Sunglasses in Sweden

PROSPECTS

Future development for sunglasses

Amongst eyewear categories, sunglasses displays the highest growth and potential going forward; however, this could depend on the development of its unit prices, which increased steadily over the review period and contributed to the good value growth performance by sunglasses. This was clearly seen in Luxottica Nordic’s value increase in the review period.

Demand for brands and product segmentation accounts for the growing unit price

Unlike for spectacles, the purchase location for sunglasses is skewed towards retail stores rather than opticians; this creates greater demand for brands in sunglasses, because the brand can signal quality to the consumer. Stronger demand for these products leads to higher unit prices, which in turn positively impacts the value sales of sunglasses.

Some sports eyewear NBOs see sales decline, despite the health trend

Future Eyewear Group Sweden, with brands such as Bliz, did not perform as expected and displayed stagnant sales in 2017. However, the general health trend that has engulfed Sweden and most of the Western world is still alive and it is projected to positively impact sunglasses going forward.

COMPETITIVE LANDSCAPE

Luxottica brands lead in sunglasses, but sports eyewear has most potential

Luxottica has a strong position in sunglasses, chiefly due to the strong performance of Ray-Ban and Oakley. Furthermore, Oakley has an edge in sports eyewear, which is expected to grow in the forecast period.

Sunglasses could become more affected by increasing internet sales

Unlike contact lenses, spectacles and sunglasses are rather underdeveloped in the internet channel; however, in the case of spectacles this is understandable, since purchases are connected to contact with an optician. Sunglasses should not in general be hindered by this fact, but internet sales are still relatively slow; however, with internet retailing in Sweden growing for apparel and accessories it could start affecting sunglasses as well, and given the general advance of internet retailing in the country, something unexpected could happen.

Kering eyewear development and its implication for Sweden

Since 2014 Kering has worked to maximise the strategic focus and design of its luxury brands in eyewear. A more interesting, consistent and novel design could attract more consumers in Sweden considering that they are more concerned about these factors than about the brand.

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