Channel Overview in Eyewear

Optical Good Stores reinvent themselves to retain leadership

Optical good stores remain the most important eyewear distribution channel, accounting for 68% of global value sales. Yet, the channel is under heavy pressure from internet retailing. Optical good stores are quickly deploying digital features throughout the shopping journey in order to enhance their digital presence, as consumers favour digital convenience over on-site knowhow.

Department stores suffer from value-driven formats and sluggish traffic

Internet retailing’s relentless growth is also posing strong competition for department stores, already suffering from lower consumer traffic and a shift to off-price formats. The channel lost one percentage point in share over the review period as a result. Department stores have been historically vital for players offering sunglasses, as they rely strongly on fashion-driven wholesale formats as a key part of their distribution strategy.

Manufacturers enhance distribution capabilities via M&A

Eyewear manufacturers have been very active in expanding distribution capabilities in an attempt to further control the distribution of their eyewear references. Luxottica recently incorporated glasses.com from WellPoint, Inc., while French giant Essilor recently acquired VisionDirect UK. Both acquisitions perfectly showcase the increasing importance of digital operations within the eyewear distribution space.

Increasingly hybrid path to purchase moving forward

The partnership between Brille24.de and Rewe in Germany illustrates the growing importance of hybrid paths to purchase within eyewear. Digital try-on features, 24-hour on-line advice from an optician, or pick-up in store options for digital purchases, are expected to become the norm as the line between digital and physical becomes increasingly blurred.

Reaching digital saturation point?

The myriad of services and digital features offered by physical retailers is expected to slow down the exponential growth of internet retailing over the forecast period. Penetration of internet retailing in key markets seems to be reaching saturation point.