New Directions, New Worlds
Changed economic territories are pushing the boundaries of optical retail
By Amy Spiezio
Quality frames at competitive prices is more than a marketing pitch these days: it may make the difference when it comes to surviving the market downturn. Shown left, Signature Eyewear style Brie from Laura Ashley
It's a whole new world when it comes to retail, and those who are not afraid to do some exploring may end up in a healthy position for the future. Today retailers are redrawing their plans with more realistic expectations and more willingness to brave rough waters such as smaller margins and staff numbers. For those with a strategy this down year may be a new route to the top.
The best news for optical is that it's not just retailers who are living in the new financial world. Consumers are more conscious than ever of their retail spending and more aware than ever when it comes to the importance of quality service, product, and pricing.
By ramping up service and tempering prices, Alain Mikli's retail outlets in New York and New Jersey have seen improvements. “We've seen an increase in sales compared to last year,” says Sophie Raubilet, vice president of Alain Mikli U.S. retail. “The tendency of the business right now is to focus on the bottom line toward cutting expenses and increasing the profitability. We did a lot of sales, lowered the inventory, and are spending carefully into marketing strategies.”
EXPLORING NEW TERRITORIES
While the weather and the economy have conspired to drive down sales so far this year, there were some who are moving aggressively toward success.
“Business-wise, beginning of 2009 was a decisive time. You had the choice: staying in business or not,” says Valerie Vittu, owner of Margot and Camille Optique in Philadelphia, Pa. “If I look, not at the dollar amount, but at the number of pieces sold 2009 was the best year since the opening of Margot & Camille Optique. Why? Maybe because we simply follow a few essential rules that we tend to forget during the times of abundance: keep your inventory under control at an affordable price! We all welcome 2010 as a New Year that can bring us a new way of life. To start this decade wisely, looking back at what the previous decennium taught us could be a key to success.”
The new world of business may help bring out the optimist in entrepreneurs yet. “For each downside, there is an upside,” Vittu says. “Today's upside is: the market has been cleaned and only the best survived. I am finding it hard to resist the invitation of expansion. After all, success is a state of mind; even if at times, we feel a little discouraged we shall never never give up.” FB
Global Notebook
ProDesign's director of sales Lars Toftdahl is on the road for a large portion of the year, traveling around the world and following trends in the optical industry worldwide. Here is his global report:
EUROPE:
Scandinavia: Doing fine, but scrambling.
Germany: Seeing light, but it's a roller coaster.
France: Plugging along with a lot of optical.
Spain, Portugal, Italy: 20 percent unemployment in the region is taking its toll on retail.
ASIA:
China: Moving along, but still quite protectionist with outsiders getting a small bit of business.
Japan: It's just sad. Probably the worst place on Earth financially with sales down 60 to 70 percent at the dispensary level.
Korea: Due to devalued currency, product is costing consumers twice as much.
Singapore/Malaysia/Hong Kong/Taiwan: Moving along business-wise.
AUSTRALIA:
They never skipped a beat. They say, “Crisis? What crisis?”
SOUTH AMERICA:
Brazil is another winner. With no banking issues and its own energy resources, the party is still going strong in Rio.