Brief Excerpt from Industry Overview Chapter:
Companies in this industry sell prescription and other eyeglasses and contact lenses; they usually include a lab on premises to grind lenses to specifications. Major companies in the US include LensCrafters, National Vision, Pearle Vision, and Visionworks of America, as well as Fielmann (based in Germany) and GrandVision (the Netherlands).
Demand is driven by demographics, fashion, and changing health care practices. Most important is the aging of the US population, which is increasing demand for eye exams and glasses. Large retailers enjoy economies of scale in purchasing and can offer a wider range of product styles. Small retailers can often compete successfully with large chains by offering convenient locations, specialized products, or superior service. Eyeglass purchases are mildly cyclical with the economy, as many consumers view extra glasses as an expense that can be deferred. The US industry is concentrated: the 50 largest companies generate about 70% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Opticians' main revenue come from the sales of glasses and contact lenses, which account for about 50% of the industry's revenue. Prescription eyeglasses take about 40%, while contact lenses account for more than 5%, on their own. Other revenue sources include medical and diagnostic testing and the sales of nonprescription eyeglasses and sunglasses.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook