Luxury Eyewear in Indonesia

2021 DEVELOPMENTS

Closure of retail stores a major factor influencing negative sales growth

One of the major factors behind the negative sales growth recorded in luxury eyewear in 2020 was the requirement for all non-essential retail stores to close during the peak of the COVID-19 pandemic. These store closures negatively impacted sales of eyewear in general, with luxury eyewear facing additional challenges due to their high prices.

Luxury sunglasses faces another bleak year as travel remains discouraged

Sales of luxury sunglasses came under extreme pressure during 2020 as the closure of Indonesia’s borders led to far fewer international tourists visiting the country and far fewer locals travelling overseas. Furthermore, most commercial flights were grounded due to the lack of demand and concerns over air travel exacerbating the spread of the virus.

Antifog lenses become a popular feature due to mandatory facemask wearing

Innovation came to the fore in luxury spectacle lenses as the requirement to wear a facemask whilst in public prompted many well-off consumers to seek anti-fog spectacle lenses. This is because the wearing of a facemask can cause condensation to accumulate under spectacle lenses, resulting in fogging and impaired vision for spectacle wearers.

PROSPECTS AND OPPORTUNITIES

A strong recovery expected for luxury eyewear as innovation comes to the fore

Growth rate of luxury eyewear will revive in 2022 and continue over the forecast period as the pandemic situation with the country improves. Innovation is likely to stand the category in good stead and entice affluent consumer to invest in luxury eyewear.

New technologies and services set to reduce reliance on in-store retailing sales

The COVID-19 crisis emphasised one of the most important weaknesses of eyewear sales: the reliance on in-store retailing channels. This is tied to the need for consumers to attend an eye test in person to determine which prescriptions are required for their spectacle lenses.

The return of international travel set to spur growth in luxury sunglasses

Luxury sunglasses is slated for strong retail value sales growth over the forecast period, with the sales declines recorded during the pandemic expected to the alleviated as soon as mass international air travel becomes a viable reality again. When contraction of the virus is less of a threat, it is expected that affluent Indonesians will take the opportunity to take overseas holidays, particularly as many felt frustrated by the inability to travel overseas during the last couple of years.