Eyeglasses Lenses Industry

ECONOMY EB
Martin Bacierto

ABSTRACT
An analysis on the eyeglasses lenses industry

Eyeglasses Lenses Industry

1. Product Description
Eyeglasses, which is also called Spectacles in most countries, was
believed to have been invented in the west in the year 1280s (The Foundation
of the American Academy of Ophthalmology, 2013). This invention was
credited to Salvino D'Armate, who invented an eyeglass which only gives
magnification to only one eye (History-of-the-microscope.org, 2010). Soon, an
English Franciscan monk by the name of Roger Bacon was able to combine
two lenses, which would resemble the eyeglasses that are commonly used
today. However, those early spectacles only consisted of two lenses that were
either made from quartz crystal or glass and a frame, which connected and
enclosed the lenses as can be seen in Figure 1. Consequently, with the
advent of the printing press industry in the 1450s, an increase in the demand
for eyeglasses resulted to an increase in the production of economical
spectacles (MyOptique Group. Ltd, 2013). Although most of the lenses
produced were of high quality, the problem of the early spectacles was the
lack of support, which caused the inability of the glasses to stay in place.
Fortunately, in the year 1730s, an optician named Edward Scarlett was able
to address this problem by providing side pieces which hanged above the
ears and enabled the eyeglasses to remain in place in front of the eyes as
shown in Figure 2 (MyOptique Group Ltd., 2013).

Figure 1: First Eyeglasses

Figure 2: Eyeglasses with side pieces

Soon, the eyeglasses industry grew and reached the Philippines. In the
Philippines, there are no local manufacturers of eyeglasses and let alone,
eyeglass lenses. However, given the numerous optical shops in the Philippines,
eyeglasses can be readily bought in optical shops that distribute the preferred
design or brand of the customer. Aside from this, optical shops are also
responsible in distributing eyeglass lenses. Some eyeglass lens manufacturers
have partnered with local optical shops in the Philippines, in particular, two
optical shops, Ideal Vision Optical and Executive Optical, have become the
official distributors of Essilor and Hoya lenses respectively. In relation to this, the
price of eyeglass lenses varies from the kind of lens (whether single vision lens
or progressive lens) and the brand of the lens. The price of the lens can start
from P 1,200 and can go as high up to P 56, 250 based on the price list by
Essilor.

Eyeglasses Lenses Industry

2. Supply Analysis
2.1. Major Players in the Eyeglasses Industry in the Philippines
Essilor
In the Philippines, the Ideal Vision Optical is the official retail chain that
distributes spectacle lenses made by Essilor International (Euromonitor
International, 2012). The said brand of spectacle lenses is a product of the
merging of two companies, Essel and Silor, which were considered the major
players in the eyewear industry in France (Essilor, 2011). Known for their mission
of seeing the world better, Essilor still lives up with the said statement through
its innovative ideas that has influenced the eyewear industry. Furthermore, these
innovations aim to address the concerns of the consumers regarding the material
and the design of the lenses that is being offered in their company (Essilor,
2011).
Currently, patrons of Essilor are allowed to choose the design, material,
and coating of the lenses depending on the need of the user. For the design, the
consumers have 4 options to choose from, mainly: Single vision and
progressives, personalized lenses, activity lenses and preventive lenses (Essilor,
2011). The single vision and progressives are the corrective lenses offered by
Essilor while the personalized lenses are the lenses that were made to fit the eye
behavior of the user. On the other hand, the activity lenses are lenses that are
patterned to the daily activities of the wearer. The before mentioned lenses are
suitable for people who would spend long hours in front of the computer or those
who play sports and yet has problems with their vision. The fourth type of lens

that would complete the list of lenses that Essilor offers is the preventive lens.
Essilor (2011) affirms that the said lens can slow down the degeneration of the
eyes and could also prevent the eyes from fatigue due to long hours of exposure
to electronic devices (i.e. computers, televisions). Also, complementing the
design of the lenses, are the materials that Essilor makes available for their
users. Specifically, 2 types of materials are being offered by Essilor: the glass
and the organic. From these two types, wearers can choose to make their lenses
thinner than what its supposed to be through the Lineis 1.74. This state-of-the-art
lens is ideal for persons that require strong corrections (Essilor, 2011). Aside from
this, Essilor also offers the Airwear 1.59, which is very light and durable. In
addition, this lens is produced using an eco-friendly production process- a
process which reduces water consumption and facilitates water recycling
(Essilor, 2011).
Aside from Essilor, another competing brand in the eyewear industry in the
Philippines is Hoya of the Hoya Corporation (Euromonitor International, 2012). In
addition, the official optical store that distributes Hoya lenses in the Philippines is
Executive Optical. Hoya has been in the optical engineering industry for 50
years, providing quality lenses and glasses for imaging devices used in the field
of medicine, astronomy (i.e. Space Shuttle) as well as in the entertainment
industry (i.e. LCD panels) (HOYA Vision North America, 2012). In the eyewear
industry, Hoya was the first company to alter the surfaces of the lens for a more
defined vision correction (HOYA Vision North America, 2012). Likewise, in the
field of medicine, Hoya corporation pioneered the intraocular lens, a lens which

Eyeglasses Lenses Industry

helps cataract patients to normally see once more. Many speculated that the said
lens would become the standard lens to be used worldwide (Hoya Corporation,
2013). With this, it is safe to say that Hoya has reached new heights and has
proven that they are more than just a company that offers eyeglass lenses.
When it comes to products that Hoya offers to the market, the said
company has successfully engineered the lightest lens yet that completely
protects the eyes from the effects of UV-A and UV-B rays- the Phoenix lens.
Aside from this, Hoya also has Single Vision iQ lenses that allows its users to
see more precisely, thus giving a defined view compared to the traditional lenses
(HOYA Vision North America, 2012). Furthermore, complementing the lenses,
Hoya also offers those who have eye problems with another breakthrough in the
eyewear industry- Distortion Free Optics. It is inevitable that when lenses are
mounted to rimless frames, the clarity of the lenses are distorted and thus,
minimizes the efficiency of the lenses. Together with Avantek, a mounting system
company, Hoya was able to produce a lens that maintains its optimal
performance even if mounted on rimless frames. The reason for this is that the
lenses are drilled in order to be fixed to the frames, thus minimizing the stress
points on the lenses. Aside from the before mentioned products that are
engineered by Hoya, the company also has progressive lenses and specialty
lenses that is fashioned based on the needs and the eye condition of the user.

2.2. Sales for Eyeglasses

2.2.1 Total Sales in the Philippines

According to the November 2012 report of Euromonitor International
entitled Spectacles in the Philippines, the total sales in the Philippines were
projected in terms of volume or the number of eyeglass lenses sold over a
specific period of time and value or the amount of money to be received in selling
eyeglass lenses.
On one hand, as projected in Table 1, the total volume of eyeglass lenses
in the Philippine market grew from 25,100 units sold in 2008 to 29,000 units sold
in 2011. On the other hand, as shown in Table 2, in terms of the amount of
money received from selling eyeglass lenses, the sales value increased from
57.5 million pesos in 2008 to 77.2 million pesos in 2011. A factor that would be
related for this increase in the sales volume and value of eyeglass lenses would
be the increase of myopia cases in the Philippines (Euromonitor International,
2012) which could be triggered by the exposure of Filipinos, particularly the
youth, to electronic devices such as tablets, laptops and cellphones.

Table 1: Sales of Spectacles by Category: Volume 2008-2012

000 units
Readymade

2008
8.2

2009
8.3

2010
8.4

2011
8.5

reading glasses
Spectacle

25.0

26.1

27.4

28.9

Frames
Spectacle

25.1

26.3

27.6

29.0

Lenses
Sunglasses

1,022.3

1,065.2

1,113.2

1,166.6

Eyeglasses Lenses Industry

Spectacles

1,080.5

1,125.8

1,176.6

1,233.1

Note. From Spectacles in the Philippines, United States, November 2012,

Euromonitor International.
Table 2: Sales of Spectacles by Category: Value 2008-2012
Million Pesos
Readymade

2008
5.1

2009
5.3

2010
5.5

2011
5.8

reading glasses
Spectacle

72.5

76.7

81.7

87.8

Frames
Spectacle

57.5

63.1

69.6

77.2

Lenses
Sunglasses

704.9

747.7

797.0

853.6

Spectacles

839.9

892.8

953.8

1,024.3

Note. From Spectacles in the Philippines, United States, November 2012,

Euromonitor International.
2.2.2 Comparative Analysis of Sales of Essilor and Hoya
Although there is no specific information regarding the sales of Essilor and
Hoya in the Philippines, there is an available regarding their sales worldwide.
As can be seen in Figure 3, Essilor has increasing sales for three
consecutive years amounting to $5,125,374 in the year 2009, $5,517,811,00 in
the year 2010 and $6,570,014,100 in the year 2011. It must be noted, however,
that the projected values below are in terms of sales revenue or the amount
received from selling the eyeglass lenses. Moreover, the currency used from

which the values were taken are in terms of Euros. The said values were
converted to US dollars for comparing purposes.
Out of the sales below, Essilors sales for eyeglass lenses and optical
instruments can be derived by lessening the operating profit, which is 18.1% of
the total sales revenue in the year 2009 and 2010 and 17.9% in the year 2011
(Essilor, 2011).

Sales

Sales

Figure 3. Total Sales of Essilor

Note. From Key Figures, France, 2012, Essilor.
Conversely, as can be seen in Figure 4, Hoya Corporation has varying
rate of sales for three consecutive years amounting to $4,562,001,135 in the year
2009, $4,045,628,790 in the year 2010 and $4,155,397,497 in the year 2011.
However, generally, the sales of Hoya decreased in the span of three years. It
must be taken into account that the out of the total sales of Hoya Corporation per
year, only 24.4% of it is the sales of eyeglass lenses in 2009, 25.1% in 2010
while the sales for eyeglass lenses was combined with the sales of contact

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Eyeglasses Lenses Industry

lenses and other life-care products (i.e. intraocular lenses) in the year 2011
amounting to 51.0% of the total sales according to the Annual Reports of Hoya
Corporation in the year 2009, 2010 and 2011.

Figure 4. Total Sales of Hoya Corporation

Sales

Sales

2.3. Industry Analysis

2.3.1 Competition

 Varilux Physio 2.0, Varilux Comfort NE and Myopilux

A new landmark in the segmentation and customization of lenses
Visiofce, for the production of customized lenses
Launch of Varilux Physio f-360 and Crizal Sun
High-resoltuion vision thanks to Varilux Physio
Creation of Essilor Antifatigue lens
A year packed with innovations
Launch of Varilux Panamic and the Stylis 1.67 lens
Airwear polycarbonate lens used by NASA
Varilux Comfort becomes a symbol of progress achieved through mathematical
modeling
Launch of Crizal (scratch-resistant and anti-refective)
Developed Transitions, the light-sensitive lens
Varilux Multi Design, the variable progressive lens
Launch of Supra scratch-resistant lens and thinner lenses

manufacturing Industry

Launch of plastic Varilux

201
201
0
0
200
200
9
9
200
200
8
8
200
200
7
7
200
200
6
6
200
200
5
5
200
200
3
3
200
200
0
0
199
199
8
8
199
199
3
3
199
199
2
2
199
199
1
1
198
198
8
8
198
198
3
3
197
197
6
6

195
195
9
9

2.3.2 Development of the eyeglass lens manufacturing industry

197
197
2
2

Figure 5. Contribution of Essilor International to eyeglass lens

Launch of Varilux 2, the second generation progressive lens

First plastic lens

Launch of the frst Varilux progressive lens

195
195
9
9

186
186
1
1

2012). In this perspective, it can be concluded that in this industry, there are only

192
192
7
7

few companies that are involved. This would entail that market structure by which

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194
8
8

this industry falls to is Oligopoly since the market is concentrated on the two

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195
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1

competing companies only.

SL registers a frst patent for what will become the Varilux lens
Bernard Maitenaz, invemtor of progressive lenses, joins SL
SL launched the Stigmal best-form lenses

The Societe des Lunetiers acquires experties in crystal cutting

brands including Varilux, Crizal, and Transitions (Euromonitor International,

competing companies are Essilor and Hoya. However, Essilor owns a variety of
industry, there are only few competing companies in the Philippines and the main
be noted the number of companies involved in the said industry. In the said
Specifically, in analyzing the eyeglass lens manufacturing industry, it must
1
2

Eyeglasses Lenses Industry

Figure 6. Contribution of Hoya Corporation to eyeglass lens manufacturing

Industry

Note. From Essilor, France, 2011, Essilor International

Note. From Hoya Report 2013, Japan, 2013, Hoya Corporation

2.4 Relative Market Shares

Like in most industries, the competition in the eyewear industry is greatly
attributed to brand popularity. However, when it comes to the said industry
(including all eyewear products such as sunglasses and eyeglasses) another
contributing factor that largely influences consumers preference is the optical
store that distributes the lenses (Euromonitor, 2012). For the last four years, the

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Eyeglasses Lenses Industry

top three (3) competing brands in the Philippines in terms of eyewear are Essilor,
Hoya and Oakley. As shown in Table 3, Essilor has increasing shares for
eyewear from 2008 to 2011, starting from 3.0% going up to 3.5% in 2011.
According Euromonitor (2012) a contributing factor that may be attributed to the
increase in the share of Essilor is its official distributor, Ideal Vision Optical.
However, looking at the value share of Hoya and Oakley, it can be noted that
both of their shares has been almost constant from 2008 to 2011. We these
values, it can be noted that in terms of brand shares per brand, Essilor has
dominated the eyewear industry of the Philippines. (It must be noted that the
table below shows the brand shares for the whole eyewear industry and not
specifically dealing with eyeglass lens manufacturing industry.)

Table 3: Spectacles Brand Shares (2008-2011)

% retail value
rsp
Brand
Essilor

Company
Essilor International
SA

2008
3.0

2009
3.2

2010
3.4

2011
3.5

Hoya

Hoya Corp

3.1

3.1

3.1

3.2

Oakley

Luxottica Group SpA

3.2

3.1

3.1

3.1

Claiborne

Liz Claiborne Inc

1.3

1.3

1.2

1.2

Ray-Ban

Luxottica Group SpA

1.2

1.2

1.2

1.1

Adidas

Adidas AG

0.8

0.9

0.9

1.0

Charmant

SM Prime Holdings
Inc

0.9

0.9

0.8

0.8

M Sense

SM Prime Holdings

0.4

0.5

0.5

0.5

Inc
Ralph Lauren

Luxottica Group SpA

0.6

0.5

0.5

0.5

Esprit

Charmant Group Inc

0.6

0.5

0.5

0.4

Crizal

Essilor International
SA
Vision Service Plan
Global
Vision Service Plan
Global

0.3

0.3

0.3

0.4

0.5

0.4

0.4

0.3

0.3

0.3

0.2

0.2

Calvin Klein
Nike

Others
83.9
83.9
83.8
83.8
Total
100.0
100.0
100.0
100.0
Note. From Spectacles in the Philippines, United States, November 2012,
Euromonitor International.
2.5 Product Differentiation
When it comes to product differentiation, the two companies differ in the
services that they offer to the eyeglass wearers. In addition they also differ in
terms of the way they innovate their product.

2.5.1 Essilor
a. LiveOptics- a system that addresses the concerns of the wearers, and
lets their products undergo actual conditions (Essilor, 2011).
b. Eyecode technology- provides accurate measurements of the eyes in
order to produce lenses that would suit the wearers needs.

2.5.2 Hoya
a. FreeForm Design Technology- double-surface progressive lens that are
accurately cut, ensuring optimal performance (Hoya Corporation, 2013).

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Eyeglasses Lenses Industry

b. BlueControl- lens coating that reduces the effects of light emission from
electronic devices (Hoya Corporation, 2013).

2.6 Cost-price leadership

In terms of the cost leadership, or the company with the least operating
cost, no information can be found regarding the operating cost for both
companies. The available sources were able to provide operating income which
is the amount of money that a company can derive by subtracting the operating
costs.

3. Demand Analysis
3.1 Consumer Profile
a. Youth- According to the Euromonitor International (2012), there is an
increasing rate of myopia cases among children. Some factors of this
would be the exposure of the children to electronic devices.
b. Adult Population- Due to ageing, the eyes performance becomes
poorer than before. With this, more people in belonging to the adult
population would need eyeglasses.

3.2 Strategies
3.2.1 Essilor

a. Essilors Brand Portfolio- Offers consumers with more choices in the

products they are offering since every year, a new brand is added to its
portfolio (Euromonitor International, 2012).

b. Essilors Research & Development Capabilities- Due to its progressive

research programs, Essilor was able to improve and continue to innovate
their products in order to satisfy the needs of the consumers (i.e.
LiveOptics Program and Eyecode technology) (MarketLine, 2013).

c. Partnering with local retail chains- Essilor partnered with Ideal Vision
Optical.

3.2.2 Hoya
a. Product innovation- updates its products in and pioneers new
technologies that will increase the satisfaction that wearers derive from
their product (i.e. the FreeForm technology).
b. Service innovation- through their IT technology, they were able to meet
consumers needs through producing lenses that would not only fit the
wearers visual activity but also his everyday lifestyle (Hoya Corporation,
2013).
c. Partnering with local retail chains- Hoya partnered with Executive
Optical.

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Eyeglasses Lenses Industry

3.3 Strategies that did not work

3.3.1 Essilor
a. Advertising- it failed to achieve its purpose in making the brand known
to the consumers

3.3.2 Hoya
a. Increasing the number of internal directors- it delays decision-making,
leading to inefficient management of business.

4. Scenarios
4.1 Increase in the amount of children with eye problems

There
will be an increase in the demand for eyeglass lens, the price of eyeglass lens will increase
Price
P1
P2
S
D1
Y1

D2
Y1
Quantity
Demanded

4.2 More people undergo LASIK Surgery

There
will be a decrease in the demand for eyeglass lens, the price of eyeglass lens will decrease
Price
P1
P2
S
D2
Y2

D1
Y1
Quantity
Demanded

5. Conclusion
The eyeglass lens manufacturing industry in the Philippines can be
classified as oligopoly since there are only few firms that compete in the said
industry. Since there are no local brands of eyeglass lenses in the Philippines,
the dominating brands when it comes to lenses are Essilor and Hoya. There are
several retail chains that distribute the two mentioned brand. However, there are
also two optical shops that are considered the official distributor of the brands:
the Ideal Vision Optical for Essilor while the Executive Optical for Hoya. Both of
the said optical shops have contributed to the sales of the brands of lenses. In
terms of sales worldwide, the sales of Essilor are relatively higher than those of
Hoyas. Although both companies sell the same product, there are still variation
in terms of the services and innovation that they offer to customers in order to
maximize their patrons satisfaction. Overall, based on Euromonitor International
(2012), a growth in the said industry can be expected due to reasons such as the
increasing population of those who have myopia and the foreseen increase of
adult population. However, other factors can affect the industry the other way
around such as the development of the LASIK surgery, which can be considered
as an alternative for corrective lenses.

References
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http://www.essilor.com/en/Group/History/Pages/Home.aspx

Euromonitor International. (2012). ESSILOR INTERNATIONAL SA IN EYEWEAR

(WORLD) . Euromonitor International.

Euromonitor International. (2012). EYEWEAR GLOBAL OVERVIEW: GROWTH

TRENDS AND ANALYSIS . Euromonitor International.

Euromonitor International. (2012). Spectacles in the Philippines. Euromonitor

International.

History-of-the-microscope.org. (2010). Who invented the microscope? A

complete Microscope History. Retrieved August 2013, from History of the
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Corporation: http://www.hoya.co.jp/english/company/index.html

Hoya Corporation. (2013). Special Features for 2013. Retrieved August 2013,
from Hoya Report 2013:
http://www.hoya.co.jp/english/ar/features/growth_drivers/p03.html

HOYA Vision North America. (2012). About Hoya. Retrieved August 2013, from
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MarketLine. (2013). COMPANY PROFILE Essilor International S.A. . MarketLine.

MyOptique Group. Ltd. (2013). Home. Retrieved August 2013, from

glassesdirect: http://www.glassesdirect.co.uk

The Foundation of the American Academy of Ophthalmology. (2013). Ophthalmic

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http://faao.org/what/heritage/exhibits/online/spectacles/