MARKETING MANAGEMENT

ASSIGNMENT 1
OPTICAL INDUSTRY
 Types of Optical Products
Eyewear consists of items and accessories worn on or over the eyes, for fashion or adornment, protection against the
environment, and to improve or enhance vision.

CONTACT LENSES

SPECTACLE LENSES AND

FRAMES SUNGLASSES
 Market Overview
• The Indian eyewear industry is witnessing a renewed prominence across both the developing as well as developed
economies. The increasing proliferation of advanced eyewear models in the former will create a pathway for upgraded
living standards, whereas, in advanced nations, the market is characterized by product innovations, exports, and
increased productivity.

• Global demand of eyewear market will continue to be driven by spectacles, on grounds of the fact that spectacles
covered 55 per cent of the overall revenue in 2016. The onset of the third millennium has witnessed a plethora of
trends and styles, eyeglasses being no exception.

• The global eyewear market has been experiencing a reinstatement of the yesteryears, which is evident from the
changing consumer inclination toward round glasses, cat-eyed frames and asymmetrically structured sunglasses. Also,
the gradual shift of eyewear as a tool of protection to fashion accessory has led to the industry constantly coming up
with new styles and trends in sunglasses.
• India’s eyewear segment, once a near stagnant market, has today been converted into one of the fastest growing
retail sectors in the country. In 2016, the Indian eyewear market was estimated to be around Rs 8,400 crore. Further,
the sector is projected to grow to Rs 12,600 crore in the coming years.

• While unorganized stores handle most of the prescription eyewear, the organized market is set to grow much faster
at 15 per cent CAGR. Talking about the growing organized eyewear sector, the Indian market accounts for 1% of the
world’s

• The organized eyewear market in India – although much smaller than the unorganized sector – is expected to draw
Rs 1,700 crore of business over the next four years. Almost 80 per cent of this market is for spectacles, while the
remaining 20 per cent are accounted by sunglasses.
 Indian Market share of Optical Industry
• India is predominantly a glass lenses market(87% of total market) with sales of approximately 115 million pieces per
year.

• The Indian market for optical products- including ophthalmic, fashion and contact lens is estimated to be about US
$1.13 billion.

• The demand is driven by demographics, fashion and changing healthcare practices. Aging population is increasing the
demand for eyeglasses and frames.
• “Per capita consumption has increased 5X over last 5 years because people want to now buy multiple eyeglasses and
multiple sunglasses. Modern day changing lifestyles entails individuals to purchase sunglasses, lenses and frames
according to the ongoing fashion trends.”

• As per analysis, about 20 percent of world's population is aged 50 and above. As per WHO estimation, globally more
than 285 million individuals are visually impaired where 246 million have low vision and 39 million are blind. Also,
Shalini Gupta from Titan Eye plus maintained that more and more consumers have started to own two pairs of
spectacles leading to increased consumption per consumer.

• While this category is still developing and gaining strength with time, we are affirmative about its growth in the near
future with more players entering the segment, offering newer and trendier eyeglasses to the discerning consumers.

• Exposure to global trends, changing lifestyles and higher disposable incomes has enabled Indian urban consumers
to spend on premium and luxury sunglasses, but he is also value- conscious and strives to make sensible purchase
decision.

• Ongoing fashion trends coupled with a shift in consumer lifestyle will support the industry growth. Consumers’
transition from health to fashion conscious has spurred demand for luxurious and branded products. Increasing
spending on luxury eyewear owing to rising disposable income will favour product demand over the forecast period.
 Principal Market Segments
1. Refractive Correction- IOLs & Lasik
There is an increase in the cases of cataract surgery in India from the past few years with almost 3-4 million new
patients every year.
• Of 4.8 million cataract procedures, roughly 60 percent were performed in the charitable sector. The remaining 40
percent constituted paid sector.
2. Sunglasses
The sunglasses market is segmented by price. The mid-priced segment(Rs.700 to Rs.2000) accounts for almost half of
the market, whereas high end and premium sunglasses account for almost 20% and 10% of the market.
3. Contact Lenses
The Indian contact lens market is extremely low(just 5%).
4. Spectacle Frames
The frames market is largely unorganised, with only 5% share of the organized segment.
 Competitive Landscape
• There are various key players operating in the eye-wear industry who are adopting different marketing strategies to
gain an upper hand in it and dominate the market. Some of these prominent companies are as follows:-

 Carl Zeiss AG

 Essilor International S.A.

 Grand Vision

 Johnson & Johnson, Inc.

• In terms of total operating revenue, Metro Eyewear Holdings Sdn. Bhd. in Malaysia ranks number one among the key
players dominating the market with a total operating revenue of Rs 78,305.30 as of 31st December 2017 as well as in
terms of total assets worth Rs 75,736.74 as of 31st December 2017.
 CARL ZAISS AG
 This company is a leading company at the international level in the field of optics as well as optoelectronics segments.

 It had a total revenue of 5.817 billion pound as of 30 September 2018.

 Its headquarters is in oberkochen,Germany and it has its branches in 50 countries approximately around the world.

 Its consolidated profit is 535 million pounds as of 2017-18

 ESSILOR INTERNATIONAL S.A.
 It is a ophthalmic optics company at the international level that is involved in the design and manufacturing of eye

lenses.

 It’s headquarters is in Charentonle-Pont France and has approximately 69,000 employees all over the world.

 It had a market capitalization of approximately 57 billion pound as of 1 October 2018 after the birth of the new holding
company Essilor Luxottica.

 Its main activities revolves around research and development of the various types of lenses catering to various needs.

 It has a corporate social responsibility program that works towards restoring the eye visions of the poor children from

backward strata of society.

 Marketing Strategies
 The dominant players in the eye-wear industry are doing extensive research on the development of the products by

combination of digital surfing technology and real-time optical designs.

 Additional customizations related to design and texture of the lenses are being stressed upon by the key players so that

customer satisfaction is at its optimum level.

 Advertising in terms of better vision and aesthetic appeal is being done by the marketers so that customers are

attracted to buy their products.

 Awareness campaigns by the companies regarding the effect of radiations and harmful rays on eyesight is also driving

the growth of revenue of the major players.

 Marketing Strategies
 Marketers are segmenting the market into premium and mass contact lenses according to the economic conditions of

the people by optimizing among price and trendy features

 More and more internet retailing is being used nowadays due to the larger reach of internet across the globe and wide

use of it across different age group of people particularly the youth.

 New players are providing higher-quality products at much lower prices. They are also adopting e-commerce

methodologies along with various discounts so that customers can be lured to buy their products.

 The already established players are also trying to gain market shares through mergers and acquisitions and hence

increasing customer base.

 Emerging Players in the Category

• Glassic –
• Founded in 2016 in Bengaluru, used WhatsApp for business to boost its sales.
• Products range is between 2000-3000.
• Manufactured in the same factory where the worldwide production of Ray – Bans and Oakleys takes place.
• The brand was recognized by Sheryl Sandberg, COO, Facebook in 2018.

• Coolwinks.com –
• Founded in 2016 in Gurgaon, Haryana.
• Online platform that sells eyeglasses, sunglasses, computer glasses and spectacles.
• Principal sponsor for Sunrises Hyderabad in IPL 2019.
• Has a customer base of over 4,00,000. Received over 5,00,000 orders till now.
 Competition
• Nature of Present and Future Competition –
• The present scenario in the optical industry sees a tough competition between top brands.

• Retail distributors Industry’s major rivalry is between lenskart.com, lensbazaar, optiaxis, specsmakers, GKB
opticals, and coolwinks.com.

• Supplier Eyewear products sees rivalry between Vision Eye, Titan Eye+, Vision plus, Lenskart.com

• Personal Products Sector has competition between Ray-Ban, Oakley, Fastrack, Polaroid, Velocity, IDEE, Calvin Klein
Jeans, Joe Black, Flying Machine.

• Globally key competitors are Luxottica Group, Fielmann AG, CK Jeans, Marcolin, Essilor, Carl Zeiss A.G., Maui Jim Inc,
De Rigo Vision S.p.A., Seiko Optical Products Co Ltd.
 Future Strategies
• Indian eyewear market is growing with a CAGR of 30%.

• As customers become more fashion conscious, optical industry expects to see a growth of 15-18% a year.

• Embracing digital technology by introduction of fully functioning e-commerce website with fast and efficient delivery.

• Understanding and evolving with the ever-changing customer preferences.

• Targeting different age customers with specific product line.

• Better discounts and combo deals on purchases.

SPECIFIC OBSERVATION AND LATEST
DEVELOPMENT IN OPTICAL INDUSTRY
 DEVELOPMENT

Trends in the optical world these days don’t seem to last very long. With a constantly changing
environment, it can be tough to know which trends are legit and which will fall out quickly.
A major factor to these developments is technological innovation surrounding eyewear. Brands are
constantly pushing the envelope on what they can include with their products and what will sell in
today’s fast-paced environment.

AR Glasses

• In the past, AR glasses have been for gamers. In today’s age, you can do almost anything with AR
and it’s compatible glasses. Things like trying on clothes, decorating/building houses, designing
products, visiting museums and parks, taking a hike, or going on a trip all from the comfort of home.
As technology evolves and makes AR relevant it will change the way we live our lives. Web stores will
embrace 3D as a shopping experience, making it easier to browse and shop.
The 3rd Eye by Ototo

• "This project engages in what is invisible to the human eye and the attributes ascribed to the
concept of the third eye, which can see clearly even when the vision is vague, and can find the
way even when there is a sense that it is lost. The single lens enables personal reflection, and
with it perhaps also the ability to believe.“

Block: Glasses to See Less by Tal Erez

• "The objects around us are increasingly undergoing digitisation. It seems that wherever we turn
our eyes, screens give us their wicked smiles. Block glasses enable us to see less. Block are
open-code glasses and are adapted for manufacture and adjustments on a home 3D printer,
with lenses that can be purchased from any optician."
 OBSERVATION

• The global eyewear market was valued at USD 131.32 billion in 2018 and is expected to expand at a
CAGR exceeding 7.0% from 2019 to 2025. Upsurge in the number of visual deficiencies and
increasing awareness regarding eye examinations are expected to provide an impetus to the growth.

• Growing dependence of the younger generation on electronic devices such as computers,

televisions, and mobile phones has led to prolonged exposure to radiation, causing strain on the
eyes, which is resulting in the purchase of more eyewear products.

• Contact lenses segment accounted for a revenue share of approximately 10% in 2018.

• E-commerce is eliminating the sales of the local optical stores.

 References
• https://yourstory.com/2018/02/glassic-whatsapp-business-sheryl-sandberg
• https://www.owler.com/company/coolwinks
• https://www.fortuneindia.com/enterprise/lenskart-with-an-eye-on-growth-2/102790
• https://www.theexpresswire.com/pressrelease/Eyewear-Market-2019-Global-Industry-Trends-Growth-Share-Size-
and-2025-Forecast-Research-Report_10236505
• https://www.futuremarketinsights.com/reports/eyewear-market
• https://www.alliedmarketresearch.com/eyewear-market
• https://www.emis.com/php/companies/index/financials?pc=MY&cmpy=4205572&view-fins=all&serp=1
• https://www.grandviewresearch.com/industry-analysis/eyewear-industry