Pentax 2014 Annual Report Download - page 8

HOYA REPORT 2014
Acquisition of eyeglass lens development
and manufacturing business from Seiko Epson
In February 2013, HOYA acquired an eyeglass lens development and manufacturing
business from Seiko Epson. At the same time, we progressively acquired shares of
Seiko Optical Products Co., Ltd., which sells Seiko brand eyeglass lenses, completed
the acquisition of a 50% shareholding as of March 31, 2014, and turned it into a
consolidated subsidiary of HOYA. Going forward, we will make use of HOYA´s global
manufacturing and sales network to expand sales of Seiko brand eyeglass lenses,
which have high worldwide recognition, into a global market. In manufacturing and
development as well, there is great potential to combine each other´s technologies and
develop them into new products.
Going forward, we will focus on expanding coverage
HOYA´s strengths in eyeglass lenses are its unique optical design technologies and
world´s top-class coating technologies. Another strength is our sales network, which has
global reach, and our efficient production system that supports it. In the Japanese
market, we have displayed these strengths and already acquired a high market share, but
in overseas markets there are still many untouched markets such as Central and South
America and Eastern Europe. There is still also plenty of room to increase our market
share in developed countries. Going forward, while developing a direct sales organization
in untapped markets, primarily in overseas markets, we intend to expand our coverage
with the aim of acquiring new customers and boosting market share in developed
countries. Sustaining organic growth is one of our key priorities for this division.
Eyecity, HOYA’s chain of
contact lens specialty stores, continues to grow
In the contact lens business, sales volume increased due to the opening of new
Eyecity stores and stronger sales promotion at existing stores, while revenue grew
year-on-year in March owing partly to rush demand prior to the consumption tax
increase.
Japan´s contact lens retail market itself is not growing due to the low birth rate and
aging population but HOYA has continued to expand its market share. A rise in the
average unit price per customer resulting from the development of high-value-added
products and services, including efficient advertising, sales promotion, the opening of
stores in good locations, and the introduction of the regular delivery service “Eye
passport”, contributed to the increase in revenue. We are also looking into expanding
into specialty stores, catering to the needs of a specific customer group. We have
opened, for example, a store aimed at women who are particular about their life style
and fashion in Kichijoji, an exclusive residential area in the suburbs of Tokyo.
Profitability is also showing a steady trend by benefiting from the reinforcement of
sales of high-value-added products and economies of scale, being a chain of contact
lens specialty stores with the largest number of customers in Japan.
The challenge going forward is to accelerate store openings in regional cities and
suburban areas of Japan where our coverage is low. Even in Japan, we believe there
are still sufficient areas to open new stores. In the fiscal year ended March 31, 2014,
Eyeglass lenses business of Seiko Epson Corp.
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