Practices must be more open to what the consumer needs

Although the retail optics market is mature, with some informed forward planning there is still some room for businesses to make more money. That is the conclusion of this year's Mintel report on Opticians, which updates a previous report on the £2.41bn sector published in November 2002. Noting briefly the developments of the last 20 months, the researchers report on the rise and rise of Specsavers, the downturn in the refractive surgery market and the growth of the contact lens sector, among other matters. For the future it predicts: price competition will remain an influential marketing tool, though retail profits are expected to be squeezed as a result; modest growth in the market between now and the end of the decade; and supermarkets continuing to build their optical chains. Opticians must become better communicators to succeed, Mintel suggests, and urges investment in staff training which will help form closer relationships with customers. The document extols direct debit schemes to help retain patient loyalty, believes some independents are 'resilient', and that there is room for good independent opticians in the future. It predicts the further growth of the retail franchise model in UK optics. Aside from its market evaluations and suggestions, Mintel commissioned consumer research on the optical market of 2,040 adults, questioned in March this year, to give the report a better insight into what the 2004 consumer wants, and where they are shopping for eye care. From one of the survey's findings, Mintel believes the high patronage of Specsavers Opticians' services by the 45-54 age group indicates the multiple does well among those using an optician for the first time. However, the report warns the Guernsey-based business that 'the challenge for the group is to keep the loyalty of these consumers'. While Boots Opticians and Dollond & Aitchison have an older and more upmarket patient base, the research found that city centre group Vision Express has more appeal to the young. 'Independents', the document reads, 'have the lion's share of their consumers in older groups, especially ages above 55'. It is the wealthier consumers in their 50s and 60s, and those who have retired, that the multiples should be targeting, Mintel suggests.