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manufacturing in this space is gradually
emerging, accelerated investments remain
elusive, despite supportive government
policies. This lack of investment poses a
significant concern, particularly considering
the rising demand for optical products.
STRATEGIC PRIORITIES FOR 2025
AND BEYOND
and market penetration beyond metropolitan 1. Retail Optimisation: Retailers in the optical
areas. Retailers are expected to adopt strategies sector must prioritise prudent inventory
that balance immediate profitability with long- management and expand their market
term sustainability. reach with strategic investments in non-
metro cities.
OPPORTUNITIES AND CHALLENGES IN
THE OPTICAL INDUSTRY 2. Localised Manufacturing: Strengthening
India’s domestic manufacturing capabilities
The optical industry in India presents a unique in eyewear will require concerted
mix of challenges and opportunities. While efforts from industry stakeholders and
metropolitan areas are experiencing saturation government policymakers.
with a growing number of opticians and hospital 3. Consumer-Centric Strategies:
owned/franchised optical outlets, significant Understanding and adapting to shifting
untapped potential exists in targeting the 15–64 consumer preferences will be essential to
age demographic. This segment, especially the drive sustained growth in both luxury and
40–60 age group, constitutes approximately middle-class markets.
20–22% of the urban population in the top 20
cities – staggering market size. 4. Technological Innovation: Leveraging
technology for enhanced shopping
Moreover, the replacement cycle for experiences and supply chain efficiencies
spectacles has shortened, with advanced will provide a competitive edge.
purchases driving market evolution. In an
competitive environment the trend indicates As 2025 unfolds, the Indian economy
a need for strategic adjustments in inventory remains resilient, with opportunities to
management and free cash flow allocation for capitalise on its strengths while addressing
expansion. Middle-class consumers are poised systemic challenges. A balanced approach to
to become key growth drivers, with spending immediate hurdles and long-term goals will
patterns on spectacles showing shifts between be crucial for sustained growth.
frames and lenses while keeping the ticket size
the same over previous purchase. Opticians must AUTHOR:
focus and strike a good balance on optimising
working capital while building customer loyalty RAMACHANDRAN.
over the mid to long term. P (RAM)
ADDRESSING MACROECONOMIC Ramachandran
Parthasarathy is the
PRESSURES Honorary Advisor of
India Vision Institute,
The depreciation of the Indian Rupee by Fellow Institute of
3% over 2024, coupled with an inflation rate Directors and Eyewear
of 4.8% (as per RBI’s forecast), is likely to exert Business Strategy
upward pressure on prices. This is especially Expert, South Asia.
more relevant for the eyewear sector, which The views expressed
relies heavily on imports. While domestic above are personal.
REPORT | JAN-FEB 2025 | THE INDIAN OPTICIAN ̶ 41
