FRAMEBUYER / RETAIL STRATEGIES

THE WILD, WILD WEB

Concerned about online eyewear sales? Get the market scoop here + score 5 smart ways to gain a serious competitive edge

BY BARBARA THAU

E-commerce has redefined how the nation shops—it generated a hefty $335 billion in U.S. retail sales last year, according to Forrester Research.

And amid the ever-growing ranks of online shoppers comes an “organic spin-off effect,” says Gerry Fultz, market research consultant for The Vision Council (TVC). More people, particularly those digital-native millennials, are buying eyewear online.

In fact, the frame category racked up $211.7 million in online sales last year, up from $161.3 million in 2013, according to TVC, as more players enter the market offering compelling consumer deals. Rx lenses rang in $320.5 million in sales online in 2015, and Rx eyeglasses sold online accounted for almost 4% of all Rx eyewear sales (up from 3.2% in 2013).

The growth of online eyewear sales tells a dual tale. In no particular order, department stores (Macy’s, Bloomingdale’s, Dillard’s, Neiman Marcus, Nordstrom, and Saks Fifth Avenue), Sunglass Hut, Oakley, and Amazon accounted for 55% of the $50-plus sunwear units sold online in 2015, according to TVC.

Although online sales of prescription eyeglasses have trailed sunwear, Rx frames are catching up. Also in no particular order, online players Warby Parker, Zenni Optical, Coastal, EyeBuyDirect, and Glasses.com are the top five sites for prescription frame sales.

Millennials’ comfort level with online shopping has helped propel the sale of Rx eyewear, Fultz says. Indeed, 18- to 34-year-olds accounted for a whopping 48.9% of the Rx frames that were sold in 2015, according to TVC.

But the appeal of these sites cuts across demographic groups. “These online retailers were well received by consumers due to the convenience and discounted prices to purchase eyewear,” says Ayako Homma, senior research analyst at Euromonitor.

$211.7 MILLION: Dollar volume of online eyewear sales in 2015

PRICE IS THE THING

It’s no secret that Warby Parker has shaken up an eyewear market that has been dominated by powerhouse designer brands that command premium price points. The retailer, which debuted online in 2010 and now operates 31 brick-and-mortar stores, has built a devoted following—and market share—by selling its own brand of Rx eyeglasses starting at $95 (frame and single-vision lenses), and allowing for home try-ons and free returns by mail.

Warby Parker controls the “design, manufacture, and retail of eyewear, is able to avoid any licensing fees and retail markup, and can offer a pair of eyeglasses at much cheaper prices,” Homma says. The average unit price of a pair of eyeglasses in the U.S. is $140, $45 more than Warby Parker’s opening price point frame, which also includes Rx lenses, according to Euromonitor.

The much-watched disruptor is having a halo effect on the market for prescription eyeglasses online, as shoppers also turn to players ranging from Zenni Optical to Coastal for convenience and affordability.

Beyond ease of purchase and price, the rise of frame sales on the web reflects eyewear’s style status among millennials, “who have grown up online and rely on fashion blogs and social media to follow trends,” Homma says.

Powerhouse partnerships are also broadening the online eyewear market—optical heavyweights are starting to merge with pure-play merchants.

In 2014, Luxottica Group, SpA, acquired Glasses.com from WellPoint, Inc., while Essilor International acquired online retailer Coastal.com, from Coastal Contacts Inc., (and last month acquired one of Europe’s leading online eyewear retailers), and that trend will only continue, Homma says.

“Traditional eyewear manufacturers will move more aggressively into online platforms and make their investments online to capture higher share in the market and consumer minds,” she says.

SET YOUR BUSINESS APART

The growing popularity of eyewear online is creating new competitive challenges for brick-and-mortar eyecare professionals. Here, ECPs share how they set their practices apart from digital players.

1. TAKE YOUR TIME.

Provide one-on-one, concierge-like service that can’t be duplicated online. That’s what Bimal Patel, O.D., aims for at Focus Refined Eyecare in Houston, TX. One simple way to achieve that is to spend more time with patients than is customary for an ECP. “I schedule patients on the hour, whereas others schedule three to four an hour,” he says.

2. OFFER PERSONALIZED SERVICE.

Bring a personal-stylist sensibility to the eyewear fitting experience.

“We curate frames for patients, choosing ones they might not try for themselves,” says Michael Hoyt, O.D., owner of Artisan Eyeworks in Ashland, OR. “We seat patients and bring frames to them, usually with no prior discussion of cost, but being sensitive to [showing them] a wide variety of price points. We base it on their face shape, skin tone, and personality and adjust from there based on their reaction.”

Dr. Patel says his role as an “eyelist,” an O.D./stylist, brings something extra to patients’ experience in his optical shop. “I’m an eye doctor who does styling as well,” a function that is often handled by opticians. “So you get more one-on-one-time with me,” he says. “Kind of like going to an interior designer, I offer them personalization during styling sessions.”

3. CURATE YOUR MIX.

Craft a carefully curated eyewear assortment that speaks to your brand. “We partner with high-quality, small-production, independent frame companies,” Dr. Hoyt says. “We have a mutually beneficial relationship with lines like Anne et Valentin, Theo, and Masunaga. They don’t sell online, but they rely on us to provide an environment that is conducive to selling their products,” he says. “That means a stylish optical and an attentive, supportive staff.”

4. SELL ONLINE YOURSELF.

Today, just 23% of ECPs say they sell products online, according to the Eyecare Business Regional Trends 2016 study. But, of those who do not currently sell online, 24% plan to do so within the next two years. If this bears true, about 41% of ECPs will be selling products online by 2018.

In the meantime, some are already working on ways to make their own online customers feel comfortable buying Rx eyewear on their own sites. “We use what we call ‘Prozac elements’ to make our clients feel more comfortable with purchasing online,” says Kara Przybyl, director of brand strategy for Black Optical, with locations in Tulsa, Oklahoma City, Dallas, and Newport Beach, CA.

“Our Face Shape Finder, Discover Your Fit, and Ask a Stylist live chat features, and our customer service campaign have helped drive our online sales and provided a sense of assurance for our online clients,” Przybyl says.

5. HOLD FASHION EVENTS.

More than ever, eyewear has gained prominence as a key fashion accessory—so embrace the trend by upping your style credibility via fashion events.

For its part, Focus creates pop-up stores in its optical shop and puts on runway shows featuring fashions by local Houston designers, such as Steve Guthrie, with models decked out in the store’s eyewear. “That’s one way we set ourselves apart from a typical online retailer,” Dr. Patel says.