Eyeglasses market grows less than expected; yet companies invest
Valor Econômico
The Brazilian optical industry wants to recover its ground and foresees 20% growth in 2010 and 25% in 2011. In 2009, the earnings of the sector amounted to R$ 12.9 billion (US$ 6.6 billion), according to the Brazilian Association of the Optical Industry (Abióptica). Such result represented an increase of 16% compared to 2008, but the industry expected a performance twice as great. According to Bento Alcoforado, President of the Abióptica, the largest companies of the sector will seek growth through acquisitions. Another instrument of growth will be the system of franchising. "We also have actions to fight piracy and to promote the awareness in retail", says Alcoforado. He says that even a part of the formal retail sells pirated or smuggled products. The President of the Abióptica estimates that piracy currently already represents 40% of the total market. The eyeglasses are the second most pirated products in Brazil, losing only to CDs.
Even so, the national market attracts investors, such as the investment fund Hal, which chose the acquisitions as the primary shortcut to shorten its growth in the country. After purchasing the chains Fábrica de Óculos and Fotoptica last year, the Dutch Hal is talking with nearly 10 potential targets of acquisition, reveals the Director of Hal in Brazil, Marcello Macedo. He wasn't sure of how much Hal would have available to acquire retail chains in the country, but he observed the fund has € 4 billion.
Hall will also invest up to R$ 40 million (US$ 22 million) in the opening of 80 stores of its own with two years. The goal of the Fund is to have a chain of 500 establishments until 2012. They currently are 124. Another path for the expansion will be the franchises. With 260 stores in the country, the Óticas Carol chain intends to have 320 units until the end of 2010, says Marcos Amaro, the President of Amaro Participações, company that controls of the company. Until 2011, the Executive, son of Captain Rolim Amaro, founder of TAM, believes in 380 stores, basically franchises.
Amaro says he also intends to invest in the expansion of the luxury store Opart, which currently has only one unit open. Until the end of 2010, the Executive says there will be five establishments. Investments in the sector will also be made by the manufacturers of lenses. French Essilor will invest R$ 75 million (US$ 41.7 million) in 2010 in the increase of the production. "The idea is to invest nearly 20% of the earnings to increase our industrial capacity", says the President of Essilor in Brazil, Thomas Bayer. The company will also increase the number of centers for the treatment of anti-reflective lenses from seven to ten units.