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A fresh approach to sales and marketing, to deal effectively with new patterns of consumer behaviour, called for by European optical leaders in the light of the worst economic slump in the history of the industry, has been endorsed by the FMO.
“We are facing a new world scenario where effort, talent, and reaction capacity must play an even more crucial role than ever before: the economic map has been redrawn. New pricing policies, new approaches to advertising, new ways of brand development and ways of regaining profitability are required. We must be efficient when it comes to our processes and organisational structure to improve our delivery times, to be quick to react, said Mr Antonio Olivella, Chairman of EUROM 1, the collective European optical body.
Speaking at the 2009 EUROM 1 Convention in Athens, he said:
“A year ago at the FMO-hosted assembly in Windsor we foresaw a difficult future ahead, but the reality has surpassed all predictions. As people prioritise their consumerism the optical industry has seen a decrease in activity with remarkably fewer consumers buying our products. Particularly hard hit are products priced over €120.
“Sunglass sales have fallen by up to 40% as consumer stay with what they have, and yet 75% or Europeans with corrective lenses do not own prescription sunglasses. Conversely, the average European woman owns seven pairs of shoes,” he added.
The frames sector has been less affected than the sunglass market, Mr Olivella reported, but manufacturers still have to accept contracted consumption as people buy less and retailers reduce their inventories to increase liquidity. In the first quarter of 2009 European lens sales dropped by 14%.
“The equipment sector is demonstrating the worst performance in terms of contraction of turnover due to difficulties in obtaining financial backing; the reduction in the numbers of new optical outlets and the decline in modernisation in existing practices. We evaluate the slump in this sector to be between 25-40%, an unprecedented drop in our industry,” he added.
Optimism
However, there are signs for optimism:
*21% of consumers are reported to have increased their spending and have not considered cutting down, according to the Boston Consulting Group
*There is more than $115billion of optical business to be fulfilled, according to the World Health Organisation
*There is a huge potential market from the new eyesight test for drivers, with approximately 40m drivers in Europe with poor, or no, correction at all
“This is a moment of prime opportunity to reinforce our business activity. This is a moment to approach Brussels with a strong voice and the join forces and collaborate with other related organisations,” added Mr Olivella.
EUROM 1 also drew attention to the opportunities:
*A major lens manufacturer estimates that 450m Europeans have not visited an optician for three years. In the world today there are 2 billion presbyopes and in 20 years time there will be 3 billion
*In a world where 1 billion people are connected to the internet 60% suffer some form of vision fatigue
*In France, typical of many countries, 30% or drivers have non-corrected vision defects, meaning that 1m people would be prohibited from driving
EUROM’s activity within the past year has included lobbying Brussels, ensuring that EUROM 1 is recognised as a responsible European organisation; counterfeiting has been a major focus with new initiatives emerging for greater co-operation and greater protection of the optical market. It was reported that the French government had launched a campaign against counterfeiting and French customs had recently seized 6.5m products including 4,000 pieces of eyewear which had been destroyed.
In the months ahead EUROM 1 will mainly focus on drivers’ vision and intends to look at the cost of car accidents and the benefits of the new driving licence. Internet sales of eyewear and UV protection will also be important topics. The organisation has been strengthened by a new member: the Dutch optical organisation, NAB.
Issued for The FMO
By Janice English
01372 465265
09 September 2009
SIGNS FOR OPTIMISM IN OPTICS
A fresh approach to sales and marketing, to deal effectively with new patterns of consumer behaviour, called for by European optical leaders in the light of the worst economic slump in the history of the industry, has been endorsed by the FMO.
“We are facing a new world scenario where effort, talent, and reaction capacity must play an even more crucial role than ever before: the economic map has been redrawn. New pricing policies, new approaches to advertising, new ways of brand development and ways of regaining profitability are required. We must be efficient when it comes to our processes and organisational structure to improve our delivery times, to be quick to react, said Mr Antonio Olivella, Chairman of EUROM 1, the collective European optical body.
Speaking at the 2009 EUROM 1 Convention in Athens, he said:
“A year ago at the FMO-hosted assembly in Windsor we foresaw a difficult future ahead, but the reality has surpassed all predictions. As people prioritise their consumerism the optical industry has seen a decrease in activity with remarkably fewer consumers buying our products. Particularly hard hit are products priced over €120.
“Sunglass sales have fallen by up to 40% as consumer stay with what they have, and yet 75% or Europeans with corrective lenses do not own prescription sunglasses. Conversely, the average European woman owns seven pairs of shoes,” he added.
The frames sector has been less affected than the sunglass market, Mr Olivella reported, but manufacturers still have to accept contracted consumption as people buy less and retailers reduce their inventories to increase liquidity. In the first quarter of 2009 European lens sales dropped by 14%.
“The equipment sector is demonstrating the worst performance in terms of contraction of turnover due to difficulties in obtaining financial backing; the reduction in the numbers of new optical outlets and the decline in modernisation in existing practices. We evaluate the slump in this sector to be between 25-40%, an unprecedented drop in our industry,” he added.
Optimism
However, there are signs for optimism:
*21% of consumers are reported to have increased their spending and have not considered cutting down, according to the Boston Consulting Group
*There is more than $115billion of optical business to be fulfilled, according to the World Health Organisation
*There is a huge potential market from the new eyesight test for drivers, with approximately 40m drivers in Europe with poor, or no, correction at all
“This is a moment of prime opportunity to reinforce our business activity. This is a moment to approach Brussels with a strong voice and the join forces and collaborate with other related organisations,” added Mr Olivella.
EUROM 1 also drew attention to the opportunities:
*A major lens manufacturer estimates that 450m Europeans have not visited an optician for three years. In the world today there are 2 billion presbyopes and in 20 years time there will be 3 billion
*In a world where 1 billion people are connected to the internet 60% suffer some form of vision fatigue
*In France, typical of many countries, 30% or drivers have non-corrected vision defects, meaning that 1m people would be prohibited from driving
EUROM’s activity within the past year has included lobbying Brussels, ensuring that EUROM 1 is recognised as a responsible European organisation; counterfeiting has been a major focus with new initiatives emerging for greater co-operation and greater protection of the optical market. It was reported that the French government had launched a campaign against counterfeiting and French customs had recently seized 6.5m products including 4,000 pieces of eyewear which had been destroyed.
In the months ahead EUROM 1 will mainly focus on drivers’ vision and intends to look at the cost of car accidents and the benefits of the new driving licence. Internet sales of eyewear and UV protection will also be important topics. The organisation has been strengthened by a new member: the Dutch optical organisation, NAB.
Issued for The FMO
By Janice English
01372 465265
09 September 2009
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