News
{NOVEMBER 2014}
Hot List
1
WHERE THE WEALTHY SHOP
62% of millionaires (U.S. households with $1 million or more in net worth) say their favorite place to shop is Amazon. Where else? It isn’t anything you’d find on Rodeo Drive.
Source: The Shullman Research Center
2
AT YOUR SERVICE
Employment site glassdoor.com did a study that proved the retailers known best for their customer service also paid their associates the highest salaries. The top three all run in the $13 per hour base salary range.
CONTAINER STORE NORDSTROM SEPHORA
The reason the customer service is so good (besides salary)? Commission-based sales performance, “awesome” employee discounts, and opportunities for performance-based bonuses. Other reasons given included good training, promotions, and performance-based evaluations.
3
TOP LUXURY BRANDS
| BRAND | BRAND VALUE |
|---|---|
| Louis Vuitton | $23.58 billion |
| Gucci | $9.45 billion |
| Hermes | $6.18 billion |
| Cartier | $5.5 billion |
| Tiffany | $5.16 billion |
| Burberry | $4.34 billion |
| Prada | $4.27 billion |
| Ralph Lauren | $4.04 billion |
Source: forbes.com
4
WITH A “B”
155 new billionaires were minted this year, bringing the total worldwide to a record 2,325 (it’s up 7% from 2013). Their combined wealth increased by 12% to $7.3 trillion—a sum higher than the combined market capitalization of all the companies that make up the Dow Jones Industrial Average. Here are the countries with the most Richie Riches.
United States: 571 billionaires
China: 190 billionaires
United Kingdom: 130 billionaires
Source: Wealth-X and UBS Billionaire Census 2014
5
DID YOU KEEP THE RECEIPT?
What are some of the strangest items that affluent shoppers have bought?
Space rock from Mars that fell into Nigeria in 1962 was bought on eBay for $450,000
Diamond dog collar made of 18K white gold, platinum, crocodile leather, and a $3.2 million price tag
Pure gold shirt made by 15 goldsmiths over two weeks. It was commissioned by a man in India for $22,400
Source: buzzfeed.com
LUXOTTICA NAMES ITS NEW CO-CEOs
after undergoing several recent changes at its executive level, Luxottica Group S.p.A. has appointed Adil Mehboob-Khan as co-CEO for markets. He will join Massimo Vian, who has been named co-CEO for operations and product.
The co-CEO structure was announced in September, following the departure of Group CEO Andrea Guerra. Under the plan, one CEO would be focused on markets and one CEO would be dedicated to corporate functions. Initially, Enrico Cavatorta was named to the position of co-CEO of corporate functions, but he resigned in mid-October following what the company described as “disagreements on the current governance structure.”
Roger Abravanel resigned from the Board of Directors at the same time, for the same reason. Luxottica has appointed Marco Mangiagalli in his place.
Chairman Leonardo Del Vecchio was expected to introduce Khan to the Board of Directors October 29 to seek final approval and appoint him as a non-executive member of the Board. At the same meeting, the Board was expected to appoint Vian as CEO for the Group, entrusting him on an interim basis with all executive responsibilities until Khan joins the company in early January 2015.
Khan comes from Procter & Gamble, where he was a marketing executive before rising to be in charge of all the European retail beauty businesses. He then became president of Global Salon Professional & Wella.
Vian is an operations management and manufacturing specialist who joined Luxottica in 2005 and held various operations positions in Asia. He eventually was named Group chief operations officer, and was also managing the North American lab network and the Oakley factory in California.
Safilo To Merge Smith Into Group
Safilo Group plans to evolve Smith, its U.S.-rooted sports and outdoor brand, into a global eyewear brand and is going to relocate key functions of Smith that were previously performed out of its Ketchum, ID, location.
The following four key decisions have been made:
• Portland, OR, will become home to Safilo’s new Global Sports & Outdoor Lifestyle Design Center, creating and developing all potential future brands and products targeted at this consumer segment. Consequently, Smith’s design, product development, marketing, artwork, and e-commerce activities will relocate to Portland.
• The manufacturing of all sports brands’ ski goggles will be concentrated in Clearfield, UT, the current home of the Smith manufacturing and distribution center.
• In line with Smith’s goal to become a global brand and integrated part of Safilo’s portfolio, the global Smith business will be led out of Safilo’s Group Headquarters, side-by-side with Safilo’s other global proprietary brands Carrera, Polaroid, Safilo, and Oxydo.
• To enable joint capabilities with Safilo’s USA Headquarters, the IT, HR, and finance functions of Smith will be moved to Safilo USA’s Parsippany, NJ, location.
These changes will be phased in gradually, beginning in 2015 and 2018.
Luisa Delgado, CEO of Safilo Group, traveled to Ketchum last month to discuss the plan with all employees and key representatives of the local community in order to discuss how to maintain a lasting heritage for Smith in Ketchum, which has been home to Smith for the past 50 years.
“We believe in the Smith brand and we are making decisions that are aimed at further developing it sustainably across the globe. To do so, we have to create a more efficient platform and Smith can strongly benefit from the synergies deriving from our Group as a whole,” she says. “We need therefore to organize ourselves to leverage these opportunities”.
Priority regions for expansion will be Europe (2015), and then selected Far East and Latin American markets.
Consumer App Project Seeks ECPs
Essilor of America is looking for ECPs to participate in an mobile application that will connect consumers who have questions or concerns about their eyes to a qualified professional.
Expected to launch later this year, the AskAboutEyes app for smartphones will allow consumers to ask individual questions and even send photographs to an ECP for additional details and guidance. Neither the consumer nor the eyecare practitioner will be identified.
The ECPs will perform triage on the submissions and point the consumer in the proper direction. No advice, diagnosis, or medical information will be given out. Based on the question or concern, the ECPs will be allowed to give the consumer one of only three responses: to seek immediate treatment, to make an appointment with their eyecare provider, or to get their general eye or eyewear question answered via the content offered at allaboutvision.com (a site that is partnering with Essilor for this project).
The app will be highlighted on the Essilor Newsroom at news.essilorusa.com and available free for download on the App Store and Google Play.
AskAboutEyes will be led by Paul Karpecki, O.D., FAAO, who will manage a network of ECPs across the country to ensure users are receiving timely answers. He is looking to grow that network prior to the app’s launch.
INFO: askabouteyes@essilorusa.com
Paul Karpecki, O.D., FAAO, presents the concept of AskAboutEyes during an Essilor-sponsored event at Vision Expo West
CONSULT GROUP EXPANDS
Williams Group, an eyecare practice management consulting company, has added a new division called wgfinancial. In an effort to help optometrists concentrate on patient care and enhance their business decisions, the division provides an accounting service to relieve optometrists from the daily demands and stress of bookkeeping, payroll, and payroll tax reporting.
Monthly wgfinancial services include daily recording of cash receipts, expenses, and payroll processing. Because results are recorded and produced in real time, clients have reliable, 24/7 online access to complete and easy-to-understand financial statements. Additionally, wgfinancial offers complete turnkey general setup packages for startup practices.
INFO: thewilliamsway.com
WOODY WITT
Woodlyn President Dies
Woody Witt, president at Woodlyn, died in October after a three-year battle with cancer. He remained the face of the company throughout his fight with the disease.
Born in Chicago and raised in Skokie, IL, he came onto the ophthalmic scene at 17, working in an optical store grinding lenses. In 1977, he opened Woodlyn Optical, a small boutique store that sold high-end frames until Pearle Vision opened within a mile, making it difficult to compete. He sold used equipment until the early 1980s, when he began manufacturing his own line of ophthalmic instruments and equipment, as well as being an authorized distributor for some of the leading names in the industry. For 37 years he has been a fixture in the ophthalmic landscape, known for his entrepreneurial perseverance, his high-energy approach to business, and the endless number of business colleague and doctor relationships he established along the way.
CEO responsibilities are now under the direction of his wife, Eileen Bowen-Witt, who has been an executive with the company since its inception. Day-to-day operations will continue with the current management team and staff.
License Lineup
• Etro and Marchon have signed an exclusive licensing agreement to design, manufacture, and distribute the sun and ophthalmic collections of Etro Eyewear.
The team at Marchon’s Italian Design and Product Development Center will work in collaboration with Etro’s designers to interpret and translate the strong identity of the fashion house, including the iconic paisley motif, in order to conceive sophisticated eyewear collections featuring the high quality of “Made in Italy” manufacturing.
The Etro Eyewear collection will be available starting September 2015 in Etro boutiques, select department stores, and select optical and specialty stores worldwide.
• More than 22 years after the first license agreement was set up between adidas and Silhouette International, the agreement has been extended for an additional five years for the adidas ‘Performance’ sub-brand through 2019. The Austrian specialist in premium eyewear —still family-owned —will continue to set standards in sports eyewear under the adidas brand.
Silhouette states that it deliberately focuses on only two brands— Silhouette and adidas—so will therefore be focusing exclusively on the “Performance” segment and will no longer continue to offer the adidas Originals range.
Silhouette International markets and sells high-end sports eyewear in more than 100 countries worldwide through selected specialist eyewear and sports retailers.
• TAG Heuer Avant-Garde Eyewear has partnered with Essilor’s Xperio UV polarized sun lenses to feature the lenses in its prescription and plano eyewear expert range.
This partnership will allow customers to experience the TAG Heuer style with the technology of Xperio UV polarized sun lenses that provide maximum UV protection, scratch resistance, cleanability, and visual clarity. Starting this fall, Xperio UV polarized lenses will be available in TAG Heuer’s popular watersport, high-mountain, and HD driving polarized lenses.
Representatives of Logo of the Americas, distributor of TAG Heuer Avant-Garde Eyewear, notes the company chose Xperio UV lenses because they were the best fit in its search for “the ultimate innovation in lens technology.”
Optician Video Winners Announced
Representatives of The Opticians Association of America (OAA) have announced the top three entries of the Great American Optician Video Contest. The contest was a YouTube video contest in which anyone in the U.S. could submit a 30- to 90-second video conveying to a consumer what opticians are and what they do. More than 60 videos were submitted in the 45 days the contest was open for entries. All videos may be viewed by visiting the OAA YouTube Channel.
The winners are: First place, Adam Chizmar for “An Optician’s Main Focus”; second place, Matthew Denton for “What is an Optician?”; third place, Michael Beaudoin for “Clearly an Optician.” They received $3,500, $2,000, and $1,000, respectively, provided by Transitions Optical, Inc.
The videos were judged by a contest committee as well as celebrity judges Robert Irvine and Randy Jackson, plus Amy Schneider of Eyes of Faith and Cynthia Shapiro of Cinzia Designs and Europa.
(l to r) Cynthia Shapiro of Europa, optician Sam Morgenstern, and celeb judge Randy Jackson announce the video contest winners at Vision Expo West
Silmo Sizzles!
Parisian show rolls out new programs and products
silmo was a bright spot in a sunny French fall, attracting 33,301 attendees despite ongoing economic challenges and an Air France pilot strike.
The event hosted more than 150 new vendors and a total of 900 exhibitors presenting frames, lenses, equipment, and other optical business management tools. In addition, the show presented several spaces that focused on the new trends and styles for the year to come, including Happy Color, Fashion Style, and Mo by Silmo.
The educational component continues to grow at the show, with the Silmo Academy covering hot topics such as eye strain as well as other technical workshops.
Show organizers announced that Silmo and Mido have asked GfK Institute to conduct a six-month survey “to make it easier to define the industry’s expectations and market realities and provide it with a relevant economic development tool.” The barometer to measure the economic performance of the European optics and eyewear industry is due in March 2015.
Next year’s Silmo is scheduled for September 25 to 28, 2015, at the Paris Villepinte Exhibition Centre.
Basketball player, Frenchman, and face of Bollé Sports Protection Tony Parker visits the brand’s booth and takes a selfie with an attendee
The show floor was style central with the Fashion and Style zone featuring live models as well as styled mannequins
Silmo D’or Winners
CATEGORY: Vision. BBGR, “Sirus Plus”
CATEGORY: Material/Equipment. Interactif Visuel Système, “Deep lights by Activisu”
CATEGORY: Low Vision. Telorion, “Telorion Zoom”
CATEGORY: Children. Caroline Abram, “5+5=10” de Tête à Lunettes
CATEGORY: Optic Frame. Lucas de Stael, “Stratus”
CATEGORY: Sunglass. Masunaga X Kenzo Takada with “campanule K18”
CATEGORY: Sport equipment. Bollé Sport Protective, “Coverage” Collection Enfant
CATEGORY: Frame technological Innovation. Morgenrot Eyewear with “Morgenrot SC3”
SPECIAL JURY PRIZE Piero Massaro style PM415
REM Eyewear’s Mike Hundert (l) and Nico Roseillier announce the launch of John Varvatos Eyewear in Europe
The Happy Color section shows off a rainbow of ophthalmic and sunglass styles from a full spectrum of frame companies exhibiting at the show
Beating the afternoon heat at the Oliver Goldsmith Sunglass/Claire Goldsmith Eyewear booth
The show opens under sunny skies at Parc des Expositions
Reader Feedback
TO THE EDITOR:
I just finished a wonderful article regarding Abbe values for all lens materials. What I never seem to read about is how adding an anti-reflective coating can improve or change the ABBE values of the lens.
For instance: will adding an anti-reflective coating improve a polycarbonate lens’ Abbe value from 30 to something closer to 40-45? Or is the ABBE improvement minimal?
— Kenn Rosek, president, Optical Experts, Peoria, AZ
Editor’s Note: Anti-reflective coating is superb at diminishing internal reflections in a lens, as well as eliminating reflections from the front and back lens surfaces, which become even more of a problem when high-index materials are used. An AR coating doesn’t improve the Abbe value of a material. The best option is to choose a material with the highest Abbe value possible while still providing thin and lightweight lenses.
TO THE EDITOR:
I found eyecarebusiness.com to be a fantastic resource…. I can’t tell you how helpful it is to find this kind of relevant content.
—Andrew Altaf, Eyecare 20/20, East Hanover, NJ
GOT SOMETHING TO TELL US?
Send your comments to eyecarebusinesseditor@broadcastmed.com.
Oakley Hosts VIP Days
more than 75 doors were represented at the latest Oakley VIP Days event. For nearly a week, clients and their reps were together in Dana Point, CA, to catch up on the latest frame releases and new technology, and to give that tech a try-on at the golf course and in training sessions.
Other highlights of the event included marketing seminars and corporate updates from CEO Colin Baden and Ted Li, vice president of North America, as the company heads into its 40th anniversary year.
“Ever year we were always the face of the guy on the podium and that was our formula,” Baden says. “A group of people can be run by five guys up to a point, then it gets so big you have to change the way you talk about your business. It’s time to grow up, it’s time to dramatically package Oakley in a way it’s never been packaged before.”
Citing plans to reach out more toward millennials to grow the company, Baden also noted the anniversary year will host creative endeavors to excite Oakley fans old and new. “Next year epitomizes one of those years where we make all kinds of crazy stuff,” he says.
Continuing on the plans for the future, Li notes, “We are evolving from a sports performance eyewear brand to a design innovator.”
(l to r) Colin Baden, Dawne Hanks, and Kyle Lan Franco kick off Oakley VIP Days with presentations and market information
23-Skidoo and more…Oakley’s VIPs got a taste of the speakeasy life at the event’s closing party, which had a 1920s theme
The Oakley team gets ready to give VIPs a sneak peek at the 2015 styles at a preview event during the week-long gathering
TVC RALLIES CONGRESS
The Vision Council held its annual Government and Regulatory Affairs Capitol Hill Fly-In in September, joined by representatives from various member companies. This full day of meetings with representatives and their offices, led by The Vision Council’s chair of the Government and Regulatory Affairs Committee Frederic Grethel, highlighted the group’s ongoing efforts to bridge relationships between member companies and their elected officials.
Top priorities discussed at these meetings included the Affordable Care Act’s (ACA) pediatric vision benefit, the rising cost of vision and health care, and the ongoing efforts to revitalize the Veterans Administration Health System, specifically related to vision care.
The Vision Council also discussed a suggested raise to the Flexible Spending Account (FSA) ceiling of $2,500 to better reflect the costs of uncovered health services, co-pays, and OTC health-related purchases that families experience. While a specific dollar amount was not recommended, it was proposed that the FSA be pegged at least in part to family size, especially when tax reform is revisited.
On the Town
From the school auditorium to the catwalk, eyewear is taking center stage
PROJECT RUNWAY
Safilo’s Bloggers Day during Paris Fashion Week turned the editorial focus from the runway to those writing about the runway. French fashionista DJ Cecile Togni provided the entertainment while international bloggers, models, actors, and influencers enjoyed Safilo’s new eyewear along with Charlotte Rouah’s healthy detox juices. Photographer Adeline Mai captured the mood of every personality, and the photos have been framed by playful geometric creativities recalling the Parisian atmosphere and are being posted on the blogs and social networks of the various personalities who took part. The project is called called #Safilosocialeyes studio.
The Atelier’s Patricia Manfield in Jimmy Choo Estelle by Safilo
TRANSITIONS AND DARIUS RUCKER VISIT AZ SCHOOL
Transitions Optical, Inc., along with brand ambassador and musician Darius Rucker and industry partner Visionworks, provided free vision screenings to hundreds of students at Longview Elementary in Phoenix, AZ, in an effort to raise awareness about the importance of healthy, enhanced vision and its connection to success both in and out of the classroom. At Longview, more than one-third of the students required vision correction. They received vouchers for a free pair of glasses fitted with Transitions adaptive lenses, redeemable at local Visionworks stores.
In addition, students were invited to receive a brand new book to take home from Bess the Book Bus, a mobile literacy outreach program. Transitions Optical is currently sponsoring Bess the Book Bus’ national tour, “Success is in Sight,” which will reach more than 25,000 kids in 35 states this year.
Darius Rucker and his young fans
NEW WU REVIEW
The Jason Wu S/S 2015 Ready to Wear collection runway show includes a model wearing the JW shades “Laurie,” which is available in a limited edition in plexi, matt navy, tortoise, and black from Modo. “The Jason Wu eyewear collection adheres to the refined and modern sensibility of the designer’s RTW collection through using the most beautiful materials in the most unexpected way,” Modo representatives note.
Jason Wu’s spring summer 2015 runway show
FYI
News bits from the industry
{PEOPLE}
Briot USA, announces the addition of Steve Wheaton to its U.S.-based sales team. Wheaton, a long-time industry veteran with over 25 years in the ophthalmic industry, was previously with Briot from 1997 to 2005.
SynergEyes, Inc., has hired Jonathan Jacobson and Geoffrey Ide as co-general managers of international business. They will lead Synerg-Eyes’ global strategy to expand its business through distribution, licensing and strategic partnerships.
Sihouette has named Heinz Pichler as national sales manager for the U.S. He was hired in 2012 as brand manager for adidas eyewear, and has more than 12 years of experience in the optical industry.
Robert Greco has joined the Santinelli International sales team, representing the Southeast region, comprised of Florida, southern Georgia, and southern Alabama. He is a seasoned professional with more than 25 years of optical experience, including lens finishing equipment sales.
{BUSINESS UPDATES}
AIT Industries, headquartered in Bensenville, IL, is now a distributor of Visionix Instruments, designed and manufactured in Israel.
Optometric alliance group Vision Source has entered into a vision service provider agreement with Minuteman Heath, an HMO based in Boston comprised of over 7,500 hospitals, physicians, and health specialists.
Marcolin USA has announced the next stage of the Marcolin USA / Viva International Group integration execution, which involves merging the headquarters of Marcolin USA (currently in Scottsdale, AZ) into the New Jersey operation, formerly called Viva International Group headquarters.
{AWARDS}
Michael Monteferrante, CEO and president of Envision, was honored as one of four recipients of Boise State University’s 2014 Distinguished Alumni Award. The award recognized alumni who have achieved significant success professionally.
Dr. Hannes Devos of Georgia Regents University is the recipient of the new “Fight for Sight-Prevent Blindness Public Health Award.” The $20,000 grant is for her project, “Performance-Based Visual Field Testing to Detect Driving Impairments in Individuals with Glaucoma.”
1. Heinz Pichler, Silhouette
2. Vision-Ease Lens employees hard at work
The American Optometric Association’s (AOA) first evidence-based clinical practice guideline, “Eye Care of the Patient with Diabetes Mellitus,” is now posted to a professionally recognized clearinghouse for health care guidelines, the National Guideline Clearinghouse (NGC).
{GOOD DEEDS}
For the sixth year, Vision-Ease Lens has partnered with Twin Cities Habitat for Humanity to help build houses for those in need. This year, 56 employees donated 480 hours over five days to help construct a new, handicap-accessible home in Columbia Heights, MN.
Puzzle
Luxe Designs
LUXURY EYEWEAR
{WORD SEARCH}
Purchasing, selling, and dispensing luxury eyewear is frequently more of a challenge than working with conventional frame offerings. Patients purchasing luxury eyewear want a different experience; they want more of your attention and expect the overall experience to be akin to buying fine jewelry. This puzzle includes terms related to dispensing luxury eyewear in your practice. Try to find each word and consider how it relates to offering luxury frames in your business.
By Jenean Carlton, ABOC, NCLC
WORD BANK
Accessible
Ambiance
Architecture
Branded Cases
Brands
Chic
Craftsmanship
Customer Experience
Design
Embellishments
Exclusivity
Fashion Statement
Inventory
Lifestyle
Luxurious
Materials
Merchandising
Pricing
Profit Margin
Quality
Security
Sophisticated
Trends
Warranties
{SOLUTION}
The answers to the October 2014 Word Search
POP QUIZ
The HENRY (high earner not yet rich) customer values____ in their shopping experience:
a) in-store service
b) one-of-a-kind product
c) price negotiation
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