In The Press

Rag Trader, 17/11/06

Optical etailer starts price war
By Melissa Gulbin

Start-up brand GlassesOnline has shone the spotlight on optical retailers, illuminating overblown price points by slashing the price of designer eyewear.

Operating since last February, GlassesOnline last month moved into the territorial arena of designer brand retailing, scoring exclusive online distribution deals with high-profile brands Timberland, French Connection, CAT and Replay.

Designer glasses can be purchased through GlassesOnline for $195 compared to the average $330 asked by optometrist chains.

Managing Director Kevin Reece said the prices set for designer brands by the bricks-and-mortar optics chains were “unjustified for the consumer”.

“The actual glasses don’t cost that much. It’s the shops that keep the prices high,” he said.

Reece said he had found a way to curtail the overblown costs of optometrist equipment, staff, rent and showrooms, which kept retail prices high.

“If you need an eye test, they are free through Medicare every two years. Then you can log onto our website, select your frames and lens options and fill in the details of your prescription. That way you can save up to $140.”

Reece said the company was looking to expand its offer of designer brands, revealing he was currently in "discussions” with a number of suppliers - with one notable exception.

"I can tell you who we're not talking to - that's Luxottica," said Reece. He claimed that Luxottica, the verticals-integrated giant that wholesales luxury glasses brands and owns chains OPSM and Sunglass Hut, had a stranglehold on the designer brand market.

"We have approached them but they don't want to know. It's a pity because consumers won't be able to get great discounts on brand like Ray Ban and DKNY," Reece said.

Currently GlassesOnline sells 400 pairs of prescription glasses online per month through word-of-mouth. However, Reece said the company was looking to up the ante through online advertising and rewards programs with credit cards.

“Our goal is to be the first place people look when buying glasses so there's a long way to go but the potential is definitely there.”

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