Table of Contents
Overview
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- What you need to know
- Products covered in this Report
- Excluded
Executive Summary
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- Consumers spend £3,067 million on optical goods and eye examinations
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- Figure 1: Consumer spending on optical goods and services, 2011-21
- 16.5% growth forecast for sunglasses between 2016 and 2021
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- Figure 2: Consumer spending on fashion sunglasses, 2011-21
- Spectacles are 61% of the market by value
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- Figure 3: Consumer spending on optical goods and services, by category, 2016 (est)
- Ageing population expands audience for prescription eyewear
- Companies, brands and innovation
- 66% of the market captured by the top three opticians
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- Figure 4: Distribution of optical goods and services, by retailer, 2014 and 2016 (est)
- Highly concentrated supply chain
- New Danish entrant with personality
- Superdrug sells optical goods online
- Emerging world of wearable technology
- Specsavers brand stands out
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- Figure 5: Attitudes towards and usage of selected brands, January 2017
- The consumer
- 57% of adults had an eye examination in the last year
- 60% of eye tests were paid for by NHS
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- Figure 6: About the last eye examination, October 2016
- 22% switched opticians for their last eye test
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- Figure 7: About the last eye examination, October 2016
- Special deals and better staff encouraged switch of opticians
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- Figure 8: Reasons for switching retail opticians, October 2016
- 9% of all have ever had laser eye surgery
- 73% of adults use prescription eyewear
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- Figure 9: Users of prescription eyewear, October 2016
- 26% bought fashion sunglasses in the last year
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- Figure 10: Purchasers of fashion eyewear, October 2016
- ABs and 16-34s are core customers for fashion sunglasses
- Prescription glasses dominate the market
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- Figure 11: Purchases of prescription eyewear, October 2016
- Specsavers is the most used optician
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- Figure 12: Retailers used for last prescription eyewear, 2014-16
- 9% are interested in ‘smart’ glasses
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- Figure 13: Interest in lens innovation, October 2016
- People value professional fitting
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- Figure 14: Attitudes regarding opticians, October 2016
- Target groups
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- Figure 15: Target groups for opticians, October 2016
- What we think
Issues and Insights
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- What impact is online selling having on the market for optical goods?
- The facts
- The implications
- Is laser surgery having an impact on the market for spectacles and contact lenses?
- The facts
- The implications
- Will spectacle businesses get into the emerging market for wearable technology?
- The facts
- The implications
The Market – What You Need to Know
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- Consumers spend £3,067 million on optical goods and eyecare
- Population growth will increase demand
- Market for sunglasses shows steady growth
- 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
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- 16.6% growth forecast between 2016 and 2021
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- Figure 16: Consumer spending on optical goods and services, 2011-21
- Market growth of around 3% per year expected
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- Figure 17: Consumer spending on optical goods and services, 2011-21
- 16.5% growth forecast for sunglasses between 2016 and 2021
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- Figure 18: Consumer spending on fashion sunglasses, 2011-21
- 11% market growth without inflation
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- Figure 19: Consumer spending on fashion sunglasses, 2011-21
- Forecast methodology
- The impact of Brexit
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- Figure 20: Alternative market scenarios for the post-Brexit optical goods and services market, at current prices, 2016-21
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- Figure 21: Detailed post-Brexit scenarios for the optical goods and services, at current prices, 2016-21
- Little change for shoppers
- Consumers are already shopping savvily
Market Segmentation
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- Spectacles are 61% of the market by value
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- Figure 22: Consumer spending on optical goods and services, by category, 2016 (est)
- Optical goods market by category
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- Figure 23: Consumer spending on optical goods and services, by category, 2011-21
- Sales of progressive lenses now larger than bifocals
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- Figure 24: Spectacle lens purchases, by type, (numbers) 2016 (est)
- Contact lens market up by 18.8% between 2011 and 2016
- Multifocal contact lenses now 26% of new fits
- Toric lenses have broadened the market
- Rise of daily-wear lenses means lower demand for solutions
- 25% of contact lens wearers are part-time
- Market dominated by soft contact lenses
- Eye drops growing strongly from a small base
- Eye examination numbers growing gradually
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- Figure 25: NHS sight tests, England and Wales, 2015 and 2016
- Figure 26: Year-on-year change in NHS sight test numbers, England and Wales, 2011-16
Channels to Market
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- 66% of the market captured by the top three opticians
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- Figure 27: Distribution of optical goods and services, by retailer, 2014 and 2016 (est)
- Specsavers grows market share to 38.7%
- Boots struggles in 2016, slipping to 14.6% market share
- Vision Express adds 1% to market share between 2014 and 2016
- Optical Express shifted its efforts to laser surgery
- Supermarkets gradually expanding opticians’ presence
- Ceiling for growth for supermarkets
- Sunglass concessions and in-store opticians open in department stores
- Online sellers
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- Figure 28: Distribution of optical goods and services, by retailer, 2012-16 (est)
Market Drivers
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- Ageing population expands audience for prescription eyewear
- Take children seriously
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- Figure 29: Trends in the age structure of the UK population, 2016-21
- Consumers showing strong levels of confidence
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- Figure 30: Trends in how respondents would describe their financial situation, September 2015-December 2016
- High exposure to ‘blue light’ from personal technology
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- Figure 31: Personal ownership of consumer technology products, September 2016
- Sunnier days boost sales of sunglasses
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- Figure 32: Annual sunshine hours, UK, by country, 2015 and decade average to 2015
Industry Changes
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- Ruling warns Boots on overclaiming benefits of filtering out Blue Light
- Opticians could build Enhanced Optical Services (or MECS)
- Community-based eye health is popular with patients
- Employers’ requirements for VDU users
Key Retailers – What You Need to Know
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- Acquisition is an attractive strategy
- Clear differentiation for the big chains
- Joint venture partnerships
- Hakim growing its presence
- Luxottica Retail more than doubled sales between 2013 and 2016
- Growth for supermarket opticians restricted by space available
- Online sellers
- Specsavers and Boots ahead on trust
Competitive Strategies
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- Sales growth of optical chains
- Luxottica is the fastest growing
- Specsavers expands its reach
- Vision Express and Scrivens grown through acquisition
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- Figure 33: Turnover (excluding vat), selected optical goods retailers, 2012-15
- Concentration of the opticians sector
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- Figure 34: Opticians, store numbers, 2013-16
- Creating differentiation
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- Figure 35: Market positioning strategies, major opticians, 2017
- Business models
- Franchises, joint venture and non-core products
- Hakim Group growing rapidly
- Alternative places to buy optical goods
- Online selling
- Essilor expands in online retailing and merges with Luxottica
- The march of the supermarkets
- 4,500 independents
Key Suppliers to Opticians
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- Essilor developing online businesses via acquisition
- Essilor merges with Luxottica
- Specialist spectacle lens suppliers
- 3D printing could be a disruptive influence
- Sourcing shifting from China
- Smart glasses in development
- Suppliers of contact lenses and contact lens solutions
- Sunglasses market dominated by high volumes and low prices
Launch Activity and Innovation
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- CrossEyes plans franchise expansion in the UK
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- Figure 36: CrossEyes, Richmond, 2017
- Superdrug launches online opticians
- Snap (formerly Snapchat) revives the idea of smart glasses
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- Figure 37: Snap smart sunglasses, 2017
- Future trends for smart glasses
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- Figure 38: OrCam smart spectacles, 2017
- Safilo developing wearable technology to improve mental focus
- 3D printing could revolutionise supply
- Virtual ‘try-on’ will help online to grow
- Screening schoolchildren
Advertising and Marketing Activity
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- Advertisers spent £56.5 million in 2016
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- Figure 39: Above-the-line advertising expenditure on optical goods and eyecare, 2013-16
- The ‘big three’ dominate advertising spend
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- Figure 40: Above-the-line advertising expenditure on optical goods and eyecare, by company, 2016
- Figure 41: Above-the-line advertising expenditure on optical goods and eyecare, by company, 2013-16
- Advertising specifics
- Specsavers continues its popular ‘Should’ve’ campaign
- Vision Express strikes a serious tone
- Boots’ feelgood advertising
- Optical Express highlights surgery as easy and affordable
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 42: Attitudes towards and usage of selected brands, January 2017
- Key brand metrics
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- Figure 43: Key metrics for selected brands, January 2017
- Brand attitudes: Specsavers stands out for innovation, great customer service and trust. Vision Express is reputable and Boots is a trusted brand
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- Figure 44: Attitudes, by brand, January 2017
- Brand personality: Specsavers’ personality is vibrant and fun, while Boots’ greatest strength is accessibility. Optical Express is tired and lacks appeal
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- Figure 45: Brand personality – Macro image, January 2017
- Brand Personality: Specsavers is trendsetting and welcoming, while Boots is cutting edge, stylish and reliable. The weakest brands are Tesco (basic) and Optical Express (impersonal)
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- Figure 46: Brand personality – Micro image, January 2017
- Brand analysis
- Specsavers’ powerful image combining style and fun along with trust and great value creates broad appeal
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- Figure 47: User profile of Specsavers, January 2017
- Tesco Opticians is accessible but basic, highlighting an opportunity to build a stronger image in the opticians market
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- Figure 48: User profile of Tesco Opticians, January 2017
- Boots Opticians is trusted with a good reputation and delivers good service
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- Figure 49: User profile of Boots Opticians, January 2017
- Vision Express appeals to young upscale adults
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- Figure 50: User profile of Vision Express, January 2017
- Optical Express has highest appeal among affluent 25-34s
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- Figure 51: User profile of Optical Express, January 2017
The Consumer – What You Need to Know
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- Over half had an eye test in 2016
- 22% switched opticians for their last eye test
- Young, affluent consumers most likely to have had laser surgery
- 26% bought fashion sunglasses
- Prescription glasses dominate the market
- Plenty of opportunity to increase sales values
- The big three opticians face competition from supermarkets
- Style is a key draw for spectacles shoppers
- Professional fitting gives stores an advantage over online
Eye Examinations in the Last Year
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- 57% of all had an eye examination in the last year
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- Figure 52: Eye examinations in the last year, 2014-16
- Over-65s a core audience for eye examinations
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- Figure 53: Eye examinations, by age and socio-economic group, October 2016
- 9% of all have ever had laser eye surgery
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- Figure 54: Laser eye surgery, by age, gender, socio-economic group and financial situation, October 2016
About the Last Eye Examination
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- 60% of eye tests were paid for by NHS
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- Figure 55: About the last eye examination, October 2016
- 22% switched opticians for their last eye test
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- Figure 56: About the last eye examination, October 2016
- Special deals and better staff encouraged switch of opticians
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- Figure 57: Reasons for switching retail opticians, October 2016
Users of Prescription Eyewear
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- 73% of adults use prescription eyewear
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- Figure 58: Users of prescription eyewear, October 2016
- Over 75% of over-45s need help with their eyesight
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- Figure 59: Users of prescription eyewear, by age, October 2016
- Demand for glasses will grow as the population ages
- Prescription sunglasses no longer a luxury
- More contact lenses suitable for over-45s
- Comfortable eyes
- Opportunity to expand contact lens wear
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- Figure 60: Users of prescription eyewear, glasses, prescription sunglasses and contact lenses, by age, October 2016
Fashion Sunglasses and Contact Lenses
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- 26% bought sunglasses in the last year
- 5% claim to have bought fashion contact lenses
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- Figure 61: Purchasers of fashion eyewear, October 2016
- ABs and 16-34s are core customers for fashion sunglasses
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- Figure 62: Purchasers of fashion sunglasses, by age and socio-economic group, October 2016
Purchasers of Prescription Eyewear
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- Prescription glasses dominate the market
- 18% of those with a prescription bought contact lenses
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- Figure 63: Purchases of prescription eyewear, October 2016
- 22% of wearers bought two or more products
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- Figure 64: Purchases of prescription eyewear, repertoire, October 2016
Retailers Used for Prescription Eyewear
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- Figure 65: Retailers used for last prescription eyewear, 2014-16
- Specsavers is used by 49% of those who bought glasses
- Vision Express captures 15% of contact lens purchasers
- Independents used by those with healthy finances (14%)
- Contact lenses (5%) more likely to be bought at online pureplay than glasses (2%)
- Why online sales have not performed better
- Tesco outruns Asda
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- Figure 66: Retailers used for prescription eyewear, October 2016
- 37% of those who switched from another optician bought at Specsavers
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- Figure 67: Retailers used for last prescription eyewear, same or switched, October 2016
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Interest in Innovation
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- 39% of 16-34s are interested in reducing digital eyestrain
- 18% would like a blue light filter
- 41% of over-65s interested in multifocal spectacle lenses
- 22% of younger Millennials interested in smart connected glasses
- More opportunity to add value to spectacle lenses
- Interest in photochromic lenses is high
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- Figure 68: Interest in lens innovation, October 2016
Attitudes Regarding Opticians
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- Style comes above price when choosing glasses
- Desire for fitting services will keep people away from buying online
- Some will be lured to buy online to make savings
- 23% like the idea of a self-test app for eyes
- 30% delay an eye test until they think their eyes have changed
- 26% believe independents look after eyes better
- Barriers to wearing contact lenses
- Laser surgery is a key competitor to contact lenses
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- Figure 69: Attitudes regarding opticians, October 2016
- Target groups
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- Figure 70: Target groups for opticians, October 2016
- Expertise matters more as consumers age
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- Figure 71: Target groups for opticians, by age, October 2016
- Cost Conscious attracted to buy online
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- Figure 72: Target groups for opticians, retailers used, October 2016
- Brands Matter display lowest loyalty to opticians
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- Figure 73: Target groups for opticians, switched/used the same optician, October 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Market sizing and segment performance
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market forecasts by segment
- Market forecast – Spectacle frames
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- Figure 74: Consumer spend on spectacle frames, 2011-21
- Figure 75: Consumer spend on spectacle frames, 2011-21
- Market forecast – Spectacle lenses
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- Figure 76: Consumer spend on spectacle lenses, 2011-21
- Figure 77: Consumer spend on spectacle lenses, 2011-21
- Market forecast – Contact lenses
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- Figure 78: Consumer spend on contact lenses, 2011-21
- Figure 79: Consumer spend on contact lenses, 2011-21
- Market forecast – Contact lens solutions
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- Figure 80: Consumer spend on contact lens solutions, 2011-21
- Figure 81: Consumer spend on contact lens solutions, 2011-21
- Market forecast – Eye examinations
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- Figure 82: Consumer spend on eye examinations, 2011-21
- Figure 83: Consumer spend on eye examinations, 2011-21
- Market forecast – Eye drops
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- Figure 84: Consumer spend on eye drops, 2011-21
- Figure 85: Consumer spend on eye drops, 2011-21
- Forecast Methodology
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