Eye opening: Rising competition has put pressure on prices and profit margins

The Optometry and Optical Dispensing industry has contended with an increasingly competitive operating environment over the past five years. In particular, the entry of new corporate players and increasing online competition has influenced the industry's performance. The ensuing price wars have pushed prices downwards, as optometry chains, both online and offline, compete for the growing number of consumers seeking competitively priced eyewear. These intensifying competitive pressures have constrained industry growth over the past five years, as has the ongoing freeze on the Medicare Benefits Schedule rebate for optometry services. Industry revenue is expected to grow at an annualised 1.4% over the five years through 2017-18, to $3.2 billion. This includes anticipated growth of 1.7%...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
1.4%
Forecast Growth 18-23
Profit
Employment
14,385
Businesses
3,242
Market Share of Companies

Industry Threats & Opportunities

  • An increasingly competitive environment has been weakening industry revenue growth
  • Rising industry competition has been putting pressure on prices and profit margins
  • Ongoing competition from online retailers is projected to restrict industry revenue growth
  • Industry Report - Starting a New Business Chapter

    Barriers to entry to the industry are moderate. For optical dispensers, barriers include the market dominance and economies of scale of incumbents, access to a supply of frames, the need to understand current market trends, the cost of fitting out premises and the cost and time involved in building a referral network of optometrists. In the case of the Specsavers franchise, it costs $30,000 to $40,000 to join the franchise with a further $250,000 to $280,000 in set-up costs.Larger optical dispensers are in a good position to negotiate better terms with suppliers and partners. This can allow them to negotiate with health insurers, or secure high-profile location for stores. It ...purchase to read more.

    Additional Insights for the Optometry and Optical Dispensing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Optometry and Optical Dispensing Industry are

  • Effective product promotion
  • Being part of a group buying, promotion and marketing scheme
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Private health insurance membership and Median age of the population in the Optometry and Optical Dispensing industry impact industry performance..

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    What's in this report

    What is the Optometry and Optical Dispensing Industry?

    The industry covers registered optometrists, optical dispensers and orthoptists. Optometrists are primarily engaged in testing eyesight, diagnosing sight defects and prescribing or dispensing spectacles and contact lenses. The main activity of optical dispensers is dispensing spectacles or contact lenses. Orthoptists diagnose and treat ocular muscle disorders.

    Industry Products
  • Optometry services
  • Sale of frames and lenses
  • Other retail sales
  • Industry Activities
  • Dispensing contact lenses
  • Eye testing
  • Optical dispensing
  • Optician services
  • Orthoptic services
  • Dispensing spectacles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private health insurance membership
  • Median age of the population
  • Real household disposable income
  • Federal funding for Medicare

  • Current Performance
  • Household spending trends
  • Medicare rebates and changes
  • Private health insurance
  • Budget wars
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing demand patterns
  • Market positioning
  • Table: Optometry and Optical Dispensing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Optometry and Optical Dispensing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health Insurance

  • Key Selling Industries
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling
  • Photographic and Optical Goods Manufacturing
  • Retail Property Operators

  • Products & Services
  • Sale of frames and lenses
  • Other retail sales
  • Optometry services
  • Chart: Optometry and Optical Dispensing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 45 to 64
  • People aged 65 and over
  • People aged 25 to 44
  • People aged 24 and under
  • Chart: Major Market Segmentation for the Optometry and Optical Dispensing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Optometry and Optical Dispensing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Optometry and Optical Dispensing Industry

  • Industry Globalization
    Specsavers Pty Ltd, Luxottica South Pacific Holdings Pty Ltd,
  • Table: Specsavers Pty Ltd - financial performance
  • Table: Luxottica South Pacific Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Optometry and Optical Dispensing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Optometry and Optical Dispensing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Optometry Services (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cataract
  • Clouding of the natural lens of the eye, usually caused by aging in conjunction with other risk factors, such as exposure to the sun's UV rays, smoking, steroid intake and diabetes.
  • Glaucoma
  • A disease characterised by elevated intraocular pressure, which causes optic nerve damage and subsequent peripheral vision loss.
  • Macular Degeneration
  • A disease of the retina resulting in loss of central vision.
  • Mbs
  • Stands for Medicare Benefits Schedule.
  • Plano Sunglasses
  • This term refers to non-prescription sunglasses (i.e. sunglasses with no corrective power).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Optometry and Optical Dispensing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Optometry and Optical Dispensing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Optometry and Optical Dispensing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Optometry and Optical Dispensing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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