GfK - Growth from Knowledge The Optical Market: developments, trends and opportunities Paris, 26th September 2013 Giampaolo Falconio, Cècile Poulet GfK Global Optics 1
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GfK belongs to the top five market research companies Sales in mio. dollars 3
GfK Optics Panels: Worldwide Countries Portfolio North America US Canada Europe 13 countries APAC 6 APAC + JAPAN Japan China (10 Cities) South Korea Malaysia Taiwan Singapore Hong Kong Existing Portfolio 4
GfK Optics Panels: future expansion North America US Canada Europe 13 countries Czech Republic Ukraine APAC 6 APAC + JAPAN Japan China (10 Cities) South Korea Malaysia Taiwan Singapore Hong Kong Turkey Saudi Arabia Indonesia Chile UAE India Argentina Brasil Australia Existing Portfolio New Openings 5
GfK Optics Panels: how does it work? First: understand the market structure Track Sell Out 6
Optics a complex environment: from semi-medical. to fashionable Semi-Pharmaceutical Fashion-Apparels Lenses (Contact + Ophthalmic) Eyewear 7
Impossibile visualizzare l'immagine. La memoria del computer potrebbe essere insufficiente per aprire l'immagine oppure l'immagine potrebbe essere danneggiata. Riavviare il Europe 4 Optics market in 1H 2013 Optician Turnover Breakdown 1Half 2013 9,8 computer e aprire di nuovo il file. Se viene visualizzata di nuovo la x rossa, potrebbe essere necessario eliminare l'immagine e inserirla di nuovo. CONTACT LENSES + CARE 56,5 OPHTHALMIC LENSES SPECTACLE FRAMES SUNGLASSES Spectacle Glasses Core Business 78 % 21,9 11,8 7,3 bio 8
Gross Domestic Product Source: Eurostat http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home// 9
Private expenses Source: Eurostat http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home// 10
Harmonised unemployment rate Source: Eurostat http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home// 11
European consumers in Europe: More shadows than sunshine Economic Expectations Income Expectations Willingness to buy 1,1-48,7-9,7 9,3-24,4-43 -33,9-6,9 36,2-57,4-20,2-25,2-31,5-43,7-41,5-3,2 36,5-42,2-29,5-49 -25,8-43,2-29,6 11,6 Poor economic data and High unemployment continue to keep Europe on tenterhooks. The financial and economic crisis has not yet been overcome. In most countries, it drives the consumers income expectations & willingness to buy low, though those indicators are stabilizing. France is an exception, with pessimism gaining ground, and some of the worst indicators of all Europe. Source : GfK Consumer Climate July 2013 Methodology : sample between 1000 & 3000 persons according to the country Index : balanced score between positive and negative answers on a 5 point scale 12
Europe4 Optics market in 1H 2013 Market Composition and trend - Value 1Half 2013 9,8 1H 2013 vs 1H 2012 0% Impossibile visualizzare l'immagine. La memoria del computer potrebbe essere insufficiente per aprire l'immagine oppure l'immagine potrebbe essere danneggiata. Riavviare il computer e aprire di nuovo il file. Se viene visualizzata di nuovo la x rossa, potrebbe essere necessario eliminare l'immagine e inserirla di nuovo. CONTACT LENSES + CARE OPHTHALMIC LENSES SPECTACLE FRAMES 56,5 Total Optics +0.7% SUNGLASSES -2% 4% 21,9-7% 11,8 7,3 bio 13
+4,0% EU (60% of opticians revenues) Progressive Vs Monofocal EU sales ratio (30/70) is stable despite a steady price 2 times higher than the monofocal one! 14
EU4 frames -2% 4 Licenses (-7%) & House brands Trade brands (19%) ( 120-149 & 150-199 ) Opportunity? +14% +6 Licenses +18 House Brands +39 Trade brands Hipsters style 15
Europe4 Sunglasses market Competitive scenario in 1Half 2013 4 SUNGLASSES MKT -7 260 240 220 Average Price Eur 200 180 160 140 120 100 80 60 40 20 0-50 -40-30 -20-10 0 10 20 30 40 50 60 70 80 90 100 Sales trends (value) 1H2013 Vs 1H2012 16
Europe4 Sunglasses market Competitive scenario in 1Half 2013 4 SUNGLASSES MKT -7 260 240 220 Average Price Eur 200 180 160 140 120 100 80 60 40 20 0-50 -40-30 -20-10 0 10 20 30 40 50 60 70 80 90 100 Sales trends (value) 1H2013 Vs 1H2012 17
Europe4 Sunglasses market Competitive scenario in 1Half 2013 4 SUNGLASSES MKT -7 260 240 220 Average Price Eur 200 180 160 140 120 100 80 60 40 20 0-50 -40-30 -20-10 0 10 20 30 40 50 60 70 80 90 100 Sales trends (value) 1H2013 Vs 1H2012 18
Europe4 Sunglasses market Competitive scenario in 1Half 2013 4 SUNGLASSES MKT -7 260 240 220 Average Price Eur 200 180 160 140 120 100 80 60 40 20 0-50 -40-30 -20-10 0 10 20 30 40 50 60 70 80 90 100 Sales trends (value) 1H2013 Vs 1H2012 19
Europe4 Sunglasses market Competitive scenario in 1Half 2013 4 SUNGLASSES MKT -7 260 240 220 Average Price Eur 200 180 160 140 120 100 80 60 40 20 0-50 -40-30 -20-10 0 10 20 30 40 50 60 70 80 90 100 Sales trends (value) 1H2013 Vs 1H2012 20
Consumer Confidence Index (CCI) 2009 2010 2011 2012 2013 10 0-10 -20-30 -40-50 Source: Consumer Confidex Index http://epp.eurostat.ec.europa.eu/ 21
Case study Eyewear Brands segmentation 1
Eyewear in France : the long tail phenomenon 0 200 400 600 800 1000 1200 1400 2
11 brands segmentation ranked by Turnover 4 MAT June 13 Pure Optical 1 Couture Optical Designers 2 3 =50% market Designers & Créateurs Fashion Contemporary Fashion Middle Market Sport 4 5 6 7 Luxury Fashion Mass Market Children s Brands & Heroes Celebrity 8 9 10 11 Non complete list 3
Top 3 segments Optical Designers is the only segment growing in MAT 2013 320 Luxury (1,7) Average price incl VAT 300 280 260 240 220 200 180 160 140 120-18% 190 Sport (3,0) Couture Fashion Middle Market (3,7) Optical Designers Pure Optical +2,7% 217 Designers & Createurs (3,7) Fashion Contempory (3,6) Stable Fashion Mass Market (1,5) Children's Brands and Heroes (0,9) av price 125 Celebrity (0,2) 100-40 -30-20 -10 0 10 20 30 40 50 60 GfK 2013 - All rights reserved 9/2013 Evol % Sales Value 4
4 Stars segments : performing in and units Mat June 13 60 50 Celebrity Evol % Sales Units 40 30 20 10 0-10 -20-30 Sport Pure Optical Couture Luxury Designers & Createurs Fashion Middle Market Fashion Contemporary Children's Brands Heroes Fashion Mass Market Optical Designers -40-40 -30-20 -10 0 10 20 30 40 50 60 GfK 2013 - All rights reserved 9/2013 Evol % Sales Value 5
Each segment has its own price positioning Sales units% by price class <100 EUR 100-150 EUR 150-200 EUR >200 EUR 39 40 47 76 55 52 35 48 35 42 36 6
Pure optical segment Germany is by far the highest 4 price positioned 160 Average price incl VAT 150 140 130 120 110-6,0-5,5-5,0-4,5-4,0-3,5-3,0-2,5-2,0-1,5-1,0-0,5 0,0 0,5 Sales Value EUR Growth Rate PY GfK 2013 - All rights reserved 9/2013 PRJ 65001 - RG 3727206 - RP 19714204 - ID 390146088 7
Couture : France, native country, is challenging 4 Germany but suffering more than Italy 195 Average price incl VAT 190 185 180 175 170 165 160 155 150 145-18 -17-16 -15-14 -13-12 Sales Value EUR Growth Rate PY GfK 2013 - All rights reserved 9/2013 8
Designers segments : optical designers are clearly 4 drivers 240 Average price incl VAT Optical Designers ( 220 Optical Designers () 200 Designers & Createurs Designers & Createurs 180 Optical Designers ( 160 Optical Designers 140 Designers & Createurs 2) Designers & Createurs 120-10 -8-6 -4-2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Sales Value EUR Growth Rate PY 9
GfK Silmo case study : conclusion 4 Pure Optical Designers & Créateurs Fashion Contemporary Optical Designers Fashion Mass Market Children s Brands & Heroes Celebrity Luxury Couture Fashion Middle Market Sport 10
THANK YOU Giampaolo Falconio, Cécile Poulet 11