The U.S. Eyewear Market

Jul 1, 1997
148 Pages - Pub ID: LA462
Attention: There is an updated edition available for this report.
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  1. Executive Summary
    The Products
    • Four Product Categories

    The Market
    • Retail Sales of Eyewear Near $17-Billion Mark in 1996
    • Table 1-1: U.S. Retail Sales of Eyewear by Product Category, 1992-2001 (dollars): Rx Lenses/Treatments, Rx Frames, Plano Sunglasses, Contact Lenses, Total
    • Prescription Lens Sales Lead Market
    • Eyewear Sales to Reach $21.8 Billion by 2001
    • Optical Chains Dominate Eyewear Sales.
    • Figure 1-1: Share of U.S. Eyewear Market by Optical Outlet, 1996 (percent): Optical Chains, Optometrists, Opticians, Ophthalmologists, HMOs
    • Sunglass Sales Dominated by Optical Outlets and Sunglass Specialists
    • Factors Affecting Market Growth

    The Marketers
    • Many Marketers in Four Eyewear Categories
    • Marketing Trends

    Distribution and Retail
    • Independents Corner Almost Two-Thirds of Sales by Dispensers
    • Sunglass Specialty Stores on Top in Plano Sunglasses
    • Sunwear Retail Outlet Trends

    The Consumer
    • 29.5% Of Adults Use Prescription Eyeglasses
    • Prescription Eyeglass Use Linked to Variety of Demographic Factors
    • User Profiles for Bifocals, Plano Sunglasses, Contact Lenses

    Scope and Methodology
    • Products Covered
    • Report Methodology
  2. The Products
    Scope of Report
    • Eyewear Products Sold at Retail

    A Brief History of Eyewear
    • Corrective Lenses in Use for Six Centuries
    • Johannes Kepler Explains Why Lenses Work
    • Benjamin Franklin Invents Bifocals
    • Concavity Improves Upon Original Lens Design
    • Sunglasses Developed for Sailors
    • Contact Lenses Have Evolved Over 100 Years
    • Style Comes Late to Story

    The Products and Their Uses
    • Four Product Categories
    • Prescription Lenses and Lens Treatments
    • Prescription Frames
    • Plano Eyewear
    • Contact Lenses
    • Packaging and Labeling

    Federal Regulations
    • Health Professionals Write Prescriptions
    • Framed Eyewear Must Meet Impact Resistance Requirements
    • Medical Device Reporting Standards Apply
    • Regulators Act in Interest of Consumer
    • Sunglasses "Use Category" Labeling Is Voluntary
    • Table 2-1: Standards for Sunglass Blockage (percent): UVA, UVB, Visible Light
    • Voluntary Compliance with "Use Category" Labeling Is Lacking
  3. The Market
    • Figure 3-1: Estimated U.S. Retail Sales of Eyewear by Category, 1992-1996 (dollars): Rx Lenses/Treatments, Rx Frames, Plano Sunglasses, Contact Lenses

    Market Size and Growth
    • Methodology Used to Determine Market Size
    • Jobson, SAA Are Major Data Sources
    • Retail Sales of Eyewear Near $17-Billion Mark in 1996
    • Table 3-1: Estimated U.S. Retail Sales of Eyewear by Category, 1992-1996 (dollars): Rx Lenses/Treatments, Rx Frames, Plano Sunglasses, Contact Lenses, Total
    • Prescription Lens Sales Lead Market
    • Frame Sales Post Respectable Gains
    • Sales of Sunglasses Strong
    • Contact Lens Market Estimated at $1.9 Billion

    Market Composition
    • Sales by Product Category: Lenses Lead in Market Share
    • Table 3-2: Share of U.S. Retail Sales of Eyewear by Category, 1992-1996 (percent): Rx Lenses/Treatments, Rx Frames, Plano Sunglasses, Contact Lenses, Total Optical Chains Dominate Eyewear Sales
    • Figure 3-2: Share of U.S. Eyewear Market by Optical Outlet, 1995 vs. 1996 (percent): Optical Chains, Optometrists, Opticians, Ophthalmologists, HMOs Independents Maintain Market Share Sunglass Sales Dominated by Optical Outlets and Sunglass Specialists
    • Table 3-3: Share of U.S. Sales of Plano Sunwear by Retail Outlet, 1995-1996 (percent): Optical Outlets, Sunglass Specialty Outlets, Drugstores & Discount Department Stores, Unmonitored Outlets, Department Stores/Chain Apparel Stores, Sport Retail Chains/ Independent Sport Specialty Stores, Supermarkets/ Convenience Stores, Other Sunwear 13% of Gross Sales for Independents
    • Figure 3-3: Share of Gross Dollar Sales of Sunwear by U.S. Independent Dispensers: Plano vs. Prescription, 1996 (percent) Regional Use of Eyewear
    • Table 3-4a: U.S. Eyewear Market: Share of Users of Regular Prescription Eyeglasses by Region, 1996 (percent and index): Northeast, Midwest, South, West
    • Table 3-4b: U.S. Eyewear Market: Share of Users of Bifocals by Region, 1996 (percent and index): Northeast, Midwest, South, West
    • Table 3-4c: U.S. Eyewear Market: Share of Users of Contact Lenses by Region, 1996 (percent and index): Northeast, Midwest, South, West
    • Table 3-4d: U.S. Eyewear Market: Share of Purchasers of Plano Sunglasses by Region, 1996 (percent and index): Northeast, Midwest, South, West
    • Summer Is Peak Season for Sunwear Sales

    Factors Affecting Market Growth
    • Eyesight of Aging, Affluent Boomers Is Worsening
    • Table 3-5: Projected U.S. Population, 1995-2050 (number): 45-64 Years and Over, 65 Years and Over, 85 Years and Over
    • Aging Population Should Benefit Multifocals the Most
    • Table 3-6: Eyewear Use by Older Americans, 1996 (index) Rx Eyeglasses, Bifocals, Soft Contact Lenses, Plano Sunglasses.
    • Managed Care Claims Profits, Benefits Optical Chains
    • Rx Eyewear Threatened: Corrective Surgery Improving, Consumers Interested
    • Lens/Lens Treatment Sales Fueled by New Products
    • Consumer Preference for Premium Frames
    • Multiple Factors Spur Growth in Plano Sunwear
    • Rx Sunwear a Growth Area for Retailers
    • Disposables Will Pace Weak Contact Lens Category
    • Figure 3-4: Projected U.S. Retail Sales of Eyewear by Category, 1996-2001 (dollars): Rx Lenses/Treatments, Rx Frames, Plano Sunglasses, Contact Lenses.

    Projected Market Growth
    • Eyewear Sales to Reach $21.8 Billion by 2001
    • Lens Sales to Near $10 Billion
    • Frame Sales Trending Upward
    • Plano Sunwear Sales to Remain Strong
    • Contact Lens Sales to Continue on Slow Growth Path
    • Table 3-7: Projected U.S. Retail Sales of Eyewear by Category, 1996-2001 (dollars): Rx Lenses/Treatments, Rx Frames Plano Sunglasses, Contact Lenses, Total
  4. The Marketers.
    The Marketers
    • Many Marketers in the Four Eyewear Categories
    • Lens Category Fragmented Among Numerous Companies
    • A Variety of Frame Marketers
    • Plano Sunwear Category Crowded
    • Four Major Contact Lens Marketers
    • Table 4-1: U.S. Eyewear Market: Selected Marketers of Eyewear Products

    The Competitive Situation
    • Lenses a Commodity
    • Lens Treatments
    • Frame Market Difficult to Crack
    • Plano Sunwear Viciously Competitive
    • Contact Lens Category Concentrated

    Competitive Profile: Bausch & Lomb, Inc.
    • Long History as Marketer of Lenses, Sunglasses
    • Fraud and Ethics Concerns Lead to Leadership Change, Restructuring
    • Contact Lens Sales Up, Sunwear Sales Down

    Competitive Profile: BEC Group, Inc. (Bollé America, Inc.)
    • Bollé Sunwear a Core Business
    • Sales of Sunglasses Are Flat
    • Strategies for Future Include Rx Sunwear Focus, Purchase of Bollé France

    Competitive Profile: CIBA Vision, Inc
    • Number Two in Contact Lens Market
    • Innovation Sets the Pace

    Competitive Profile: De Rigo Group S.p.A
    • Style and Technology Drive Frame and Sunglass Marketer
    • Sales, Market Value Down
    • Physical Plant Investments and New Products May Bolster Brand Sales

    Competitive Profile: Essilor International.
    • Largest Optical Company in the World
    • Alignment with Bausch & Lomb May Boost Sales
    • Oakley Agrees to Exclusive Purchasing Agreement

    Competitive Profile: Johnson & Johnson (Vistakon, Inc.)
    • Vistakon Division Markets Top-Selling Contact Lenses.
    • Company Launched with Sales of Surgical Dressings.
    • Company Marked by Strong Financials.

    Competitive Profile: Luxottica Group S.p.A.
    • Frame and Sunglass Marketer Focuses on Vertical Integration.
    • Stock Plummets on Disappointing Financials
    • Prognosis May Be Good Despite Recent History

    Competitive Profile: Oakley, Inc.
    • Established Leader in U.S. Premium Sunglass Market
    • IPO Enthusiasm Does Not Last
    • Disappointing Performance May Improve with New Product Introductions

    Competitive Profile: SOLA Optical USA
    • Major Player in Lens Market
    • Most of Current Revenues Come from Sales of Plastic Lenses.
    • Prospects Good for Improved Financial Situation
    • Acquisition of American Optical Could Spur Growth.

    Competitive Profile: Wesley Jessen Corp.
    • First to Bring Contact Lenses to Market, Specializes in High-End
    • Development Plans Include UV Absorber, Torics, Stronger Brand Identity

    Marketing Trends
    • Celebrities, Sports Stars Used to Promote Product Lines
    • Frame Designers Emerge in Spring, Do Tie-Ins
    • Frame Marketing Trends: Design and Material
    • Frame Design Trends: Specifics
    • Plano Sunwear Marketing Trends: Polarization and Lens Tints
    • Sunwear Marketers Push for Year-Round Market
    • Sunwear for Kids
    • Internet an Emerging Marketing Tool
    • Marketers Optimistic Despite Advance of Eye Surgery

    New Product Trends
    • Lens Introductions Include Progressives
    • Prescription Sunwear Introductions Starting to Appear
    • Overwhelming Number of New Frame Collections
    • New Frames Feature Flexibility, Strength
    • Children's Collections Part of Product Line Extensions
    • Pipeline Still Open for New Sports-Specific Plano Sunglasses.
    • Contact Lens Introductions on the Planned Replacement Side
    • List of New Product Introductions
    • Table 4-2: The U.S. Eyewear Market: Selected New Product Introductions and Line Extensions, January 1996-June 1997

    Consumer Advertising Expenditures
    • Approximately $60 Million Spent in 1996
    • Additional Promotional Expenditures
    • Nine Companies Account for Some $40 Million of Measured Expenditures
    • Johnson & Johnson Pays Top Dollars
    • Bausch & Lomb's Ad Spending Is Second Highest
    • Luxottica Third with Frames and Sunglasses
    • Novartis Heavily Promotes Contact Lens Brands
    • Five Companies Combined Spend More Than $5 Million

    Consumer Advertising Positioning
    • Lens Advertising Stresses Product Performance, Features
    • Fashion Models Set Tone for Frame and Sunwear Positioning.
    • Emotional Push Not Uncommon
    • Celebrities Put Excitement in Eyewear Ads
    • Sports Stars Offer Similar Ad Sizzle
    • Plano Sunwear Ads Highlight Premium Features, Safety Benefits
    • Youth Marketing Evident in Many Plano Sunwear Ads
    • Retailer/Marketer Tie-Ins Emerging in Plano Sunglass Ads
    • New or Unusual Angles Mark Some Campaigns
    • Contact Lens Marketers Stress Comfort and Convenience
    • Examples of Consumer Ads

    Consumer Promotions
    • Special Offers the Purview of Rx Dispensers
    • Marketers Tout Good Works and Health Promotion to Engender Goodwill
    • Low-End Plano Sunglass Promotions Perpetual
    • Examples of Consumer Promotions

    Trade Promotions and Advertising
    • Trade Ads Help Move Product to Dispensers' Shelves
    • Retailer Incentives Range from Lavish to Trivial
    • Vision Expo a Premier Venue for Sales and New Product Introductions
    • International Trade Fairs Attract U.S. Manufacturers and Retailers Retailer Locating Service, Continuing Education Also
    • on List of Promotional Tactics
    • Examples of Trade Ads and Promotions
  5. Distribution And Retail
    Distribution
    • Sales Direct or Through Distributors
    • Direct Distribution
    • Direct-to-Consumer Distribution

    Retail Outlets
    • A Wide Variety of Retailers
    • Optical Outlets
    • Non-Optical Eyewear Outlets
    • Mass vs. Limited Distribution Outlets
    • Retailer Ads Stress Value, Special Deals
    • Example of Retailer Advertising

    At the Retail Level: Optical Outlets
    • Trade Press Tracks Dispenser Trends
    • Independents Corner Almost Two-Thirds of Dispenser Market
    • Optical Chains Take One-Third of Optical Outlet Business
    • Mass Merchants Account for Small Part of Optical Chain Share
    • Top 100 Optical Chains Control One-Fourth of Market
    • Independents Stand Their Ground
    • HMOs Claim a Sliver of the Market
    • Retailer Focus: LensCrafters

    At the Retail Level: Non-Optical Outlets.
    • Plano Sunglasses and Reading Glasses Comprise Eyewear Product Mix
    • Sunglass Specialty Stores on Top in Sunglasses

    Retailer Focus: Sunglass Specialty Stores
    • Restricted Distribution Key to Sunglass Sales Strategy
    • Retailer Profile: Sunglass Hut

    Retailer Focus: Drugstores
    • Sunwear Sales Share Down, But Numbers Up
    • An Exception to the Seasonality Rule
    • Plano Price Points Rise
    • Drugstore Sales of Reading Glasses Expanding
    • Product Mix, Merchandising Approach Vary

    Retailer Focus: Department Stores
    • Nature of Business Is Evolving
    • Profile: Typical Department Store
    • Sunglass Hut Merchandising Strategy Makes Inroads
    • Consumer Trade-Up Levels Modest and Cooling
  6. The Consumer
    Introduction
    • The Simmons Consumer Survey
    • Consumer Data on Eyewear Use and Purchase Available

    Consumer Use: Prescription Eyeglasses.
    • 30% Of Adults Use Prescription Eyeglasses
    • Eyeglass Use Linked to a Variety of Demographic Factors
    • Table 6-1: U.S. Eyewear Market: Demographic Characteristics Favoring Use and Purchase of Rx Eyeglasses
    • Purchasing Habits Strongly Linked to Use
    • Resisters Present Lower-Scale Profile

    Consumer Use: Bifocals
    • 31% Of Adults Use Bifocals
    • Use Linked Strongly to Age
    • Use Highest in The Midwest
    • Purchasers Mirror Users.
    • Table 6-2: U.S. Eyewear Market: Demographic Characteristics Favoring Use and Purchase of Bifocals
    • Youth Set Are Resisters

    Consumer Use: Plano Sunglasses
    • 39% of Adults Purchase Plano Sunglasses
    • Use Linked to Youth, Race, and Other Factors
    • Sunglass Purchasing Static Across Regions
    • Table 6-3: U.S. Eyewear Market: Demographic Characteristics Favoring Purchase of Plano Sunglasses Resisters
    • 75% of Purchasers Buy Low-Priced Sunwear
    • Table 6-4: Share of Sunglass Purchasers by Product Price Range (U.S. Adults)
    • Premium Sunglasses Purchasers Young and Affluent
    • Price-Point Purchases Correlate with Income, Position, Age
    • Table 6-5a: U.S. Eyewear Market: Demographic Characteristics Favoring Purchase of Plano Sunglasses by Price Range (dollars): Under $10, $10-$25, $26-$50
    • Table 6-5b: U.S. Eyewear Market: Demographic Characteristics Favoring Purchase of Plano Sunglasses by Price Range (dollars): $51-$75, Over $75

    Consumer Use: Contact Lenses
    • 7.5% Of Adults Use Contact Lenses
    • Use Linked to Youth, College Education, Above-Average Income
    • Westerners Wear Most Contact Lenses Per Capita
    • Table 6-6: U.S. Eyewear Market: Demographic Characteristics Favoring Use and Purchase of Contact Lenses
    • Resisters

    Appendix I: Examples Of Consumer, Trade, And Retail Advertising And Promotions
    Appendix II: Addresses Of Selected Marketers
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