BRICK &CLICK THE ONLINE EYEWEAR DEBATE - Vision Monday
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BRICK&CLICK THE ONLINE EYEWEAR DEBATE
A VM Staff Report We’ve talked to several major online players for eye exams, actual sales of eyeglasses using the
(see story, page 68) who firmly believe that their Internet are rare among the country’s largest chains.
T
he issue of online eyeglass and contact new business models and organizational struc- For example, HVHC’s optical chains—including
lens sales is emerging as both one of the tures are enabling them to attract customers in EyeMasters (www.eyemasters.com), Visionworks
sharpest challenges and one of the new- new ways, even as they contend with ways to (www.visionworkseyewear.com) and Empire Vision
est business opportunities for traditional eyewear provide fitting, Rx options and service. Centers (www.empirevision.com) —have virtually
retailers and dispensers. We surveyed VM readers and uncovered a range identical websites that offer CL sales through
And in 2011, it is perhaps one of the most point- of attitudes about how they perceive the advent of HVHC’s trademarked Lens123 site (www.lens123.
ed topics being considered by the industry as peo- Internet sales, how they contend with customers com). The chains’ webites also offer consumers
ple in all spheres of the business start to grapple and patients who are asking questions and looking “Web special” coupons available by Zip Code, as
with the implications of the new online, digital for answers. (See story, page 64) well as an opportunity to sign up for “exclusive
world for the conventional realm of optical retailing. And we’ve tapped the current views of indepen- email offers.”
In this special Cover Topic report, Vision Monday dents, regional groups and larger optical retailers to The sites do not offer frame or lens sales online,
has learned that views are not at all consistent on find out what they’re doing now to participate, not however, although they do include a “frame styling
this complex issue. Far from it. In our interviews participate or evaluate their roles in the new world guide” giving consumers tips on selecting eyewear
with retailers, doctors, dispensers and executives of Brick & Click. based on their facial shapes.
from both the “brick” and “click” arenas, we’ve Many of the national optical chains are just dip- National Vision’s America’s Best Contacts &
uncovered a mix of attitudes, ranging from outrage ping their toes in the water in terms of online sales. Eyeglasses chain (www.twopair.com) also provides
to excitement, from frustration to the embrace of While most offer replacement contact lens sales via online contact lens sales via a link to its own dedi-
online’s new potential. their websites, and many provide online scheduling cated site, www.bestcontacts.com. In addition to a
Continued on page 62
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Continued from page 61 online, but if we do it, we want to do it right. We are
store locator and exam scheduling toot, the main currently evaluating the tools out there and how we
site lets consumers sign up online for the chain’s could do online sales better.”
Eyeglass Club, offering free eye exams and a 10 According to the Pearle executive, Internet eye-
percent discount on CLs and eyeglasses for a $99 wear consumers fall into two categories: those who
three-year membership. want to shop online exclusively, and those who use
Luxottica Retail’s Pearle Vision chain (www. retailers’ websites for “pre-shopping.” She noted,
pearlevision.com), like its sister retail brand Lens “We already have our catalog online as well as our
Crafters (www.lenscrafters.com), has expanded its Try-On Tool. Since we launched the Try-On Tool
website’s functionality to include digital help for last September, our Web traffic and the time people
consumers in choosing their eyewear. Both sites spend on our site have increased dramatically. So Pearle Vision has expanded its website’s functionality to
include digital help for consumers choosing eyewear.
also offer online contact lens sales through an affili- we see the Web as a complement to our brick-and-
ation with Vision Direct, a wholly owned subsidiary mortar stores, not as competition.” career when voicing his concern with online optical
of Drugstore.com, as well as exam scheduling and Added Hauteman, “It would be naïve to believe retailing. “You can spend a half hour finding the
store locators via the Internet. consumers don’t want to buy eyewear online. We perfect prescription and another hour finding the
Both the LensCrafters and Pearle Vision sites let see lots of potential there, but there will always be a perfect frame for someone. And that person will be
consumers upload a photo of themselves to virtual- need for traditional stores as well—some people ecstatic about the purchase. But they will come
ly “try on” selected frame styles on their photos. In want face-to-face interaction with a dispenser, screaming back to you in a minute about how much
addition, LensCrafters provides a Face Shape while others may have a complicated prescription they hate you and their new glasses because they
Selector so consumers can see which frames are better dealt with in person. And at some point, hurt behind their ears or on top of their nose.”
likely to look best on them, as well as a Frame Per- everyone needs an eye exam.” Steinmetz’s focus is on perfect fit. “I don’t even
sonality quiz offering additional styling tips. Con- As for dealing in-store with consumers who may have photos of frames on my website,” he said,
sumers can also search the chain’s frame inventory already have bought their eyeglasses online some- explaining, “I don’t want someone falling in love
by trend categories, such as Geek Chic or Retro where else, then bring them into a Pearle store for with a frame and expect it to look good on their
Cool. adjustments, Hauteman said that has so far not face just because they like what it looks like in a
Pearle goes one step further by offering its Try- been a problem. “Our overall goal is to make our picture. My clients rely on me to make them look
On Tool, which allows site visitors to try frames customers happy, so we’d do an adjustment or take great because they don’t know how to pick a great
after taking pictures of their faces with a Webcam. a measurement for them if requested,” she told frame for their face. I want to see the face that’s
Is the next step selling eyeglasses online? Wendy VM. “After all, those consumers are going to need looking for the frame.”
Hauteman, associate vice president, marketing, for another eye exam some day, and we’d hope they’d For the time being, Visual Effects has had few
Pearle Vision, does not rule that out. “We are 100 remember how well we took care of them.” requests for PDs, something Steinmetz hopes
percent aware that [selling frames online] is an Not everyone is viewing online sales favorably, will take “a long time” to catch on. “I pride
opportunity, and we have a team looking at it now,” however. For Chet B. Steinmetz, OD, PC, owner of myself on my ability to work one-on-one with
she told VM in an exclusive interview. single-location practice Visual Effects Optical in clients, to find that perfect frame for a face. That
However, Hauteman added, “Pearle Vision Chicago, selling eyewear online is not an option. not only means the frame will look great, but it
doesn’t have to be the first chain to sell eyewear He remembered a piece of advice from early in his also means the frame will be a great fit adjust-
ment-wise. I don’t want anyone coming
“We see the Web as a complement back telling me the frame hurts.” He
insisted that though selling eyewear
to our brick-and-mortar stores, online is gaining momentum, he hopes
his practice’s customer service and
not as competition.” attention to client comfort will prevail.
Similarly, Alan Glazier, OD, owner and
— Wendy Hauteman, Pearle Vision founder of Shady Grove Eye and Vision
MARCH 7, 2011 V I S I O N M O N D AY. C O M
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Care in Rockville, Md., believes online eyewear Shady Grove Eye and Vision Care currently
purchasing is a passing fad. “There’s a lot of hype charges $35 to patients seeking PD measurements.
about this whole online eyeglass sale business. I “It can be met with resistance but I’m also consid-
was around when the first wave of this came around ering having people see the doctor for PDs. By hav-
in the late 1990s,” he said. And while Glazier ing them wait and come to the back, they’ll per-
admits today’s more sophisticated PD measure- ceive value in that measurement. I wouldn’t want
ments simplify the purchase of eyeglasses online, someone to assume that it’s a profit center but it
he added, “I don’t see it amounting to as big a does take our time, effort and expertise—one that
problem as people think.” they’re going to take elsewhere. Perhaps in taking
Glazier likens the current wave of online optical that time with them, patients will have a have a
retailing to that of contact lenses in the past 10 chance to learn about us and see the value in get-
As a trial-run, Eyetique partnered with rapper Wiz
years. He said that to date, roughly 10 percent of ting their frames from us too.” Khalifa on a special-edition sunglass only available for
contact prescriptions walk from his store, some- Nonetheless, the perspective that the Internet is purchase online.
thing he’s aware might happen with eyeglasses, an extension or con-
though on a smaller scale. To combat the competi- nection of an optical “How do you get patients to go to your
tion, Glazier has staff focus on their own customer retailer’s brand and ser-
service. “Adjustments are always a value to patients vice identity is gaining online optical without hurting your
who come into our practice. I encourage our opti- ground with other “tra-
cians to introduce our services. Anytime we get ditional” opticians and traditional brick-and-mortar optical?”
someone into our location, it’s a window of opportu- retailers.
nity to form a relationship and get that person to Brad Childs, ABOC, — Alan Glazier, OD,
come back,” he said. NCLC, and VP of
To date, Glazier’s practice has abstained from Pittsburgh-based Eye- Shady Grove Eye and Vision Care
retailing via the web due to the wide net the Internet tique, which currently
casts on consumer goods. “How do you get patients has 10 retail locations, could not be more excited Norman Childs (Eyetique’s house label) come in
to go to your online optical without hurting your tradi- about his company’s online retailing prospects. black or tortoise shell, retail for $225 and have
tional brick-and-mortar optical? At this point, I don’t Though Eyetique’s website does not currently already sold 300 of the 500 frames to 16 different
see it being something I’m going to do because I have a retail component, Childs said that one is in countries including Japan, Canada and Australia.
don’t see how people will get to my particular optical the works, with brainstorming session well under- The frame is only available for purchase online
store without looking at a lot of different places and way. “It might not be under the name Eyetique, it through a special page found via the Eyetique web-
being diverted somewhere else,” he said. might be a subsidiary. But it would be anything that site. Customers only have the option to buy using
you can find in the frames book and lenses from Paypal, something Childs chose for ease. “Sure you
single-vision to digital three point. You might be pay a premium but everyone is protected,” he said.
able to change shapes and custom-build tinting. We But while he has his eye on the Internet, Childs
want it to be as involved as possible but also as sim- is careful not to let Eyetique get lost in the flow of
ple as possible so we don’t confuse the client. the web. His practices do not give out PDs, but will
That’s the tricky part,” he said, adding, “Theoreti- price match any online provider to save a sale. “We
cally, it’ll have to be priced differently because we do what we have to do to keep our people in our
want to reach a global market—we don’t want to doors and keep them happy. That’s what separates
cannibalize the market that we’ve built in Pitts- us from every one of our competitors,” he said. As
burgh.” another means of staying ahead, Childs said Eye-
As a trial-run, Eyetique partnered with rapper tique has its own brand of progressive lens, ETQ,
Wiz Khalifa on a special-edition sunglass. Accord- and is developing a private-label contact lens.
At For Eyes Optical, the website is viewed as an
extension of the company’s brand and image. ing to Childs, Wiz Khalifa’s “The Elevators” by “In today’s world we as retailers have to protect
Continued on page 64
V I S I O N M O N D AY. C O M MARCH 7, 2011
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Continued from page 63
ourselves from the Internet and the big box loca-
Readers Weigh In On the Debate
tions. We have to do something new every day Vision Monday conducted our own informal the measurements, we charge them a fee for our
because what worked today is not going to work survey of 189 ECPs across the country to deter- time.”—Brad Bodkin, The Vision Center at Sea-
tomorrow. We have to keep our business grow- mine how they were handling online eyewear side Farms, S.C.
ing,” he said, adding “Whatever we’re doing, it’s sales and the PD request dilemma from con-
working.” sumers looking to purchase their eyewear else- “We educate them that it is done for a fee. It is
At For Eyes Optical, the 140-location optical where. Half of our respondents were optome- part of the fitting which is built into the price of
retailer, Adam Wolman, COO, reported that the trists and 33 percent were opticians representing the glasses.”—Dennis Iadarola, OD, Center for
company’s website and e-commerce is viewed as an mainly single location practices (nearly 70 per- Vision Care, Conn.
extension of the company’s brand and image with its cent). Though many of those who answered our
loyal customers—and new customers that it is questions do sell contact lenses online (38 per- “We only do it if patient has already gotten
attracting via the Internet with its site and social cent), only 7.4 percent of the respondents said product from our office, otherwise we charge for
media presence. The company started selling eye- they sell eyewear online. However, a whopping the measurement.”—Jeanette Lee, OD, 20/20
glasses online about a year ago and continues to 46 percent said they were considering doing so, Optometry of Silicon Valley, Calif.
evaluate and mine knowledge from the experience. while the same amount said they never would.
“We used to look at our website as an element of our Here is what else they had to say regarding Those who report charging a
marketing budget. But over the past year or so, online sales: fee say it ranges anywhere
we’ve changed our thinking,” said Wolman. “Now, from $10 to $30, while still
we’re saying, ‘Let’s develop this as a value-added, Some respondents give the PD others have devised an addi-
and a revenue stream, built on the same philoso- to patients who ask without tional service package patients can buy to
phies of how you build a store, from a merchandising comment: ensure their online purchase is fit and adjust-
perspective, a marketing and a service perspective.” ed properly:
“We will provide all measurements that
“In today’s world we as patients ask us to give them.”—Steven Kantor, “We charge for the service and time/expertise
OD, Central Phoenix Eye Care, Ariz. to take and provide that measurement. We also
retailers have to protect offer an additional service to provide PDs, and
“We measure their PD or seg height and write check and adjust the glasses when received by
ourselves from the Internet it down for them, it belongs to them.”—Vicki the patient for eyewear purchased elsewhere and
Bowers, Milam Optical, Tenn. not through us or our website.”—George Eisch-
and the big box locations. We ens, OD, Fountain City Eyecare, Ala.
“We write it for them on an Rx pad.”—Dawn
have to do something new Rakich, OD, Texas “We inform them of the potential hazards of
buying glasses through an unknown entity. If
every day because what While others have made it part they still require the information, we charge a fee
of the eyeglass f itting and for the service instructing them to return with the
worked today is not going to ordering process, so for new eyewear so we may verify the Rx and fit.”—
patients without a pair of eye- Michael Malachowski, Zilliox Optical, N.Y.
work tomorrow.” glasses in hand or being purchased, the mea-
surement is provided for a fee: “We sell a service package that gives PD, base
— Brad Childs, curve and seg height, as well as verification after
“We explain to them that those measurements delivery to give us an opportunity to scrutinize or
Eyetique are services provided when purchasing glasses criticize the product.”—Ted Murdoch, The Eye-
from our trained staff. If they insist on getting Site, Alberta, Canada
MARCH 7, 2011 V I S I O N M O N D AY. C O M
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VM Readers’ Views
“Over the past year or so, Since very few states require the “We provide it to them if they are a current
PD measurement be included patient. However, we do educate them about the
we’ve changed our thinking. with the prescription, some plusses and minuses of ordering eyewear over the
practices reported that they Internet. I feel the sale of eyewear online dimin-
Now, we’re saying, ‘Let’s inform patients it is against company policy to ishes the value of the service provided and turns
provide the information or just refuse to pro- the product into a commodity.”—Gary Naftaly,
develop this as a value- vide it outright: Manzo Eye Care, Mich.
added, and a revenue “We explain that New York considers this a pro- “We educate patients on the benefits of buying
fessional measurement and that the Department locally, supporting local business and the conve-
stream, built on the same of Education, which governs optometric and nience of having a local resource if the Rx is incor-
licensed optical dispensers, has determined that rect. We also talk about things like temple length
philosophies of how you the PD need not be released.”—Michael Raff, that may seem insignificant when buying
OD, Brockport Optometry, N.Y. online.”—Phil DeYoung, Eye Styles, Ore.
build a store.”
“I do not [provide] it. I am responsible for that Regardless of what ECPs do,
— Adam Wolman, measurement under my license, and if I did then I most are aware of the poten-
would be responsible for glasses that I did not tial impact online sales could
For Eyes Optical make or properly fit.”—Debby Bauer-Robertson, have on their bottom line:
Jeanne I Ruff, OD, LLC, Va.
“I know that it may only be a few that use
Wolman continued, “Eyewear sales have “We politely tell them it is the responsibility of online sources for glasses but it is still revenue that
increased via online, this is an industry fact. the person taking the order; that person is respon- I have lost. I think that with time, it will become
There’s not a radical shift toward it, but some sible for accurate measurements depending on an even larger loss as the price difference between
people in our category have had what we see as a frame/lenses ordered. As far as adjustments on glasses from online retailers and those from pri-
‘1.0’ foothold in this environment, they’ve taken eyeglasses not purchased through our office, a vate practices grows.”—Amy Keller, OD, Mich.
the tack of online being a ‘catalog’ type of busi- patient is told we are not responsible for breakage
ness, less like a store. But we see that customers or scratching on something not ordered through “Only a small percentage of my current patients
are now starting to identify other ways to interact us.”—Jeri Overly, Mid-Michigan Eye Care, Mich. would consider [purchasing online], but I do
with the buying experience online and, with For believe it will become much more of an issue.”—
Eyes’ many years of history in this category, we Still others have used the request Jeff Yunker, Lifetime Vision Center, N.D.
want to be there for this next phase. There’s as way of improving the custom-
starting to be a convergence of technology or er service experience and pro- “I don’t think it has impacted [my business]
‘retail-ability’ here. I can actually do something I viding patient education: very much yet, but it has potential. Honestly,
do at my store just as well online now, if I have a there are so many people out there with bad eye-
brick-and-mortar [location], providing service, “Of course we kindly provide it to them and wear that did get professional assistance that I can
information, authority. It’s understanding what’s ask why we were unable to fulfill their spectacle see how this came to be.”—Margaret McNelis,
happening at the store level and taking it to a dif- requirements.”—Kendall Mullins, OD, Calera OD, McNelis Family Eyecare, Ill. n
ferent channel,” Wolman said. n Vision Center, Ala.
V I S I O N M O N D AY. C O M MARCH 7, 201166
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Giving Independents a Tool
To Compete in the Online World
NEW YORK—In March 2010, when Essilor of their in-store traffic as a result of the service.”
America launched MyOnlineOptical, many eyec- Other ECPs are using MyOnlineOptical to cap-
are professionals—even those with websites— ture sales from patients who get their eyes exam-
were unconvinced about the value of doing busi- ined at the practice but were not satisfied with the
ness online. However, as online competition product selection.
continues to accelerate, a growing number of “We know there’s a gap between the number of
those ECPs are implementing “MO2,” as Essilor patients who come in for eye exams but then buy
execs refer to the web-based, all-inclusive service their eyeglasses elsewhere,” said Tagnon. “With
that allows patients to order eyeglasses, contact MyOnlineOptical, the ECP can tell these patients Patients of Dr. Kim
Castleberry, OD at Plano Eye
lenses, frames and sunglasses from independent that even though they may not have seen the Associates use this 55-inch, in-
U.S. eyecare professionals. frames they want in the store, they’ll find a broader store monitor to view products
at MyOnlineOptical.com.
“A year ago, we had customers saying to us, ‘I’m selection on my website.”
not worried, online is not impacting me at all,” Another group of customers are incorporating
recalled Matthieu Tagnon, director of Internet MyOnlineOptical into the dispensing process, par-
marketing at Essilor. “Now they’re saying, ‘I’m los- ticularly the service’s virtual try-on technology. “We have five Internet stations in the store, and
ing sales to the web and need to do something “We are piloting ways of displaying the on-line each has a Webcam so patients use the virtual try-
about it.’” store in the practice to virtually increase the frame on feature,” said Dr. Michael Acker, OD who oper-
Tagnon said nearly 70 practices told Essilor they displays,” explained Tagnon. “You’ve got to get ates the practice together with his wife, Dr. Valerie
lost as much as three quarters of a million dollars to the staff to embrace the service and understand Acker, OD. “I tell patients about the virtual try-on
competitive online vendors in 2010. “Now they’re why the service is helping build business. The key feature. I walk them through it, then give them a
less negative, less defensive. They’re asking us, for us is that not only is the independent eyecare card so they can visit the site at home.” Dr. Acker
‘How can I participate,’ ‘How can you help me be community involved, but they’re also engaged.” then sends these patients an email that reminds
present in the online field?’ We see an evolution.” One practice that encourages patients to use them to visit Tech Optical Express’s online optical.
About 700 practices have signed on with MyOn- MyOnlineOptical in-store is Plano Eye Associates Integrating MyOnlineOptical into his practice
lineOptical, which links into a practice’s website, in Plano, Texas, which has been using the service has required some adjustment, Dr. Acker said.
adopting its look and feel, according to Tagnon. since September, 2010. Patients can view a broad “We’ve had it for about six months, and initially we
Patients who visit the practice’s site click through selection of lenses, frames and sunwear on a weren’t really using it that much because we
to a dedicated web address and can place orders 55-inch monitor equipped with a mouse and key- weren’t used to it,” he recalled. “But as we got
through a toll-free number serviced by trained board. more comfortable, we began to incorporate it into
opticians “If we don’t have something in stock we can our daily routine. Now we may do $2,000 to $3,000
Three distinct types of customers use MyOnli- bring it up on the screen,” said Dr. Kim Castleber- a month in online sales.”
neOptical, Tagnon observed. Some use their web- ry, OD. “A few orders have actually been taken in Although Tech Optical Express doesn’t carry
site to attract patients by telling their practice story, the store. If the patient prefers to place their order many expensive frames in its dispensary, patients
though not necessarily to drive electronic orders. from home, their order information and everything can find higher priced, fashion brands such as
MyOnlineOptical serves as a window to the prod- they need is already in the “cloud.” Prada and Gucci through its virtual dispensary.
ucts they offer. “These customers are reaching out Tech Optical Express in Atlanta, Georgia also “We’re able to capture patients who probably
to new patients, often younger patients,” said promotes its e-commerce capabilities to patients would have walked out without purchasing a frame
Tagnon. “We’re hearing some great success stories who visit its brick-and-mortar store located on the and would have bought their frames somewhere
from them, and some say they have even increased Georgia Tech campus. else,” Dr. Acker said. These patients then come to
MARCH 7, 2011 V I S I O N M O N D AY. C O M67
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his dispensary for their lenses. his crystal ball may not be accurate. “A few decades
Dr. Castleberry has had a similar experience at ago, I didn’t think big box retailing was the future,
Plano Eye Associates. “We just want to retain some so I don’t have confidence in my ability to predict
of the patients that go shopping elsewhere,” he the future. However, MyOnlineOptical is my
explained. “This gives us another way to compete. insurance policy for the future. Now I’ve got a dog
We can offer things online for about 20 percent to in the fight.”—Andrew Karp. n
25 percent less because there’s no overhead,”
he noted.
Dr. Castleberry estimated that Plano Eye Associ-
ates makes a net profit of about $1,000 a month in
online sales, most of which is from contact lenses.
“That’s not a lot, but if you look at the potential
growth, it could be very significant,” he said.
Dr. Michael Acker, OD said patients who visit
“I have no idea where online optical is going to
his website, Tech Optical Express.com, can click
go, but it seems to have a place in the future of eye- on a link to access his online optical store, which is
wear,” said Dr. Castleberry, though he admits that designed and managed by MyOnlineOptical.
Zip Eyewear Takes E-Commerce ‘Site to Sight,’ Partnering With Local ECPs
FORT WORTH, Texas. —Consumers have tradi- sional, local optical care that they and their families
tionally avoided buying glasses online because of need.” Zip is working with local eyecare profes-
the inability to ensure proper fit, lens selection, sionals who are highlighted by zip code and by the
and ongoing eyecare. But Zip Eyewear is aiming patient’s eyewear choices on the Zip site. Currently,
to revolutionize the way consumers buy prescrip- Zip ECP providers are in 45 of 50 states, and sign-
tion eyeglasses and sunglasses online by offering ups are continuing to expand.
them a “Site to Sight” solution. Nason grew up in the optical business, the son of
ZipEyewear.com ( www.zipeyewear.com), which two longtime. He said, “We provide the e-com-
launched this month, solves that problem. Con- merce platform and are able to help the ECP cap-
sumers select and purchase from a well-priced ture customers who go online to shop, which is hap-
assortment of the most popular name brand eye- pening more often. We have a simple solution for
glasses and sunglasses. What’s unique is that the them to acquire and serve customers online.”
order is actually fulfilled by a local optical center, be notified of a pending customer order and pre- Zip’s future marketing, which will take advan-
ensuring proper fit, prescription, and lenses. A con- pare for the in-store interaction and sale. tage of search-engine-optimization (SEO) and
sumer can pre-order their prescription and lenses Some 200 eyecare professionals have partnered other social media marketing initiatives this spring,
with the frames, or just order the frames. Even if a to date with Zip and that number is growing, will provide even more visibility for the concept
consumer makes a mistake online and orders the Michael Nason, Zip Eyewear’s CEO, said. Details and the profile of the participating eyecare provid-
wrong size or just an unflattering frame, he or she of the provider agreements are posted on the site ers.
can easily switch to a different frame or lens at the and followup is handled by Zip’s team, who walk Zip Eyewear was created by Nason, in partner-
local optical center. providers through the process and policy. He said, ship with eyecare professionals, powered by Jobson
Customers receive a voucher for the eyewear “Zip Eyewear gives consumers the best of both Medical Information’s Frames Data, and is backed
they order which they can then take to a participat- worlds. They can finally get a great online selection by over 50 years of professional opticians’ exper-
ing provider. Providers, in turn, have the ability to of the most popular brands and the trusted, profes- tise.—Marge Axelrad. n
V I S I O N M O N D AY. C O M MARCH 7, 201168
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Attention Shoppers:
Online Eyeglasses Is a Viable Option
By vanessa l. facenda / contributing editor
O
nline-only eyewear retailers want to not able to provide the personal, face-to-face cus- online Rx and non-Rx sales as people become
make one thing absolutely clear—they tomer service that brick-and-mortar optical stores more comfortable embracing the Internet for their
do not sell cheap eyeglasses. They sell can. But, with time and “new technologies, the optical purchases. He said the Internet offers opti-
quality eyeglasses at lower prices than their obstacles will be overcome,” said Roy Hessel, cal customers “a compelling combination of prod-
brick-and-mortar counterparts by removing CEO of EyeBuyDirect.com. uct selection and convenience and new technolo-
added expenses, executives told Vision Monday. Online eyewear sales are a small—but increas- gies will only serve to enhance this online
Levente Laczay, founder and CEO of Zenni- ing—percentage of online retail sales According to purchase experience.”
Optical, said that brick-and-mortar optical stores a Vision Council consumer panel report in Octo- The 2010 Vision Council Internet Influence
have extremely high markups on prescription eye- ber 2010, about 7 percent of all retail sales—all Report found that after two straight years of sig-
glasses and frames. “There is no conspiracy, more consumer products, not just eyewear—are online nificant increases, there was a slight decline of
so, they don’t have a choice.” Factors such as versus less than 1 percent of eyewear sales online, Internet usage when shopping for eyewear in
intense competition due to market saturation and but online-only eyewear merchants believe the 2010. The decline was reportedly consistent
sharp overhead costs, “force [brick-and-mortar] category is well-positioned for strong future across all optical products and demographics
opticians and retailers to upsell the consumer in growth. The greatest impediment to this although strongest among men and Americans
order to make a profit or just break even,” he said. growth—lack of awareness. between the ages of 18 to 34. However, the report
“Online operators do not have those issues.” Online-only eyewear retailers admit that the added that the decline in usage for various “win-
majority of consumers do not know quality frames dow shopping functions” may be a result of
and Rx lenses are available online. But promoting changing the fielding date of the survey and the
Online-only eyewear that message is difficult as there is no huge player result of changing sample provides from 2009 to
in the online eyewear industry marketing the ben- 2010; not necessarily the result of changing con-
retailers are poised for efits of buying online, so there is not a lot of edu- sumer behavior. Online-only eyewear merchants
cation for the consumer. “Current online eyewear contacted for this story vehemently disagree with
strong growth as consumer players do not have the marketing power to spread the report’s findings. Those contacted all claimed
that message,” said James Hilford, president of double-digit increases in website traffic and sales
awareness rises. Eyeglasses.com. growth in 2010—and are forecasting strong num-
Word of mouth marketing, as well as online and bers in 2011.
Online-eyewear merchants emphasize that they social media messaging are helping online eye- As consumers transition from browsers to buy-
are able to sell fashion-forward and designer- wear sales. “One year ago, the majority of consum- ers, online-only eyewear merchants agree that
branded frames, as well as high quality prescrip- ers were researching eyewear online, now they are high service levels are of the utmost importance—
tion lenses as a result of tremendous improve- starting to buy online,” said Roger Hardy, Coast- they must provide service guarantees and back it
ments in technology and because they have lean al’s president and CEO. “But it is still a challenge up with actual service—strong online customer
organizational structures with lower costs as a getting consumers to change a buying pattern that service, high in-stock levels, quick delivery on
result of working as online-operators. they have become accustomed to, even though it orders, and free no-hassle returns.
Convincing consumers online eyewear is a via- will save time and money.” The following is a sampling of five leading
ble alternative remains challenging. Consumers Eyal Gutentag, CEO of BestBuyEyeglasses, online-only eyewear retailers, who discuss their
still feel the most comfortable trying eyeglasses on agreed that the growth will continue. “In the years growth strategies.
their faces. And online-only eyewear retailers are ahead, we are likely to see significant growth in
Continued on page 70
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Continued from page 68
BestBuyEyeglasses.com ramping up last year.
For fiscal 2010, Coastal’s sales rose 10 percent to
With SKUs in excess of 200,000, BestBuyEye- $153 million, up from $140 million in fiscal 2009.
glasses.com prides itself on its extensive selection Sales for eyeglasses hit $20 million—a 113 percent
of brands and product mix, but maintains its posi- increase over fiscal 2009 eyeglasses sales. Net
tion as optical experts online. BBE offers custom- income was $3.1 million, up from $2.7 million in
er service support by optical experts Monday the prior year. In January, Coastal Contacts report-
through Friday. The majority of BBE’s orders are ed eyeglasses orders of more than $1.6 million in a
for frames only, but a growing portion of orders single week (Jan. 18 to 24, 2011). Total units
include Rx lenses. In late 2010, BBE added bin- ordered for that period were approximately 23,000
oculars to its assortment. their RX and intended-use information entered. pairs of eyeglasses. Coastal offers 24-hour custom-
Eyal Gutentag, CEO, said BBE experienced BestBuySunglasses offers a number of other er service and 365 per year free shipping.
double-digit percentage growth in 2010 over 2009, options including a wish list, gift card feature, gift
but would not disclose any figures (the company message options and Facebook sharing options.
currently focuses on the U.S. market only). The One of its most significant features is the compari-
growth has come without the aid of a virtual try-on son tool that allows consumers to visualize multi-
feature. “We’ve toyed with the feature but believe ple frames simultaneously.
the right technology is not yet in place to deploy Although much of its growth has come from
it,” said Gutentag. “I’ve never felt any were accu- word of mouth, BBE launched a substantial social
rate enough, but have seen advances in tech that media effort in 2010 including teams dedicated to
are bringing it closer. We don’t want to roll out a Facebook and Twitter, as well as blogs on BBE
sub-optimal feature.” He said that BBE plans to and BBS. The company also expanded its market-
implement a TryOn function in the not-too-dis- ing efforts to encompass email, display ads and
tant future. SEM. “We are now reaching out to our customers
However, BBE has several new components to much more directly,” said Gutentag. Coastal launched its Virtual Try-On function in
help its design-conscious consumers during the BBE continues to drive business through affil- January 2008. It features eyeglasses to scale and
buying process. The site offers 360-degree views of iate networks such as Linked Connector, Com- consumers can share the photos with friends to
hundreds of its most popular frames and has added mission Junction, among a number of others. have them help select a pair. “We have over 500
in-depth product and informational videos for BBE is focused on expanding its informational different frames in the virtual mirror so that con-
many of its best-selling products. The videos video offerings and the 360-degree product views sumers can get an idea of what styles and shapes
explain features, show models wearing eyeglasses and is potentially adding contact lenses to its look best on their face shape before they order,”
and point out key qualities. Videos concerning pre- assortment. “There is demand for contact lenses, said Roger Hardy, Coastal’s president and CEO,
scription lenses are also being added to the site. so we are considering rolling them out this year,” adding that a component to measure consumers’
BBE’s recently launched sister site, bestbuy- said Gutentag. PD is scheduled to launch in mid-2011.
sunglasses.com, features Lens Wizard, a tool that Coastal is active in social media, with a staff
presents recommendations to customers based on that includes full-time bloggers and editors. The
CoastalContacts.com majority of the company’s growth has come from
Coastal Contacts experienced explosive growth in word of mouth, but Hardy noted that Coastal
the last year. The bulk of the company’s business will do small media campaigns (television, radio,
is contact lenses (one out of every three contacts newspaper and online) from time to time,
sold in Northern Europe are sold from Coastal as though not in the U.S. For example, Coastal ran
well as one out of every five in other markets, 12, 30-second spots during this year’s Super
according to the company), but it began selling Bowl in Canada.
eyeglasses three years ago, with that business Continued on page 72
MARCH 7, 2011 V I S I O N M O N D AY. C O M72
C O V E R TOP I C
Continued from page 70 Roy Hessel, founder and CEO of EBD, said Eyeglasses.com
The company’s newest initiative is its Change this frame-fitting tool will significantly reduce one
the View Project, which launched in February. of the barriers to buying glasses online. EBD Eyeglasses.com registered another strong year in
Coastal will donate one pair of eyeglasses to some- plans to launch the frame-fitting tool in the next 2010—experiencing double-digit sales gains—but
one in need (mainly in third world countries) for six to nine months. expects 2011 to be even better. International sales
every pair sold. “There are a half billion people in In February, EBD unveiled the “new and are 6 percent to 8 percent of its business, and are
the world with vision impairment, so this is a prior- improved” Wall of Frame 3.0 Virtual Dressing growing. Eyeglasses.com remains committed to
ity for us,” Hardy. The company’s goal is to donate Room. The face recognition virtual dressing room offering a value proposition and superior customer
more than 2 million eyeglasses by 2020. allows shoppers to mix and match eyeglasses onto service. The company offers overnight shipping,
their photos, as well as share feedback with other and the typical turnaround time is three business
shoppers across its social community of 20,000 days. The assortment has not changed much since
EyeBuyDirect.com users. Users are able to email the link to their last year—more than 200,000 SKUs including
EyeBuyDirect (EBD) maintains a price-driven friends, post on Facebook and Twitter, add to the 35,000 frames.
model and proves that brand names and super- Wall of Frame, engage in real-time conversation Last year was the first full year Eyeglasses.com
sized assortments aren’t always the keys to suc- and vote on their favorite eyeglasses. ran on a new platform that launched in late 2009.
cess. EBD designs and custom-makes its eyewear Since going live in early February, the compa- As a result of the new operating platform, James
in-house—nearly all of its 1,000-plus SKUs is pri- ny reported average pages per visit increased 7 Hilford, president, Eyeglasses.com, said the vir-
vate label. EBD’s sales grew by 40 percent over percent and the average time shoppers spend tual try-on function had to be reworked in order to
2009 and the company anticipates a good—possi- browsing on EBD rose 3 percent. EBD is also
bly even better—2011. The majority of sales using the Wall of Frame as a data-mining and
come from the U.S., but international operations analytics tool to gauge what consumers are talk-
are growing. ing about and their needs. “Direct communica-
tion is the best analytics tool—listening to con-
sumers, seeing what they like and don’t like is
crucial—we can only be as good as our satisfied
customers are,” said Hessel. “We are learning a
lot from our Wall of Frame 3.0 [feedback]. This
will help us to optimize our services and offer-
ings.”
EBD engages strictly in online advertising and
marketing—although the majority of its growth
can be attributed to word of mouth. The compa- properly mesh with the new system. ETryItOn
ny is active in social media and launched its new will be relaunched in mid to late spring. It has a
EBD launched its try-on function—EyeTry— “How to Kiss with Eyeglasses” Video Contest patented technology that matches the scale of the
in mid-2008. In 2010, new facial recognition tech- around Valentine’s Day. Online shoppers are consumer’s head to the eyewear. ETryItOn will
nology was added that measures a person’s PD. encouraged to post original video stories of “kiss- also have a side-by-side comparison feature that
This system did not give the consumer a sense of ing with eyeglasses.” The contest runs through allows consumers to try-on multiple frames.
the real proportion of a frame to the face. EBD has March 15—the Grand Prize is a $500 EBD gift In addition to a new platform, Eyeglasses.com
been developing new technology that also mea- voucher. “This contest appeals to a younger made significant updates to its website such as
sures the height of the ears in relation to the eyes, crowd. It is a fun, quirky way to get to know our better search functions and a dressing room where
and the distance between the two—factors that customers and strengthen our bond with them,” consumers can store glasses. The site will be more
will affect the look of a frame on a particular face. said Hessel, noting that the better the connec- socially interactive so consumers may give each
This function will also enable EBD to recom- tion with consumers, the greater the trust and other feedback on what frames look good and
mend eyeglasses to consumers. the conversion rate from browser to buyer grows. which ones do not.
Continued on page 74
MARCH 7, 2011 V I S I O N M O N D AY. C O M74
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Continued from page 72 last year, but Laczay said the company grew by
Aside from social media efforts where Eyeglass- nearly 100 percent (the company would not
Framesdirect.com
es.com is active on Facebook and has its own blog, release figures). January 2011 sales exceeded 30
I
the company does very little marketing—most of percent, a mark Laczay said the company hits n 2010, Essilor of America, acquired a
its growth has come from word of mouth, but Hil- every year. According to Laczay, Zenni sells majority stake in Framesdirect.com. The
ford admitted that is about to change. “We have a approximately 4,000 eyeglasses per day. More than acquisition followed a partnership
major marketing initiative planned for the third 80 percent of Zenni’s sales are U.S., but interna- between the two companies that together
quarter,” he said, but would not disclose the tional business is growing faster. launched MyOnlineOptical.com, an e-com-
details. The company continues to work with affil- Laczay expects sales to double in 2011 as a merce solution for independent ECPs.
iate networks such as Nextjump.com to help drive result of improvements and updates to its website. Through MyOnlineoptical.com, Essilor
business. Zenni has made significant investments and expanded the availability of the offering that
Eyeglasses.com is planning to add a component improvements to the site including better aesthet- enables ECPs to provide optical products
that will measure consumers’ PD. “We anticipate ics, improved search functions as well as making online to their patients.
adding the PD function in 2012,” said Hilford. the site clearer and more user-friendly. Updates In addition to a full assortment of eyeglasses
also include new capabilities such as analyzing (Rx and sunglasses)—including 116,000 frames
prescriptions and picking up user mistakes. (featuring designer brands), Framesdirect carries
ZenniOptical.com One of the most substantial improvements to contact lenses. Free shipping is available for
ZenniOptical has no manufacturers, wholesalers or the website, which relaunched in October 2010, domestic orders. If consumers wish to exchange
importers—the company is its own manufacturer. was the addition of the virtual try-on function. a frame on a prescription eyeglasses order, they
Cutting-out the middle-man helps keep costs low The pattern recognition technology automatical- can do so within 30 days and receive a 50 percent
and improved technologies allow the company to ly centers the eye (after user enters his/her PD) credit for the cost of the exchanged lenses
offer high quality prescriptions for a fraction of the so the consumer does not have to rotate, position toward the cost of new lenses.
price. Zenni owns lens manufacturing and eye- and size the image. Zenni’s try-on function
glasses-assembly factories in China. Zenni built a allows consumers to “try on” four different
227,000 square foot state-of-the-art facility that it frames simultaneously.
recently moved into. “The equipment in the new Though he would not discuss them, Laczay
facility is found in less than 10 percent of U.S. believes new marketing initiatives will also help
labs,” said Zenni’s founder and CEO, Levente sales grow significantly this year. Growth to date
Laczay. With the exception of Transitions photo- has primarily come from word of mouth. The com-
chromic lenses (it also carries its own brand of pany has previously not really done much market-
photochromic lens) Zenni does not offer branded ing with the exception of some Google ads. Zenni
eyeglasses. had not partnered with, nor has any plans to part-
Between 2004 and 2009, Zenni grew more than ner with affiliate networks because, “I don’t know The site does not have a try-on function or
200 percent year over year. Sales did not double how it would enhance our services or help our cus- rotating views of the products. It does offer eye-
tomers,” said Laczay. wear videos on how to determine the right frame
Zenni’s leading initiatives in 2011 include size and lens quality. FramesDirect has also
tweaking the website to further improve its usera- stepped up its social media efforts. In addition to
bility and expanding its customer service hours. being active on Facebook, Twitter and YouTube,
Customer service is currently available Monday there is Eye Zone, its official blog that serves as a
through Friday 6 a.m. to 5 p.m. but is changing to forum for discussions on eyeglasses, sunglasses,
12 a.m. to 5 p.m. weekdays. “We will eventually contact lenses and goggles.
move to weekends and plan to offer 24-hour cus- At presstime, executives at FramesDirect
tomer service by year-end,” said Laczay. n declined participation in VM’s special report. n
MARCH 7, 2011 V I S I O N M O N D AY. C O MYou can also read
