Optical Goods and Eyecare - UK - May 2008

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Excluded
• Market in Brief
• Market size and spend
  • Figure 1: Market segmentation, 2007
• Who needs eyewear?
• Product development in contact lenses
• Spectacle frame suppliers focus on style
• Custom made lenses
• The future
• Internal Market Environment
• Key points
• Stable wearer base
  • Figure 2: Trends in wearing glasses and/or contact lenses, 2001-07
• Significant scope to grow contact lenses
• Image is all
  • Figure 3: Adults who have glasses and/or contact lenses, by attitudes towards appearance, 2007
• Fashion drives demand
• Faster pace of change
• Celebrity endorsement
• Legislative issues
• The discount cycle
• Leisure activities
  • Figure 4: Leisure activities that may affect the need to wear glasses or contact lenses, 2003-07
• Square eyes
• Getting moving
• Smoke in your eyes
• Army to get free laser
• Broader Market Environment
• Key points
• Changing age structure favours the market
  • Figure 5: Structure of the UK population, by age, 2003-13
• Youthful slant to contact lenses
• Children will trade up
• Identifying targets to work on
  • Figure 6: Labour market trends, 2001-06
• The UK is growing more affluent
  • Figure 7: Forecast adult population trends, by socio-economic group, 2003-13
• Drivers' vision
• Competitive Context
• Key points
• Laser correction
• A growing market
• Ready readers
  • Figure 8: Type of vision correction worn by age, 2007
• Lack of desire for glasses
  • Figure 9: UK: Consumer spending on selected major goods categories, 2003-08
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• The UK optical goods market
  • Figure 10: UK market for optical goods* and services, at current and constant 2008 prices, 2008-13
• Market to reach £3 billion
• Goods and services sales
  • Figure 11: UK retail sales, by product and service, 2003-13
• Contact lenses continue to outperform
• Eye exams
• Factors used in the forecast
• The future
• Segment Performance
• Key points
• Specs rule
  • Figure 12: Segmentation of the optical goods market, by value, 2008
• Spectacles
• Steady growth
  • Figure 13: Spectacles, market value, 2003-08
• Increasing fashion and brand appeal
• The discounting cycle
• Lens development assisting the market
• Lens type
  • Figure 14: Spectacle lenses, volume share by main type of lens, 2007
• 2-for-1 legacy
• NHS entitlements
• Outlook for spectacles
• Contact lenses
  • Figure 15: Contact lenses, market value, 2003-08
• Market on the up
• Demand for contact lenses increasing
• Dailies dominate but are weakening
  • Figure 16: Sales of contact lenses by main type, 2003, 2005 and 2007
• Disposable dents solutions
• Outlook for contact lenses
• Solutions
  • Figure 17: UK sales of contact lens solutions, 2003-08
• Contact lens solutions in decline
• Eyecare
  • Figure 18: The UK market for eyecare products, at current and constant 2003 prices, 2003-08
• New product development boosts eyecare
• Eye examinations
  • Figure 19: Eye tests, market value, 2002-07
• The impact of free eye examinations
• Adding value to the eye test
• Market Share
• Key points
• Spectacle frame shares
  • Figure 20: Share of spectacle frame sales value, by supplier, 2007
• Brand shares
• Contact lenses
  • Figure 21: Manufacturer shares of contact lenses by value and volume, 2006 and 2007
• Solutions
  • Figure 22: Brand shares of contact lens solutions, 2006 and 2007
• Spectacle lenses
• Companies and Products
• Key points
• Spectacle frames
• Luxottica
  • Figure 23: Luxottica brands portfolio, 2008
• Safilo Group
  • Figure 24: Safilo Brands, 2008
• Marchon
  • Figure 25: Marchon brands, 2008
• De Rigo
  • Figure 26: De Rigo brands 2008
• Other spectacle suppliers
• Lens suppliers
• BBGR
• Essilor
• Nikon Optical UK
• Norville Lens Supplies
• Rodenstock
• Seiko Optical UK (Pentax)
• Signet Armorlite (Kodak)
• Sola (Zeiss)
• Contact lens suppliers
• Johnson & Johnson
• Ciba Vision
• Sauflon
• Bausch & Lomb
• Coopervision
• Brand Communication and Promotion
• Key points
• Ad spending climbs
  • Figure 27: Main monitored media advertising spend on prescription frames/contact lenses, 2003-07
• Adspend by advertiser
  • Figure 28: Main monitored media advertising spend on prescription frames/contact lenses, by advertiser, 2003-07
• Contact lens brands raise their profile
• Advertising strategy
• Brand awareness prompting visits to opticians
• Marketing themes
• A humorous approach
• Fashion/range of frames
• Eye health and tests
• Targeting by age (eg over-45s, over-60s)
• Channels to Market
• Key points
• Retailers share
  • Figure 29: Retailer value shares of optical market, 2007
  • Figure 30: Retailer value shares of optical market, 2007
• Specsavers dominates
  • Figure 31: Retailer value share of optical goods, 2002-07
• Boots falls back
• On the rise
• Medium groups concentrating
• Supermarkets gaining
• Independents differentiating
  • Figure 32: Positioning, ownership, weaknesses and future for major opticians chains, 2007
• The Consumer -- Vision Correction
• Key points
• Type of vision correction
  • Figure 33: Use of vision correction aids, November 2007
• Spectacles dominate
• Near and far
• Eyesight changes with age
• Contact lens young following
• Costly contacts
• Many niche opportunities
• Appendix
• Advertising data
• Abbreviations
• Appendix: Vision Correction -- Detailed Consumer Demographics
  • Figure 37: Variations of optical goods worn, by demographic sub-groups, November 2007
  • Figure 38: Use of vision correction aids, by demographic sub-groups, November 2007