What is Warby Parker$$s customer value proposition? Is this value proposition sustainable?

What are the points of parity and the points of difference for Warby Parker relative to its competitors?

What role does direct$-$to$-$consumer distribution play in Warby Parker$$s business model? What are the pros and cons of Warby Parker making its products available in traditional eyewear stores

Marketing Spotlight: Warby Parker

Warby Parker was founded by four Wharton MBA students who wanted to offer consumers

designer glasses online at an affordable price. At the time, the eyewear industry was dominated

by two companies$-$Luxottica and Essilor. Luxottica designed, manufactured, and retailed most

eyewear frames sold. The company held licenses for many of the most popular brands, such as

Ralph Lauren, Ray$-$Ban, and Oakley, and owned optical retail chains like LensCrafters and

Sunglass Hut. Whereas Luxottica specialized in frames, Essilor, the largest optical lens

wholesaler in the United States, dominated the lenses portion of the eyewear industry. As a result

of the two companies' domination of the market, the price for eyeglass frames and lenses was

very high. Consumers were paying around $$500$ for designer glasses that cost $$25$ to make. In

addition, almost all glasses sales were made in brick$-$and$-$mortar locations. Warby Parker's

founders believed that there was significant opportunity in selling designer glasses at low prices

and using the internet to make its sales.

Warby Parker was able to set low prices by vertically integrating the company. It began by hiring

a full$-$time glasses designer and two experienced contractors. By creating its own collections of

eyeglass frames, Warby Parker avoided licensing fees from designer companies and the need to

purchase frames from Luxottica. The company acquired its eyeglass materials from a family$-$

owned Italian producer and outsourced its manufacturing to production factories in China. The

production process was completed in optical labs located in New York, where pre$-$made lenses

were carved and fit into the frames. The company's use of pre$-$made frames, instead of applying

prescriptions directly onto frames, reduced costs dramatically. These factors resulted in Warby

Parker's ability to provide eyeglasses starting from the low price of $$95.$

Warby Parker designs its glasses to appeal to fashion$-$forward and trendy customers looking to

express their individualism. Each Warby Parker design has its own name, often referencing

famous literary or military figures$-$e$.$g$.,$ the Moriarty, Daisy, and Roosevelt frames. The frames

are inspired by retro and vintage glasses but are modernized to create a "timeless" look. In

addition, each frame is offered in a wide selection of colors and patterns, ranging from simple

tones to more eye$-$catching stripes and gradients.

The majority of Warby Parker's sales are made through its website. Warby Parker has changed

the eyeglass market by paving the way for online sales. To incentivize customers who were

unfamiliar with the l

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