Abstract
The market for optical goods has been growing, helped by emphasis on fashion, a faster pace of new product development and intense advertising by the largest brands and retailers. However, due to intensifying competition within the market, demand will slow in the coming years, especially for spectacles, with downward pressure on prices.
In an attempt to counter this, it is expected that spectacle suppliers will increase still further the pace of new product development, especially in branded products. Premiumisation will touch all parts of the market, from the eye examination through to all products in the core market for optical goods. At the same time, the influence of discounting, particularly in contact lenses, will lead to polarisation, with high volume growth at low prices.
Manufacture of optical goods is concentrating into the hands of fewer but larger companies. Most suppliers are multi-national businesses and they are competing hard for market share, so relationships with retailers are more important than ever before. Some manufacturers are guaranteeing their availability at the point of sale by buying up or partnering retail chains.
Key themes of the report:
- Spectacle frames have enjoyed a faster development than ever before, with the market more influenced by style. Will fashion be enough to drive demand?
- Discounting in contact lenses threatens to undermine the value growth. How can contact lens manufacturers attract and retain new wearers?
- In Scotland, free eye examinations have been named as a key factor in driving market growth; in light of this, should the English model for attracting customers into opticians change?
- How much impact will laser eye surgery have on sale of conventional spectacles and contact lenses? Does it pose an opportunity for the industry or a threat?
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