Pentax 2009 Annual Report Download - page 21

CONTACT LENSES AND EYE CITY
Fiscal 2009 Business Overview and Results
Hoya operates the Eye City chain of contact lens specialty stores,
one of the largest such chains in Japan. The strengths of this chain
lie in consulting-based sales, which provide the lenses best suited
for each customer, and in the broad selection of products from
famous manufacturers around the world. With approximately 150
locations nationwide, the cumulative number of customers sur-
passed 6 million through the end of the fiscal year under review.
During the fiscal year under review, the retail market for contact
lenses saw moderate growth, centered on disposable lenses. How-
ever, business conditions remained challenging, with all contact
lens retailers facing difficulty in opening new stores due to a decline
in the number of ophthalmologists starting business because of
revisions to fee standards for medical exams under the national
healthcare system annually since 2006.
Hoya made efforts to strengthen sales of high-value-added
products such as lenses made from new materials, lenses for astig-
matism and bifocal lenses, and worked to improve its service. As a
result, although there was no growth in the total number of stores,
existing stores increased the number of new and repeat customers,
leading to a year-on-year rise in sales. In addition, management
efficiency was improved again through detailed pricing strategies
and a scrap-and-build strategy of opening new stores and closing
existing ones according to detailed sales area analysis.
Hoya entered the Chinese market in 2005. As of March 31, 2009,
there were seven Eye City stores in Shanghai, and all had won
strong support for their outstanding eye-testing technologies and
high level of service.
Future Strategies
In the Japanese market, Hoya will accelerate store development.
The Company is seriously considering expanding its sales area to
the Chubu and Kyushu regions besides major metropolitan dis-
tricts. It is also looking to store locations that customers will find
convenient and reviewing store designs. In terms of sales promo-
tions, the Company will augment traditional methods by making
use of the Internet and other digital media in its marketing activities
to efficiently target a broad customer base. Moreover, by strength-
ening human resources through recruitment and training, and opti-
mal deployment, the Company will expand services and increase
customer satisfaction.
In China, the scale of the contact lens retail market is currently
estimated at around ¥70 billion. This market has not yet matured,
with fewer people wearing contact lenses than in Japan. Growth is
therefore expected in the future. Hoya will promote localization,
while at the same time opening strategic new stores and conduct-
ing vigorous PR activities to raise recognition of the Eye City store
brand mainly among women in their teens and 20s, the main target
customer base. In this way, the Company will raise its presence as
the market grows.
Health Care Division
Eye City
At Hoya’s Eye City chain, experienced professionals armed with
the most accurate and latest knowledge of vision conduct sales
consultations with individual customers. The store concept is
identical in both Japan and China.
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HOYA Annual Report 2009