Costa Del Mar has been successful in creating a high brand value around the world. When this brand is going through such revolutions, the decision of decreasing most of the Daytona Beach operations raised many quarries. The ownership, headquarter, and number of employees are facing significant change. Therefore, a suspect emerged: Is Costa going out of business?
In this article, we have discussed the status of Costa Del Mar from the beginning to the present context. Cost is shutting down the majority of its functions based in Florida. So, confusion has been created about the true position, ownership, and future of this brand. If you go through this analysis, you will be able to get out of confusion regarding your present identity of Costa.
- Is Costa Del Mar going out of business?
- Why is Costa Del Mar closing the majority of Daytona Beach operations?
- Are Oakley and Costa the same company?
- Who owns Costa Del Mar now?
Is Costa Del Mar going out of business?
When the news of closing Daytona Beach operations was exposed, the consumer and eyewear society began to ask: Is Costa going out of business? The reality is that Costa is not going out of business rather it is going to be operated under the direct authority of its owner as Luxottica buys Costa Del Mar.
Costa Del Mar used to maintain the Costa warranty policy and other features according to the policy of Luxottica. Yet, the production system took place almost independently in the Daytona Beach factory. Luxottica feels the importance of minimizing the production cost of Costa. Therefore, they are not only closing Daytona operations but also leaving the employees working there.
Hence, the production and distribution of Costa sunglasses are expected to continue as usual. There may arise some temporary impediments but the authorities in concern hope to bring it on track within a short period.
Why is Costa Del Mar closing the majority of Daytona Beach operations?
Costa has decided to close the majority of Daytona operations by 2020. Though there is a lack of clarity about the issue. We have researched to figure out the reality and possible causes behind the decisions. Our analysis has been segmented into two parts:
- The history of Costa in Daytona Beach, Florida.
- The possible reasons for the closing of most of the Daytona operations.
The history of Costa Del Mar in Daytona Beach, Florida:
Since its evolution as a reputed eyewear company, Costa has been operating its business in the American headquarters situated in Daytona Beach, Florida. Costa brings the frames and lenses from different countries like Italy, Japan, and China. In headquarter situated in Florida, the opticians of this brand hand assemble the frame and lenses.
The probable reasons behind choosing Daytona Beach: Daytona Beach has huge popularity for coastal beauty and different recreational and water-based sports activities. It is a heavenly place for beach lovers. On the other hand, Costa Del Mar has set up its production and business trend on eyeglasses, especially sunglasses.
These sunglasses are meant for outdoor sports mainly related to water such as summer activities, recreational, underwater or saltwater fishing, boating, surfing in the sea, etc. Therefore, Costa marked Daytona Beach as ideal for matching its business theme. Since then, Costa Daytona beach became a new way to identify this place in Florida.
The probable reasons for closing most of the Daytona operations:
Change of ownership: The authorization of Costa Del Mar has gone through changes. This American company came under the ownership of Essilor and finally became a part of Luxottica. Therefore, the company policies, rules, and regulations have gone through several changes. Luxottica now owns and controls Costa so they want to manage the production of Costa glasses in their customized place at Luxottica’s plant in Foothill Ranch, California.
Overlapped issues: Luxottica claims that they are extremely hopeful about the prospects of Costa Del Mar. The sunglasses of this brand have already found their dynasty in the eyewear industry. The revenue rate has been attractive too. But the costs of a distinctive headquarter and the number of workers in the Daytona factory is overlapping the possibilities.
Therefore, Luxottica has planned to reduce the number of workers and transfer the operating sector of Costa to factories in New York, Atlanta, and California.
Impact of lawsuits: In recent years, Costa faced lawsuits for allegations against the ‘Costa sunglasses repair policy’. The allegation is mainly about the repair charge. There was a statement about a minimal charge for repair service but the lawsuits mentioned that the brand charged as much as close to the price of the sunglasses.
So, this created problems for the management of regular flow. Consequently, Luxottica decided the management process to be controlled directly under their supervision. This is another important reason that played a huge role in limiting the operations in Daytona Beach.
Synchronizing the management: According to some statements from the authority of Luxottica, the plans of changing headquarter and taking Costa under the complete authority of Luxottica intend the synchronization of production management.
To maintain the reputation of world-class sunglasses and the standard of Costa Del Mar customer service, the mega-brand Luxottica decided to synchronize and precise all types of Costa management.
Are Oakley and Costa the same company?
Costa Del Mar started its journey in 1983. When the company came to a position of getting brand value, Essilor owned it. Gradually, Essilor merged with Luxottica and thus Costa became a part of EssilorLuxottica.
Oakley also started the business as an independent company but now it is also a subsidiary EssilorLuxottica. So, Costa Del Mar and Oakley are not the same company rather they are different subsidiary brands under the same mega brand Luxottica.
Who owns Costa Del Mar now?
The first change in ownership came when Costa went under the control of Essilor. But Essilor finally merged with the biggest eyewear company Luxottica. So, like many of the famous brands like Ray-Ban, Oakley, etc, Costa Del Mar is now owned by Luxottica. This is operating businesses under the constitutional system of its new owner and Luxottica has grabbed the control of the brand.
In the article “Is Costa Del Mar going out of business?” we discussed different issues related to the current business policy of Costa. The present ownership and changes under Luxottica have created many quarries about the existence of this brand. The production and management in Daytona Beach were reduced and shifted. So, did Costa go out of business?
Here we have collected and evaluated all possible information, probable future, and important reasons. The facts of shifting headquarter, reducing employees, or merging the business all these are still a bit blurry. Yet, the extensive research of our team has tried to make it clear that Costa is not going out of business.
Let us know what you feel about the issue and don’t hesitate to make us your trusted link. We always care the best for you.