Eye-wear market (INDIA)

          Eye-wear market (India)

       Eyewear is at the forefront compared to the global markets where vision care has a strong presence. A near stagnant market has been converted into one of the fastest growing industries recording a 20% growth annually. Nevertheless, in global terms the industry in India remains underdeveloped even today. The Indian markets account for about 1% of the world’s consumption. With the increase in the level of the self-awareness among the consumers, the emphasis is more on the look of the glasses and the image the customer seeks to create. There has been a noticeable shift in consumer purchases for eyewear from form and function to form and fashion.
 Indian eye-ware market is estimated Rs 1,500 crore In India. 
 Growth rate is between 15-20 per cent annually.
 The organized segment contributes about 19 per cent to the overall eyewear market.
 Within the organized segment, the share of sunglasses is around 40 per cent.
 Branded sales contribute about 70 per cent to the overall sunglasses market.
 Spectacles and sunglasses are used by over 1/3rd of India’s population & a wide range is available to cater to the vanity of the consumers.
 The sunglasses market is estimated at Rs 4.8 billion. It is projected to grow over Rs 11 billion in the next five years.
 This market is highly polarised with concentration either at the upper end of the market (the organised segment) or at bottom price points.
 There are limited branded options in the middle price range.
 Fastrack sells 500,000 sun glasses a year, and the company expects an annual business of around Rs.4.5 billion ($112.5 million) in the next five years

      

        In past few years, the awareness of consumer towards branded eyewear products and eye care has been increasing and people are ready to spend on premium brands. In fact sunglasses are now being looked at, more as a fashion device rather than a protective device with the entry of international brands like Ray Ban, Benetton, Gucci, and Police etc. 

        The sunglasses and spectacle frames business in India has great potential with only a few organized players like Luxottica (with their Ray-Ban products), Fastrack
        The high duty tariff of around 63% on the optical products is acting as a deterrent for serious business players and encouraging grey market growth. Since there is no local manufacturing of optical wears in India the high duty tariff really makes no sense. And the grey market is leading to loss of revenue to the government. 
        There are several other international brands of sunglasses & frames available in the market. These are either smuggled into the country or are job lots purchased by local opticians on their visits abroad. Though the grey market supply is regular, the product range available is very limited. In addition, these products have no consumer awareness or advertising support guarantee and it’s sales & brand image are dependant solely on the retailers sales staff. The current eyewear market is made up of products retailed above and below Rs 1,000 a pair. The first segment, i.e. over Rs 1,000 a pair, is the premium segment and is placed at a sales turnover of about Rs 100 crore. Taking an average price of approximately Rs 1,500 per pair, this works out to a market size of about 6,50,000 pairs/year. Ray Ban, Safilo, Allen Solly, Van Heusen, Luxottica,Fastrack, Baush & Lomb, Johnson & Johnson and Colorsoft, are the organised companies in the eye-wear/eye-care industry in India who manufacture or import premium eye-care products into India. 
        In the second segment, i.e. retail prices under Rs 1,000 a pair, we have several local brands. However lately the bulk of this segment has been taken over by frames & sunglasses from Taiwan, China, Hong Kong & Korea. 
        The optical retail business is estimated to be approximately 2,300 crore. It is anticipated that the impact of the WTO regime will result in the flow of a larger variety of brands through formal channels in the near future. It is also expected that duties will get lower over the next few years facilitating entry and variety.