600 on line stores for ECP's set up by Essilor.......................................

[Chris Ryser]

on Tuesday, December 21, 2010 - 10:36
Essilor Reports Building 600 MyOnlineOptical ECP E-Commerce Sites

12/23/2010 0 Comments
News Type: Business News

DALLAS – Essilor of America reported that it has built more than 600 online optical stores for independent eyecare professionals to date through its e-commerce initiative, MyOnlineOptical. The company said the service has experienced a steady increase since its launch last spring, growing at a rate of approximately 100 ECPs per month.

Essilor pointed out that with U.S. retail e-commerce projected to grow at a rate of 11.5 percent in 2011, citing benchmark data from the U.S. Census Bureau, the company anticipates the growth rate of MyOnlineOptical to remain constant throughout 2011.

“Practices that experience the greatest success with MyOnlineOptical are simply those that actively market their new online stores,” said John Walborn, who leads the MyOnlineOptical team for Essilor. “These same practices report increased revenue in their brick and mortar stores due to the cross-channel impact. Some practices report double digit revenue growth from the increased foot traffic.”
Essilor’s MyOnlineOptical program enables ECPs to add a turnkey e-commerce engine that extends their reach beyond office walls and office hours to 24/7 accessibility. The program, Essilor said, lets ECPs maintain complete control, determining the product pricing and selection, and preserving the look and feel of their practice websites and provide patients with up to 100,000 eyeglass options that can keep them from walking out the door to a perceived more competitive offering.

Essilor’s MyOnlineOptical online optical store, the company said, provides ECPs a new channel to communicate with their patients to drive interest in their product offering, including a second pair of eyeglasses, sunwear or a renewal order for contact lenses.

Article Source: VisionMonday


That should neutralize all arguments about on line sales being illegal when a real optician hands over the purchase.

What say you............................................. ??????????????????????

[drk]

Falling for the siren's song is one thing.

Re-upping is another.

Let's see how it (doesn't) work for these folks over time.

[drk]

It's not going to work. A real professional cannot compete with $8 glasses. They'll see.

[For-Life]

There is not enough room online for 600 optical stores.

Let the battle begin

[Geirskogul]

You know what doesn't work? Putting one million periods after your thread title in the effort to get people to read it.

And I hate saying this, but online is here to stay. It will not completely take over the market, no, but it will be like purchasing shoes online. One wouldn't want to purchase shoes blindly online, but they sometimes do, and they also sometimes do after trying on a pair in store. I'm not arguing about how moral or immoral it is, but it does happen and the market has been steadily (slowly, but steadily) growing alongside broadband penetration figures. A new market for ANYTHING has growing pains. There were plenty of online vendors before Amazon that got it wrong (kind of like these early glasses shops) but after much tinkering a model has emerged that works. It's the internet. No matter how hard you try, you cannot stop it. But if you're proactive, you can help shape it in a way you prefer.

You can fight it all you want, and in some instances you should, but sitting and crying about it will help you none. Am I saying you should open an online store for glasses? Hell no. But you should have an online presence anyway. Having any business and not having an online presence, even if it isn't to sell anything, is plain stupid. And let me tell you, if there was some way to make and dispense proper eyewear online that still utilized the face-to-face optician (I have a few good ideas flying around my head on this one) then I would do it. But instead of innovate, everyone sits in their holes and pounds the ground.

Don't worry, there will always be a place of brick and mortar. And for things like clothes, shoes, glasses, etc there is a bigger chunk. But if you sit there pointing fingers at others your whole career it looks childish. THINK! Come up with new ideas! Come up with whole new business models! You can't shun something simply because you don't understand it.

There is not enough room online for 600 optical stores.

Let the battle begin.

This is the perfect example of not understanding. Read how their business model is and think about what you said for a bit.

And I'm not saying this Essilor thing is the way to go. But it's trying. At least they're giving it a shot. You can run a business in one product, and someone else can run a different type of business in the same product. Competition is always a good thing, but childishly pointing and sneering is not.

Welcome their business, and if you believe in yours then show how yours is better, not how theirs is worse. There is a huge difference, and if you sit there pointing out their flaws instead of pointing out your strengths it becomes nothing but a yelling match and customers get lost in the noise. Nothing about it is wholesome, and everything about it is childish and idiotic.

I'm going to say it again. It's the internet. No matter how hard you try, you cannot stop it. But if you're proactive, you can help shape it in a way you prefer.

[Chris Ryser]

Doing a Google search I came across the following:

Here is one of the 600 stores, follow the links and you end up not at the ECP office where you start but on the Essilor direct to consumer site that explains from pricing right down to how to take measurements as PD's.
http://burlingtonopticians.onlineopt....com/main.aspx

Why is this measurement important?
If the prescription lenses are not set at the same distance as the distance between your eyes, then an unwanted prism is induced which may cause eyestrain. In lower prescriptions, the amount of prism induced will be of no consequence and will not cause
eyestrain. For prescriptions over (+) or (-) 2.00, knowing your PD is important.

How do I get my PD measured?
• Please tell your doctor at the time of the exam that you are considering ordering eyeglasses online.
We’ll be sure to include your pupil distance measurement on your prescription.
• Call your eye care practitioner’s office and we’ll be able to tell you what it is.

DO NOT attempt to measure your own pupil distance. This measurement should only be taken by a trained eye care professional.



High Quality Lenses at Affordable Prices


We think choosing a lens is just as important as picking the frame shape, color or size. The lens choice will determine the thickness and visual accuracy of your prescription. We have access to all the top quality name brands and never use inferior generic lenses.

All lenses come standard with scratch protection and polished edges at no additional charge and include our 100% accuracy guarantee


http://burlingtonopticians.onlineopt...s_options.aspx


Eyewear Delivered to Your Door

Online Optical Store will gladly ship to any domestic, international or APO/FPO address.

Important information about how we receive and ship products:

Eyewear is ordered directly from the manufacturer to ensure authenticity. Most products are received at our Online Optical Store warehouse within 2-3 business days, but certain collections may take a little longer to receive from the manufacturer. All products must pass our six-step quality control inspection before shipping. One of our opticians will notify you if there will be any delay outside of normal estimated delivery times.

http://burlingtonopticians.onlineopt...ng_option.aspx

[For-Life]

You know what doesn't work? Putting one million periods after your thread title in the effort to get people to read it.

And I hate saying this, but online is here to stay. It will not completely take over the market, no, but it will be like purchasing shoes online. One wouldn't want to purchase shoes blindly online, but they sometimes do, and they also sometimes do after trying on a pair in store. I'm not arguing about how moral or immoral it is, but it does happen and the market has been steadily (slowly, but steadily) growing alongside broadband penetration figures. A new market for ANYTHING has growing pains. There were plenty of online vendors before Amazon that got it wrong (kind of like these early glasses shops) but after much tinkering a model has emerged that works. It's the internet. No matter how hard you try, you cannot stop it. But if you're proactive, you can help shape it in a way you prefer.

You can fight it all you want, and in some instances you should, but sitting and crying about it will help you none. Am I saying you should open an online store for glasses? Hell no. But you should have an online presence anyway. Having any business and not having an online presence, even if it isn't to sell anything, is plain stupid. And let me tell you, if there was some way to make and dispense proper eyewear online that still utilized the face-to-face optician (I have a few good ideas flying around my head on this one) then I would do it. But instead of innovate, everyone sits in their holes and pounds the ground.

Don't worry, there will always be a place of brick and mortar. And for things like clothes, shoes, glasses, etc there is a bigger chunk. But if you sit there pointing fingers at others your whole career it looks childish. THINK! Come up with new ideas! Come up with whole new business models! You can't shun something simply because you don't understand it.

This is the perfect example of not understanding. Read how their business model is and think about what you said for a bit.

And I'm not saying this Essilor thing is the way to go. But it's trying. At least they're giving it a shot. You can run a business in one product, and someone else can run a different type of business in the same product. Competition is always a good thing, but childishly pointing and sneering is not.

Welcome their business, and if you believe in yours then show how yours is better, not how theirs is worse. There is a huge difference, and if you sit there pointing out their flaws instead of pointing out your strengths it becomes nothing but a yelling match and customers get lost in the noise. Nothing about it is wholesome, and everything about it is childish and idiotic.

I'm going to say it again. It's the internet. No matter how hard you try, you cannot stop it. But if you're proactive, you can help shape it in a way you prefer.

I have studied the online business model for many industries. How is this any different?

[Chris Ryser]

http://www.census.gov/econ/estats/20...eportfinal.pdf

[Speed]

Doing a Google search I came across the following:

Here is one of the 600 stores, follow the links and you end up not at the ECP office where you start but on the Essilor direct to consumer site that explains from pricing right down to how to take measurements as PD's.
http://burlingtonopticians.onlineopt....com/main.aspx

Why is this measurement important?
If the prescription lenses are not set at the same distance as the distance between your eyes, then an unwanted prism is induced which may cause eyestrain. In lower prescriptions, the amount of prism induced will be of no consequence and will not cause
eyestrain. For prescriptions over (+) or (-) 2.00, knowing your PD is important.

How do I get my PD measured?
• Please tell your doctor at the time of the exam that you are considering ordering eyeglasses online.
We’ll be sure to include your pupil distance measurement on your prescription.
• Call your eye care practitioner’s office and we’ll be able to tell you what it is.

DO NOT attempt to measure your own pupil distance. This measurement should only be taken by a trained eye care professional.



High Quality Lenses at Affordable Prices


We think choosing a lens is just as important as picking the frame shape, color or size. The lens choice will determine the thickness and visual accuracy of your prescription. We have access to all the top quality name brands and never use inferior generic lenses.

All lenses come standard with scratch protection and polished edges at no additional charge and include our 100% accuracy guarantee


http://burlingtonopticians.onlineopt...s_options.aspx


Eyewear Delivered to Your Door

Online Optical Store will gladly ship to any domestic, international or APO/FPO address.

Important information about how we receive and ship products:

Eyewear is ordered directly from the manufacturer to ensure authenticity. Most products are received at our Online Optical Store warehouse within 2-3 business days, but certain collections may take a little longer to receive from the manufacturer. All products must pass our six-step quality control inspection before shipping. One of our opticians will notify you if there will be any delay outside of normal estimated delivery times.

http://burlingtonopticians.onlineopt...ng_option.aspx

Thanks Chris. In spite of what some say about the big E, we must all admit that they are very sucessful in most endeavors. They are now obviously poising themselves to move in whatever direction the online market moves. They are best at marketing. Being online a lot of time ourselves we see a new online optical store every day. Often we worry and wonder what we can do to compete. I would advise to keep an eye on big E and learn. If we'd all opened online branches 5 years ago, we could have had the marker so frustratingly saturated that it would have been dilicult and confusing for consumers to chose.

[KStraker]

Am I actually supposed to undercut myself by offering lower prices online than I do in my store? If I don't offer lower prices, how will I compete online with the $30.00 glasses vendors? Why would our patients order glasses in the store, and pay a higher price; if they can go on our website and get them for less?

[drk]

Straker's got it...it doesn't work. It makes NO STRATEGIC SENSE.

This will eventually cause downward material prices.

With online, it's a race to the bottom, and that's India or China. Maybe someone over here will own it, but at low margins, not likely.

Depending on the annual fee, most of those "600" will drop off after they've sold one pair, got a measly check from Essilor, and get the sales pitch from Essilor the next year for another re-up. They'd better make it a low annual fee.

And it's not "e-business". It's "e-healthcare". The health care model is going to be important, IMHO. You can more easily position yourself, and you stand a chance at professional fees if you're a health care professional.

Just wait and see whether health care reform eliminates employer-based health insurance purchasing. It will be a free for all.

[Speed]

Cheapie generic lenses. There are many progressives. Cheapie frames you can import by the box. No service. Too late on controling the big E. They got us now. They are in complete control.

[MikeAurelius]

Am I actually supposed to undercut myself by offering lower prices online than I do in my store? If I don't offer lower prices, how will I compete online with the $30.00 glasses vendors? Why would our patients order glasses in the store, and pay a higher price; if they can go on our website and get them for less?

Very true -- what's happening is that the optician/dispenser who uses the Essilor model is routing all of their lab business to an off-shore lab for the work to be done, with the eyewear then delivered via the postal service. This is just one more way that Essilor is routing business to its Frames Direct processing facility. The optican/dispenser who uses this program has sold his/her soul to Essilor, and the patient loses out because they will only receive the products that Essilor sells, eliminating all other competition.

[Speed]

Got to wonder who will be buying v-luxes after the store opens next door. I bet there will be responses to this post that say "We been hearing that for years, aint happened yet." Ha Ha !!!

[Speed]

Very true -- what's happening is that the optician/dispenser who uses the Essilor model is routing all of their lab business to an off-shore lab for the work to be done, with the eyewear then delivered via the postal service. This is just one more way that Essilor is routing business to its Frames Direct processing facility. The optican/dispenser who uses this program has sold his/her soul to Essilor, and the patient loses out because they will only receive the products that Essilor sells, eliminating all other competition.

I also wonder how many professional practitioners have researched just how cheaply you can acquire frames.

[DragonLensmanWV]

That should neutralize all arguments about on line sales being illegal when a real optician hands over the purchase.

What say you............................................. ??????????????????????[/QUOTE]


I don't think they WILL be handed over by a real optician.And I mean that two ways.
Won't Essilor's Chinese factory just ship them directly to the consumer?

[Chris Ryser]

I don't think they WILL be handed over by a real optician.And I mean that two ways.
Won't Essilor's Chinese factory just ship them directly to the consumer?

Actually you are right.............I went on their website and here is what it says:

Shipping Details

Eyewear Delivered to Your Door

Online Optical Store will gladly ship to any domestic, international or APO/FPO address.

Important information about how we receive and ship products:

Eyewear is ordered directly from the manufacturer to ensure authenticity. Most products are received at our Online Optical Store warehouse within 2-3 business days, but certain collections may take a little longer to receive from the manufacturer. All products must pass our six-step quality control inspection before shipping. One of our opticians will notify you if there will be any delay outside of normal estimated delivery times.

Please note:

FREE US Mail shipping is available on all domestic orders except for contact lenses, exchanges, gift with purchase offers or orders using select coupon codes. Free shipping is not available on international orders.


..................So now I wonder how they work it to ship legally. The original optical store through which they go on line never gets to see the finished product the way it looks.

[Chris Ryser]

Cheapie generic lenses. There are many progressives. Cheapie frames you can import by the box. No service. Too late on controling the big E. They got us now. They are in complete control.

I don't think they are using cheap generic lenses and their prices are not rock bottom either. Here are the prices of their website; if any of the moderators do not like them here please feel free to delete them, I just think that they are already publicly accessible.



Essilor Standard Plastic - Single Vision USD 45.80 High Quality, Distortion Free Lenses




Essilor Thin&Lite 1.67 Hi Index - Single Vision USD 118.75 45% Thinner than Plastic




Essilor Thin&Lite 1.74 Hi Index - Single Vision USD 275.00 Lightest and Thinnest material. Comes with Anti-Reflective Coating.




Essilor Ultra LiteStyle Polycarbonate - Single Vision USD 98.75 Aspheric Design 30% Thinner than Plastic




Oakley Plutonite Impact Protection - Single Vision USD 265.00 High Mass Impact Protection with Anti-Reflective




Seiko Pentax SuperThin 1.74 Hi Index - Single Vision USD 315.00 Lightest and Thinnest material. Comes with Anti-Reflective Coating.




Seiko Pentax Ultra Standard Plastic - Single Vision USD 45.80 Premium Quality, Distortion Free Lenses




Seiko Pentax UltraThin 1.67 Hi Index - Single Vision USD 140.00 45% Thinner than Plastic. SuperClean technology.




Seiko Pentax UltraThin Polycarbonate - Single Vision USD 119.00 Impact Resistant 30% Thinner than Plastic




Teklite PerfectVision - Single Vision USD 139.00 Strong, Thin and Light with Anti-Reflective Coating
Earth Friendly Manufacturing Process

[Speed]

I don't think they are using cheap generic lenses and their prices are not rock bottom either. Here are the prices of their website; if any of the moderators do not like them here please feel free to delete them, I just think that they are already publicly accessible.



Essilor Standard Plastic - Single Vision USD 45.80 High Quality, Distortion Free Lenses




Essilor Thin&Lite 1.67 Hi Index - Single Vision USD 118.75 45% Thinner than Plastic




Essilor Thin&Lite 1.74 Hi Index - Single Vision USD 275.00 Lightest and Thinnest material. Comes with Anti-Reflective Coating.




Essilor Ultra LiteStyle Polycarbonate - Single Vision USD 98.75 Aspheric Design 30% Thinner than Plastic




Oakley Plutonite Impact Protection - Single Vision USD 265.00 High Mass Impact Protection with Anti-Reflective




Seiko Pentax SuperThin 1.74 Hi Index - Single Vision USD 315.00 Lightest and Thinnest material. Comes with Anti-Reflective Coating.




Seiko Pentax Ultra Standard Plastic - Single Vision USD 45.80 Premium Quality, Distortion Free Lenses




Seiko Pentax UltraThin 1.67 Hi Index - Single Vision USD 140.00 45% Thinner than Plastic. SuperClean technology.




Seiko Pentax UltraThin Polycarbonate - Single Vision USD 119.00 Impact Resistant 30% Thinner than Plastic




Teklite PerfectVision - Single Vision USD 139.00 Strong, Thin and Light with Anti-Reflective Coating
Earth Friendly Manufacturing Process

That was my point. People shopping on ling will look for the best deals. The prices you list would be easy to compete with. WHOOPS. Prices! better get these off.

[drk]

Very true -- what's happening is that the optician/dispenser who uses the Essilor model is routing all of their lab business to an off-shore lab for the work to be done, with the eyewear then delivered via the postal service. This is just one more way that Essilor is routing business to its Frames Direct processing facility. The optican/dispenser who uses this program has sold his/her soul to Essilor, and the patient loses out because they will only receive the products that Essilor sells, eliminating all other competition.

The first post I really like from you, Mike. Cool.

[MikeAurelius]

The first post I really like from you, Mike. Cool.

LOL, because I agree with you? If you'd stop putting me into your self-constructed boxes, you'd find a lot of things that we agree on. I tried to have that conversation with you a week or so ago and you shot me down, remember?

[DragonLensmanWV]

..................So now I wonder how they work it to ship legally. The original optical store through which they go on line never gets to see the finished product the way it looks.


Yeah, the original optical store won't see 'em until they come in with a problem. And what about remakes?

[HarryChiling]

If you read the ToS (Terms of Service) for myonlineoptical they state very clearly the they don't claim that this venue is legal or are responsible for the legality of any sales through the site. All the onus falls on the optical that signs up and uses the service. BTW the original TOS are tucked away behind a a registration process now so you do have to sign up to see them. The FAQ does reveal a lot though.

I find it interesting that the selection would be limited to Essilor products and the site is very limited in functionality. I also find it interesting that the idea came from a survey done by Jobson, anyone who's actually read the survey will realize that the majority of ECP's held the online method in a negative light in that survey. The fee for the site through them is $250 a year and you must sell at least 6 pairs in order for them to waive the fee in future years. No discussion of who the data belongs too, also the lab is chosen by myonlineoptical so quality control is going to be dependent upon the Essilor and it's laboratory network.

600 ECP's that signed up so far, there exists a whole lot more ECPs that dispense Varilux products so it's surprising that only 600 have signed up so far if this was as viable as the claim. Also in the beginning they were only allowing OD's but now any ECP can sign up as long as they have a B and M. This is an exercise to establish credibility and to lock down any competitor with a frame work that is proprietary and skewed towards an old and outdated product.

On a side note if an ECP were to set up an onlineoptical they would be at a competitive disadvantage since they would be purchasing their product from a wholesaler that would be charging them a premium and would not have access to unique products to offer through a closed e-commerce system. If anyone is actually thinking of an e-commerce engine myonlineoptical would be like the e-commerce system with training wheels on it. The online model is weak and has shown very little advantage over the traditional model so relies on price as the motivating factor. You can do a search in any search engine and find eyewear for less than $10 a pair all over the place, myonlineoptical will never be able to offer any ECP the chance to compete with that low a price.

The site that was given as an example was very informative, a SV Poly w/AR in an designer frame was $337, I could match that in a B and M all day and still provide better service. Of course any site can price their products as they wish using this system but the cost to the ECP is always going to be a higher premium than the prices they probably have worked out with their current labs. Also remake policies, returns, etc are all at the whim of the ToS that the ECP must agree to and in many cases will be worst that what an ECP currently gets or offers.

This press release say's nothing new to me, it's just another attempt at creating fear among ECPs to try and get conformity to this new model and this particular companies exploitation of the model.

[drk]

That's a really solid, well-researched post, Mr. C.

[MichaelP]

I think it would be foolish for any ECP to sign up for this. The only sales that it'll generate will be to your existing customer base. We spent about $50k last year on search engine marketing, and we're one of the small guys. Other online competitors are in the $100k-$300k+ range. MyOnlineOptical.com-driven websites won't be able to compete unless their owners are willing to commit similar resources. Also, as Harry mentioned, the platform really is e-commerce with training wheels (although I'm envious of their huge frame selection, and it is turn-key).

What this does do is condition your customers to buy online. It also gives Essilor direct access to your patient data. Ever since Varilux was introduced they've been into direct consumer branding and marketing, and it seems only a matter of time until they sell directly to consumer. Maybe not, but if I were a betting man I'd bet this is in their 5-10 year long term strategy (coupled with some type of ECP partner program). Most of the margin in a pair of glasses right now goes to the ECP. If Essilor could figure out a way to sell direct but keep prices at or near their current levels, they'd stand to gain a lot. Online could be the perfect entry point for them into retail sales, without the need to build out an extensive retail presence over a period of years a la Lenscrafters.

This is just speculation on my part, but if I were CEO of Essilor that'd be my plan, especially as I start to run out of independent labs to gobble up and start hitting antitrust issues in the wholesale arena. At the very least I wouldn't be ignorant of Coastal Contact's $20 million of (rapidly growing) eyeglasses sales last year, nor of 1800Contacts' success.