The sunglasses market - France

1.2 A growing global market

Worldwide, sunglasses will account for **.*% of total eyewear sales in **** of total eyewear sales (***) for a total of $**.* billion and a forecast CAGR in value over the period ****-**** of *.*% [***]. In ****, *** million sunglasses were sold worldwide.

In contrast to the stagnant French market, worldwide sales of sunglasses grew by *% between **** and ****. It should continue to grow, reaching $**.* billion in ****.

In Europe, Germany, Spain, France and Italy together generated **.* billion euros in sales (***) for the entire market.for the entire optical market in ****, while revenues from sales of sunglasses amounted to just *.* billion for these countries.

In ****, Austrians spent the most on sunglasses, followed by Australians and Irish, with average spending of US$**.*, US$**.* and US$**.* respectively.

Top ** sunglasses market revenues per capita France, ****, in dollars Source: ****

Global market size for sunglasses World, **** - ****, in billions of dollars Source: ****

1.3 Domestic market

Taking into account around **,*** optical stores to analyze the French market, we find that sales (***) of the eyewear market will amount to *.* billion euros in ****, an increase of **.*% on **** but only *. *% on ****. In other words, overall sales in the French market increased by *** million euros compared with ****, and by ** million euros compared with ****. Although ***,*** more pieces of equipment were sold in **** than in the pre-crisis period, this was not enough to compensate for the one million pairs of spectacles that were not sold in **** during the crisis, according to Gfk estimates.

Furthermore, in the total sales generated by opticians, the weight of each category breaks down as follows: **% for corrective lenses, **% for optical frames, *% for sunglass frames, *% for contact lenses and *% for care products.

Weight of different categories in optician sales France, ****, in Source: ****

The sunglasses market therefore accounts for *% of the *.* billion euros, which represents *** million euros in sales for opticians.

However, although the optician channel is favored by a majority of customers (***), there are still **. *% of customers who use other channels. We can therefore estimate the French sunglasses market at *** million euros.

1.4 A market influenced by the optical sector

As opticians are one of the key sales outlets for sunglasses, the development of their market alongside that of sunglasses is important.

In ****, the optics market showed a negative trend for the first time, due in particular to an overall decline in purchasing power and more restrictive pricing conditions in healthcare networks. The optical market contracted by -*.*% according to GfK. **** is also expected to be a difficult year for the sector, and for opticians in particular. If **% of opticians believe that **** will be as difficult as ****, they are **% think that the year will be even more difficult. Only **% think that **** will be a prosperous year for the sector.

This gloomy outlook for the optician market is leading to the closure of optician salons for the first time in ** years. In ****, the opening/closing balance was negative, with *** opticians closing their stores, for a total of **,*** opticians in Francethe number of business failures rose from ** à *** between **** and ****.

For Afflelou's CEO, this trend is set to continue continue,due to the reimbursement reform (***). Afflelou stores are even expected to diversify into hearing care to offset this crisis. These trends in the optician market are likely to have a knock-on effect on the ...

1.5. Foreign trade

Although France is not among the world's top * exporters of sunglasses - Italy, China, Hong Kong, USA and Germany in descending order - it is nevertheless the *th biggest exporter in this market. In ****, the export values of the various countries are : uS$ *,*** million, US$ *,*** million, US$ *** million, US$ *** million, US$ *** million and US$ *** million for France [***].

Main sunglasses exporting countries World, ****, in millions of US$ Source: ****

In ****, French exports increased to *** million euros. Imports, however, were higher at *** million euros [***].

French trade balance in sunglasses by value France, ****, in millions of euros Source : Finance.gouv France's main customer countries are the United States, Italy, Singapore, Germany and Spain.

France's main customers in the sunglasses market France, ****, as % of total Source: Finances.gouv France's main supplier countries are Italy, which accounts for almost half of imports, followed by China and Taiwan, which account for almost a third and **% of imports respectively.

Main countries supplying sunglasses France, ****, in Source: ****

2.1 A demand that differs according to several criteria: price, model, brand

The **** business report of the Krys group reports on a number of behaviors of French consumers in relation to the act of purchasing eyewear:

The budget allocated to sunglasses varies greatly with age. For example, **-** year-olds have an average budget of ** euros, while the over-**s have a larger envelope equivalent to around *** euros.

On average, **% of those surveyed said they had a budget of less than ** eurosand **% had a budget of over *** euros. These budget allocations reflect a paradoxical situation insofar as the most popular brands are generally high-cost brands, or at least premium brands.these budget allocations reflect a paradoxical situation, insofar as the most popular brands are generally high-cost brands, or at least apply a premium on the standard price of eyewear, while the average budget allocated to the purchase of a pair of sunglasses is quite low, according to the Promise Consulting survey.

Breakdown of consumers owning non-corrective sunglasses by out-of-pocket expenditure France, ****, in Source: ****

We can see that price is a decisive criterion when it comes to choosing sunglasses, with over half of consumers budgeting less than €** for this purchase. Nevertheless, consumer attitudes are divided, with **% of consumers spending more than €*** on this purchase.

There ...

2.2 Consumer buying habits

First of all, among French people over **, only **% own a pair of sunglasses without correction, **% own a pair with correction, and **% own none at all.

Breakdown of French over-**s by sunglasses owned France, ****, in Source: ****

The non-corrective sunglasses market is characterized by frequent use of most pairs owned, and a significant proportion of customers own several pairs. On average, buyers of non-corrective sunglasses own *.* pairs and use *.* over a **-month period. It is worth noting that **% of consumers own two or more pairs, and **% use two or more pairs.

Among users of non-corrective sunglasses, while most (***), **% see them as a fashion or style accessory and **% as a health device to preserve their vision.

Poll: "How do you perceive sunglasses?" France, ****, in % Source : Gallileo There are over ** different buying channels for non-corrective sunglasses, and consumers have on average visited at least two different buying channels to make a purchase. The optician channel is the most popular, with **.*% of consumers having already bought non-corrective sunglasses from an optician, but **.*% of consumers have never bought sunglasses from an optician. Sporting goods chains and stores and the internet are the other two channels where more than one in five non-corrective sunglasses wearers have already ...

2.3 Demand is concentrated in certain regions

This graph compares the share of sunglasses sales by region with the share of the French population by region. It shows that some regions buy more sunglasses in proportion to their population. The Île-de-France and PACA regions account for a higher proportion of sunglasses sales than their share of the population (***). This may reflect a greater fashion effect, or a more urgent need to equip oneself to face the sun than in other regions.

Source: ****

3.1 An oligopolistic market

One of the special features of the sunglasses market is the unchallenged reign of licenses, which account for almost ** % of volumes sold, declining by * to *% to the benefit of designer frames.

Four major groups share more than a hundred sunglasses licenses:

EssilorLuxottica: EssilorLuxottica is a world leader in the design, manufacture and distribution of ophthalmic lenses, optical frames and sunglasses. Created in ****, the company brings together the complementary expertise of two players, the first in advanced lens technologies, the second in eyewear mastery.It achieved €**.* billion in sales in ****. Marchon: founded in the United States in ****, the group is now the second largest. It will achieve sales of $*.** billion in ****. Safilo: the world's third-largest eyewear manufacturer, with net sales of €*** million in ****. Marcolin: Italian Giovanni Marcolin founded his company in **** in Cadore, Veneto. Six years later, he opened a factory to manufacture his first pair of spectacles.

The optician market is made up of a number of different players:

Independent opticians who are not part of a branded network, representing nearly half of all outlets but generating less than **% of sales. They join a central purchasing group to benefit from competitive supply conditions. Cooperative groups, made up of opticians belonging to ...

3.2 The production process

The sunglasses value chain comprises * stages: design, manufacturing, logistics and distribution. A particular feature of the market and its production logic is the special role played by the licensing system.

The materials used

A wide variety of materials are used in the production of sunglasses, to a greater or lesser extent depending on the use to which the sunglasses will be put and the range chosen.

Sporty users of sunglasses will prefer resistant, lightweight frames that do not oxidize. Materials such as titanium are more flexible than most commonly used materials and are much lighter, offering a high weight/impact resistance ratio, as well as anti-oxidation qualities in contact with seawater or perspiration.

More modest budgets prefer more standardized materials such as plastic, which remains the most common on the sunglasses market, offering great freedom of texture, color and pattern, and can imitate other materials such as tortoiseshell.

More generally, aluminum is a material of choice in the sunglasses industry, thanks to its versatility, lightness and strength, as well as its insensitivity to oxidation. Carbon fiber is found in frames designed for long-term use, and also benefits from high shock-absorbing elasticity.

Riding the eco-friendly wave, new materials have become fashionable in ...

3.3 Distribution under the influence of a complex network

After examining French consumer habits in terms of non-corrective sunglasses, we're going to look at French consumer trends in the sunglasses market as a whole.

Online sales accounted for *% of sunglasses purchases in **** in France. For **% opticians, e-commerce is not a serious threat to their business. In terms of sunglass distribution, consumers are faced with a fragmented market in which competition remains strong, as opposed to a highly oligopolistic production market.

The eyewear distribution market can be broken down as follows:

Opticians: independent or franchised, they account for **% of sales according to Odoxa (***). Independent chains: sports stores, eyewear specialists, fashion stores, etc. They account for **% of sunglasses sales. Consumers also buy their eyewear over the Internet (***).

In general, where do you buy sunglasses for yourself? France, ****, % Source: ****

Increasingly, the distribution strategy of eyewear manufacturers is to acquire their own distribution network.this is what Luxottica has done in China, Australia and the United States, where it owns the leading optical chain, LensCraftersand the first sunglasses distribution chain, Sunglass Hut.

In France, where such a distribution strategy is not possible due to the contributions of the French mutual insurance system, eyewear manufacturers' distribution strategy focuses on :

Setting a minimum quota of glasses ...

3.4 Value chain

A possible value chain for the sunglasses market is described below:

Conception and design: Sunglasses manufacturers conceive and design frames and lenses according to fashion trends, technological advances and quality requirements. Manufacturing: Manufacturers produce sunglass frames and lenses on a large scale, using materials such as metal, plastic, wood or titanium. Marketing and promotion: Sunglasses brands promote their products to consumers through advertising campaigns, events, partnerships and collaborations with celebrities and influencers. Distribution: Sunglasses are sold through various distribution channels such as opticians, specialty stores, supermarkets, online sales sites, etc. Sales: Consumers buy sunglasses that meet their needs and aesthetic preferences. After-sales: Opticians and manufacturers offer after-sales services such as repairs, adjustments, exchanges or refunds in the event of problems with sunglasses.

3.5 Strategic market issues

Changing industrial strategies

The sunglasses market is undergoing changes in its industrial strategies, linked in particular to the optical industry. The licensing system that dominates the market means a loss of control over brand image for luxury groups and brands, while the high margins available in the sunglasses market are prompting groups to increasingly internalize sunglasses production.

Testifying to this need for restructuring, the luxury group Kering has terminated its licensing agreement with the manufacturer Safilo, with the aim of bringing sunglasses production in-house, and thus better controlling its costs and brand image. The Kering Group wishes to to develop "a new business model" enabling it to " fully control the value chain " of sunglasses for its ** brands.

From an industrial standpoint, the consolidation sought between lens and frame manufacturers is likely to give rise to new giants who will be manufacturers of both optics and sunglasses. the result will be a major shift in the competitive landscape, and new production structures likely to further reduce the costs and market power of the emerging new players.

This is particularly true when we look at the announced merger between Essilor and Luxottica in **** for around ** billion euros. The EssilorLuxottica group is the world ...

4.1 A highly diverse offering

There are several ranges of sunglasses on the market. First of all, sunglasses can be divided into two categories:

Sports sunglasses ; Sunglasses for the fashion market

Within each of these two categories, it is possible to distinguish several price ranges that can be schematically grouped into * groups:

Entry-level eyewear ; Standard eyewear; High-end/luxury eyewear.

Sports eyewear

Sports sunglasses are a real performance aid for sportsmen and women, whose technical selection criteria focus on the frame and sun lenses

There are multi-purpose sports frames and specialized frames for a single sport, with two essential criteria: comfort and fit on the nose. Frames are generally adapted to three types of sport:

High mountain sports (***): wrap-around frames with side-shields to block the sun's rays or block the wind, and straight temples; Endurance sports (***): lightweight, thin frames with non-slip textures and adjustable nosepieces for support. Frame ventilation requirements to prevent fogging; Water sports (***): soft, wraparound frames with good ventilation.

Daily-use sunglasses

According to a survey by The Good Lifeaccording to a survey by The Good Life magazine, the fastest-growing segments areentry-level and luxury products:

Entry-level products, generally priced between €** and €***, are dominated by brands such as Persol or Ray-Banbut also include brands such as Jimmy ...

4.2 The different eyewear ranges: a price determinant

The complexity and cost of eyewear frame production vary according to a number of factors, including the quality of the materials used.the complexity and price of spectacle frames vary according to a number of factors, such as the quality of the materials used, with top-of-the-range frames made from noble materials such as tortoise shell and titanium, and the technical nature of the frame's overall design, such as Mykita's screwless frames.

The transition from production to distribution is strategic. It enables eyewear manufacturers to make considerable margins. for example, while the factory-gate price for a Ray-Ban frame is €** to €**, the average retail price is €***.on average, which enables manufacturers to multiply their cost price by * or *, even if they pay royalties of ** to **% and marketing costs of * to *% for some. The average price of a sunglasses frame in France was €**.

In France, the price of sunglasses varies according to their specific features and range. They remain inexpensive compared with the market for aesthetic and fashion sunglasses. The price of sunglasses ranges from *€ per pair, and ***€ per pair:

The entry-level market consists mainly of sunglasses between €* and €** with basic features adapted to different sports, a market dominated by brands such as Quechua ...

4.3 A constantly adapting offering

The market for everyday sunglasses manages to reconcile technicality and style, but remains subject to fashion trends. For example, the use of natural materials is making a comeback in the sunwear industry, with seaweed, bamboo and paper being used in the manufacture of frames. There is also a trend towards transparency and bi-materials, as well as the use of color in eyewear design.

To illustrate the importance of fashion in the eyewear market, the SILMO Parisa major annual trade show for eyewear manufacturers, has teamed up with the Première Classe fashion accessories trade show.

Another trend in the sunglasses market is the return of Made in France brands to the public eye, with brands such as Alpine and Maison Bonnet which in **** was awarded the title of "Maitre d'art" by the French Minister of Culture.

More than just a fashion accessory, sunglasses must above all protect the wearer from UV rays. While this is not a problem for sports eyewear, it is more often overlooked in the choice and design of sunglasses as fashion accessories. There are four categories of UV protection, defined as the quality of filtration of harmful rays:

Source: ****

5. The DGCCRF framework

From a regulatory standpoint, the sunglasses market is subject to strict control by the DGCCRF. More than just an accessory, sunglasses are above all designed to protect the eyes from the impact of UV rays.

The DGCCRF requires pictograms to certify product conformity. In addition to the CE mark (***), the following warning: "Not suitable for driving and road users".

The protection class corresponding to the sun's filtering capacity must be indicated with or on each pair of glasses. According to standard NF EN ISO *****-* ****, concerning sunglasses for general use, published by the AFNOR group, there are five categories classified on a scale from * to *, according to the increasing percentage of light filtered:

Category * does not protect against solar UV, and is reserved for comfort and aesthetics; category * is associated with a cloud symbol; Categories * and * are suitable for attenuated and medium solar luminosity; category * is associated with the symbol of a cloud partially hiding the sun; category * is associated with a cloudless sun, with * rays; Only categories * or * are suitable for cases of strong or exceptional solar luminosity (***).

6. Company segmentation

• Optical Center
• Optic 2000
• Essilor Luxottica groupe
• Safilo Group
• Marchon
• Printemps Groupe
• Izipizi Paris
• Lunettes pour tous
• Sensee
• Marcolin (LVMH Groupe)
• Julbo
• Kering Eyewear
• Persol (Luxicotta group)
• Ray-Ban (EssilorLuxottica)
• Oakley
• Vuarnet (LVMH Groupe)
• Bolle Brands
• Evioo
• Experoptic
• Jimmy Fairly