As Hong Kong people's enthusiasm for spending in mainland China continues to grow, particularly in the area of eyewear fitting, Shenzhen's eyewear market has consequently flourished. Faced with this wave of people heading north to get glasses, Ben Cheng, Executive Director & Co-CEO of Hong Kong's large optical retail chain Optical 88 Group, stated that eyewear shops in Shenzhen are experiencing fierce market competition, leading to compressed profit margins in the industry. However, he emphasized that Hong Kong's optical industry must seek innovation and transformation to meet the challenge.
In Hong Kong, the price for a pair of progressive lenses typically ranges from a thousand to several thousand Hong Kong dollars, whereas in Shenzhen, the price for progressive lenses can be as low as a few hundred yuan (RMB). This price difference attracts many Hong Kongers to get their glasses in Shenzhen, especially as some eyewear shops in Shenzhen not only offer glasses at preferential prices but also provide free eye examinations and same-day pickup services.
Ben noted that although the price appeal leads many Hong Kongers to choose to get glasses in Shenzhen, with the intensifying market competition, many Shenzhen eyewear shops are also facing operational pressures, forcing some stores to raise prices or close down.
Return of 40-50 year age group
Ben observed that Hong Kongers who previously went north for glasses, particularly consumers in their 40s and 50s, are beginning to return to the Hong Kong market. These consumers require more technical support when wearing progressive lenses, and the follow-up services of some same-day glasses services in Shenzhen have certain limitations.
As mainland eyewear shops often pre-prepare a large number of lenses with different prescriptions and use a "matching" method based on the customer's eye examination results to meet the demand for same-day glasses pickup, they may be somewhat lacking in providing personalized services. It is worth noting that fitting progressive lenses requires precise measurement data, and the fitting technology is relatively complex. Some Hong Kongers who had progressive lenses fitted in Shenzhen reported various wearing issues, ultimately switching back to Hong Kong to have their glasses re-fitted.
Furthermore, recent reports indicate that some Hong Kong citizens experienced eye discomfort shortly after getting glasses in mainland China. Regarding this, Ben said, "Optical 88 branches in Sheung Shui, Fan Ling, Yuen Long, and Tuen Mun, among others, have recently received many citizens who experienced discomfort after getting glasses up north, coming for examinations and to re-fit their lenses. Although we haven't conducted detailed statistics on this type of returning customer, the number is indeed significant."
Future development in three major areas
Although the current local economic environment is relatively difficult, Ben optimistically stated that the optical retail industry is beginning to see the dawn. He also believes that the upgrade and transformation of the optical retail industry is an inevitable trend. Now, Optical 88 is no longer just a brand that sells glasses but is committed to providing comprehensive eye and hearing services. For example, it has established 4 professional eye care centers, 3 ophthalmic medical centers, and 9 hearing care centers.
Ben emphasized that these investments are not purely for profit but are hoped to allow customers to enjoy more professional and attentive services. "We invested significant funds and time to establish eye care centers, ophthalmic medical centers, and hearing care centers. This is a huge investment for a private company. Our goal is to hope that citizens can receive reports and assessment results immediately after examinations at the eye care centers or hearing care centers, enabling early follow-up treatment, achieving truly one-stop service."
Capturing opportunity of smart glasses
Currently, Optical 88 has set up smart glasses experience zones in 19 branches, allowing customers to personally experience the functions of smart glasses. Ben believes that smart glasses will become an important direction in the future. Products can integrate smartphone functions, support music playback, photography, instant translation, real-time information display, navigation, and other functions, and are expected to become an epoch-making technological product.
"AI glasses are designed with sensors, microphones, and micro-displays. Through Augmented Reality (AR) or Mixed Reality (MR) technology, they can display virtual content in the wearer's real-world field of view and support functions like voice control and gesture recognition." He stated that these technologies sound very advanced, but regarding personal privacy protection, it is still necessary to closely monitor relevant regulations to ensure their application in different life scenarios.
"Simply competing on price doesn't work"
In the 1990s, Hong Kong's optical retail industry peaked, with various brands spread across Hong Kong, competition was exceptionally fierce, and the number of optical retail stores in Hong Kong reached over one thousand to two thousand. However, over time, the number of optical retail stores in Hong Kong has now over nine hundred.
Ben said that Hong Kong's optical industry experienced a period of intense competition before, where some optical chains relied solely on price wars to attract customers, a situation similar to eyewear shops in the mainland today, ultimately leading to severe "involution," with many stores consequently unable to continue operating and closing down.
Regarding the prospects of the optical retail industry, Ben believes that Hong Kong's overall economic recovery is slow, different from the prosperous economic periods of the past. The frequency at which consumers replace their glasses may lengthen. In the past, consumers typically replaced their glasses every two or three years, or even bought multiple pairs to match outfits. However, in the current economic environment, consumers might consider when to replace their glasses more cautiously.
Challenges of summer peak season
The summer holiday is usually the peak season for the optical retail industry, but Ben pointed out that this year's retail growth is only rising slowly. He believes the annual growth in optical retail will face challenges because economic performance has not yet shown significant improvement. Although the current market situation is not good, Ben stated that Optical 88 has already seen a glimmer of hope and continues to work hard, providing reasonably priced, high-quality products and services to adapt to market changes.
Ben added that currently, Hong Kong's economy has not fully recovered, and the price of glasses has shown a downward trend. "Consumer confidence has not yet rebounded at present, and citizens are more cautious in their spending, but I believe this situation will not last long."
(Source: Wen Wei Po; Journalist: CK Hong; English Editor: Darius)
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