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During Vision Monday’s exclusive interview with Essilor International’s chairman and CEO, Hubert Sagnieres, the topic turned to the company’s involvement with the internet and its commitment to innovation:


VM: One of the lifestyle changes you mentioned is that people are using computers more, which leads us to the topic of internet purchasing. Could you share what Essilor’s involvement is with that?

SAGNIERES: First of all, we started VisionWeb many years ago, and at the time people were skeptical about how the internet could change our world. The first important thing is that internet makes our life easy among consumers, among ECPs, among corporations to be able to communicate and exchange data and information. It has streamlined the way of ordering and dealing in this industry.

The second key area of why the internet is so important is actually about information and education. People on the street don’t know enough about eyeglasses. Take the example of how Optifog launched mid last year in Europe and in Singapore, only with videos and YouTube, why it was a huge success with those “Foggy Moments.” Today, the traditional media are not strong enough; they don’t promote enough. With internet we are definitely much closer to the consumers, and we can explain the benefits. I am amazed at the growth of clicks we have, of visitors we have on our websites for Varilux, Optifog, Crizal, on a daily basis everywhere in the world. In China, in India, everywhere.It’s absolutely universal.

A few years ago, we bought into the equity in FramesDirect.com for a few reasons: to understand that new channel and how it could change the industry if at all. Essilor has always been very innovative, at the edge of all innovations, whether in service or in product. It was very important for Essilor to understand from inside what could be done, and I think the U.S. team, Essilor of America, has done a very good job using FramesDirect to promote new services like MyOnlineOptical to eyecare professionals in the U.S. and actually in some other countries too.

VM: Based on what you’ve learned through FramesDirect and internet sales around the world, do you sense that the internet is still primarily the information source for consumers about vision care and that’s its opportunity, or do you see down the road that the distribution opportunity for the product will grow online?

SAGNIERES: First, is information. I would be surprised to see people today purchase eyeglasses without first going on the internet and checking the quality of the product, the quality of the company, who is making the lenses or the frames, checking what they do, who they are, if they are socially responsible, and all these things. The internet first is either to inform or reassure the consumer.

Now, more specifically as a channel for sales, don’t forget we are in a health care industry, and everyone needs to see their eyecare professional. They need the eye exam and their eyes checked yearly. This is where it’s different from buying shoes or clothes or anything else on the internet. This is where doctors, opticians, have a key role to play, but they also have to evaluate how they do business with consumers. We have seen some doctors who are totally into this new world, for example with Facebook, and there are many of them everywhere in the world.

We definitely do see a difference of success and growth between doctors who actually are surfing on the wave of what the internet can give them, either by having a different reach, using MyOnlineOptical, or by making sure they’re providing the right information. Not being afraid, but being able to use the resource and the power of the internet to develop the right business.

VM: Or to reinforce their connections with their patients.

SAGNIERES: Exactly, and this is happening everywhere. Now, it will be, maybe in 10 years, a channel like others, but everyone will have to continue to see their eyecare doctor once a year, that is fundamental.


A Commitment to Innovation

VM: Can you talk a little bit about Essilor’s stance on innovation?

SAGNIERES: You can’t stay in an industry doing one type of product, eyeglass lenses, for over 160 years, being the leader of that industry, without innovating constantly on products and services. Today, 50 percent of our sales are from products that did not exist four years ago, and there are not that many companies that can say that.

VM: Was that something that you set out to be a goal?

SAGNIERES: The unsolved problems in optics are actually larger than everything we have done in the past two or three centuries, so yes it’s a goal, but it’s a goal based on the recognition that there’s a huge need for vision improvement. Bifocals were invented three centuries ago, and they are still on the market mainly in the U.S., so we need to be innovative on how to make sure Americans move from bifocals to progressive lenses.

We spend close to €150 million, which is $200 million, every year on innovation, on R&D, in order to make sure we are delivering new products, new features to meet the needs of consumers.

VM: Innovation can mean many things besides R&D, whether it’s channels of distribution or whether it’s programs for your customers.

SAGNIERES: Yes, definitely. As you know, we have been named the 25th most innovative company in the world by Forbes. It’s not only on products, but products, services, governance, how the company is managed, many areas that they have looked at. When you are a leader like Essilor in an industry which is big, but not that big, the only way to actually make sure you continue to develop your business is to constantly innovate, and we are lucky because we have so many unmet needs at the consumer level.

I have been speaking about Optifog for a few months now everywhere in the world, and people tell me, “You are right. It did not exist before? How come? This is so obvious. Why have you waited until 2012 to come out with a true Optifog lens?” It’s technology. Twenty years ago it was impossible to make an Optifog lens. The growth of nanotechnology has allowed our researchers to find a formula for a treatment of the lens that was impossible a few years ago. So innovation is linked to looking at what’s going on in various parts of the world and how you could connect the dots and package all that for your company.

VM: Are there any messages about innovation for Essilor’s customers, things they could address in their own daily business?

SAGNIERES: One good way is to use the full extent of all the innovation that we provide. We launch 200 products a year. Now, they are not all in the same country at the same time. But Essilor is providing services, product, innovation for them to develop their business. They can stay behind, or they can catch the wave, jump on the innovation and differentiate themselves in their neighborhood, in their communities. This could be new services from VisionWeb, could be new services like MyOnlineOptical, could be new product, or it could be a new service in terms of speed where they could provide a product in one day instead of three. The best way to deal with Essilor is to look at all those innovations and build your business around those innovations we provide.