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Optical Goods Retailing - UK - February 2019

OVERVIEW
What you need to know
Products covered in this Report
Excluded
EXECUTIVE SUMMARY
The market
Optical goods and eyecare spending up 3.4% in 2018
Figure 1: Market for optical goods and eyecare, 2013-23
Figure 2: Consumer spending on optical goods and services, by category, 2018 (est)
Innovation has helped to add value
The ageing population is helping to create growth in demand
Sunglasses market up 3.4% in 2018
Figure 3: Market for non-prescription sunglasses, 2013-23
Companies and brands
Market share gains for Specsavers and Vision Express
Figure 4: Distribution of optical goods and services, by retailer, 2017 and 2018 (est)
Other growth retailers
Frame styling and virtual try-on
Online pureplays capture around 10% of contact lenses but less than 5% of prescription glasses
The consumer
Specsavers has high levels of trust and usage
Figure 5: Attitudes towards and usage of selected brands, December 2018
Almost half of adults had an eye test in 2018
Figure 6: Usage of eye and hearing services in the last 12 months, November 2017 and December 2018
Hearing tests show a bias towards over-65s
Glasses are the most popular type of eyewear
Figure 7: Wearers of prescription glasses, contact lenses and sunglasses, December 2018
A third of glasses wearers bought in the last year
Figure 8: Purchases of eyewear and hearing aids in the last 12 months, December 2018
Specsavers captures 45% of purchasers
Figure 9: Retailers used for prescription eyewear, December 2018
Clothing retailers popular for fashion sunglasses
Figure 10: Retailers used for fashion eyewear, December 2018
Low prices and special offers capture attention
Figure 11: Factors influencing choice of optician, December 2018
Awareness of healthcare will keep people returning to opticians
Figure 12: Attitudes regarding opticians and eyewear, December 2018
Self-testing for eyes appeals to younger adults
54% don’t think contact lenses are suitable for everyone
Shoppers know that they could save by shopping online
Style is more important than price
What we think
ISSUES AND INSIGHTS
What are the implications of opticians moving into supermarkets?
The facts
The implications
Is falling footfall in town centres affecting opticians?
The facts
The implications
Is online taking a greater market share of optical goods?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Consumers spend £3,242 million on optical goods and eyecare
Population growth will increase demand
Market for sunglasses shows steady growth
Innovation has helped to add value
The ageing population is helping to create growth in demand
The sun shone in 2018
Consumer confidence fell towards the end of 2018
Market share gains for Specsavers and Vision Express in 2018
MARKET SIZE AND FORECAST
Steady growth for optical goods and services
Figure 13: Consumer spending on optical goods and services, 2013-23
Contact lenses market grew faster than spectacles over 2013-18
16% growth forecast for sunglasses between 2018 and 2023
Figure 14: Consumer spending on non-prescription sunglasses, 2013-23
Forecast methodology
MARKET SEGMENTATION
Spectacles are 61% of the market by value
Figure 15: Consumer spending on optical goods and services, by category, 2018 (est)
Optical goods market by category
Figure 16: Consumer spending on optical goods and services, 2013-18
Figure 17: Consumer spending on spectacle frames and lenses, estimates by category, 2013-18
Innovative lenses help grow the spectacles market
Figure 18: Spectacle lens purchases, by type, (numbers) 2018 (est)
Contact lens market up by 4.3% from 2017-18
Multifocal contact lenses grow market value
Toric contact 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
Figure 19: Yearly change in number of NHS eye examinations, England and Wales, 2013-17
CHANNELS TO MARKET
Three major chains dominate the UK market
Figure 20: Distribution of optical goods and services, by retailer, 2017 and 2018 (est)
Specsavers’ market share grows to 42.1%
Boots remains a major force
Vision Express boosts market share through acquiring Tesco Opticians
Optical Express concentrates on laser surgery
All change for supermarket opticians
Sunglasses concessions and in-store opticians open in department stores
Key developments in online selling
Contact lenses online
Essilor takes a major position in digital selling
Some 20% of fashion sunglasses are bought online
Is Amazon a threat?
MARKET DRIVERS
Ageing population drives growth
Growth in the teenage market
Figure 21: Trends in the age structure of the UK population, 2018-23
Consumers remain confident about their finances
Figure 22: Trends in how respondents would describe their financial situation, January 2017-November 2018
Summer 2018 was sunnier than average
Figure 23: Sunshine hours, by season, 2014-18
Overseas travel helps build sunglasses sales
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Optical goods chains are growing via acquisition
Specsavers expands into healthcare
Online presence for opticians serves a wide span of purposes
Disruptive strategies from smaller players
Specsavers reaches 800 outlets
Other growth retailers
Frame styling and virtual try-on
LEADING SPECIALISTS
Specsavers is by far the largest group
Figure 24: Leading optical goods retailers’ net revenues (excluding VAT), 2013-17
Tesco acquisition boosts Vision Express’ store numbers
Figure 25: Leading optical goods retailers’ outlet numbers, 2014-18
Other chains
Hakim has doubled store numbers in two years
Royston Bayfield aims for 50 outlets
Valli is up to 14 outlets
Frith drops a store
Cross Eyes got out of the UK
European retailers offering designer quality at accessible prices
COMPETITIVE STRATEGIES
Why growth via acquisition is the most profitable route
Specsavers expands into healthcare provision
Online presence for opticians serves a wide span of purposes
Promotional tactics remain important
How the key retailers differentiate their brands
Disruptive strategies from smaller players
LAUNCH ACTIVITY AND INNOVATION
Frame styling apps
Figure 26: Specsavers, virtual try-on technology, 2018
Ace & Tate expanding in the UK
Figure 27: Ace & Tate, comparing the industry with own production, 2019
Figure 28: Ace & Tate, local themes for store design, 2019
Maison Bonnet opens upscale outlet in Mayfair
Figure 29: Maison Bonnet, Mayfair, 2019
Maison Acuitis promises 40 UK outlets
Figure 30: Acuitis, UK store, 2018
Selfridges revamps London eyewear department
Figure 31: Selfridges eyewear department, 2018
ADVERTISING AND MARKETING ACTIVITY
Gradual reduction in above-the-line advertising
Figure 32: Total above-the-line, online display and direct mail advertising expenditure on opticians, 2014-18
Specsavers and Boots upped spending in 2018
Figure 33: Boots, television advert, 2019
Figure 34: Breakdown of top five optical goods advertisers’ above-the-line, online display and direct mail advertising expenditure, 2014-18
Television accounts for 33% of spending
Figure 35: Advertising spend by opticians, by media, 2018
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 36: Attitudes towards and usage of selected brands, December 2018
Key brand metrics
Figure 37: Key metrics for selected brands, December 2018
Clulow commands a premium
Figure 38: Attitudes, by brand, December 2018
Specsavers stands out as a fun brand
Figure 39: Brand personality – Macro image, December 2018
Specsavers is authoritative
Figure 40: Brand personality – Micro image, December 2018
Brand analysis
Specsavers is an outstanding brand, with broad appeal
Figure 41: User profile of Specsavers, December 2018
Boots has a strong overall image
Figure 42: User profile of Boots Opticians, December 2018
Asda Opticians captures a broad range of customers
Figure 43: User profile of Asda Opticians, December 2018
Vision Express appeals to affluent customers
Figure 44: User profile of Vision Express, December 2018
David Clulow appeals to wealthy young adults
Figure 45: User profile of David Clulow, December 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
48% had an eye test in the last year
Six in 10 wear glasses
Specsavers captures 45% of purchasers
Independents popular with over-65s while online shoppers are young
Fashion retailers popular for sunglasses
Variety of factors influence choice of optician
Online services are important
Awareness of healthcare will keep people returning to opticians
Potential to encourage people to try contact lenses
Attitudes towards buying glasses online
16-34s will pay extra for brands
People don’t feel bad about shopping around
EYE TESTS AND HEARING TESTS
Almost half of adults had an eye test in 2018
Figure 46: Usage of eye and hearing services in the last 12 months, November 2017 and December 2018
Hearing tests show a bias towards over-65s
Higher percentage have eye tests over age 45
Figure 47: Eye tests, hearing tests and laser eye surgery, by age, December 2018
Those with the healthiest finances more likely to have eye examinations
Figure 48: Eye tests in the last 12 months, by financial situation, December 2018
WEARERS OF GLASSES, CONTACT LENSES AND SUNGLASSES
Glasses are the most popular type of eyewear
Figure 49: Wearers of prescription glasses, contact lenses and sunglasses, December 2018
More than two thirds of over-45s use prescription eyewear
Figure 50: Wearers of any prescription eyewear, by age, December 2018
42% wear one type of eyewear
PURCHASES IN THE LAST 12 MONTHS
A third of glasses wearers bought in the last year
Figure 51: Purchases of eyewear and hearing aids in the last 12 months, December 2018
Figure 52: Purchases of prescription eyewear, by age, December 2018
RETAILERS USED FOR PRESCRIPTION EYEWEAR
Specsavers captures 45% of purchasers
Independents attract older shoppers
Internet shoppers are younger and wealthier
Figure 53: Retailers used for prescription eyewear, December 2018
RETAILERS USED FOR FASHION EYEWEAR
Clothing retailers popular for fashion eyewear
Figure 54: Retailers used for fashion eyewear, December 2018
FACTORS INFLUENCING CHOICE OF OPTICIANS
Low prices and special offers capture attention
Well-equipped test rooms
Reminders are a call to action
Online services are important
Designer brands attract younger shoppers
Styling technology
Figure 55: Factors influencing choice of opticians, December 2018
ATTITUDES REGARDING OPTICIANS AND EYEWEAR
Attitudes towards eye tests
Self-testing for eyes appeals to younger adults
Strong health associations
Figure 56: Attitudes regarding opticians and eyewear, December 2018
Attitudes regarding contact lenses and laser surgery
54% don’t think contact lenses are suitable for everyone
16-34s show an interest in laser
Contact lenses have a ‘fiddly’ image
Figure 57: Attitudes regarding opticians and eyewear, contact lenses, December 2018
Attitudes towards buying glasses online
Younger shoppers most likely to rate glasses bought online
25-34s understand that online shopping could save money
80% feel it is important to have glasses fitted professionally
Figure 58: Attitudes regarding opticians and eyewear, online shopping for glasses, December 2018
Attitudes towards brands, style and shopping around
Younger shoppers will pay more for brands
Style matters more than price
It is OK to shop around
Figure 59: Attitudes regarding opticians and eyewear, price, brand and shopping around, December 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology

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