Annual Report 2017

Business environment

The global eyewear market is expected to grow by approximately 5% each year over the next five years. Among the major trends driving the expansion of the global consumer base are increased consumer awareness about eye health, higher levels of disposable income and population ageing. Consumer lifestyles also play a role, with digitalization causing ever more people to spend more time in front of digital devices that can strain their eyesight. These trends are also creating alternative revenue streams for eyecare providers, with an increasing number of marketing campaigns stressing the importance of prevention.

The optical retail sector is relatively resilient and is characterized by steady repurchase cycles over the span of one year. At a national level, retail competition is generally characterized by local competitors and easily identifiable banners. The optical retail market remains highly fragmented with a large share in the hands of independent retailers. This is typically due to history or local market regulations and subsidies that tend to protect smaller but less efficient eyewear market players. While market share held by independents

differs by country, it generally remains above 50% in most of GrandVision’s markets although this is gradually decreasing over time. There are also many regional and national optical retail chains, but only a few multi-country chains and even fewer that are truly international. With its leading market position, size, global presence, and advanced capabilities, GrandVision is well positioned to continue tapping the growth potential of its markets and reaping the benefits of the following favorable long-term trends.