OPSM is on the lookout for new franchisees – and they don’t need to be optometrists.
Traditionally the reserve of highly trained optometrists, eyecare might not immediately come to mind as a business opportunity. But OPSM aims to change that.
And heading up the move into franchise territory is Peter Baily, director of development Asia-Pacific. According to Baily, the Luxottica business – the Italian based parent company behind OPSM – has recognised the need for franchisee expertise in its expansion plans.
THREE DIFFERENT MODELS
Three different models offer opportunities for business and require varying levels of skill and experience.
- The alliance model is essentially a ‘try before you buy’ says Baily. This suits naturally risk-averse optometrists who might not have business experience. After 12 months running the business as a franchisee, with no investment from them, the optometrist can choose to buy the business or revert back to being an employee.
- Optometrists can also purchase an optometry franchise, which is a franchise of the eye-testing portion of the business only, and has a five-year term with one option to renew for a further five years. This business model has a four percent royalty fee and is run within a company owned outlet.
- The third and most ambitious model is a full franchise – the model was launched two years ago but Baily admits it has “had some stutters”. However there are now 85 franchisees who have invested in this model, and 29 further individuals undertaking the franchising process now. The 100th store is set to open soon.
In two years that’s quite a boost to the network and independent optometrists have been targets for the company. “Quite a few have rebadged,” says Baily. “We know where the good businesses are.”
And expansion is not just focused on the Australian market. New Zealand is a major focus for 2013 – there is a sizeable corporate presence but franchising is relatively new, Baily points out.
The global corporation also has significant company owned business in China.
“There are some amazing opportunities if you get it right,” says Baily. “We’re not a pure franchise. We started out as a corporation, and we’re using franchising for growth and optimising our business. We don’t have targets for the franchised/corporate mix.
“It’s fair to say though that most growth comes through franchising. But our good corporate business always works hard, striving for high standards to be the best – and that’s a great dividend for the franchisee. “The bottom line is benefit for all.”
TECHNOLOGY
In eyecare technology counts. “We’ve had double digit continual growth for 24 months and that’s down to innovation, focus and investment,” Baily says.
The role of market leader requires innovation, he adds, such as the frame fitting service Accufit introduced earlier this year.
Then there is the Optos Daytona Ultra Wide Retinal Scanner, exclusive technology that can detect issues in eyes that may have not been easy to detect or could be missed by a standard digital retinal scan. “OPSM is committed to raising the standard of eye care and with leading eye care and health technology, it’s one great way to differentiate the business in the the marketplace,” says Baily.
Due to its success the initial order of 160 machines has increased to 400 so that every store across Australia and New Zealand will have one. “Franchisees are loving it,” says Baily.
RETAIL RELATIONSHIP
Baily says the business is in the process of developing a true omni-channel experience which involves a number of initiatives using all channels from store to online marketing, with the aim of giving customers the best experience and service possible.
“We want to facilitate and educate people about what style will suit, what eyecare services will help People are willing to pay to get the best service and experience they can ”
The customer experience starts with web engagement. Customers book online, choose the centre and get relevant information before they step out of the door.
OPSM aims to keep the processes for customers and franchisees simple. When it comes to the supply chain that forms the foundation of the retail offer, franchisees have an assorted stock that is on auto replenishment.
An integrated system also performs the tasks of ordering lenses and frames by sharing the information digitally from the optometrist and the dispenser with the manufacturer. There is a minimum turnaround of two to three day delivery on glasses.
FRANCHISE OPPORTUNITIES
There are great opportunities but, says Baily, “we’re a bit fussy. We’re looking for business skills – we can deliver a good return on investment, we supply everything – it’s about selling and marketing your business.”
Even before a franchisee is installed there’s help on hand. The support team works with a franchisee to find the right location and help them partner with an optometrist. There is also full training available for staff through Learning and Development and Institute of Learning teams.
“All the hard stuff has been taken away. A huge marketing department is behind you running a sophisticated multi-channel program.
“This has good margins. We’re in high rental areas but there’s a latent demand. We’ve done a lot of work to identify opportunities, and will use franchising to fill these areas.”
Many of these locations are regional but there are still opportunities in major cities, Baily insists.
OPSM is seeing the advantages of multiple unit ownership among its franchisees and is encouraging multi-unit franchising he says. “It’s something we want to foster as we go forward. There are quite a few individual operators with a group of stores seeing this as a better way.”
Images: OPSM