EaseVision.com – News and gossips of vision care and optical industry

During the past several years, Transitions has aired a huge amount of commercials and spent tens of millions on them. Ads from Transitions claim that its lenses can be clear indoor and dark outdoor. This is the major feature advocated by the firm. Some people are willing to accept it. People who are in and out constantly can actually benefit from these special lenses. In addition, Transitions pledges a refund to patients who are not satisfied with Transitions lenses. 

However, another fact is that the market share occupied by Transitions has remained at about 20% for quite a few years, without any increase. Transitions has never gained 30% to 40% of market share. Some customers have realized something fishy from the Transitions’s claim of refund. 

For those who do not move from inside to outside or vise versa constantly during daily lives, Transitions lenses are helpless. For example, some people just drive to work, sit inside an office most of a day and drive home in the afternoon. Those individuals can not gain any benefit from Transitions lenses’ features. 

What’s more importantly, a pair of Transitions lenses costs additionally more than $90. For those who can not take use of the benefits, the additional fee is meaningless. They can simply save the $90 by buying Rx eyeglasses. 

Currently, representatives of Transitions get low salary because the firm has less money to spend after the years’ vast advertisements. In addition, many patients are not aware of the features advocated by Transitions lenses. The company must realize why it can not gain more market share.

From: www.eyeoverheard.com

The market regulator Consob’s website showed that the Della Valle family bought a 2.06 percent stake in Gucci and Dior, which is a sunglass maker. This action brought Safilo’s shares up 34 percent, reaching 0.670 Euros, because signs showed that Della Valle was also interested in Safilo. Nearly 40% of Safilo’s stock is held by the family of Chairman Vittorio Tabacchi.

 Until now, the Diego Della Valle is reported to have gained just over 2% of Safilo stock, which is considered by some analyzers as “throw money down a bottomless hole”. The stake of Safilo gained by Della Valle was much probably offered by Hal Investments, which also held just 2 percent of Safilo. But currently there are no official comments from the Della Valle family and Netherlands-based Hal Investments. 

In fact, Safilo is a rival to the Italian eyewear firm Marcolin, about 40% stake of which is held by Diego Della Valle and his brother. Diego Della Valle is also the chairman of Tod’s, an Italian luxury shoe and bag maker. 

The action from Della Valle was deemed unwise because of Safilo’s stretched debt burden. Safilo had net debt burden of 592.1 million Euros at the end of June. There are detailed figures that describe the difficulty of the merger. Milan broker Intermonte said that the merger of Safilo and Marcolin needs a fresh capital injection of around 100 to 150 million Euros. What’s worse, Safilo’s private equity funds had collapsed in July. Since then, the company has been shoring up its balance and extending its debt payment with banks. 

On the other hand, there are also positive expectations from certain reports. Before the merger, analysts said that Marcolin could benefit from an alliance with Safilo, which was thought to be a strategically meaningful transaction. The strong licenses and retail network of Marcolin and Safilo could be combined to offer more support.

There are very few studies that are associated with the research of the difference between the cost of LASIK and the cost of wearing prescription eyeglasses and contact lenses lifelong. Recently, Davis Vision Center of Salt Lake City, UT conducted an in-house study focusing on this field. 

Most people in their 20s who have received a LASIK procedure can pay for the surgery within three years. Based on approximately industry-standard prices of vision correction and the average lifespan of 77.7, the study pointed out that a LASIK procedure can save up to $48,000 over lifetime.

 A LASIK costs an average $3,000 of surgery fee and annually $105 of eye exam fee. When it comes to prescription eyeglasses, sunglasses or contact lenses, the yearly cost is estimated to reach $1,004. For teens, choosing LASIK and eliminating eyewear is more economical in the long run. Except for economical benefits, LASIK also offers more convenience because it corrects vision problems permanently. 

The study from Davis Vision Center is an answer to an increasing number of inquires at the center from people who are considering LASIK and still not be clear of detail information of its costs. The information and conclusion released by Davis Vision Center grant customers a clear and trustful comparison of the cost of eyewear and the expense of LASIK procedure. 

In order to make customers to realize the long-term economic savings from LASIK procedure, the center also publishes a graphic, which visualizes the above information and makes these numbers easy for understanding. The graphic uses a wheel and table to list the ages of potential LASIK candidates and lifelong costs and savings. In this way, it offers a visualized comparison between the costs of LASIK and eyewear. 

The study and its information from the Davis Vision Center are helpful for certain patients who are still have doubt about LASIK procedure.

From: www.eyeoverheard.com

There was bad news about multi-purpose contact lens solutions. In Singapore, the ReNu MoistureLoc solution was for ever withdrawn after the outbreak of eye infections in 2006. In fact, multipurpose solutions (MPS) can also result in fungal contamination of the solution. According to a senior consultant ophthalmologist at the Singapore National Eye Center, the underlying cause is the multiple additives in these solutions. 

Eye care solutions are originally created to kill germs and bacteria. However, the strong agents in solutions may also damage the natural barrier function of corneal epithelial cells. The term used to describe the danger caused by MPS is cytotoxicity, which indicates the quality of being toxic to cells. Although cytotoxicity is reversible within a few days after the solutions are stopped, cell vitality can be decreased in the process of MPS use. 

Although more studies are needed to evaluate the long-term impact of MPS cytotoxicity, some brands of lens solutions are showed to be more harmful to corneal epithelium, which is the natural barrier of the corneal. There is already a study that has compared some brands of MPS, pointing out that the Alcon and Bausch & Lomb solutions are more cytotoxic than others such as the Complete Easy Rub solutions. 

Officials from Alcon and Bausch & Lomb fought back that the study was actually an in-vitro test and involved no actual lens wear. They argued that clinical results can not be predicted by in-vitro tests. Bausch & Lomb spokesman also pointed out that their products were assured by stringent quality control systems and approved by the US Food and Drug Administration. In addition, the study was funded by their competitors.

Despite those controversies, there is advisable ways to avoid potential risks of MPS. Some experts recommend saline solutions for lens rinsing after using MPS, which can remove preservatives found in MPS. Furthermore, contact lens solutions should be properly prescribed by lens practitioners.

From: www.eyeoverheard.com

According to the Orange County Business Journal, Scott Olivet has resigned from the CEO of Oakley, after four years of service in this position. Prior to Oakley, Olivet has served several companies. From 1998 to 2001, Olivet was the Senior Vice President of the Gap Inc.,  esponsible for the Gap, Banana Republic and Old Navy brands. After that, Olivet stayed as the Vice President of Nike Inc. until October 2005. In Nike, he led, developed and executed the firm’s multi-brand strategy. 

During the service as CEO of Oakley since 2005, Olivet helped broker the sale of Oakley to the Italian company Luxottica, which involved totally $2.1 billion. Initial signs after the sale showed that Oakley got manufacturing facilities from Luxottica, in order to further produce and market the Oakley brand. However, there is now negative result that Oakley has lost parts of influence in making notable products. Olivet has been accused of excessively following the boss, Luxottica. 

After the resignation, Olivet is still positive about his future. During an interview with the Orange County Business Journal, Olivet said he would keep good relationship with Oakley and Colin, who was president of the firm and serves as the new CEO now. Olivet also claims that he will also play a personal role in the development of Oakley. 

In fact, Olivet has started an investment concern involving apparel and other consumer companies. His possible roles include investor, active board member and executive. In addition, Olivet also maintains close relationship with Jim Jannard, the founder of Oakley. Olivet plans to contribute to a digital movie camera maker named Red Digital Cinema Camera, which is Jim’s latest venture.

As the retail parent of lensCrafter and Pearle Vision, Luxottica Retail has recently joined a boycott against the Glenn Beck program belonging to Fox News Channel. The campaign launched by ColorChange.org is to some extent a combination of political and commercial issues. 

All controversies originate from the attack against the US president Barack Obama by a Fox News Channel host several weeks ago. The host charged Obama with a racist that has a deep-seated hatred for white people. This subjective attack caused unpleasant reaction from the public, resulting in the current resistance to Beck. 

Before the entry of Luxottica, along with other five companies including Aegon, Ashley Furniture, Humana, United States Postal Service and Wyeth Consumer Healthcare, there are already 56 companies who have been in the campaign. Those companies include Airware Inc., Allergan (maker of Restasis), Ally Bank (a unit of GMAC Financial Services), Ancestry.com, Applebee’s, AT&T, Bank of America, Best Buy, Blaine Labs Inc., Broadview Security, Campbell Soup Company, ConAgra, Clorox, CVS, DirecTv, Ditech, The Elations Company etc. 

The only action advocated by ColorChange.org is to cut off or entirely pull back advertisements on Beck. Many firms have made formal contact with FOX through email. The Postal Service’s Advertising Department stopped its ads on Beck immediately when the issue occurred. Through email, Aegon and Ashley Furniture have also required Beck to remove its ads on the program. Other companies including Humana and Luxottica simply take a similar reaction through a phone conversation. Luxottica Retail takes a rapid action of pulling ads and claims that it has no plans to air more ads on Beck. 

Besides persuading other companies, ColorOfChange.org has still launched a signed petition among its members, which has attracted as many as 180,000 people. The petition aims at urging corporation to reduce advertisements on Beck.

Believe it or not, the online optical stores are booming. You can see from the hot group discussions in Ira’s GlassyEyes.com. According to my rough statistics, only ZenniOptical, the biggest online eyeglasses reatiler so far, takes about 2500 pairs of orders throughout the country EVERY DAY from their website, this is almost 1% of the total consumption of all the prescription eyeglasses in US (suppose the annual total sales of 75 million pairs).

No one can say 1% of the whole country’s business is small business! I remember about a month ago, Essilor called on all the ECPs in US to embrace the new technology to let part of their business online, or there will be further headaches.

CNET’s author Rich Broida wrote about Zenni earlier this year, is this good for country’s optical industry? Rich’s article is here: http://news.cnet.com/8301-13845_3-10219745-58.html

What do you think?

My thinking: being earlier aware of the matter, taking earlier action, the better!

The economic downturn is still squeezing the businesses of contact lens manufacturer Bausch & Lomb. Bausch & Lomb plans to stop the operation and production in its Livingston plant in Scotland, which will cause 500 jobs being lost. According to the plans of Bausch & Lomb, they will focus their production in Waterford Ireland and the plant in US. The decision states that the closure of  Scotland plant will ne done sometime between 2010 and early 2011.

The Bausch & Lomb decision has triggered the Scottish government to seek discussion with the company. John Swinney, the Scottish finance minister said the government is talking to senior management including CEO Geral M Ostrov. The company recognizes that the withdrawl of Scotland plant will cause tremendous influence on tis employees and their families, and promise to ensure that plant staff’s needs and concerns will be respected to the utmost possible level.

Bausch & Lomb will keep its Rochester (US) and Waterford (Ireland) plants which hold advantages over Livingston (Scotland) in cost and other major assesment criteria.

The Scotland plant used to be owned by Ron Hamilton, who was the founder of Daysoft. Bausch & Lomb purchased the plant in 1996 at the cost of 20 million British pounds. This former Daysoft founder expressed his apology in hearing that news of Bausch & Lomb closing the Livingston plant. He stated that, Bausch & Lomb, just like other struggling optical giants in this downturn crisis, is forced to take the unwilling action of withdrawl.

Asos Chicos

In USA, statistics about Eye Care Professionals are as follow.

According to the Dept of Labor, as of May 2004, there are about 17000 ophthalmologists, 66000 opticians in the United States. As of 2007, there are 35000 optometrists who are the members of American Optometric Association.

Among the 66000 opticians, which is the biggest group within the ECPs, about 33% working on the optical chain store like Pearle Vision and LensCrafters, 30% working in the optometrist’s offices, 10% in the ophthalmologists’ offices and about 6% working on their own independent business, and the balance 21% working in the optical dept of the dept stores, superstores, warehouse club, and general merchandise stores.

Based on the survey conducted by VisionWatch in 2006, the lenses sold throughout US with the following composition: about 51% of the lenses are the basic single vision lenses, for either distance or reading purpose, 26.7% of the lenses are progressive lenses for people over 40, 22.5% of the lenses are the bifocal or multifocal lenses which is also for older people.

For the tricky add-ons, 22% of patients choose AR coating (Anti-reflective coating), 14% of the eyeglasses wearers select photochromic lenses which automatically darkens in the outdoor, which are refered as prescription sunglasses.

Asos Chicos

It is reported that Abbott Laboratories is going to take another action to make an acquisition. The California-based eye-care device company named Visiogen Inc. will be sold in cash. Abbott buys Visiogen for business reasons.

Currently, the market of eye surgery devices and technology is estimated to be $20 billion in international sales every year. Abbott has clearly foreseen the potentially huge profit, so that its latest move targets at Visiogen, which specializes in developing vision devices for cataracts patients.

As the executive vice president of Abbott’s medical devices business, John Capek also expresses good confidence in this acquisition that Visiogen’s accommodating lens technology used to treat cataracts will improve Abbott’s ability in treating refractive visual errors. With Abbot’s new products, ophthalmologists can offer a wider variety of refractive options for their patients.

In fact, this is not the only acquisitive action in Abbott. The firm has just acquired Advanced Medical Optics earlier this year, which is a firm manufacturing eye surgery care equipments. This earlier acquisition directly cost Abbott more than $ 1.3 billion. Within such a short period after a great acquisition, Abbott is now planning to purchase Visiogen.

All of these moves show Abbott’s long-term view and confidence in the vision care and technology industry. The promising company aims at improving the living standards of the millions in the world by creating and innovating visual technologies.

Asos Chicos