Mintel believes the retail profession should concentrate on its links to fashion to stimulate sales
Solid, if unspectacular growth is forecast in the latest survey on the profession.
In its second in-depth report on the sector in almost as many months, Mintel has chosen to look at optical goods and eye care following its predictions from its Opticians publication (see News February 10).
The report, which is published this month, says that the market has been suffering from flat demand for the last two years, mainly because of the influence of wavering consumer confidence in the UK, and has led to many consumers delaying their purchases.
The researchers note that opticians have tried to counter this deferment by encouraging more people to trade up. However, market indications reveal how 'challenging' a time those who sell eye care have had of late. Although the market rose by 11 per cent between 2000-2005 to reach 2.32bn, sales in 2005 actually fell by nearly 4 per cent compared to 2004.
Nevertheless, Mintel predicts the optical goods and eye care products market will increase at current prices from 2005-2010 to 2.77bn, and, accounting for the effects of inflation over this period, this is equivalent to a real market increase of 15 per cent in the next few years.
The spectacle sector is expected to increase by the end of the decade by 16 per cent, and Mintel believes polarisation will become a more marked feature of the market 'as the middle market is further squeezed by growth in branded frames and demand for budget spectacles'.
The report urges opticians to stimulate demand by encouraging consumers to replace their spectacles more often, or trade up to higher priced pairs. 'Fashion and branding are playing a role in this,' the report states, 'although few opticians really present an environment that attracts a fashion-conscious audience.'
Merchandise displays in opticians are often too clinical, the research suggests, 'therefore introducing other accessories, such as costume jewellery would help reinforce the fashion associations and provide a more colourful and interactive buying occasion.'
Mintel believes it is important that opticians adopt less reliance on annual visits from patients and as retailers they should encourage an atmosphere in which to browse, and suggests retail philosophies from outside the profession should get in on the act.
'There appears to be an opportunity for a Top Shop or Ikea approach to selling optical goods,' it says, 'in other words, functional yet allowing the consumer to reflect their own personal style at affordable prices.'
It says that the trend towards securing loyalty through an annual appointment is too infrequent to create this type of shopping behaviour from most patients, 'and perhaps a new, less sterile approach is required'.
Contact lenses will also grow in the next few years, by 36 per cent at current prices to 435m. However, the report states that any increases in the contact lens market are likely to be moderated by price discounting by the supermarkets.
To improve sales, Mintel suggests that contact lens advertising needs to incorporate messages that suggest wearers are more attractive and stylish.
From research TGI has carried out among nearly 25,000 consumers, the report concludes that contact lens wearers appear more inclined to go for a promotional deal than spectacle wearers.
'This highlights a difference between these two markets,' the reports says, 'contact lenses are an identifiable commodity, while spectacles are more of a fashion/style accessory.'
The report says that despite attempts to create interest in terms of different coloured contact lenses, they are unlikely to find a way to become a fashion accessory.
'This shows that the contact lens market is vulnerable to intrusion from price discounters, especially if branded lenses are advertised at low prices. To counter this, opticians need to remind contact lens wearers about their role as guardians of good eye health, justifying their higher prices by emphasising the role of expertise and safety.
'Opticians must strike the balance between positioning themselves as a "medical" service and the fashion/style side of the business,' the report urges. 'They need to elevate the image of the ophthalmic optician as a highly qualified practitioner who can spot health problems.'
Mintel's Optical Goods and Eyecare report (May 2006) is available to optician subscribers at 895 (normal price 995). Telephone (0)20 7606 6000 for details.
Mintel believes the retail profession should concentrate on its links to fashion to stimulate sales