Pentax 2007 Annual Report Download - page 18

16
China ●Shanghai
3 stores
●Kyushu district
16 stores
●Tokai-Chubu district
14 stores
●Kanto district 66 stores
●Hokkaido-Tohoku district
10 stores
●Koshinetsu-Hokuriku district
7 stores
●Kansai-Chugoku-Shikoku district 40 stores
Health Care Division
Eyeglass Lenses
Vision Care Division
Japanese Market Poised to Recover Following
Introduction of New Products
The Japanese market remains somewhat sluggish. Hoya
experienced growth in its high-value-added, high-end products,
mostly in top performance coatings and newly designed
progressive lenses. However, as a result of price competition in
the lower price brackets, the company’s total sales in Japan
remained practically flat year-on-year. Nonetheless, following the
November 2006 introduction of the Hoyalux FD lens series and
the series of seminars held in support of this new release, Hoya
saw a return to positive figures in overall sales growth for
eyeglass lenses in the beginning of 2007. The company
anticipates that the new series will continue to contribute to
sales growth.
Strong Brand Recognition in European and Russian
Markets
Sales in Hoya’s European markets continued to show extremely
strong growth, in a repeat of last year’s good performance. The
best-performing product was the Hoyalux iD. Following the
Japanese release, the European Hoyalux FD brand, known as
Hoyalux iD LifeStyle, was introduced in Germany in February
2007, then successively in other countries. Research in European
and Russian markets focusing on retail stores selling both Hoya
and competing products revealed that Hoya was on top in both
quality and cost performance, showing that Hoya’s brand
reputation is extremely high in those markets. To capitalize on
these favorable conditions and lock in further growth, in 2006
Hoya launched the “Hoya Vision Care Center,” a training and
sales support tool used in retail stores for patient consultation and
to simulate eyeglasses on a PC. Hoya will invest additional funds
in its HOYALOG on-line ordering system, which directly links retail
stores to its make-to-order factories. This will enable its HELP
system to adjust lens geometry even more precisely, and it further
enhance the convenience of the HOTS (Hoya Open Tracer
System), which is a measurement system used for cutting lenses
to fit a wide variety of frames.
Strong Expectations from the North American Market
In comparison with the Japanese and European markets, Hoya’s
high-value-added eyeglass products still have low rates of
penetration in North America. Imports of low cost goods continue
to rise there, as well, another factor that makes this market
difficult to navigate in terms of Hoya’s business development.
Despite that, however, in the fiscal year ended March 31, 2007,
Hoya achieved sales growth of over 10% compared to the
previous year thanks to a sales expansion strategy targeting
distributors and retail chains. A further boost was provided by the
trend toward stronger demand for high-value-added and highly
functional eyeglasses—Hoya’s particular strengths—from the
baby boom generation, which has now entered the key consumer
age bracket.
Hoya Pursues Larger Share of Asia-Pacific Market with
Multi-branding Strategy
In the fiscal year ended March 31, 2007, sales growth in the Asian
market slowed from the fast pace of growth a year earlier. This
can be attributed to intensifying competition in Korea, which
accounts for a high percentage of Hoya’s sales in the Asia-Pacific
market, and in China, which is set to become a huge new sales
base. Until recently Hoya had been developing its markets
concentrating on its high-value-added products. However, in the
Asian region its strategy includes both the introduction of a new
brand aimed at promoting progressive lenses and the launch of a
new single vision, low-cost lens brand which will combat the
growing market share of low-cost Chinese-made products. This
Asia-Pacific strategy allows the company to meet the needs of a
wide variety of consumers, with a broad range of products offered
across all price brackets. In Australia, on the other hand, Hoya has
teamed up with the U.S. firm Transitions Optical, Inc. to sell
Transitions® light-sensitive lenses which cut ultraviolet light
transmission, further promoting high added value in its product
lineup in that country.
Planning a Global Educational Campaign on Hoya’s
Outstanding Lens Technology
Hoya’s iD FreeForm Design TechnologyTM , integrated
double-surface progressive lens design, is used in its Hoyalux iD
and Hoyalux iD LifeStyle lenses. Lenses made with this
technology are polished to a high degree of accuracy on both lens
surfaces. Making the most of Hoya’s world-first proprietary
technology, they offer a wide field of view and greatly reduce
curvature and distortion. To ensure that this superior technology
appeals effectively to latent consumer needs and thereby
improves Hoya’s sales results, the company is now developing a
global campaign that will clearly convey its benefits to both
consumers and sales agencies.
Japan
Supported by Hoya’s iD FreeForm Design TechnologyTM, Hoyalux iD
LifeStyle guarantees a wide intermediate segment and minimal distortion.
Taking as a basis the natural eyeball rotation, Hoyalux iD LifeStyle
guarantees an extremely natural progression.