Market Insights: COVID-19 impact on optical business investment, cash flow and consumer behavior

The Vision Council serves as a leading resource for the most comprehensive optical industry research, fielding surveys on a regular basis to monitor attitudes and behaviors among consumers, industry member companies and eyecare professionals. Below is a snapshot of compelling data from the research team’s recent studies.

ECPs are delaying purchases, reducing current spending, and limiting investment in their businesses

The ongoing financial strain that the COVID-19 crisis has inflicted on the optical industry is evident as the majority of optical business owners report delaying planned purchases, reducing spending, and holding back from making investments that they would otherwise make in their businesses.

Nearly 75% of owners report that their businesses are currently experiencing a significant drop in income, and 66% anticipate a significant drop in their business income in the next 6-12 months. However, given that level of overall financial hardship, less than 15% of owners believe that is likely or uncertain that they will have to file for bankruptcy in the next 6 months.

Q: Please indicate how strongly you agree or disagree with each of the following statements. Source: The Vision Council COVID-19 ECP Panel Study, 6/1–6/6/2020, n = 137

Majority of ECPs report that their current cash flow will last 6 months or less

In recent surveys, the majority of ECPs (64%) report that their current cash flow will last 6 months or less. However, that percentage has been declining over the last few weeks from a high of 74% during the middle of May.

Q: How long do you anticipate your current cash flow to last? Source: The Vision Council COVID-19 ECP Panel Study; 5/18–5/24, n = 188; 5/25–5/31/2020, n = 163; 6/1–6/6/2020, n = 132

Consumer concern and eyewear purchase behavior in response to COVID-19 leveling out

While the overall level of concern about COVID-19 among consumers was on a steady decline through the month of April, consumer concern plateaued during May and even ticked up slightly in recent surveys. This could be driven by a fear of a second wave or the establishing of a new baseline of overall consumer concern about COVID-19.

Additionally, the percentage of consumers reporting that they will postpone or cancel eyewear purchases in response to COVID-19 has correspondingly leveled out during the same period at around 20%.

1Q: On a scale of 1-10 how concerned are you over the recent global coronavirus threat and outbreak? (Sum of 8, 9, 10 responses shown) 2Q: If you need new eyeglasses or contact lenses while coronavirus is still a threat, which of the following actions are you likely to take? (Sum of Postpone or Cancel responses shown) Source: The Vision Council VisionWatch COVID-19 US Consumer Study, 3/16–6/14/2020, n = 31,776

New Q1 2020 Market Research Report Available for Download

The Vision Council’s first quarter 2020 market research reports are now available for download. Reports include:

  • Consumer Barometer Report
  • Over-the-Counter Readers Index Report
  • Plano Sunglasses Index Report
  • Up to $30 Plano Sunglasses Index Report
  • VisionWatch Report Card
  • Market Analysis Report
  • Vision Care Market Quarterly Overview
  • Canada Market Overview

These reports contain top-line and demographic data on the prescription lens, ophthalmic frame, Plano sunglass and over-the-counter (OTC) readers markets, including data on aggregate unit and dollar sales.

Click here to download the reports. Select “2020” in the Year Equals drop-down to find the Q1 2020 reports.

From consumer opinions to optical market reports, The Vision Council offers hundreds of industry studies for free to members as well as exclusive access to custom research projects. To learn more about how industry research and analysis can drive your business forward, contact Nathan Troxell at ntroxell@thevisioncouncil.org.

 

Categories
Optical Market Data/Industry Research
Divisions
Sunglass & Reader Division
Lens Division
Lab Division
Lens Processing Technology Division
Low Vision Division
Optical Retail Division
Eyewear & Accessories Division