Following is the complete interview with Luxottica Wholesale North America president Holly Rush.
EB: What are you most enthusiastic about for U.S. business?
HR: I’m excited about the conversations that are bubbling up around the shift from a very traditional medical/patient focused approach to a 360 degree patient/consumer mindset. This is particularly crucial for the industry at a time when ECP profits are under pressure and there is more complexity than ever before.
Today, the consumer is at the center of every experience from shopping and eating to flying and banking. Our patients are coming from the Apple Store or the Sephora down the street or they’ve just purchased a new backpack for their kids on Amazon on the commute to work - they’re getting a highly-engaging, immersive experience, visually and emotionally EVERYWHERE. If we want to create those same connections with our patients, who are also consumers, we have to change the game and start thinking and operating differently.
THIS is the opportunity I’m most excited about for the industry and for eyewear. If we start thinking about our patients as the consumers they are, we will create a more sustainable and profitable model and enhance the loyalty and value we bring to the general public.
We’ve been working closely with the ECP community on this shift, which calls for a stronger emphasis on retailing. To support the shift, we’ve enhanced the tools our Field Team uses to consultant at a local level, offered ongoing education for the industry and we are bringing these concepts to life at Vision Expo.
We have a very comprehensive plan that we believe can be game-changing and serve as a real catalyst for growth in years to come.
EB: What do you think is the biggest challenge Luxottica faces in the United States?
HR: I would say our biggest challenge is also an industry challenge. And that’s the lack of awareness consumers have today about the importance of Vision Health.
Today, only 1 in 3 adults gets a regular eye exam. That means over 200M people aren’t receiving the proper care they need and potentially have undiagnosed vision problems.
The issue is even more severe with children, our next generation of patients and consumers. 1 in 4 have a visual impairment that affects their ability to learn, yet fewer than 7% get an eye exam before entering school. To me this is the toughest statistic to stomach.
Studies show that 80 percent of what kids learn in their first 12 years of school comes through visual processing. Imagine the impact if we increased awareness and made it mandatory for children to have a complete eye exam before entering grade school. Imagine the effects on our education system, on the number of children who go on to graduate college and the impact on psychological wellness of kids when they have every opportunity to learn and grow……it’s staggering.
The good news is we can make a difference as an industry. We can band together, raise awareness and educate consumers on this important topic. We have a lot of work to do, but Luxottica is already in the trenches. Our contributions to OneSight have given the gift of sight to millions through Vision Centers and Clinics around the world. In 2015, we are also a lead underwriter of SIGHT: The Story of Vision, a documentary film aimed at educating Americans on the history of sight, the technology and science behind it and the global vision crisis we face.
Last but certainly not least is our ongoing support for Think About Your Eyes, the non-profit, national advertising/public health campaign that we’ve supported since its inception. It has been proven to increase awareness for Vision Health, driving 3.8 million incremental eye exams in 2014, with 1 in every 15 patients discovering a previously undiagnosed eye disease.
But we can’t go it alone. We need everyone across the industry – manufacturers, groups, ECPS, retailers, everyone to stand together to make a difference. If we do, we all win--and most of all, we shape our future.
EB: Which opportunities do you think ECPs could be taking advantage of with Luxottica but aren’t?
HR: First and foremost, leveraging on our field resources. I know I’m biased but I truly believe we have the very best team in the market--sales consultants who are true brand ambassadors and a field management team in every market who can partner with ECP’s to create a comprehensive, growth-oriented business plan.
Next, I would say tapping fully into our brand portfolio. It’s the currency that connects you with your consumers and creates long term value and loyalty. From quintessential lifestyle brands like Ray-Ban, to fashion brands like Michael Kors and of course uber-luxury, Chanel – we offer something for every customer and every consumer.
Last is the business support, including the ongoing education we offer locally and nationally on critical topics like the Art of Retailing, From Design to Production and Premium Sun to name a few.
EB: How can independent optical tap the internet/utilize technology to expand their retail stores?
HR: The impact of ecommerce and technology on our business will accelerate. Today only 4% of eyewear sales are done online, but this is where the consumer is headed--by 2016, online sales could make up 20% of total retail revenue across categories. Already over 15% of premium sunglasses are sold online.
The fact is, consumers want access anywhere at any time across categories and services and they want choice. Luckily, we see a variety of tools coming to market to help ECP’s create closer and more consistent relationships with their patients. An omni-channel approach, one that serves not just as a transactional sale online based on price but as an extension of the practice, is an imperative.
A simple way to bring technology to your optical dispensary is by leveraging manufacturers’ assets--product and brand videos shown on a video loop or providing tablets to your opticians so they can browse manufacturer B2B sites for an “endless aisle” effect (broader selection) to name a few.
And then there’s an efficient supply chain--and here is where we see material improvement in the future. Even today, leveraging B2B sites as a virtual “automatic replenishment tool” means you are never out of stock of core items and best sellers.
There are myriad options, but don’t let the number of choices or the fear of technology prevent you from taking the steps. Commit to a roadmap for your practice and you’ll be pleasantly surprised at the effect it will have on the patient experience and your overall business.
EB: How do you think ECPs can expand their product offerings to succeed?
HR: Research tells us that in the average practice, 45% of revenues come from the dispensary, so everything from having the right assortment to presenting a knowledgeable staff could use more attention than it’s getting now.
But if we’re just looking at product assortment, as a general rule of thumb, less is more. Consumers are often overwhelmed when they shop and they’re quick to look elsewhere if they don’t easily find what they’re looking for.
The right formula for the ECP comes down to a few key points: know the consumer you want to serve; choose 4 or 5 top brands in each segment to offer a good selection for that audience; then buy deep on the those brands and heavy up on best sellers. There’s also replenishment--if you sell off the board, keep some back stock of best sellers so you are never out and leverage automated tools that are available to keep your inventory in shape.
What’s important is that the product be presented in a clean and inviting way, encouraging customers to explore and experiment and eventually find the frames that are perfect for them with the help of your knowledgeable staff.
The Personal Touch…
EB: What are you reading?
HR: I’ve got a few books by my side. “Onward” by Howard Shultz, which is an incredible story of turnaround and leadership; “Why We Buy” by Paco Underhill has really been a source of inspiration for the work we are doing at Luxottica and last but not least, I am just starting “Wherever you go, there you are”, which was a gift given to me by a dear friend and the story of finding meaning and purpose in your life and appreciating the here and now.
EB: What are your favorite apps?
HR: For travelers on the go, who doesn’t love Uber? But that’s not so original - I also love GateGuru! It’s a simple way to find a quality meal while you’re at the airport. More than once it’s saved me from a bad “grab and go” turkey sandwich!
EB: What would you do if you weren’t in the optical industry?
HR: Someday I want to try my hand at leading a non-profit or owning my own Real Estate Agency. Seriously, I am completely obsessed with the home buying process…..must be all that HGTV I watch!
EB: What are you most enthusiastic about for U.S. business?
HR: I’m excited about the conversations that are bubbling up around the shift from a very traditional medical/patient focused approach to a 360 degree patient/consumer mindset. This is particularly crucial for the industry at a time when ECP profits are under pressure and there is more complexity than ever before.
Today, the consumer is at the center of every experience from shopping and eating to flying and banking. Our patients are coming from the Apple Store or the Sephora down the street or they’ve just purchased a new backpack for their kids on Amazon on the commute to work - they’re getting a highly-engaging, immersive experience, visually and emotionally EVERYWHERE. If we want to create those same connections with our patients, who are also consumers, we have to change the game and start thinking and operating differently.
THIS is the opportunity I’m most excited about for the industry and for eyewear. If we start thinking about our patients as the consumers they are, we will create a more sustainable and profitable model and enhance the loyalty and value we bring to the general public.
We’ve been working closely with the ECP community on this shift, which calls for a stronger emphasis on retailing. To support the shift, we’ve enhanced the tools our Field Team uses to consultant at a local level, offered ongoing education for the industry and we are bringing these concepts to life at Vision Expo.
We have a very comprehensive plan that we believe can be game-changing and serve as a real catalyst for growth in years to come.
EB: What do you think is the biggest challenge Luxottica faces in the United States?
HR: I would say our biggest challenge is also an industry challenge. And that’s the lack of awareness consumers have today about the importance of Vision Health.
Today, only 1 in 3 adults gets a regular eye exam. That means over 200M people aren’t receiving the proper care they need and potentially have undiagnosed vision problems.
The issue is even more severe with children, our next generation of patients and consumers. 1 in 4 have a visual impairment that affects their ability to learn, yet fewer than 7% get an eye exam before entering school. To me this is the toughest statistic to stomach.
Studies show that 80 percent of what kids learn in their first 12 years of school comes through visual processing. Imagine the impact if we increased awareness and made it mandatory for children to have a complete eye exam before entering grade school. Imagine the effects on our education system, on the number of children who go on to graduate college and the impact on psychological wellness of kids when they have every opportunity to learn and grow……it’s staggering.
The good news is we can make a difference as an industry. We can band together, raise awareness and educate consumers on this important topic. We have a lot of work to do, but Luxottica is already in the trenches. Our contributions to OneSight have given the gift of sight to millions through Vision Centers and Clinics around the world. In 2015, we are also a lead underwriter of SIGHT: The Story of Vision, a documentary film aimed at educating Americans on the history of sight, the technology and science behind it and the global vision crisis we face.
Last but certainly not least is our ongoing support for Think About Your Eyes, the non-profit, national advertising/public health campaign that we’ve supported since its inception. It has been proven to increase awareness for Vision Health, driving 3.8 million incremental eye exams in 2014, with 1 in every 15 patients discovering a previously undiagnosed eye disease.
But we can’t go it alone. We need everyone across the industry – manufacturers, groups, ECPS, retailers, everyone to stand together to make a difference. If we do, we all win--and most of all, we shape our future.
EB: Which opportunities do you think ECPs could be taking advantage of with Luxottica but aren’t?
HR: First and foremost, leveraging on our field resources. I know I’m biased but I truly believe we have the very best team in the market--sales consultants who are true brand ambassadors and a field management team in every market who can partner with ECP’s to create a comprehensive, growth-oriented business plan.
Next, I would say tapping fully into our brand portfolio. It’s the currency that connects you with your consumers and creates long term value and loyalty. From quintessential lifestyle brands like Ray-Ban, to fashion brands like Michael Kors and of course uber-luxury, Chanel – we offer something for every customer and every consumer.
Last is the business support, including the ongoing education we offer locally and nationally on critical topics like the Art of Retailing, From Design to Production and Premium Sun to name a few.
EB: How can independent optical tap the internet/utilize technology to expand their retail stores?
HR: The impact of ecommerce and technology on our business will accelerate. Today only 4% of eyewear sales are done online, but this is where the consumer is headed--by 2016, online sales could make up 20% of total retail revenue across categories. Already over 15% of premium sunglasses are sold online.
The fact is, consumers want access anywhere at any time across categories and services and they want choice. Luckily, we see a variety of tools coming to market to help ECP’s create closer and more consistent relationships with their patients. An omni-channel approach, one that serves not just as a transactional sale online based on price but as an extension of the practice, is an imperative.
A simple way to bring technology to your optical dispensary is by leveraging manufacturers’ assets--product and brand videos shown on a video loop or providing tablets to your opticians so they can browse manufacturer B2B sites for an “endless aisle” effect (broader selection) to name a few.
And then there’s an efficient supply chain--and here is where we see material improvement in the future. Even today, leveraging B2B sites as a virtual “automatic replenishment tool” means you are never out of stock of core items and best sellers.
There are myriad options, but don’t let the number of choices or the fear of technology prevent you from taking the steps. Commit to a roadmap for your practice and you’ll be pleasantly surprised at the effect it will have on the patient experience and your overall business.
EB: How do you think ECPs can expand their product offerings to succeed?
HR: Research tells us that in the average practice, 45% of revenues come from the dispensary, so everything from having the right assortment to presenting a knowledgeable staff could use more attention than it’s getting now.
But if we’re just looking at product assortment, as a general rule of thumb, less is more. Consumers are often overwhelmed when they shop and they’re quick to look elsewhere if they don’t easily find what they’re looking for.
The right formula for the ECP comes down to a few key points: know the consumer you want to serve; choose 4 or 5 top brands in each segment to offer a good selection for that audience; then buy deep on the those brands and heavy up on best sellers. There’s also replenishment--if you sell off the board, keep some back stock of best sellers so you are never out and leverage automated tools that are available to keep your inventory in shape.
What’s important is that the product be presented in a clean and inviting way, encouraging customers to explore and experiment and eventually find the frames that are perfect for them with the help of your knowledgeable staff.
The Personal Touch…
EB: What are you reading?
HR: I’ve got a few books by my side. “Onward” by Howard Shultz, which is an incredible story of turnaround and leadership; “Why We Buy” by Paco Underhill has really been a source of inspiration for the work we are doing at Luxottica and last but not least, I am just starting “Wherever you go, there you are”, which was a gift given to me by a dear friend and the story of finding meaning and purpose in your life and appreciating the here and now.
EB: What are your favorite apps?
HR: For travelers on the go, who doesn’t love Uber? But that’s not so original - I also love GateGuru! It’s a simple way to find a quality meal while you’re at the airport. More than once it’s saved me from a bad “grab and go” turkey sandwich!
EB: What would you do if you weren’t in the optical industry?
HR: Someday I want to try my hand at leading a non-profit or owning my own Real Estate Agency. Seriously, I am completely obsessed with the home buying process…..must be all that HGTV I watch!