PERTH’S eyewear industry players are keeping a close watch on the outcome of a widely anticipated plan by Italian giant Luxottica to take over OPSM, with some preparing for an industry shake-up if the sale goes through.
PERTH’S eyewear industry players are keeping a close watch on the outcome of a widely anticipated plan by Italian giant Luxottica to take over OPSM, with some preparing for an industry shake-up if the sale goes through.
Major Western Australia eyewear seller Just Spectacles is rumoured to be a takeover target after the OPSM deal is concluded. In fact, many industry insiders had expected it to fall to OPSM some time ago.
The Sydney-based Australian eyewear giant went on a buying spree over the past two years, adding Laubman and Pank and Budget Eyewear (trading in Western Australia as Vision Plus) to its stable.
Just Spectacles director Paul Hyde said he had heard the industry rumours about OPSM buying the business but nothing had come of it.
His company has the highest advertising spend of any of the eyewear players in the WA market – outdoing nearest rival OPSM by about $400,000 over the 15 months to March, according to advertising industry research.
Mr Hyde said he and managing director Greg Hyde had never intended to build the business up for a buyout.
“But if it happened, that would be something else entirely,” he said.
The Luxottica offer for OPSM is not expected to be made formally until the end of May.
Luxottica is one of the world’s largest frame manufacturers and local players are concerned that it will follow a policy of removing products from competing frame manufacturers when it takes over another company and also limiting its brands to OPSM stores.
The company counts Giorgio Armani frames, Ray Ban sunglasses and the Sunglass Hut retail outlets among its brands.
OPSM is thought to be the largest player in the Australian eyewear market, with some researchers putting its market share at 42 per cent.
Special Eyes director Simon Hogan said the takeover was likely to have little effect on retailers in the short-term but would have a big effect on the wholesalers.
“In the medium to long-term it could hit us as all of the stock in the OPSM stores changes over to Luxottica,” he said.
“From a retail point of view the competition will not be a bad thing.
“And they [Luxottica] are still only one of the frame manufacturers out there.”
Distributor Carol Saville said independent optometrists could benefit if Luxottica limited its range of frames and eyewear to OPSM and Luxottica-owned outlets.
“The independents can use that as a marketing ploy and a point of differentiation,” she said.
“However, the wholesalers are going to miss out on the OPSM market.”
Aviva Optical Supplies owner Viv Murray, whose business is one of the few wholesalers in the WA market, said she was glad it had moved away from selling frames.
“I think anywhere where a company has such a huge hold over the market it will have an impact,” she said. “I’m not sure how the independent optical people will cope.”
Ms Murray said independents could seek other frame suppliers but they could still lose business if customers wanted the brands made by Luxottica.
Optometrists are concerned that the hype over the Luxottica takeover will also take the focus off the health service they provide.
Optometrists Association councillor Gary Criere said that the difficulty for optometrists was that their charges were regulated by the Federal Government.
“Therefore, part of our income has to come from the sale of spectacles,” he said.
“As an optometrist I got into the business to take care of people’s eye health.”
Luxottica representatives could not be contacted for comment.
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