Independent practices are the lifeblood of the optical business and recent times have seen them fighting back against the onslaught of the multiples. Not so many years ago it was a common theme at business seminars to hear how independent practices were dwindling. Change has taken place but to mis-quote Mark Twain reports of the independents’ death have been greatly exaggerated.
Martin Batho, managing director of Hoya lens UK in Wrexham agrees that the pace of demise for independent practices has been slower than predicted. He is clearly grateful to the sector for supporting Hoya and he puts this success down to the right product mix, support and training for independent customers and a stable team within Hoya. Perhaps not so expected is another role Hoya is finding in financially supporting practices to remain independent and to expand the independent footprint.
‘I feel very humbled and honoured to have worked for Hoya during this period,’ says Batho. ‘We have had terrific growth and performance during that time and clearly it’s not down to any one individual. We have had a very stable team of people and I can’t stress enough how pivotal that’s been in terms of making sure we’ve continued to gain ground. You learn and you build on that.’ To demonstrate the point he adds: ‘Our local leadership team consists of eight senior managers and within those we have just short of 200 years of experience in optics.’ That clearly helps not just because of the experience and knowledge but it demonstrates that Hoya is a good company to work for and a good company to work with. If you look at some of our competitors there’s change at the top at the moment. I’ve always felt, from a Hoya perspective, having consistency, both in the local organisations and the team that works with me is a huge advantage.’ This means the team is gaining experience and it is getting better at working together. ‘Really important is the relationship side of the business.’ While many competitors produce good products customers tend to buy from people they like, know and trust. ‘There’s a consistent approach and it’s worked very well for us. Effectively you are always speaking to the same people.’
The style of Hoya’s approach has also been key, says Batho. ‘We are quite humble in our approach, we are not bullish, we are here to support the independent and promote them rather than stand in front of them and take the lead. We want to stand behind them and provide them with the tools products and support that they need to drive the business.’ He says end consumers don’t go into a practice seeking a particular brand of lens. ‘They go into the practice because of the relationship with the practice and that is the brand that should take prominence.’
As well as product support practices have long been keen to seek Hoya’s help on business and marketing issues but it is the general economy that vexes many practices at the moment. As an example he cites the dilemma independents find themselves in their own high streets and the changing dynamics of retail and the reducing levels of footfall generally. ‘The reality is that the level of footfall in the high street, because of the fall of in other business, is reducing and we are finding that independents are having to find ways to offset that.’
Hoya provides support through expert partners on a range of topics which advise independents on looking at multi-pair offers, how they increase their average transaction value or other strategies. ‘We have a lot of activities to support them in that respect.’ Batho says long term planning and using the technologies of tomorrow have to be the way to go. While two for ones and increases in average transaction values might be a short-term fix ultimately online is the way to go to help footfall.
Hoya is finding an appetite for practices to be present online in a way that they have not been before, he adds. ‘They want the bricks and clicks approach, where they are very much there in the high street but have representation online driving patients to the practice. For some independents that’s a completely new world.’ They are looking for support and through its business support faculty Hoya provides that.
At its Wrexham headquarters Hoya runs quarterly training days on a range of topics which are themed into key areas such as a digital marketing curated by an expert. Batho says Hoya’s original approach of offering seminars has now developed into offering more specific help. It works with experts who can get closer to the customer across a range of topics. ‘We can offer advice to independent practices who are working with us to be, if you like, part of that wider team.’ That means experts in practice helping with collateral to put online and developing strategies designed for that particular environment.
There is not a one size fits all approach and while some practices might like to attend a seminar others need more specific help and on-going support. That could be monitoring web traffic going through competitors’ websites or social media use but it could also be more traditional marketing or business issues. For these Hoya will team up with relevant experts such as Andy Clark’s Practice Building.
When it comes to new relationships Batho says smoothing the transition between suppliers has been its priority. ‘I think one of the reasons we have been so successful in growing independents is because we are very diligent at supporting the onboarding of new accounts. You can talk about price, you can talk about product, you can talk about digital marketing, we will engage on all of those things but the overriding fear of most independents is the fear of switching.’
He says this is not the fear of the unknown it is just the logistics, training and organisation that goes along with the change. ‘Without that support the decision maker in practice is left with the headache of: “I’ve made a decision, it sounds good for our business” but then they have got to do a lot of serious work to make it happen.’ He says Hoya has finely tuned its systems to make sure all of the back-office elements are in place and that everyone is fully trained. ‘But there’s a much bigger element and that is the time that we spend in practice with the staff so they understand our products, so they understand our ordering system and how that compares with the previous products they have used. At the end of that process they are fully confident.’
Great products, great service and support can be found at all the big lens makers, says Batho. They all have their peaks and troughs and he is adamant from his own experience of winning business with customers such as Leighton that it comes down to relationships. ‘When Leightons were looking for a new lens supplier they did due diligence on all of the big companies but chose Hoya. The reason they gave was that ultimately it was the people. They had belief and confidence in the Hoya team to be partners to their business.’
That, says Batho, boils down to the consistency and experience of the team. ‘I don’t think you get that when you continually change the head of an organisation. Those companies that change the head of the organisation and the management team on a four or five year cycle, which we see with some of our competitors, I don’t think you are ever going to get traction. It’s one of the advantages we have.’
A major change in the market Batho highlights is the increasing number of independents that are reaching retirement age looking for exit plans. While there are obvious places to go to sell a business he says this trend is driving a lot of conversations between independents and Hoya. ‘As a consequence of the ageing independent population we are finding that there are quite a lot of practices approaching us asking if we can support with finance.’
He says while exiting owners could go to one of the larger groups to sell there are options. If you have a practice in which the management team want to acquire the practice and the owner is moving on they might need someone to support them with finance. Another scenario is a practice that wants to expand and is looking for financial support to make that happen.
‘That’s something we absolutely have a strategy for. There are practices that we are supporting today, who have approached us. We have no financial interest in those practices, in terms of a level of ownership, it’s just that we can provide funding for those practices so they can continue trading or grow their business as independents.’ While Hoya is not interested in finance per se by supporting practices it is safeguarding independent practice and a Hoya customer.
The desired result is to help secure the independent sector and a customer for Hoya lenses who might otherwise switch to a chain with its own preferred supplier. The march of the chains will continue, he says, but corporate ownership is not for everyone. ‘There are smaller players who are looking to expand their business or progress their career within that practice and on that basis funding support can be quite attractive to somebody in that position.’
Batho says he welcomes the opportunity to talk to independent practices with a view to supporting them and helping them maintain their independence whether they are existing customers or potential ones. ‘I have a continuous stream of requests that pass across my desk of independent practices asking if we can support them with finance so they can grow or develop. To date we have engaged with every one that has crossed the desk.’
He describes a scenario in which an existing customer is looking to acquire another practice which is not a Hoya customer. ‘That provides an opportunity for them and an opportunity for us, it’s a win all round really. They get to grow, we get new business and the customers get quality product.’
Independents still demonstrate the best in innovation, service and quality but they are under pressure in the high street and there is a demographic effect. ‘There is change, it’s definitely moving. As a lens supplier you are either somebody who is standing by watching that happen or you want to engage in it and support the independent to remain independent.’