From 20/20 Magazine:
Top 10 BUSINESS TRENDS FOR 2015 (review)
While 2014 was hot with business challenges like healthcare reform and online competition, they presented opportunities that encouraged growth in nearly all areas of the eyewear industry.
The following list of key eyewear market trends for 2015 was taken from the Eyecare Business 2014 Annual Market Trends Study..
TREND #1
Sustained Growth
53% of eyecare professionals report an increase of sales in the first quarter of 2014 from the first quarter of 2013. This marked the second year in a row of sustained growth. More than 62% of ECP's are optimistic for an increase for 2015 as well, especially for eyewear sales and services, plus eyecare and exams.
Mike Daley, CEO of The Vision Council, was quoted saying "We've seen faster growth taking place this year (2014) over last year -- in terms of both dollar sales and also units. ... We also expect a continued increase in the sale of prescription eyeglasses."
TREND #2
Your #1 Challenge
49% of ECP's say that healthcare reform is their #1 business concern today, followed by hiring good people (26%) and managed care (26%). The biggest impact is profits. 61% say it has "decreased their profit margin" while 41% say it has "increased their costs".
TREND #3
Most Growth Potential
Opinions vary widely regarding where to expect the most future growth.
Among optometrists, 73% say primary care opportunities hold the most potential growth, while 58% of opticians believe that eyeglasses hold the most growth opportunity. Interesting statistic: 25% of the populace has never had an eye exam!
TREND #4
PEDIATRIC EYEWEAR
Statistically, 20% of ECP's see kids' eyewear as an area of perceived growth, up from just 8% in 2013. Many rank children's eyewear as their third most important specialty category in terms of volume.
At the same time, the study revealed that only 11% of ECPs actually reported pediatrics as their fastest growing product category, down from 23% in 2009. Compare this to 40% who say prescription sunwear is their fastest growing category, trend #10 below.
That said, the pediatric vision benefits of the healthcare reform legislation increases the the number of kids eligible for eye exams, pushing pediatric eyewear into the limelight.
TREND #5
SELLING ONLINE
A full 24% of independent ECP's say their websites are more than just a virtual business card, but also sell products online. Most (85%) are selling contact lenses and some (23%) are selling plano sunglasses online.
58% say their business website is for informational purposes only, but nearly 20% say they plan to start selling online within the next year. If they actually implement such plans, that will mean somewhere between 40-45% of independent ECP websites selling products online by the end of 2015!
According to Jerry Hayes, O.D., founder, chairman, and CEO of Prima Eye Group, a practice management consulting firm for OD's, the total number of retail sales for the US optical market that are online is actually only around 2% to 3% of total sales volume.
TREND #6
SOCIAL MEDIA
Like it or not, social media is a booming marketing phenomenon. According the study, nearly half of ECP's say their practice or business has a Facebook page or Twitter account.
But only about 30% post frequently (at least 1x/wk) while 6% actually post every day. Another 30% say they post occasionally.
And while the study doesn't mention using Google+, having a Google+ page is one of the most effective channels to gain passive search engine benefits (aka off-site SEO). Having more positive Google+ reviews than your competition lands you on page 1 of Google faster than many paid options.
TREND #7
PREMIUM LENS PRODUCTS
While ECP's say lens sales volume decreased from 65% in 2013 to 60% in 2014, the total dollar volume rose due to the increase in premium lens products.
67% say that their patients are requesting specific brands of lenses, an increase from 61% in 2013. AR coatings top the list of best selling lens treatments/materials.
Overall, the sales of premium lens products is increasing faster than total industry growth, especially for prescription lenses and contact lenses.
TREND #8
PROFIT STRATEGIES
67% of ECP's report that they are focusing on customer service as a means to gain competitive edge in today's market. 75% of ECPs say they compete with online-only sellers by stressing the services that cannot be duplicated online, such as personalized customer service.
Some ECPs are improving profit margins by streamlining with money/time saving techniques (22%), more advertising (21%), focusing on quality over quantity (21%), and reducing or retaining staff (20%).
TREND #9
PERCEIVED INFLUENCES ON CONSUMER PURCHASING
39% of ECPs say doctor recommendation most influences consumer purchases today. Other influences include optician/salesperson recommendation (26%), product features (12%), and insurance (7%).
When faced with patient price concerns, 40% of ECPs simply offer lower cost products, while 35% choose to offer discounts. Another 18% offer financing and only 7% offer BOGO promotions.
TREND #10
SUNWEAR LEADS AS THE FASTEST GROWING PROFIT POTENTIAL FOR 2015
40% of ECPs say prescription sunwear is their fastest growing category, up from 33% in 2010. 7% say plano sunwear was their fastest growing product in 2014.
20% of ECPs reported computer vision eyewear as their fastest growing product.
THE TAKE-AWAY FROM ALL THIS?
Growth is in the stars for all ECPs who can successfully surf the healthcare reform challenges by trimming costs, embracing the Internet and social media, and wooing customers with superb customer service.
Premium products will continue to drive sales volumes, but which ones will depend as always on your business strategies, location, your client mix & your marketing ingenuity. But with the market's sustained economic upturn, hope returns to the horizon.
Read the original article here.