Optical stores enjoying a growing domestic market

By I. Christianto

JAKARTA (JP): There is a greater demand for eyewear in Indonesia today as a growing number of people are becoming aware of the importance of eye care.

According to the secretary-general of the Association of Indonesian Optical Stores (Gapopin) Maman Rukmanda, 20 percent of Indonesians develop vision problems.

This means about 42 million Indonesians (out of approximately 210 million people) have had, are having or are likely to have vision problems at some point in their lives.

Those with impaired vision need corrective glasses or contact lenses.

"If we look at the number of people who need corrective lenses, the market is so promising. Unfortunately, not many people can afford to buy glasses," Maman said.

He said there are now some 2,800 optical stores under Gapopin.

Generally, people develop vision problems when they are in elementary school or even younger, or after the age of 35, he added.

Grace Boellaard of Boellaard Optic said because the literacy rate across Indonesia was increasing, more people with impaired vision were realizing the need for corrective glasses.

Maman said some people, however, were still reluctant to have their vision tested regularly as they considered it not important.

Budy Buntaram of Optik Seis optical store agrees. He said many people did not consider good vision important.

"Many people are still not aware of how to take good care of their eyes. Parents of children in elementary schools should pay attention to their child's eyesight.

Many of us don't realize that our vision needs correction. We assume our vision is OK. It's better if we take eye tests regularly, say once a year," he said.

Cost

Both Maman and Budy admitted that prices of correctives glasses were still high in Indonesia.

"That's why some people postpone buying new glasses, especially after the economic crisis reduced their purchasing power. However, people who are aware of the importance of eye care will not postpone buying corrective lenses," Budy said.

He said Indonesia did not have any local manufacturers producing both the frames and lenses, therefore the items had be imported.

"Unfortunately, frames and glasses are considered luxury items (subject to high import taxes) and that is why they are expensive," he said.

He said there was a producer in Medan, North Sumatra, making export-quality lenses but his prices were not competitive.

Investors are unlikely to produce frames or lenses locally given the high cost.

Infact, there were only few local companies producing branded frames, but their products are all made for export.

"Just like the garment industry, they produce internationally branded items under license. They do not distribute the products locally but export them. The products reenter Indonesia as imported items," he said.

Nonetheless, many optical stores in Indonesia sometimes offer special prices for corrective glasses.

"The cost of a standard frame with glass lenses for an eye power under six, is about Rp 175,000," said Grace.

Budy agreed saying the lowest a pair of glasses might cost was about Rp 100,000.

"But we have to remember that what we consider cheap, could be expensive for others.

Again this may be related to the poor awareness of good eye care. Some people do not realize that good eyesight is important and that they will be able to do their work better if they have their impaired vision corrected," he said.

Many people, however, are also fond of fashionable glasses.

"It's true that glasses has been part of the fashion industry. Those who are chic and want to keep up with the latest fashion, will also want to wear the latest model of eyewear.

"They want to buy branded sunglasses and glasses with branded frames. Today Donna Karan and Calvin Klein eyewear seems to be most popular in Indonesia. However, Cartier and Christian Dior eyewear have maintained their image and popularity for a very long time.

As eyewear is an integral part of the fashion industry, no wonder if some popular names are now also put in frames including Giorgio Armani, Gianni Versace, Dolce and Gabbana, Esprit or even James Dean, Ferrarri and Maserati.

And, as traditionally happens to most Indonesians, they want to wear the most popular, prestigious brands even though the model does not match with their face.

"It's common to see women with sunglasses on their foreheads as they look at the eyewear as a piece of accessory than something functional," said Budy.

He added sunglasses were great for protecting the eyes from sunlight.

Rivalry

Many people who need corrective glasses prefer to wear fashionable frames instead of contact lenses. About 60 percent to 70 percent of customers at Seis and Boellaard go for glasses instead of contact lenses as the latter need more care and may cause irritation to the eyes.

Since its establishment in 1927, Seis now runs 60 outlets in 20 cities across Indonesia.

"Optical stores that have a chain of outlets usually have their own market. People will go the nearest outlet for their needs," said Budy.

As more people want to look better when wearing glasses, they prefer to buy popular brands and the latest model. Frames made of metal, titanium, plastic and a plastic-metal mix have been popular.

"Every two years or less, the designs are changed, just like in the fashion industry," said Budy.

That's why optical stores compete for the latest frames and sunglasses.

"Usually leading optic stores sell a particular brand of eyewear exclusively. This is because its overseas principle has authorized them to act its retailer and distributor. Therefore, people will find certain brands of frames only in certain optical stores. Boutiques selling apparels of a certain brand, may sometimes sell its sunglasses," said Budy.

Rivalry among the optical stores has boosted the service in this sector.

"Most optical stores have several outlets, usually in shopping centers. They focus on quality of the products and service. Their target market is different from those of smaller optical stores, such as in the retail stores in Mangga Dua," said Grace.

She said there was usually a big price difference between the same eyewear sold in large optical stores and in smaller ones.

"Smaller stores want to sell their products quickly and so sell their products at lower prices but their profit margin is lower too," she said, adding that Boellaard optic chain, which was established in 1966, now operates five outlets in Jakarta.

She said smaller optical stores were usually run by the owners themselves, assisted by a limited staff, so operational costs were also lower.

Budy reminded customers to be careful when purchasing eyewear in smaller optical stores.

"The layman can't tell if a pair of lenses is of good quality," said Budy.

He also said there were many fake and smuggled eyewear sold in stores in Mangga Dua.

Some optical store owners in Mangga Dua admitted they could sell their products at a much lower price because the products were fake or smuggled.