Opticians and Optical Goods Market Assessment August 2006
Released on = April 16, 2007, 3:58 am
Press Release Author = Bharat Book Bureau
Industry = Marketing
Press Release Summary = Executive Summary This Key Note Market Assessment report provides an analysis of the opticians and optical goods market, which includes, spectacles, contact lenses and solutions, laser eye treatment, private sight tests and general ophthalmic services
Press Release Body = Opticians and Optical Goods Market Assessment August 2006
Executive Summary This Key Note Market Assessment report provides an analysis of the opticians and optical goods market, which includes, spectacles, contact lenses and solutions, laser eye treatment, private sight tests and general ophthalmic services. It updates a previous Opticians & Optical Goods Market Assessment report published in 2004.
The market has been affected by a number of regulatory changes since 2004, including amendments to the 1989 UK Opticians Act, which allowed major supermarket chains including Tesco, ASDA and Sainsbury\'s to sell contact lenses. Also important was the decision by the Scottish Executive to introduce free and more comprehensive eye tests for all in Scotland. If this move were to be copied in the rest of the UK, it would have important consequences for the industry.
Overall, the opticians and optical goods market showed fairly steady growth between 2001 and 2005. The UK population has an ageing profile, with an increasing number of people over the age of 45 - a group that generally has greater need of sight correction. This means that the pool of potential customers is steadily growing. In addition, the highly competitive nature of the optical sector is leading to extensive discounting, which is boosting sales, while demand for premium eyewear remains strong.
The spectacles sector has grown in value since 2001 as an indirect result of an increase in sight tests and also due to various sales promotions. However, the sector remains highly competitive and, despite an element of `trading up\' to designer spectacles by some consumers, `two for one\' offers are still widespread. The leading suppliers of spectacles and frames include Carl Zeiss/SOLA, Essilor, Luxottica, Rodenstock, Safilo, Silhouette and the UK-based Norville.
The contact lenses sector continues to develop, aided by the ongoing introduction of new products. The major advances have been in daily-wear and extended 30-day continuous-wear lenses, which are accounting for an increasing proportion of the market. However, these lenses dispense with the need for cleaning solutions, which is affecting the value of that particular sector. The retail sector of the market has been opened up by the entry of the leading supermarket chains and by the availability of contact lenses via the Internet. The supply of contact lenses and solutions is mainly concentrated in the hands of a few large US multinationals, including Johnson & Johnson, Bausch & Lomb, CooperVision, Advanced Medical Optics and Alcon Laboratories. Swiss-owned CIBA Vision is one of Europe\'s leading suppliers.
The laser eye treatment sector received a boost in March 2006 when the National Institute for Health and Clinical Excellence (NICE) issued guidance that laser eye surgery was safe enough and sufficiently effective to be carried out on appropriately selected patients. The new guidance was important because, for the first time, laser eye surgery was presented officially as a viable and safe alternative to spectacles and contact lenses. The industry is hoping that this guidance will help to allay the fears some potential customers have concerning laser eye treatment, demand for the treatment having suffered from some adverse publicity in 2003. The two market leaders in this sector are Ultralase and Optimax.
The retail environment remains highly competitive for opticians. Specsavers has continued to enhance its position as the UK\'s leading optician and other chains, such as Optical Express and Scrivens, have expanded their outlet numbers over the past 2 years. Boots has recently announced that it is to develop its franchise operation and Dollond & Aitchison has linked up with Sainsbury\'s for the provision of contact lens aftercare. The grocery multiples are expanding their presence in the market and Internet sales remain a feature. These trends all place ongoing pressure on the independents in the industry.
The need for optical goods is global, with nearly two-thirds of the world\'s population needing corrective lenses, although less than a quarter wear them. This percentage varies from one region to another. People in North America, Japan, Australia and Western Europe are generally well equipped, but a high proportion of the population in Eastern Europe, Latin America and Asia are in need of optical correction. Income and access to adequate sight testing and optician services account for much of the difference.
In original consumer research commissioned exclusively by Key Note for this report, 66.3% of adults said that knowledgeable staff and a clean and tidy environment were important to them in choosing an optician. The survey also confirmed that, although people think that deals and lower prices are important, there is still a demand for smaller local opticians and recommendation is a significant factor in consumers\' choice of practitioner. The research also found an increase in the perception that wearing glasses is much more acceptable nowadays. This is related to the greater fashion for wearing glasses.
The ophthalmic goods and services market is forecast to show steady growth over the next 5 years (to 2010), with the increasing need for eye testing and eyewear being offset by mounting competition and price sensitivity. It is likely that eye testing will become a greater focus of competition, being perceived as an entry point for sales, and adding value to this service will become part of the competitive edge.
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