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Do you remember the time when people used to go to the nearest optical store to get their spectacles made to order? They used to get their eyes checked in front of an old computer monitor like a machine, with customers clamouring over to get their hands on limited frame styles, which were in trend such as Hrithik Roshan's rimless glasses or Harry Potter’s round glasses.
Consumers now have the option of selecting from thousands of frames designs and getting their eye check-up done with modern technology and that too at the convenience of their homes!
All of this has been made possible owing to the increase in organised retails stores in the Indian eyewear industry. Franchise brands such as Lenskart, Titan eyeplus, Vision Express, Himalaya Optical has revolutionised the eyewear industry in India. While unorganised stores are still dominant, the organised market is swiftly gaining pace and is all set to grow much faster at 15 per cent CAGR. The organised sector is made up of 80 per cent spectacles and 20 per cent of sunglasses.
Changing Consumption Patterns
Given the onset of eyewear franchises, the consumption patterns of eyewear have drastically shiftedin the past few years. Spectacles are no longer considered a mere tool for vision-correction. The category today has moved from being completely clinical to becoming a lifestyle accessory.
The demand for good-quality eyewear is also being augmented by increasing prevalence of hypermetropia and myopia at a young age. Every other person in today’s time spends more than 10 hours in front of computer/TV/ smartphones, which poses ill-effect on eye-sight. Consumers wear spectacles not only for vision correction but also to protect their eyes from computer light.
The increasing disposable income & inclining number of youth & working population have not only increased the demand for branded eyewear, but also that of contact lenses. Given the growing number of franchised eyewear chains, consumers are increasingly using contact lenses due to many factors such as fashion statement, ease & comfort etc.
Moreover, improving lifestyles, urbanisation and availability of advanced eyewear products are positively impacting the market growth.
Increasing Demand
The robust growth of eyewear franchises is expected to continue on the basis of changing consumer preferences and awareness. According to industry experts, approximately 2 million glasses are sold in the country every day, with around 40 lakh packs of contact lenses sold annually.
An average eyewear franchise sells about 300 spectacles a day. According to a survey, India has 477 million people in India needs vision correction, but only 25 per cent wear them. This shows a huge market potential of eyewear franchises to tap into.
As consumers become increasingly conscious about fashion and brands, the growth of branded eyewear sales is expected to be in the range of 15-18 per cent a year.
Thus, inventing in an eyewear franchise is one of the most profitable business opportunity in today’s time.
Business Model
Opportunities in the eyewear segment are immense as consumers are now more open to paying higher for quality and premium products.
Starting an eyewear franchise requires an investment of about INR 20-30 lakhs with an area requirement of 300-500 sq. ft. A franchise can make a profit of about 30% of net sales. The anticipated return on investment for the first year would be around 20-30% and by the fifth year, it would range up to 103%. The franchise brand will also provide assistance in site selection, stock correction, interiors, marketing, training etc.
