Oh My Glasses CEO Tadayasu Kiyokawa - A revolutionary in eyewear retail 2/2 [INTERVIEW]

Aug 2, 2013

Continued from 1/2.

—You're also focusing on your own brand now, aren't you?

Since launching an e-commerce site for glasses, you've been gathering market data and gaining insight into the industry. And seeing how fashion e-commerce has grown over the past few years and sales methods have diversified, I've come to believe that "making" and "selling" should be separated. I wanted to try a manufacturing process that's the opposite of what we've done up until now: examining what's selling based on needs and data and then turning that into eyeglass designs. Creating creativity from data that would make people in the industry wonder, "So what?" I wondered if it was possible to do it that way, but when we launched "+ omg" on a trial basis in March 2013, the response was extremely positive.

—So, by accumulating sales data that small stores previously held separately, you've become able to conduct proper marketing.

Yes. Why did this model sell and this one didn't? The PDCA cycle, a common business practice, was not being implemented by manufacturers or the eyewear industry. Proper verification was not being carried out. That's why I share data-based analysis and participate in product development.

In fact, Oh My Glasses carries 3,000 products, and looking at the May data, +omg products were in the top 10, beating out Ray-Ban and Oliver Peoples. We believe this is because they offer high-quality products at a very reasonable price of 7,980 yen, in addition to their stylish and universally appealing designs. If the same product were on the shelves in stores, it would be worth 15,000 yen. This means more people can buy more glasses, and if they're offered at half price, customers can buy twice as many. We want to create a market like this and create a win-win business for manufacturers, retailers, and ourselves.

--Industry restructuring, right?

We want to handle all kinds of eyeglasses, including the makers, fairly, like Amazon. Eventually, we'd like to increase the number of products we handle to 10,000 or 20,000, so that, like Amazon, almost all eyeglasses can be purchased through us.

---Are you thinking of opening a directly operated store? Even one that only sells iPads.

That might be possible in the future. However, this partnership stems from our desire to rethink the way we think about e-commerce. Looking back at the history of e-commerce, most industries have had a mindset that the "Internet is bad" or "the Internet is a threat," leading to a structure of online versus brick-and-mortar stores, with newcomers pioneering the market. Even within the same company, there are wary fears that the online division will take our sales. That's why we first wanted to break away from the online versus brick-and-mortar paradigm and build a model in which the online and brick-and-mortar worlds coexist and complement each other, creating new businesses. Even if fighting over a pie works in the short term, I don't think there's any benefit in the long term unless the pie grows. That's why I want to create something like a third-party demand. While the directly managed stores I mentioned earlier are an option, I want to involve the existing industry. I think that this could lead to a new form of online shopping.

--You're sharing sales properly with your partners, and if you can increase the number of these, your partners will also make a profit. Until now, consumers wanted glasses but couldn't afford them because they cost 20,000 yen each. But if they were 10,000 yen each, that would be a relief.

That's right.

--What styles are popular right now?

Right now, among +OMG, classic styles like Boston bags are popular. Also, this summer, Ray-Bans and other sunglasses are selling well.

--Looking at sales, you can really see these trends.

That's right. You can see what's popular by age group, from people in their 20s to their 30s. Classic styles aren't selling at all among people in their 40s. They're in their 30s. I thought it would be popular with women, but surprisingly, it's men who buy it.

--After analyzing the data and placing an order with the manufacturer, how long is the lead time?

It varies greatly depending on the brand. Some can do it in as little as three months, while others can do it in just a few weeks. Of course, sales are important, but inventory risk is quite important in the apparel industry, isn't it? Looking at the data, you can see that.

--You're often compared to e-commerce shoes, but is the business model of e-commerce for glasses more challenging to enter?

That's right. So I don't think we have much competition right now. Our competition isn't other companies, but consumer mindsets. We want to get people who say, "I wouldn't buy glasses online," to think, "Maybe it's worth it?" and at least try them on. Once they try it out, the repeat rate is high.

--It changes their perception: "I thought I couldn't buy it, but I can!" What's your product lineup for fall?

We will be releasing 15 new designs in the fall, bringing the total to 42. They will be completely different from our current lineup, but we are confident in them. We hope to further solidify +omg's footing.
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