Luxury Eyewear in Malaysia

2021 DEVELOPMENTS

Despite prolonged exposure to digital devices and subsequent boost to luxury spectacle frames, the ongoing presence of the virus slows industry recovery in 2021

Consumers spent even more time than normal using a variety of digital devices during lockdown when they were required to work or study from home which can be damaging to the eyes. However, under the Movement Control Orders (MCO) enforced by the Malaysian government, standalone and optical stores were forced to close between 18 March and 4 May 2020.

Limited travel and home-based lifestyles and subsequent decimation of impulse purchases hamper category sales in 2021

In 2020, the minimisation of international travel globally and in Malaysia had a negative effect on the sales of luxury eyewear. In Malaysia, borders remained closed to international tourists throughout 2020, with only minimal exceptions.

Industry players and retailers engage in discounting in order to make their brands more enticing and to shift old stock

Most retailers and industry players responded to the diminished demand in 2020 and 2021 by offering continuous price reductions. Once standalone and optical stores were allowed to reopen after the lockdown periods, significant price discounts were offered to attract consumers and boost sales.

PROSPECTS AND OPPORTUNITIES

Strong recovery for luxury eyewear from 2022 onwards

The economic conditions in Malaysia, especially the high unemployment rate, will continue to have an effect on demand for luxury eyewear over the forecast period. As a result, players and retailers will play an essential role in stimulating demand at the beginning of the forecast period.

Consumers continue to favour bricks and mortar distribution channels although e-commerce sees further growth through the development and progression of virtual try-on technology

Over the forecast period, consumers will continue to favour shopping for luxury eyewear, especially luxury sunglasses and luxury spectacle frames through physical channels such as optical stores. This will remain the case, despite the emergence and substantial growth of e-commerce channels and the development of technologies, such as virtual try-on features launched by multiple retailers such as Focus Point and Smartbuyglasses.

Industry recovers as society resumes normality though discounts remain a crucial marketing strategy as both consumers and industry players recover from the economic fallout from the pandemic

A moderately fast recovery is expected for luxury eyewear, with current retail value sales set to return to 2019 levels by the end of 2022. As luxury spectacle frames and luxury sunglasses are generally priced as entry-level luxury goods, they will be relatively more affordable in comparison to other personal luxury products, supporting a quicker recovery.