I just had my Essilor rep in for a chat. I don't do any business with them but she still dropped by to say hello.
She told me that Clearly had 5% of the market (not sure if it was online market or market overall) and after Essilor shelled out the big bucks to buy them they are still at 5%.
Thought you folks would be interested in this.
Regards,
Golfnorth
What are we to make of this?
Shows me that even if Esillux buys a website it's not going to magically increase market share of online businesses. CL's have been sold online for well over 25 years and glasses at least the last 15. Their (onliners) market share is starting to stabilize out...For now...Originally Posted by drk
Eyewear Market Landscape, Online Eyewear Sales Are Gaining Traction.
Eyewear Market Landscape Online Eyewear Sales Are Gaining Traction.
Eyewear is sold mainly through brick-and-mortar retail channels—throughindependent and chain optical shops. However, similarly to other product categories, e-commerce is a growing sales channel for eyewear sales, and most brands and retailers in the space now have a digital presence. The online eyewear market accounted for around 5% of global eyewear sales in 2016, according to GrandVision.Online sales of eyewear are gaining traction in a number of markets in the developed world.
The US tops the list of countries with the greatest share of personal accessories and eyewear sold online, with their share increasingfrom 8.8% in 2011 to 14.8% in 2016.
Next are the UK and Australia, where online sales accounted for 10.4% and 10.2% of sales, respectively, according to Euromonitor.
also:
Combining the consumer opportunity with advances in technology means that there is ample room for disruption.
The four factors that underpin this are: 1) the high margins of eyewear products; 2) the emergence of online as a distribution channel; 3) the long waiting times for custom eyewear products; and 4) the improvement in new technologies such as 3D printing and online vision tests.
source:
https://www.fungglobalretailtech.com...ary-3-2018.pdf
Here's what you can make and take away from this...
Essilor purchased a company for $435M that never made a single dollar profit in it's history. They thought buying into new E-platforms would elevate increase their overall market share. It has not.
In hindsight, they now realize it was a huge mistake in many ways (many E employees have informed me), the 5% remains flat which equates into they are still bleeding red ink huge. I was also told it has cost them between 15-20% in lost business with direct ECP's purchasing through Essilor Blue divisions.
It has also soured the relationships with all of the professional associations in Canada, to which most no longer want them as a sponsor in their events and even resulted in a joint lawsuit from the College of Optometrists and College of Opticians in Ontario.
Lastly, due to the debacle and lost revenue, many heads have rolled since this acquisition and if you haven't noticed, have been very quiet lately and have not acquired much of anything.
Yes I agree Lab Insight......the sky is not falling!
There are those on this site that have been saying for quite some time that we should all just set up kiosks in malls
and measure pd's all day but they are wrong.
On-line will be a segment of the market, just like one hour opticals, just like free frame opticals.
So if Essilor (the largest optical company) can't grow Clearly who can?
Perhaps we can take from this that online has plateaued?
Regards,
Golfnorth
Here's what you can make and take away from this.....................
Here is an excerpt of the 2017 year end, that contradicts above statement.
- E-commerce businesses
Also part of the Lenses and Optical Instruments division, the e-commerce businesses delivered like-for-like growth(a) of around 13% in 2017. Growth in North America reflected the continued success of the EyeBuyDirect(TM) business model for prescription lenses in the United States as well as a rebound in Clearly(TM) sales during the second half. In Europe, robust sales growth was recorded by Vision Direct(TM) for contact lenses and by Glasses Direct(TM) for prescription glasses. In Scandinavia, the activities of online contact lens retailers LensOn® (acquired in 2016 with MyOptique Group) and LensWay(TM) were combined during the year. The online businesses in Brazil (eÓtica and e-lens), China (Coastal Vision(TM)) and India (Coolwinks(TM)) all continued to experience rapid growth.
ESSILOR INTERNATIONAL REPORTED STATEMENT OF INCOME
€ millions 2017
Reported2016
Reported% change Revenue 7,490 7,115 +5.3% Gross profit
(% of revenue)4,346
58.0%4,181
58.8%+3.9%
source:
https://globenewswire.com/news-relea...h-quarter.html
Takovers last year ..............................
They just did not buy any online opticals last year, however they did takeover quite a bunch of businesses as follows:
ACQUISITIONS AND PARTNERSHIPS
The Company completed nine transactions in 2017, representing combined full-year revenue of close to €87 million.
Company Country Business Full-year revenue % held Consoli-dated from Lenses & Optical Instruments - North America Partners In Vision, Inc. United States Service platform for eyecare professionals N.D.[2] 100% May 1, 2017 Vision Associates, Inc. United States N.D. 60% May 1, 2017 Lenses & Optical Instruments - Europe CFE Optique France Distributor of optical products (ophthalmic lenses, frames and instruments) to opticians in Central and Western Africa c.€2.5 million 100% Sept. 1, 2017 Optitrade Logistics Center (OLC) Netherlands Distribution platform for Optitrade, a purchasing alliance representing some 650 optical stores in the Netherlands N.D. 50.2% February 1, 2017 Lenses & Optical Instruments - Asia/Pacific/Middle East/Africa Sun Optical Technologies Ethiopia Prescription laboratory €1 million 51% January 1, 2018 Mangalsons Optics PTE Ltd India Distributor of plastic and glass lenses, sunglasses and prescription frames c.460 million Indian rupees 50% February 1, 2017 Topcon Visioncare Japan (TVJ) Japan Distributor of Topcon's optometry line and Essilor's lens finishing line to opticians in Japan N.D. Raised from 10%
to 51%March 1, 2017
source:
https://globenewswire.com/news-relea...h-quarter.html
I am only referring to the great white north Chris. In relation, perhaps there is nothing of interest left in Canada to acquire?
I am only referring to the great white north Chris...................................
The great white North has now the "New Look" chain that buys up every opticians store were the owner wants to retire, and has become the newest and largest independent optical retailer, very probably financed by Essilor and run by a top Essilor executive.
Furthermore after the merger they will have added the Luxottica online optical's which will make them by far the largest online force, world wide, selling eyeglasses online, with the possibility of adding the already owned 10,000 (ten thousand) retail stores as service centers for their online optical businesses.
So do not sing hallelujah ..................before all the facts have come out on the table.
Chris, currently New Look is definitely not being financed by Essilor. It is bank money funding them.
New Look is definitely not being financed by Essilor ..............................
Lab Insight, You are correct ...................
.........however the company is run by a French Essilor veteran who has been with them forever in top positions, and has the clearance, and "savoir faire" to do so.
Just watch them growing over the next few years, by taking over optical retail stores in Canada and then also moving into the USA.
I'm certain any large corporation with funds and in the mood would view New Look as a potential acquisition target. That said, although NL is a very large growing chain, if most of the corporation is financed by banks, that means their cash flow is not healthy, which is a huge concern.
No cash flow = very low or no profit. I don't think Essilor would make that mistake twice. Buying market share still has to produce a dividend for its shareholders.
Hoya is also in the retail arena already. They own and operate an optical retail chain in Japan. At some point, I can only imagine the Japanese shareholders will eyeball North America or Europe to enter the retail market. The revenue growth has to be derived from some where and old, traditional avenues are drying up.
I don't think Essilor would make that mistake twice..................................
..............you keep forgetting that the President and chief executive in charge is a heavy loaded Essilor man.
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