Optical stores enjoying a growing domestic market

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.