The Outlook: Is This a Recovery?

A checklist of what's helping businesses weather the economic tests from optical's thought leaders

By Amy Spiezio and Karlen McLean, ABOC, NCLC

Inside the optical industry and beyond people are ready for the hard times to be over. But with the residential real estate market's ongoing volatility and unresolved credit and banking situations, the reality is not all good recovery news.

The optical industry's thought leaders are not ready to call it quits, however; here are some views from the top shared exclusively with EB's readers.

CRUNCH THE NUMBERS

“While the tight credit markets in 2010 will continue to inhibit growth and investment in infrastructure, those companies with solid balance sheets will be able to finance their businesses at the lowest interest in modern times.”

“The cost of doing business has been reset lower as companies enjoy historically lower interest rates and can negotiate lower fixed monthly costs for professional services, travel, rents, marketing, and advertising. As companies reduce their overheads, the opportunity to ride out this recession becomes easier.”

Michael Prince, CEO, Signature Eyewear

“Carl Zeiss Vision had remarkable growth of 20 percent in the customized lens [free-form] business in 2009. In 2010, we're anticipating that to elevate to 30 percent. A customized lens portfolio is ideal for independent practices that focus on personalized patient care.”

Jeff Hopkins, senior manager customer communications, Carl Zeiss Vision

“First, we need to acknowledge that as an industry, we have experienced some degree of insulation from this deep recession, for one major reason—eye health and vision care is extremely important. Eyewear purchases have had more of a practicality component than in recent history, as wearers have ‘made do’ with their current eyewear, or purchased eyewear with value in mind. We see this dynamic remaining somewhat stable as consumers will be cautiously optimistic and spend less whenever they can. We see this trend lasting for the next few years.”

Don Howard, president/CEO, Kenmark Group

BE CONFIDENT

“Innovative, independent ECP businesses are growing in strength and significance in the optical marketplace. They will emerge stronger, as the large chains are more challenged being over-stored with larger overhead. The independent ECP has a unique opportunity. Optical is personal, medical, and fashion rolled into one, which makes it less prone to being overly commoditized. Practices with several doctors should thrive.”

David Friedfeld, president, ClearVision Optical

“Much of the economy is based on confidence. Our industry has been weathering the storm better than most. However, the news and fear of the future has affected capital equipment purchasing significantly The year is starting out better than last year.”

Matthew H. Vulich, vice-president, marketing, AIT Industries

“Indicators are pointing to a better year ahead and we all are optimistic about 2010. Growth and profitability will be driven by programs that increase patient traffic to our wholesale partners and ideas and concepts that open opportunities in untapped markets.”

Pierre Fay, executive vice president, Luxottica Wholesale, North America

“Our outlook on the future is quite positive. The common thread is that the new economy brings with it consumers who are demanding value— not necessarily cheaper—but a clear set of benefits that demonstrate a solution to a problem.”

Clay Musselwhite, marketing director, PixelOptics

GET A HOOK, GET GOING

“Opticians have had to make the decision between battling it out on price or offering something different. Designers offering unique product and selective distribution have benefitted from this paradoxical situation.”

Jason Kirk, managing director, Kirk Originals

“If you have something different, it's a great time to get started. The big guys have seen you cannot do business the same. People are focused on cost and are more efficient. There's not enough money to do all the things we used to do. People are saving money, and they are not spending. It's all part of a new direction.”

Ed Greene, chief executive officer, The Vision Council EB

Keep Looking Up

Luxury is not dead, and it seems that spending may be on the rise once again for the ultra-rich. “I don't think we've seen the end of luxury,” says MaryBeth Heilbrunn, senior director of brand management for luxury retail, Luxottica. “Those customers are looking for something special, and they are willing to pay for that. The brands are very important to them and they know that they are making an investment.” One example is the recent sale of Sama's Pyramid of Diamonds sunglasses (right), a $25,000 gold and diamond sunglass at the ILORI boutique in Las Vegas' CityCenter. “It will take time. And it may not come back the way it was two years ago, but there will always be a market.”