12 for 2012: Top Trends for the New Year

Where are we headed? The market's key directions revealed for the year to come will help you plan for the future

by Erinn Morgan

Ever wish you had that mythical crystal ball to peer into to see where your business will be going in the future?

Our Top Trends list serves up the next best thing, with a dozen points of insider information on focused directions and targeted trends culled from the Eyecare Business Market Trends 2011 Report.

Should you worry more about the economy or rest easy?

What will be the key categories for growth in the dispensary?

Should your business be selling products online?

Are you green enough?

The answers to these burning questions and more are revealed in our trends list below. Read on for a good glimpse into the future of optical.

#1: IT'S TIME TO THINK POSITIVE

Tired of all the drama over the economy today? The results of the Eyecare Business Market Trends 2011 Report reveal that ECPs may be able to rest a bit easier in 2012. In fact, eyecare professionals reported that the recent economic downturn only had a moderate (46 percent) to slight (33 percent) impact on their business.

A smaller number (only 15 percent) say that it has had a major impact. Even better news is that most (51 percent) reported that first quarter sales were up for 2011. In 2010, only 43 percent said that first quarter sales for the year were up. While ECPs continue to list the turbulent economy as their leading business challenge, it was ranked as such by a smaller number in 2011 (46 percent) than in 2009 (58 percent).

Comparison of Sales

#2: A NEW CUSTOMER

The new economy has borne a new consumer who is both wary and educated. In fact, six in 10 ECPs say they believe that the economic slump has created a new brand of cautious consumer that requires a new selling story, according to the Eyecare Business Market Trends 2011 Report. As such, a full 39 percent of ECPs say that they are re-assessing their inventory mix to reflect their changing customer base.

Most (85 percent) also say they are keeping prices stable in the dispensary—a cautious, wait-and-see strategy. At the same time, 28 percent say they are choosing quality over quantity, opting to move to a smaller but higher-end selection of product.

#3: GETTING ONLINE

While chain stores and behemoth e-retailers are jumping into the game of selling eyewear online, this does not yet seem to be a growth area for most ECPs. Only 18 percent of eyecare professionals say they have an e-commerce website.

Additionally, the majority of eyecare professionals who are not currently selling online say they do not plan to do so in the next two years. A full 66 percent say they do not plan to begin selling online, while 34 percent say that they do have plans in the works for an online product offering.

Still, 18 percent say their websites offer information and e-commerce. Of those selling online, the majority offer contact lenses (87 percent), plano sunwear (20 percent), accessories like clothing, cords, and cases (11 percent), Rx eyewear (nine percent), and Rx sunwear (nine percent).

#4: GOING SOCIAL

Are ECPs into social networking? Overall, it's not a huge priority; but it does seem to be a growing trend in the eyewear industry. Six percent of eyecare businesses say they use Facebook, Twitter, or both “all the time,” while 18 percent say they use it “frequently.” Reaching out into cyberspace, most ECPs say they do have a web presence (75 percent), but the majority (57 percent) say they use it only to provide information to existing and prospective patients.

Use of Facebook and Twitter

#5: RETURNS: FINDING A NEW WAY

Tougher returns policies for frames and equipment are changing the ways in which ECPs are managing unsold inventory, especially on the frame front. While 70 percent say they return their unsold products to vendors, this is a notable decrease from 2009, when 76 percent of ECPs said the same.

Today, 53 percent say they deal with unsold inventory by running sales and promotions, while 21 percent say they use aggressive board positioning. There was a marked jump in those ECPs (19 percent) who say they deal with unsold products by donating them to charity, an 11 percent increase from 2008.

#6: TRAINING SLOWDOWN

While a large number of reps and vendors offer in-office training options for ECPs and their staff, the Eyecare Business Market Trends 2011 Report found a significant downslide in the share of ECPs who provide training for their employees.

A whopping 33 percent say they provide no training for employees whatsoever, a number that was up significantly from 17 percent in 2009. Just 48 percent say they provide in-house training for new employees, an amount that was down from 62 percent in 2009.

Additionally, the number of those who provide periodic seminars given by frame vendors was down to 28 percent in 2011 from 43 percent in 2009. At the same time, a full 68 percent of ECPs noted that the No. 1 way they keep up with the constantly evolving lens market was information from manufacturer reps.

Staff Training (% of ECPs)

#7: RISING ABOVE

How are eyecare professionals moving above and beyond the woes of an unpredictable economy?

When asked how they are overcoming today's business challenges, the majority (68 percent) say they are boning up on customer service. The runner-up strategy (with 39 percent) was “re-assessing inventory mix to reflect a changing customer base.” This was followed by proactive marketing maneuvers, with 28 percent saying they'd be offering more promotions and another 28 percent saying they would increase their advertising efforts.

#8: DOCTOR'S INFLUENCE

What most influences the customer's eyewear purchase? While the doctor's recommendation is still king with 23 percent of ECPs noting this as the one factor that most influences purchases, doctors have lost a few percentage points from 2009 to price, which was reported by 16 percent as the most important factor.

In second place with 22 percent noting it as the most important factor was the optician's or salesperson's recommendation. On the lower end of the scale were brand/designer names with four percent and product features with 10 percent.

Perceived Influences on Consumer Purchasing

#9: GOLDEN OPPORTUNITIES

Where will the future growth come from? When asked for the three areas expected to grow the most over the next three years, the largest percentage of ECPs (46 percent overall/61 percent ODs) listed primary care opportunities such as glaucoma/allergy management.

Next on the list was regular eye exams, which was reported as an opportunity by 45 percent of ECPs. While eyeglasses came in third place with 43 percent of ECPs noting it as an area of growth, the number was down from 58 percent in 2009.

Fifth on the list was sunwear, which jumped up significantly in importance, with 31 percent of ECPs reporting it as a growth area. In 2009, only 18 percent of ECPs felt the same.

#10: SQUEEZED BY COSTS

While things are looking up for ECPs in 2012, there are still some business challenges that must be faced. The increasing cost of optical goods is a top concern for ECPs (26 percent, an increase over previous years' survey results).

Most ECPs say they have dealt with cost objections primarily by moving to lower-cost options (42 percent, up from 36 percent in 2009). Discounting merchandise is 33 percent of respondents' primary method to overcome cost objections.

#11: REP RELATIONSHIPS

For better or worse, richer or poorer, ECPs' relationships with their representatives and vendors are marriages that attempt to stand the test of time (and the economy).

When rating the importance of certain representative qualities, ECPs say that the most crucial were “being customer-oriented,” “having the willingness to be accountable for their products' performance and reliability,” and having a personal “knowledge of my business.”

Asked what would cause them to reject working with a specific vendor, 43 percent of the eyecare practitioner respondents say “poor customer service” would be the be all and end all. Other top-rated factors were “return policy,” “price,” and “vendor reputation.”

#12: GOING GREEN

On an eco-conscious note, the majority of eyecare professionals are contributing to the “green” effort in a variety of ways. A large number (78 percent) are accepting old frames and lenses in their office to pass on to charitable organizations.

A full 62 percent say they are recycling where possible, and 57 percent are reducing paper usage. An impressive 41 percent are replacing light fixtures with more energy-efficient options.

On the product front, 12 percent say they are offering in the dispensary eco-friendly frames made from recycled materials.

Interestingly, 22 percent of ECPs say they consider environmentally conscious equipment to be “very important,” while 57 percent say it is “somewhat important.” EB

The “Green” Effect