miu Miu, Prada, and Ralph Lauren. Before merging with Essilor, Luxottica already had established Ray-Ban as a household name, with 70 dedicated stores in China alone.

This merger was proposed by Essilor, seeing the need to not just supply lenses but also to establish their own brands and reach consumers directly. They realized that relying solely on lens sales wasn’t enough in an industry where retail margins are so high and often absorbed by intermediaries.

So, Essilor had no in-house brands or plans to create one, while Luxottica had plenty, including Ray-Ban, Revo, Sferoflex, and Vogue-Eyewear. Plus, Luxottica had a long history of collaborating with fashion brands, something Essilor was keen to tap into.

Traditional eyewear sales channels are complex, and breaking into this well-established market isn't easy, even for a giant like Essilor, let alone tech companies. This is why the partnership between Meta and Ray-Ban is so appealing.

Why Google and Meta Are Competing for Ray-Ban?

What Meta and Google are really after is Ray-Ban's established sales channels and brand value.

According to Ray-Ban's website, they have 257 stores in the U.S., plus many certified and premium certified stores also selling "Ray-Ban Meta," giving potential customers plenty of opportunities to try out the glasses in person.

Brand value might seem intangible, but it has a real impact on consumer perceptions. Ray-Ban's long-standing market presence, brand recognition, and reputation give it significant pricing power. With a base price of $199 for Ray-Ban glasses, consumers know what to expect. "Ray-Ban Meta," priced at $299, offers the latest AI features for just an extra $100, making it a no-brainer upgrade for many.

This is why established brands are becoming so valuable. They've already built up consumer awareness, established sales channels, and set product expectations. All that’s left for companies is to create good products at a fair price and let the market do the rest.

But making good products hasn't been easy for tech giants.

Since Google launched the first Google Glass in 2012, tech companies have never stopped experimenting with smart glasses. The idea that "smart glasses are the perfect form for AI" has always been a hit with entrepreneurs and investors. However, consumer interest has been lukewarm, with sales not meeting expectations, except among tech enthusiasts.

One key reason for this is simple: what tech companies think is cool isn't always what consumers find stylish or useful. Previous smart glasses often had design issues like overly thick frames or bulky arms, which put off potential buyers.

This changed with the release of the second-generation "Ray-Ban Meta" in September 2023.

"Ray-Ban Meta" features upgraded hardware, yet weighs under 50 grams, offering a lightweight and comfortable experience. The design stays true to Ray-Ban's best-selling classic styles, with three new transparent frame colors and over 150 frame and lens combinations available on the Ray-Ban Remix platform, catering to a wide range of consumer preferences.

Under Ray-Ban's guidance, "Ray-Ban Meta" doesn't compromise on aesthetics and comfort, fulfilling the basic needs of eyewear. After all, smart glasses aren't just high-tech gadgets; they're a part of our daily lives. By seamlessly integrating technology, "Ray-Ban Meta" offers a user experience that's both innovative and practical.

It's likely that this trend of tech companies partnering with established hardware brands will continue, not just in the eyewear industry but across other hardware categories as well. Brands with a strong foundation will become more valuable for tech players, and we may see more collaborations in the future.

The Smart Glasses War Resumes

As mentioned earlier, Meta and Ray-Ban have developed two generations of smart glasses: "Ray-Ban Stories" and "Ray-Ban Meta." The two products have significantly different sales and reputations.

Thanks to the Qualcomm Snapdragon AR1 chip and built-in edge AI models, "Ray-Ban Meta" can respond to multimodal interactions in seconds. The Llama 3 AI model from Meta enhances its recognition capabilities.

In contrast, "Ray-Ban Stories" had much weaker AI functionality. Two years ago, there were no large AI models, highlighting how quickly technology has advanced.

Remember the criticism of Google Glass a decade ago? Issues like overheating, uncomfortable single-eye focus, and the $1,500 "sky-high" price were major complaints. The technology level back then was far from what we have today.

In hardware, there is a concept known as the "impossible triangle": under certain technical conditions, performance, size, and price cannot all be optimized simultaneously. If you perfect two aspects, the third will inevitably fall short.

However, "Ray-Ban Meta" has managed to balance these three aspects to some extent.

The success of "Ray-Ban Meta" suggests that large AI models are changing the game in smart glasses. Besides high-end products like AVP, Meta Quest, and Magic Leap, which aim for ultimate spatial display and human-computer interaction, lightweight and fashionable AI-driven smart glasses might become as iconic as the Apple Watch and quickly gain market acceptance by addressing long-standing outdoor wearability issues.

Of course, "Ray-Ban Meta" still has shortcomings, such as a limited user base, linear output, learning curve for wake words and commands, and battery life anxiety, making it unsuitable for heavy use. However, its advanced multimodal interaction capabilities and comfortable wearability open up new possibilities in AI.

This explains why Google is getting involved, as they originally introduced the concept of smart glasses. It’s definitely a point of pride for Google. At this year's Google I/O conference, Google introduced a new smart glasses model alongside the launch of the multimodal Project Astra.

In fact, not just Meta and Google, but many potential smart glasses teams are entering the market following the success of the second-generation "Ray-Ban Meta." The scene is reminiscent of the VR boom in 2016. However, whether startups can compete with big companies remains to be seen.

Among the various AI hardware products and tracks, smart glasses are still a crucial category. As the technology matures, smart glasses might become the winning form of AI hardware.

Also, this week, EssilorLuxottica agreed to acquire the American streetwear brand Supreme for $1.5 billion, with the deal expected to close by the end of the year. Reports suggest that EssilorLuxottica plans to collaborate with Meta to launch a new version of Supreme smart sunglasses to attract younger consumers.

The smart glasses war may just be beginning.

Smart Glasses: Ray-Ban Meta, Ray-Ban Stories, Smart eyewear technology, AI-powered glasses

Companies & Brands: Meta (Facebook), Google, EssilorLuxottica, Ray-Ban, Supreme, Luxottica, Essilor

Technology & Features: Qualcomm Snapdragon AR1, AI Assistant (Gemini AI), Llama 3 AI model, Multimodal interaction, AI hardware

Market & Industry: Eyewear industry, Consumer electronics, Tech partnerships, Brand value, Sales channels

Product Design & User Experience: Lightweight design, Comfortable wearability, Customizable frames and lenses, Fashionable eyewear

Industry Trends & Competition: Tech giants competition, AI hardware market trends, Wearable technology, Future of smart glasses