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COVER TOPIC Eyewear Industry Grapples with E-Tailers' Impact

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COVER TOPIC Eyewear Industry Grapples with E-Tailers' Impact COVER TOPIC Brick & Click Eyewear Industry Grapples With E-Tailers’ Impact BY JOHN SAILER / SENIOR EDITOR when shopping for general retail goods, the practice own optical labs and sending their customers actual is still not as prevalent when consumers are shop- frames to try on before making their final selection. here’s no ignoring it. Internet retailing is ping for eyewear… Approximately 32 percent of This month’s Cover Story attempts to capture a an essential part of everyday life. It even people using the internet to assist in their last pur- panoramic screenshot of online optical retailing, T has its own day, CyberMonday, right at chase of eyewear actually made the purchase direct- from how traditional brick-and-mortar stores are the start of the holiday shopping season. Against ly online. By category: eyeglasses (2.4 percent), dipping their PD sticks into this tsunami of internet last year’s lingering economic uncertainty, 2011 OTC readers (3 percent), plano sunglasses (4.3 per- activity (“When Will Brick Add Click,” page 42) to proved that e-commerce is still growing. cent) and contact lenses (16.4 percent)… It is likely how online-only dispensers are addressing the “Throughout the year, growth rates versus the that close to 1.5 million to 1.7 million pairs of Rx needs of a customer who is also a patient with a prior year remained in double digits to significant- eyeglasses were purchased online during the unique prescription (“Online Retailers Talk Shop,” ly outpace growth at brick-and-mortar retail,” 12-month period ending December 2011.” page 44); from the latest Vision Council statistics according to comScore’s digital business analytics. To some extent, optical being slow to adapt to that corroborate the fact that “the number of buyers “Retail e-commerce (non-travel) spending e-commerce is due to the fact that eyewear is custom- who will use the internet to buy eyewear in the jumped 13 percent to $161.5 billion for the year.” ized for each individual and doesn’t lend itself to future will increase” (“Vision Council Internet The optical field has been slower to adapt the commoditization. This is also in part because manu- Report,” page 53) to websites that provide consum- e-commerce model, eyeglasses in particular. Accord- facturing and distribution involve a chain of materials ers with the best of both worlds of brick and click, ing to the 2011 Vision Council VisionWatch Internet suppliers and manufacturers and a hierarchy of pro- launching distribution models that sync up the Influence Report, “Despite a relatively high num- fessionals. However, many online-only optical retail- online world with traditional dispensers (“Brick and ber of consumers using the internet to some extent ers are overcoming these obstacles by building their Click Sync Up,” page 50). n [email protected] VISIONMONDAY.COM MARCH 5, 2012 4 2 COVER TOPIC When Will Brick Add Click? The leading traditional brick-and-mortar optical retailers are still reluctant to sell products online… or at least to speak about any plans to do so. s part of the larger trend of people shop- is in their plans. However, some have already El Paso, Texas. ping for virtually everything online, con- begun to sell contact lenses online or added the “Online sales of frames and contacts certainly Asumers are also using the web with ability to virtually try on frames to their websites. has proven its value to many consumers,” said increasing regularity to purchase eyeglasses as A few have even begun or will soon actually begin Suzanne Berardi-Gould, director of creative ser- well. While opinions differ regarding online opti- to offer eyeglasses for sale online. Whatever stage vices for Doctors Vision Center, with 45 stores, cal retailing, there’s no denying that some compa- they are at, “everybody knows it’s going to hap- based in Rocky Mount, N.C., “and we will be nies are already making money selling eyeglasses pen,” as one executive representing one of the testing online sales as a part of our integrated online and gearing up to make much more. The leading national chains said about online optical strategy in 2012.” majority of these are not connected with any tradi- retailing. However, like most traditional optical retailers, Berardi-Gould did point out the prevailing view “We believe there is a distinct advantage that we have over online purchases among them about the benefits of the personal by having a patient relationship with the doctor and frames stylist in the prac- touch that comes with being able to visit a physi- cal location. “We believe there is a distinct advan- tice versus what happens online.” Suzanne Berardi-Gould, Doctors Vision Center, — tage that we have over online purchases by having Rocky Mount, N.C. a patient relationship with the doctor and frames stylist in the practice versus what happens tional brick-and-mortar optical retailers or manu- Those who were willing to talk about this con- online,” she said. facturers, but rather they are upstarts that are tak- troversial subject suggested that online retailing is This was actually the more prevalent attitude ing advantage of the internet and digital media a strategic issue for traditional brick-and-mortar among the national and regional chains, with some and forging a new distribution channel (see retailers, and before they can launch a website simply negating any competition that might come “Online Retailers Talk Shop,” page 44.) that will enable them to sell eyewear online, they from online sales. “Although we respect those mar- In fact, when Vision Monday reached out to the must first determine how they’ll handle pricing, keting eyewear online, from our perspective, at this leading national and regional brick-and-mortar delivery, and other competitive concerns while point, it’s not something we concern ourselves with retailers in the U.S. to ask them about their plans also not jeopardizing their existing stores or their in our stores,” said Richard Golden, CEO of SEE, regarding online retailing, most were silent on this relationships with their patients and suppliers. with 24 locations, based in Southfield, Mich. topic, preferring to keep what they might be doing in the online space confidential at this “Although we respect those marketing eyewear online, from our perspective, point. It’s this consistent reluctance among them to discuss online optical retailing on the part of the at this point, it’s not something we concern ourselves with in our stores.” brick-and-mortar retailers that might actually — Richard Golden, SEE, Southfield, Mich. point to the fact that there is some planning going on in corporate boardrooms regarding how they’ll respond to the steadily growing competition com- Still, some did reveal that although they may Anushka Figueroa, director of marketing and ing from online-only optical retailers. not be currently selling products online they may brand management for Nationwide Vision, with Most of the traditional brick-and-mortar retail- be doing so soon. “Presently, we’re not selling 64 locations, based in Chandler, Ariz., agreed that ers are playing their cards close to their chest, in anything online. It will be about three months the focus of the large Arizona chain she represents effect saying that they can neither confirm nor before we do,” said Gordon Bishop, president and will remain where it’s been. “Because of all of our deny that launching an online retail eyeglass store CEO of Sunland Optical, with 36 stores, based in Continued on page 45 For a look at last year’s Brick & Click coverage, read the March 7, 2011 Cover Story, MARCH 5, 2012 in VM’s Digital Editions archive on Vision Monday.com 4 4 COVER TOPIC Online Optical Retailers Talk Shop BY DELIA PAUNESCU / ASSISTANT EDITOR wear selection online runs the gamut of styles and price points. Most optical e-tailers speak of pro- elling eyeglasses online is one of the most viding a wider selection at lower cost, though a challenging issues optical has faced in quite few, like Glasses.com, simply want to provide a Ssome time. Though the divide between brick selection to those customers without direct access and click is narrowing in some quarters, online play- to certain brands and frame styles. And when it ers are still considered a stepchild by many in the comes to processing Rx lenses, online players are industry. Online retailers, or e-tailers, are often pretty evenly split between outsourcing the work thought to be taking business away from traditional and keeping full control of the lens process with ODs and opticians, and are still perceived by many as their own in-house labs. an “unauthorized” channel that is strictly promotion- “The big difference between us and brick and surements. However, most customers come to us ally priced. But is that really true? And just how does mortar is that our customers can’t physically try on because they received poor service at a local optical selling glasses work on the internet? the frames,” Zenni Optical’s Levente Laczy said. shop.” He added, “We are the only online eyewear Be they ODs, opticians or former executives at This is the challenge all online retailers face, store with an A+ rating from the Better Business various optical companies, most of the bigger regardless of product. Almost all have opted to Bureau, and we have held that since 2001.” e-tailers have industry experience. Though the include a virtual try-on (VTO) system on their While Agnew boasts 200,000 sku inventory, the reasons they took eyeglasses online vary, one sites, some built in-house and others outsourced.
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