Infusing Technology to transcend the eyewear industry!

(Note: This content  is a 7-min read)

TLDR: The eyewear industry has changed a lot in the past couple of decades. However, eyewear retailers in Malaysia continue to experience many issues upon ordering branded or high-end optical products. Our upcoming Ata Plus’ issuer takes the first step in digital transformation to ensure the industry can sustain itself and confirm productivity in the future. As the eyewear industry continues to grow bigger, we believe that this is a good opportunity for investors to participate in equity crowdfunding and be a part of transcending technological innovation.

Eyewear hasn’t always been what it is today. Prescription glasses were seen as a huge burden while sunglasses were a luxury – the average person didn’t care to own one nor couldn’t afford the other. Contact lenses were almost unheard of, and laser eye surgery was something that you only hear in movies rather than experience in real life. However, it wasn’t all bad. Eyewear has typically been a very profitable industry, with a captured audience and markups of 100% not uncommon. It is, perhaps, no wonder that Mary Perkins – the co-founder of Specsavers – is Britain’s first self-made female billionaire.

The traditional business model for the eyewear retailers

Traditionally, eyewear retailers experience many issues, especially small retail shops. In Malaysia, there has been a limited source of supply – with major distributors preferring to have just a few major accounts instead of many small retailers. Besides that, small retailers also have to bear a higher cost per unit due to the small order quantity and also higher deposits and shorter terms. Bigger brands tend to have a minimum order quantity which further decreases the range of products in their stores. 

How technology can improve the current market

However, this is slowly changing. Most of the industries around the world are changing mainly due to technological advancement and innovations that we have seen in the past 2 decades. The rise of machines and automation helps digitalise manufacturing/production and related industries and value creation processes. This phenomenon is called the fourth industrial revolution or Industry 4.0.  

Source: Industry 4.0 and the fourth industrial revolution explained

An upcoming ATA Plus issuer, Simson Wellness Sdn Bhd is taking the first step towards the digital transformation in the Malaysian as well as ASEAN eyewear industry. They plan to solve many of the issues mentioned above. With their 30 years of experience in the industry, they will be fundraising for a platform that will make sure that all retailers can be able to go online to secure optical products from manufacturers/distributors without going through tedious processes and most importantly able to obtain a wide range of varieties at competitive prices without restrictions. 

Using this platform, they can standardise ordering and delivery procedures while also providing easy and systematic stock ordering requirements via the online platform where retailers can select what to purchase without the need for a minimum order quantity. Cost price is also fixed which makes purchasing more convenient for these small retailers. As for manufacturers/distributors registered with them, they can list their goods and also their sale services.

Why should you invest in the eyewear industry?

Source: Statista – global eyewear market value

We believe that this is a great opportunity for investors since the industry is growing rapidly. In 2020, the value of the eyewear market was approximately 139.9 billion US dollars. This figure was forecast to reach a value of 197.2 billion U.S. dollars by 2027. The United States was the leading eyewear market in the world as of 2019. Eyewear revenues in the United States are triple the size of those in France, which is the next biggest market. Vision Source and Luxottica were the leading optical retailers in the United States as of 2018. Luxottica is not only one of the largest eyewear companies in the United States but worldwide. The eyewear brands of Ray-Ban, Persol, and Oakley are part of Luxottica’s brand portfolio.

The future of the eyewear industry 

Looking ahead, the rising popularity of Augmented Reality can push the boundaries of the optical industry. Soon, we can live using futuristic glasses that can show us the news or tell us our schedule for the day. Just like how Mr Stark from Iron Man uses these innovations to make him more productive, we can take inspiration from these sorts of films and turn them into reality. 

Despite Augmented Reality glasses still being far from the technology in those films, we can see a great market opportunity for eyewear manufacturers to jump in. Recently, Ray-Ban has partnered with Facebook to develop a product called Ray-Ban Stories which can capture photos and video, share your adventures and listen to music or take phone calls — so you can stay present with friends, family and the world around you. 

Nonetheless, as previously mentioned, the technology is still in its early stages. There are security issues that may arise from the ability to discreetly record and photograph a person. While you can get some nice footage of your child smiling at you through them, many people are still not comfortable with wearing them in public. I certainly don’t want to put myself in the position of having to explain to a nervous stranger that actually, it’s OK that I’m pointing two cameras at them and it will not randomly record – even though I can’t say for certain that it isn’t. 

The optical industry can certainly grow to new heights when new technologies such as AR begin to mature. As digital transformation changes the landscape of the business, we can see a more efficient process in the future with more programmes and robots that manage stock and remove many tedious processes. Hence, Ata Plus, Equity Crowdfunding Platform in Malaysia’s upcoming issuer would be an exciting prospect. Simson Wellness Sdn Bhd, who currently have two-thirds of the Malaysian eyewear market share and is already one of the big players in the industry look to widen the gap even bigger with their vision and forward thinking. They will be using technology to enhance the connectivity within their ecosystem and serve their clients better. They also aim to go for listing in the US capital Market! Stay tuned or visit Ata Plus’ website to learn more about them!