Los Angeles, CA (PRWEB) August 25, 2013
In 2003, Congress passed the Fairness to Contact Lens Consumers Act, which allowed consumers to purchase contact lenses separate from eye exams. According to IBISWorld Industry analyst Nikoleta Panteva, “since then, the Online Eyeglasses and Contact Lens Sales industry has experienced rapid growth”. Supported by a rising number of households with broadband access and the development of secure payment methods, consumers increasingly spend their money online, including on eyeglasses and contact lenses. Furthermore, consumer demand for convenient at-home shopping and affordable online eyeglasses and contact lenses has also driven up industry demand. To this end, IBISWorld estimates that revenue will increase at an average annual rate of 8.1% to $7.8 billion in the five years to 2013, with a 9.4% jump in 2013. During the recession, consumers out off discretionary eyewear purchases, opting instead for lower priced necessities. Since then, consumer discretionary spending has picked up, supporting revenue growth.
Over the five years to 2018, the industry will continue to grow. The economic recovery will drive industry demand, since it will allow consumers to upgrade their prescriptions and buy corrective lenses. Expenditure on high-end luxury eyewear is also expected to resume as consumers regain confidence. “However, the industry will continue to face challenges from internal and external competition, and a move to collect sales tax for online retailers will threaten growth”, says Panteva.
The Online Eyeglasses and Contact Lens Sales industry exhibits low market share concentration. While large players like 1-800-Contacts have experienced expanding market share over the past five years, a slew of new industry participants has diluted market share concentration over the five years to 2013. New entrants find the low overhead and wage costs easy to handle and revenue opportunities attractive. As such, over the past five years, the number of industry players has increased, reducing the average market share.
For more information, visit IBISWorld’s Online Eyeglasses and Contact Lens Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells optical and eyewear goods over the internet. Merchandise is generally purchased from domestic (in some cases international) manufacturers and wholesalers, and it is then sold to the public.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.