Another Healthcare Sector Experiencing Growth Optical Services Profiler 2016 Brought to you by THE MEDIACENTER © 2016 THE MEDIACENTER. All rights reserved

Eyes Filled with Dollar Signs According to Vision Monday, a leading publication for the eyewear industry, total US vision care revenues for 2015 were $34.446 billion, a 5.8% increase over 2014’s $32.551 billion, following a 4.5% increase from 2013 to 2014. The top 50 U.S. retailers increased their share from 33.9% for 2014 to 35.3% for 2015, or $11.028 billion and $12.151 billion, respectively. The top 10 US retailers also increased their share, from 29.2% for 2014 to 30.5% for 2015. In the top 10 listing on page 1 of the Profiler, the first 4 positions were unchanged. Costco Wholesale (#5) exchanged positions with Visionworks of America (#6). MyEyeDr. moved from #10 to #7 with the expansion of smaller regional offices and regional groups. MEDIACENTER

Sustainable Success The latest (December 2015) Optical Business Barometer (OBB) was 3.93, compared to November’s 3.80. The confidence rating, which measures the outlook for the next 6 months was 3.95, increasing slightly from November’s 3.93. For all of 2015, the average confidence rating of 3.92 was the highest for a 12-month year since 2010, and was a 2.1% increase over 2014. Rated on a scale of 1 to 5, with 1 very negative, 3 neutral and 5 very positive, the OBB is based on a monthly study of a representative sample of independent optical retailers operating at single locations and groups with a maximum of 3 locations. MEDIACENTER

Mass Merchants’ 20/20 Revenues Mass merchants and wholesale clubs with optical departments did even better than the entire vision care market, the top 50 retailers and the top 10 retailers, with a 15% increase in total 2015 revenues, from $2.814 billion for 2014 to $3.242 billion for 2015. This sector’s $3.242 billion in total revenues represented 9.4% of the total US vision care market and 26.7% of Vision Monday’s top 50 retailers. Driving much of this revenue increase was approximately 700 new optical departments. Target’s addition of 44 departments of the Luxottica Retail brand and strong growth in existing locations advanced it to #3 on the list on page 2 of the Profiler. MEDIACENTER

Independents Remain Competitive Although independent optical retailers and eye care professionals (ECP) must compete with major national chains and mass merchants, they represent almost 64.3% of all locations, or 27,148, and 61.0% of the industry’s total revenues, or $19.893 billion. Independents have been able to remain competitive because of the increase in ECP alliances and business and practice management groups, and many have benefitted from the “small business/ shopping local” movement. According to a number of retail analysts and experts, Baby Boomers, as they’ve aged, and young adults crave a more personal retail experience, which resulted in an 8% increase in shoppers during Small Business Saturday, November 28, 2015. MEDIACENTER

Keeping an Eye on Consumer Attitudes According to a recent study of online reviews of patients’ health care experiences in the Journal of Medical Practice Management, 96% of those reviews complained about customer service while only 4% were dissatisfied with health care delivery. Of the more than 30,000 online reviews studied, 61% of patients gave their physicians five-star reviews and 40% of those said their physician had an excellent “bedside manner.” Communications issues were cited in 53% of negative reviews. Eyestrain from many hours of using a computer as well as mobile devices contributes to poor vision health. A Vision Council study found that 56% of Americans weren’t aware of potential blue-light damage and 73% did not know the benefits of computer eyewear. MEDIACENTER

Men Driving Sunglasses Market According to The NPD Group, the sunglasses sub-sector of the eyewear market generated $4 billion in revenues for the 12 months ending June 2015, a 2% increase over 2014. The 4 demographic groups in the table on page 3 of the Profiler represent 67% of the $4 billion in sales; however, sales decreased among men, 35–44, and women, 35–54. Men purchased less than 50% of sunglasses units during the period, but spent a bit more than 50% of dollar sales, indicating that men are spending more per pair, which happens to be a faster rate than women. MEDIACENTER

Advertising Strategies Independents and ECPs with a higher-than- average percentage of five-star online reviews, as described on page 3 of the Profiler, should feature this attribute in their advertising messages in any medium. Suggest that independents and ECPs promote, “The Blue Light Special,” consisting of an eye exam, a discussion of blue-light exposure from digital devices and a discounted price for the purchase of computer glasses by multiple members of the family. Vision care retailers can promote a special offer on sunglasses prior to the primary vacation season – July and early August – with advertising messages, media and media placement that target the specific demographics from page 3 of the Profiler. MEDIACENTER

New Media Strategies The issue of exposure to blue light from digital devices is perfect content for a blog, an email newsletter and/or photo/video posts on social media. Posts can include some of the data from the Profiler or a hot link to the actual Web page with this information Since customer service is the #1 complaint of all health care patients, have front-desk or other customer service personnel author social media posts or videos, explaining the extra steps the practice or vision care center takes to ensure superior customer service. Businesses in the vision care sector can use social media to share their support and involvement in eye care health programs for low-income families and children, specifically, promoting the donation of old glasses or other aids. MEDIACENTER

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