INDUSTRY PROFILE: EYEWEAR
According to Statista, the total vision care market in the U.S. generated just over $34 billion USD, and has been growing since 2009. Luxottica is the largest optical retailer in the U.S with 4,628 retail stores, and owns LensCrafters and Pearle Vision. In 2017, Italy’s Luxottica and France’s Essilor agreed to a blockbuster merger. Other leaders include Johnson & Johnson Vision Care, Novartis, and Safilo Group. Large retailers have also entered the market, including Costco, Walmart, Target, and Sears. Online retailer Warby Parker has been disrupting the market, with its “Home-Try-On program.” Customers can choose five frames from the website, which are then shipped to their home to evaluate for five days, free of charge.
CONSUMERS AND MARKET SEGMENTS
Prolonged exposure to electronic devices that have caused strain on eyes. The increasing diagnosis of myopia has led to greater demand for the prescription-based (Rx) eyeglasses. With a share of 55.9 percent, eyeglasses accounted for the largest part the market. David walked into an optical retailer with a need: lightweight lenses, specifically made of polycarbonate. These are more expensive to produce because polycarbonate is a synthetic resin in which the polymer units are linked through carbonate groups, including many molding materials and films. These lenses are up to 10 times more impact-resistant than plastic or glass lenses and they provide 100% protection from the sun’s harmful UV rays.
BRAND PROMISES AND BUSINESS MODELS
In the early 20th Century, retailers first began differentiating their brands with frames with different styles. Sellers count on the vanity of buyers as part of their business model, with high-end frames representing a profit center. Consumers may only need Rx lenses every year or two, so optical retailers often feel a need to maximize the value of each transaction. Lenses are lower margins, but vary depending upon the choices of material. Trivex is an alternative to polycarbonate introduced by PPG Industries and is composed of a urethane-based monomer. Retailers may say that it is the same as polycarbonate. Polycarbonate is about 10 percent thinner, but Trivex is about 10 percent lighter.