Optical Goods Retailing - UK - February 2016

Optical Goods Retailing - UK - February 2016

Feb 2016 Mintel Lasers and OpticsN/A Price :
$ 2835

Concentration of the retail sector has continued. The big three opticians, Specsavers, Boots and Vision Express, have all gained market share, thanks to the expansion of their chains. Attention grabbing deals remain the cornerstone of promotional strategy, but we are seeing more brand building by the chains in order to reduce the focus on discounting. New competition from John Lewis (in conjunction with Luxottica) and Superdrug and growth of optical chains at Asda and Tesco will intensify competition even further and inevitably the losers will be independents, who continue to see market share being steadily chipped away.

Table of Content

Overview

What you need to know
Products covered in this report
Excluded

Executive Summary

Growth of 16.4% expected by 2020
Figure 1: Consumer spend on optical goods and services, 2010-20
Market for sunglasses to grow by 16% from 2015-20
Figure 2: Consumer spend on non-prescription sunglasses, 2010-20
Spectacles dominate spending
Figure 3: Consumer spend on optical goods and services, by category, 2014-15
Market factors
Figure 4: Changing age structure of the population, 2010-15
Companies, brands and innovation
Figure 5: Distribution of optical goods by retailer, 2015 (est)
Brand map illustrates customer attitudes to opticians
Figure 6: Attitudes towards and usage of selected brands, November 2015
The consumer
Figure 7: Wearers of eyewear, November 2015
Purchases of fashion eyewear
Figure 8: Fashion eyewear purchased in the last twelve months, November 2015
Glasses dominate the market place
Figure 9: Prescription eyewear purchased in the last 12 months, November 2015
Specsavers is the most-used optician
Figure 10: Retailers used for last prescription eyewear purchase, November 2015
People value professional fitting at an optician
Figure 11: Attitudes about optical goods and eye examinations, any agree, November 2015
High level of interest in added-value eyewear
Figure 12: Interest in added value and innovation, November 2015
Figure 13: Customer typologies for opticians, November 2015
What we think

Issues and Insights

Can opticians find new ways to grow?
The facts
The implications
What are the prospects for internet retailing in eyewear?
The facts
The implications
Is there a future for independents?
The facts
The implications

The Market – What You Need to Know

Consumers spend £2,975 million on optical goods and eyecare
Population growth will increase demand
Market for sunglasses continues to grow
Innovation has helped to add value
Older customers will create more demand for services
More 25-34s boost demand for contact lenses
Improved consumer confidence
Market share gains

Market Size and Forecast

Growth of 16.6% from 2015-20
Figure 14: Consumer spend on optical goods and services, 2010-20
Figure 15: Consumer spend on optical goods and services, 2010-20
Figure 16: Consumer spend on non-prescription sunglasses, 2010-20
Figure 17: Consumer spend on non-prescription sunglasses, 2010-20
Figure 18: Consumer spend on non-prescription sunglasses, 2011-15
Market segmentation
Figure 19: Consumer spending on optical goods and eyecare, by segment, 2010-15
Sunglasses show steady growth
Figure 20: Consumer spend on non-prescription sunglasses, 2011-15
Laser vision correction

Market Drivers

Growth of 55+ age group - 20.8 million by 2020
Growing demand for eye examinations
9.9% more children aged 5-14 by 2020
9.4 million 25-34s by 2020
Figure 21: Trends in the age structure of the UK population, 2010-20
Greater consumer confidence
Figure 22: Trends in current financial situation compared to a year ago, measured at November, 2011-15
High proportion of the population uses screens
Figure 23: Personal ownership of consumer technology products, September 2015
Sunshine helps sales of sunglasses
Figure 24: Sunshine hours, UK annual, 2011-15

Channels of Distribution

Unusual retail sector dominated by specialists
Boots and Vision Express gaining ground
Optical Express is concentrating on laser
Supermarkets on the rise
Figure 25: Distribution of optical goods by retailer, 2014 and 2015 (est)

Key Retailers – What You Need to Know

Limited potential for more Specsavers stores in the UK
Boots growing once again
Vision Express acquisitions boost store numbers
Clear differentiation for the big chains
Joint venture partnerships
Online sellers
Supermarket expansion
Independents in long-term decline

Key Retailers – Competitive Strategies

Sales growth of optical chains
Figure 26: Turnover (excluding vat), selected optical goods retailers, 2011-15
Expansion of the chains
Figure 27: Opticians multiples, outlet numbers, 2013-15
Creating differentiation
Figure 28: Market positioning strategies, major opticians, 2016
Business models
Franchises, joint venture and non-core products
Alternative places to buy optical goods
Online selling
The march of the supermarkets
4,500 independents
John Lewis opening in-store opticians

Advertising and Marketing Activity

Advertising spend up 45% 2012-15
Figure 29: Above-the-line advertising expenditure on optical goods and eyecare, by company, 2012-15
Specsavers dominates advertising spend
Figure 30: Above-the-line advertising expenditure on optical goods and eyecare, by company, 2015
Figure 31: Above-the-line advertising expenditure on optical goods and eyecare, by company, 2012-15
A note on adspend

Brand Research – Optical Goods and Sunglasses

What you need to know
Specsavers and Boots ahead on trust
Vision Express is upscale
Over-55s want accessible and trustworthy opticians
Tesco and Asda are value but basic
Brand map
Figure 32: Attitudes towards and usage of selected brands, November 2015
Key brand metrics
Figure 33: Key metrics for selected opticians brands, November 2015
Brand attitudes: Vision Express and Boots positioned as reputable with great service, while Specsavers is innovative
Figure 34: Attitudes, by brand, November 2015
Brand personality: Specsavers is vibrant and fun, Boots engaging and Vision Express exclusive
Figure 35: Brand personality – Macro image, November 2015
Specsavers is trendsetting and stylish, Boots reliable and authoritative, but Vision Express overrated and expensive. Asda is basic and disappointing.
Figure 36: Brand personality – Micro image, November 2015
Brand analysis
Specsavers’ upbeat image, style and fun personality along with trust and value attract a wide range of customers
Figure 37: User profile of Specsavers, November 2015
Boots Opticians is reputable, trusted and has good service
Figure 38: User profile of Boots Opticians, November 2015
Asda’s image is the weakest, although Asda chimes with 16-24s who see it as fun
Figure 39: User profile of Asda Opticians, November 2015
Tesco Opticians gains from being accessible
Figure 40: User profile of Tesco Opticians, November 2015
Vision Express is exclusive and accessible, yet considered expensive and overrated
Figure 41: User profile of Vision Express, November 2015
Brand analysis

Key Suppliers – What You Need to Know

Multinational companies dominate supplies
Luxottica is the fastest growing supplier
Fabris Lane is the leading mid-market supplier of sunglasses
Innovative products could change the market

Key Suppliers to Opticians

Future disruption for spectacle suppliers?
Sourcing shifting from China
Smart glasses
Leading spectacle frame suppliers
Specialist spectacle lens suppliers
Suppliers of contact lenses and contact lens solutions

Launch Activity and Innovation

3D printing could revolutionise the market
Online sales expected to grow
Superdrug enters the online market
Self-testing instead of an opticians visit
Smart glasses with prescription lenses
Bespoke could lead to eyewear wardrobes
Screening school children

The Consumer – What You Need to Know

Older and wealthier more likely to have eye exams
Glasses are the most-used eyewear
Fashion sunglasses most-bought by under 44s
Specsavers has the broadest appeal
Ageing customer base for indies
Combination of expertise and style
High Street Devotees want better functionality
Style Seekers will respond to innovative products
Thrifty shoppers motivated by making savings
Demanding loyalists favour independents

Eye Examinations in the Last Year

58% had an eye test in the last year
Figure 42: Eye examinations in the last 12 months, November 2014 and November 2015
Older people more likely to have had an eye test
Figure 43: Eye examinations in the last 12 months, by age and socio-economic group, November 2015
Better off people more inclined to have eye tests
Figure 44: Eye examinations in the last 12 months, by financial situation, November 2015

Wearers of Eyewear

Two thirds wear glasses
Figure 45: Wearers of eyewear, November 2015
More use of glasses as people age
Young profile for contact lens wearers
Ask suitable lifestyle questions
Multifocal lenses for complex prescriptions
Building a contact lens business
Add-on sales potential for eye drops
Sunglasses, a useful add-on
Non-prescription sunglasses have a younger bias
Figure 46: Wearers of eyewear by age and socio-economic group, November 2015

Eyewear Purchases – Fashion Eyewear

Figure 47: Fashion eyewear purchased in the last twelve months, November 2015

Eyewear Purchases – Prescription Eyewear

High replacement rate for glasses
Low cost of ready-readers
How opticians hang onto contact lens customers
Figure 48: Prescription eyewear purchased in the last 12 months, November 2015

Retailers Used for Last Prescription Eyewear Purchase

Vision Express appeals to ABs
Specsavers had broad appeal
Boots slightly older and a little upscale
Ageing customer base for independents
Internet picks up 5% of shoppers
Figure 49: Retailers used for last prescription eyewear purchase, November 2015
Figure 50: Source of purchase of optical goods, November 2015

Attitudes towards Optical Goods and Eye Examinations

Figure 51: Attitudes about optical goods and eye examinations, any agree, November 2015

Interest in Added Value and Innovation

Figure 52: Interest in added value and innovation, November 2015

Consumer Typology Groups

Figure 53: Customer typologies for opticians, November 2015
High Street Devotees (26%)
Figure 54: Attitudes towards opticians, High Street Devotees, November 2015
Figure 55: Attitudes towards innovation, High Street Devotees, November 2015
Style Seekers (27%)
Figure 56: Attitudes towards opticians, Style Seekers, November 2015
Figure 57: Attitudes towards innovation, Style Seekers, November 2015
Thrifty Shoppers (23%)
Figure 58: Attitudes towards opticians, Thrifty Shoppers, November 2015
Figure 59: Attitudes towards innovation, Thrifty Shoppers, November 2015
Demanding Loyalists (24%)
Figure 60: Attitudes towards opticians, Demanding Loyalists, November 2015
Figure 61: Attitudes towards innovation, Demanding Loyalists, November 2015

Appendix – Data Sources, Abbreviations and Supporting Information

Market sizing and segment performance
Fan chart forecast
Abbreviations

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