Pentax 2008 Annual Report Download - page 21

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Hoya Market Share Rising Thanks to Growing Brand
Awareness
Until fiscal 2008, Hoya had enjoyed several years of sales growth in
Europe, but consumer demand in this market slackened in fiscal
2008. To be specific, the market for eyeglasses decelerated sharply
in the third quarter. We addressed this situation by building the
Hoya brand through such efforts as offering IT tools, training
personnel at eyeglass retail stores and developing aggressive
marketing strategies. Through these efforts, we increased sales of
Hoyalux iD Lifestyle*2 lenses, as well as lenses that incorporate
Hoya’s proprietary double-surface
progressive lens design.
To maintain this momentum, we
will strengthen our services for retail
stores, thereby enhancing the Hoya
brand.
Cultivating Sales Channels and Aggressively
Developing Our Brand Strategy
In fiscal 2008, this market endured issues related to the subprime
loan crisis and rising unemployment, which affected all aspects of
consumer spending. Although we have not placed a high priority
on the North American market until now, we have steadily
expanded these operations since our acquisition of local eyeglass
lens processing and sales companies in fiscal 2001. Regulatory
requirements and stiff competition are more challenging than in
other markets, but we are steadily enhancing our market presence
by cultivating sales channels and building our brand.
In the United States, the baby
boom generation is nearing
retirement and increasingly needs
Hoya’s high-performance lenses.
We plan to introduce products to
take advantage of this need, thus
boosting our North American
business onto a growth trajectory.
Our Keys to Growth
Hoya is developing businesses in Brazil, Russia, India and China
(BRICs), which have growing populations and robust economies.
Russia and Eastern Europe are particularly noteworthy for the
rising number of people who can afford quality eyewear. For
example, Hoya’s business in Russia doubled during the past year,
and demand for high-end eyeglass lenses is rocketing in Poland,
Hungary and Rumania.
China is also achieving rapid economic growth, but most of its
consumers remain unaware of the advantages of multifocal
lenses. In this market, only about 1% of the people who need
multifocal lenses wear them, but demand for high-value-added
eyeglasses is expected to grow in line with economic expansion
and as the value of these lenses are better understood. Hoya plans
to secure a major share of this tremendous market.
India’s GDP has grown sharply over the past several years, and
the number of educated, middle-class people who can purchase
quality eyewear has risen accordingly. In fiscal 2007, we
established a local subsidiary in Mumbai, which is our base for
expansion.
Although Hoya’s eyeglass lens business has aggressively
expanded its global operations, its global market share lags its
business in Japan.
Our first priority for the coming years is to bolster our global
presence by cultivating the BRIC markets. As part of this strategy,
we expect to take full advantage of opportunities to expand our
business via local acquisitions. We believe the BRIC markets have
great potential and expect to derive 80% of our growth from
these emerging markets.
Hoya is also making plans for the future investment in South
America and other areas where we have no direct investments at
present.
*1 FreeForm design technology: Created by using Hoya’s design and processing
technologies, these lenses feature aspheric surfaces customized to ensure optimal
performance tailored to each customer’s order.
*2 Hoyalux FD (in Japan)/ Hoyalux iD Lifestyle (in Europe): These reasonably priced
progressive lenses have the standardized design aspects of the superior Hoyalux iD
lenses (See *3) so that more customers can experience the benefits of Hoyalux iD.
*3 Hoyalux iD: These double-surface progressive lenses are fully customized to
provide clear near and far vision.
Europe
North America
Brazil, Russia, India and China
HOYA ANNUAL REPORT 2008 19