EXECUTIVE SUMMARY
Increasing demand for eyewear
Half of the Malaysian population is myopic in 2012, explaining the high demand for eyewear products. 2012 continues to see healthy volume and value growth in eyewear, especially amongst contact lenses. Weekly/monthly disposable lenses has been receiving buoyant growth in the review period as consumers remove their spectacles when going out for aesthetic purposes. Sunglasses also receives strong response from consumers as they prefer branded sunglasses which are able to keep up with the latest fashion.
Contact lenses becoming a norm
Contact lenses is expected to see the highest volume and value growth within eyewear in 2012, especially disposable contact lenses. As consumers are more affluent, they do not mind splurging on contact lenses to look good. Unit prices of disposable contact lenses are also expected to decline, making prices more attractive. Instead of spending time and taking higher risks of eye infections by wearing traditional contact lenses, consumers are more willing to spend on weekly/monthly disposable lenses. For those who are able to afford daily disposable lenses, it saves the hassle of the cleansing routine.
Established brands more popular
Contact lenses unit prices have declined due to the tough competition despite having only a few players during the review period. Consumers are becoming more familiar with manufacturers such as Bausch & Lomb (M) Sdn Bhd, Ciba Vision Sdn Bhd and Johnson & Johnson (M) Sdn Bhd. Meanwhile, value shares amongst spectacles are more fragmented, especially spectacle frames where many brands and designs are available. When selecting spectacle lenses, consumers also go for the familiar manufacturers such as Malaysian Hoya Lens Sdn Bhd, Essilor (M) Sdn Bhd and Carl Zeiss Vision (Malaysia) Sdn Bhd.
Seeing the same retailers everywhere
More chained optical shops have sprung up during the review period. Independent optical shops, especially those with longer history, are finding it tough to compete against the chained optical shops which are able to enjoy economy of scale and secure good locations. Chained optical shops such as Focus Point are commonly seen in most major shopping centres, which are hard for consumers to miss. Franchising of these optical shops has also allowed potential business owners to have access to the well-known brand names.
Worrisome myopia rates in future
The myopia rate amongst Malaysians was one of the highest amongst other countries in the review period and it is expected to continue increasing in the forecast period. The government will need to step up efforts in educating schoolchildren to take care of their eyes. Due to the high rate of myopia in the population, demand for eyewear will continue to increase in the forecast period over 2012-2017. Volume and value growth of contact lenses will slow down in the forecast period as many consumers have already converted to contact lenses. Only traditional lenses will see negative performance in the forecast period as contact lens wearers move to disposable lenses.
More chained optical shops
Consumers are becoming better informed with brands and products so that they prefer reputable shops. As the prescription of contact lenses requires licensed opticians and it is better to have an eye test by qualified opticians, consumers prefer the better-known chained optical shops. The chained optical shops are also able to enjoy economies of scale with their stocks and manpower as well as use of licensed opticians as sometimes an optician will be in charge of a few outlets.
Current impact
More chained optical shops have opened in the review period. Focus Point is one of the popular chained optical shops located in most major shopping centres, operated by Focus Point Vision Care Group Sdn Bhd. The company also has other brands of chained optical shops targeting different consumers. Opulence carries premium brands, Wazzup targets young adults with the latest fashion designs and Solariz focuses on sunglasses. Consumers can easily relate to these optical shops and sometimes a shopping centre can host several brands of optical shops by Focus Point Vision Care Group Sdn Bhd. Other chained optical shops in Malaysia include Optical 88, Better Vision and England Optical.
Outlook
A higher proportion of chained optical shops than independent optical shops is expected in the forecast period. Consumers can easily relate to the brand names, especially when these chained optical shops are almost everywhere and still expanding their presence. These established chained optical shops are not expected to go into online sales as sales of contact lenses still require prescription by licensed opticians whilst fitting of spectacles requires customers to have their eyes tested in person too. Online websites will only be used as a marketing tool.
Future impact
More chained optical shops will open in the shopping malls to increase exposure to the consumers. Independent optical shops will see tough competition from the chained optical shops as operating costs increase. Chained optical shops are able to benefit from economy of scale and presence of licensed opticians. Independent optical shops might see less interest from the owners’ next generation as opticians need to pass tests and get a licence to sell contact lenses. The chained optical shops are also easily accessible as they are usually located at prime shopping centres or even hypermarkets.
As more chained optical shops are expected, online sales of eyewear are almost negligible since sales of contact lenses require licensed opticians to dispense. Online sales of eyewear will remain only for sunglasses if consumers are able to find cheaper prices than in bricks-and-mortar stores. Nevertheless, websites of chained optical shops will be used as a marketing tool for consumers to find out shop locations, promotions or any loyalty programmes available.
Increasing household income encourages better eyewear
Malaysia expects real GDP growth of 4% in 2012. Disposable income is also increasing whilst the unemployment rate declines. These positive economic indicators are encouraging more spending amongst the Malaysian consumers. Further, as the birth rate starts to decline, parents tend to spend more on each child and pamper them. The population aged 15-64 has also increased in the review period, pushing up the number of people working, increasing the overall disposable income.
Current impact
Malaysian consumers are more willing to splurge on themselves as disposable income increases. Within eyewear, consumers have been selecting better-quality spectacle frames and lenses in the review period. With fewer children per household, parents are also more willing to spend more on their children’s spectacles to ensure that they can wear them comfortably to correct the myopic vision from a young age.
Whilst it used to be an extravagant act to be throwing out disposable contact lenses, the increasingly affluent consumers see disposable contact lenses as convenient and also more hygienic, so that only a few are still using traditional contact lenses. Consumers are also more willing to spend on contact lenses for aesthetic purposes rather than wear spectacles. It has become a battle between daily disposable lenses and weekly/monthly disposable lenses whilst their prices decline in the competitive environment and as consumers are willing to spend on them.
The macro environment has encouraged higher spending, as also seen within sunglasses, which many young consumers in Malaysia see as a fashion accessory. These consumers have been also more willing to spend on branded sunglasses in the review period.
Outlook
Real GDP for Malaysia is expected to continue increasing in the forecast period. Disposable income is also expected to rise. The outlook for the Malaysian economy seems rosy if there is no large impact from the Eurozone crisis which has been ongoing during the review period.
With increasing population aged 15-64, there will be more adults in the workforce earning their own money with better spending power in the forecast period. The population of the older generation above the age of 65 will also increase in the forecast period.
Future impact
As the Malaysian economy improves in the forecast period, consumers are expected to be more relaxed with their spending. Better-quality eyewear, especially spectacle frames and lenses, will see increasing popularity. Spectacle lenses with more features, such as photochromic lenses or dust resistance, will see better sales. Parents will continue to spend on their children whilst the older generation who are turning long-sighted will also require reading glasses. Myopic patients who are also turning long-sighted are very likely to get progressive lenses which look better and pricier.
The increasing spending power will also encourage the working population to splurge on expensive sunglasses for the brands or designs they prefer. Most consumers will continue to see sunglasses as a fashion accessory. With more articles by the media about harmful UV rays, hopefully there will be more Malaysian consumers getting sunglasses to protect their eyes from the UV rays and making it a habit to put on sunglasses when outdoors like in Australia.
Half of the population are myopic
Malaysia has one of the highest myopia rates in the world. In 2012, half of the population in Malaysia is myopic. It is estimated that amongst the Chinese ethnic students, more than half are myopic whilst about a quarter of the Malay ethnic and Indian ethnic students are myopic. The reasons for this difference are unknown, but it is speculated that Chinese students have inherited myopia from their parents and also start reading at a young age.
There are more than 2,000 registered opticians in Malaysia in 2012. All opticians have to be registered in order to be qualified to do eye tests for patients. However, these registered opticians are not necessarily qualified to prescribe contact lenses. All optometrists are qualified to prescribe contact lenses, but opticians need to have more than three years’ experience and will need to go through and pass a training course approved by the Malaysian Optical Council to be able to prescribe and dispense contact lenses.
Current impact
With half of the Malaysian population being myopic, demand for spectacle frames and lenses has been on the rise in the review period. Eye checkups at schools have helped to identify children who need help in correcting their vision earlier. Hence, demand for qualified opticians is increasing. The Malaysian Association of Practising Opticians is cooperating with the Health Ministry to provide free eye examinations to the public and educate the public on maintaining healthy eyes. These road shows will help to identify any patients who are short- or long-sighted or have any eye diseases, and those whose prescribed spectacles no longer suit them.
Towards the end of the review period, the Association of Malaysian Optometrists wanted the Health Ministry to disallow opticians from prescribing and dispensing contact lenses due to their lack of training. As the prescribing of contact lenses requires more knowledge and higher skills, opticians might not be competent to identify possible side effects and complications. Better-qualified optometrists will be better equipped with the knowledge and skills during their bachelor degree course.
Outlook
It is expected that the proportion of the population with myopia will continue to increase in the forecast period. As the children in urban areas continue to be exposed to reading and computer games at a young age, it is difficult to prevent this large group of children from becoming myopic. Demand for spectacle frames and lenses will definitely be on the rise. The need for qualified opticians to prescribe eyewear will therefore also increase.
Future impact
It is a concern to many developed countries that the myopia rate has been rising in the review period. To prevent more children becoming myopic, the government has been trying to educate schoolchildren to rest their eyes and not overstrain whilst studying. Apart from educating the young children and learning to prevent myopia, more efforts will be put in to ensure that the learning abilities of these young children are not hindered by myopia and their vision is corrected as soon as possible.
With the demand for qualified opticians increasing to prescribe spectacles, demand for opticians able to prescribe and dispense contact lenses will also increase in the forecast period. As many people wear contact lenses for aesthetic purposes, a higher proportion of the myopic population will require a qualified contact lenses practitioner. As the Association of Malaysian Optometrists was requesting the Health Ministry to have stricter requirements for qualified professionals to prescribe contact lenses towards the end of the review period, the Health Ministry might review the qualifications of these licensed opticians during the forecast period, requiring them to either have at least a bachelor degree in optometry or at least pass and attend more courses before they are qualified to prescribe contact lenses.
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This Euromonitor market report provides market trend and market growth analysis of the Eyewear industry in Malaysia. With this market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.
The Eyewear in Malaysia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- How are sales of contact lenses performing compared to spectacles?
- What’s the growth potential for emerging retail channels in eyewear?
- How are demographic changes impacting the industry in Malaysia?
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This industry report originates from Passport, our eyewear market research database.
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