Business environment

The global eyewear market is expected to grow annually by mid-to-high single digits in the period 2015 - 2020. Market growth is driven by a number of demographic trends as well as key product and market trends, in both mature and emerging markets. Given that eye care is a basic need for so many people around the world, the optical retail sector is also known to be comparatively resilient to macroeconomic trends and characterized by steady repurchase cycles.

Retail competition is generally on a national level and is driven by local competitors and local banners, which are easily identifiable for consumers in those markets. GrandVision operates the largest global network of optical retail stores.

National competition is generally characterized by a high degree of fragmentation with a large portion of market share still held by independent retailers. This is primarily due to traditionally high levels of regulation and subsidization in local eyewear markets which tend to protect smaller but also less efficient players. The market share held by independents differs by country but remains above 50% in most of GrandVision’s markets even though it is generally decreasing over time.

There are many regional and national optical retail chains, but only a few multi-country and even less truly international chains.

With its leading market position, size, global presence, and advanced capabilities, GrandVision is well positioned to tap the growth potential of its markets, by responding to the favorable trends. These trends include: