Silicone Hydrogel contact lens outperfoms in Malaysian market, premium price not a deterrent

Retail sales of contact lenses within the West Coast of Malaysia grew steadily in the first half of 2009 with total consumption peaking in June, driven by improving consumer sentiment and aggressive promotions from major Contact Lens manufacturers. Positive sales data showing a growth of 14% from January 2009 ending August further cemented the view of an economic recovery that is being led by consumers spending.

Among all disposable categories, daily disposable contact lenses, which accounts for 20% of total Contact Lens retail sales has recorded the highest sales growth in the past few months. This growth is being driven by a shift in new consumers opting for daily lenses as well as entry of new daily lens models into this dailies segment. The performance further underlines the growing importance of the dailies segment in Malaysia. "Although still largely under development in Malaysia, the Daily segment will probably be the next big growth area as manufacturers and retailers help boost consumer awareness and provide education on benefits of daily disposable lens", said Jennifer Chan, GfK Malaysia General Manager.

The Silicone Hydrogel segment is also the latest emerging trend to take the Retail Contact Lens market in Malaysia by storm in 2009. In the last quarter ending August 2009, there has been double digit growth of this lens type driven by increased awareness of this new lens material coupled with aggressive advertising and promotions by top manufacturers. The premium price of Silicone Hydrogel lens has not been a deterrent thus far and the segment has outperformed market average growth. "Currently, there are limited players in the Silicon Hydrogel segment and it is dominated by 2 key brands, given the rate of growth in this area, we now expect to see many more brands enter this high end segment in second half of 2009 and beyond", added Anthony Tan, GfK Asia Regional Account Manager.

Distribution growth of the Contact lens is driven strongly by the Chain stores which account for 60% share of sales, versus the independent retailers. West Coast Malaysia has an estimated 2,100 optical retailers and optometrist, of which 50% are chain stores.

Source:

GfK Asia Pte Ltd

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