20/20 Vision for Licensed Eyewear

In some industries, licenses come and go, depending on property and product trends at any given time. An exception is the eyewear industry, especially the luxury component, where licensing is a consistent staple. Most deals are global and long-lasting, and contract renewals are in the news as much or more than new agreements. Here’s a look at some of the happenings over the past 12 months:

• Renewals. Marcolin renewed its deal with Skechers, which it has held since 2014, through 2030, as well as extending its partnerships with the luxury fashion labels GCDS, Zegna, and Pucci. Safilo renewed its contract with Hugo Boss, which started in 2006, through 2030, and reupped with Moschino as well.

• Early renewals. Another indicator of stability is the fact that many renewal announcements in the industry come well before current contracts are set to expire. EssilorLuxottica renewed its licensing agreement with Michael Kors early, extending the partnership, which began in 2015, for a five-year period that will start in 2025. Marcolin’s extension of its Max&Co license, which runs through 2030, was accomplished early in anticipation of a potential sale of the company. Safilo’s renewals of contracts with Tommy Hilfiger and Kate Spade were both early; it has been with the former since 2010 and the latter since 2000.

• New licenses. Of course, fresh properties regularly join the licensees’ portfolios of established brands as well. Marcolin acquired the Louboutin license, marking the first eyewear deal for that brand; EssilorLuxottica signed a new four-year deal with Moncler, with an automatic five-year renewal option; Mondottica secured the rights to make eyewear for the British label AllSaints; Innovative Eyewear, a maker of smart glasses, signed Reebok; and Safilo forged a 10-year agreement with Etro as well as adding a license with Kate Spade’s sibling brand, Stuart Weitzman.

• Licenses changing hands. While some properties are entirely new to the industry, or are coming in after a hiatus, many newly signed licenses represent a jump from one licensee to another. EssilorLuxottica signed a five-year agreement with an automatic renewal of another five years with Jimmy Choo, after the latter’s deal with Safilo, which expired at the end of 2023, was not renewed. And, after EssilorLuxottica ended its 20-year partnership with Bulgari at the end of 2023, when its current contact expired, the luxury label paired with Thélios. LMVH-owned Thélios, founded in 2017, has been assuming the eyewear rights to most of LMVH’s brands (of which Bulgari is one) as their contracts with their former licensees end.

• Plans for licensing expansion. Pair Eyewear, which makes snap-on frames, has plans to expand its licensing efforts into the celebrity and fashion sectors, after having signed a number of deals in entertainment (e.g., Sesame Street), sports (NBA), and art (Van Gogh Museum).

• Licenses ending. Of course, not every agreement can go on forever, whether because sales are not meeting expectations or, frequently, due to other business reasons, and the properties depart the industry, at least for a time. Safilo ended an agreement with Chiara Ferragni, a leading Italian fashion influencer, for breach of contract after she was accused of duping her followers into thinking that purchasing one of her branded Christmas cakes would be tied to a contribution to a children’s hospital.

The length of licensing contracts in the eyewear industry, which are on average longer than for most other licensing sectors, is one illustration of the stability of licensing in this category. So is the fact that many licensing deals stay in place for decades, with renewal after renewal. Marcolin has held the Tom Ford license since 2005 and now has a perpetual license with the brand’s owner Estée Lauder that it signed in 2022. And EssilorLuxottica is credited with establishing luxury fashion licensing as a driver of the eyewear industry with its acquisition of the Giorgio Armani license, which is still in place, in the 1980s.

Most of the leading licensees carry an expansive portfolio of licenses from the world of fashion and luxury, among others, and a large portion of the industry as a whole is comprised of licensed products versus in-house owned brands. Individual programs often drive significant sales; Skechers eyewear achieved record sales of $8 billion in 2023, up 7.5% from the previous year, according to Fashion Network, while figures distributed by Statista estimate that the top brand in the industry, Kering’s Gucci, held an 18% share of the market in 2022, putting sales at about $3.9 billion a year globally. According to Statista’s figures, the luxury portion of the industry generated $21.7 billion worldwide in 2023.

Despite the stability of licensing in the eyewear space, there is some turmoil in the industry in general. Marcolin is rumored to be for sale as its majority owner, Pai Partners, considers divesting the brand; several of its competitors are reportedly interested. And EssilorLuxottica has been sued for leading a price-fixing scheme in the U.S. involving retailers and competitors; the suit says the company’s exclusive licensing and sales agreements have led to price mark-ups of as much as 1,000%.