The ＂profiteering＂ of the glasses industry： the cost of 30 is over 240, and the net interest rate is less than 10%

According to national business daily’s report on March 20th, in the eyes of many people, glasses are one of the top ten profiteering industries, and the price of tens of dollars of lenses can be sold for several hundred yuan or even higher. Doctor glasses, known as "the first retail A-share glasses", was officially listed and traded on March 15th. The average purchase cost of a single lens was around 30 yuan, and the average selling price reached more than 240 yuan. Therefore, the gross profit margin of the company’s main business in recent three years exceeded 70%.

However, contrary to the high gross profit margin of the main business, the net profit rate of doctor glasses is less than 10%, even worse than that of food and clothing industries, which has also attracted great attention from the market. So, what causes the net interest rate of doctor glasses to be so low? Recently, national business daily reporter visited a number of doctor’s optical shops on the spot, and interviewed a number of people in the industry to analyze the secrets.

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On March 15th, Doctor Glasses, which is the first retail stock of A-share glasses, was officially listed and traded, and its high gross profit and low net profit remained a hot topic.

According to the prospectus, from 2014 to 2016, the gross profit margin of the main business of Dr. Glasses was 73.08%, 75.82% and 75.65% respectively. The average purchase cost of a single lens was only 28.82 yuan, but the average selling price was as high as 241.23 yuan. In sharp contrast to the high gross profit margin, the net interest rate of doctor glasses is less than 10%, which makes the outside world suspicious about the future of doctor glasses after listing.

"We have received the interview questions and relevant departments will respond, but we can’t guarantee the specific response time." In response to the above questions, people from the doctor’s glasses securities department responded to the reporter. As of press time, the company has not yet received a response. Recently, the reporter visited the offline store of doctor’s glasses and interviewed many professionals and experts in the glasses industry in order to uncover the mystery of "profiteering" of doctor’s glasses.

● The selling price is more than 5 times higher than the purchase price.

According to the prospectus, in 2016, the average purchase cost of a single pair of frames and a single lens of Dr. Glasses was 89.06 yuan and 28.82 yuan respectively, and the corresponding selling price was as high as 434.23 yuan and 241.23 yuan respectively, that is, a pair of glasses with a purchase cost of only 147 yuan was sold at the counter of the direct store of Dr. Glasses, and the price soared to 916.69 yuan, with a difference of more than five times.

In addition, the average purchase cost of sunglasses, contact lenses, contact care solution and reading glasses operated by the company in 2016 was 141.75 yuan, 48.82 yuan, 28.2 yuan and 28.81 yuan respectively, while the retail income of direct-operated stores of doctor glasses was 513.69 yuan, 149.49 yuan, 67.13 yuan and 121.44 yuan respectively.

"We only make frames, and doctors, Baodao, etc. all place orders directly for us. They have a quantity, and they are thousands of pairs at a time." An insider of an upstream enterprise that supplies doctor glasses confirmed to reporters that the 89 yuan reflected in the financial report is only the average cost price of the frames of various brands, and the frames supplied by the company for doctor glasses are cheaper, with an average unit price around 20 yuan.

The internal staff of another glasses foundry also admitted to the reporter that the cost of a pair of glasses is at most tens of dollars. The employee said that he is going to accumulate a few years to open a retail store for glasses. "I have enough resources for upstream suppliers to get cheaper prices. The threshold for opening a store is not high, as long as I learn optometry skills again."

The reporter found that from 2014 to 2016, the average selling price of a doctor’s single pair of glasses dropped from 1054.7 yuan to 916.69 yuan, a decrease of about 13%, while the procurement cost dropped from 190.75 yuan to 146.7 yuan, a decrease of about 23%, and the decrease in cost was far greater than the decrease in selling price.

It is also such a big price difference that the average gross profit margin of doctor glasses in the past three years is above 70%. According to the prospectus, in 2014, 2015 and 2016, the gross profit margin of the main business of Dr. Glasses was 73.08%, 75.82% and 75.65% respectively. From the perspective of the gross profit margin of a single product, the gross profit margin of lenses is the highest, reaching 86.21% in 2016, while the gross profit margins of contact lenses and contact care solutions are relatively the lowest, 63.64% and 55.03% respectively.

● Online and offline discount promotion

The reporter noticed that at present, there are low-priced group purchase packages launched by many stores under Dr. Glasses on Meituan, Baidu glutinous rice and other group purchase websites, with discounts ranging from 3.9% to 4.5%. Nearly 4,000 people participated in the group purchase. For example, it was advertised as an glasses package worth 1,878 yuan, and it was only sold in 880 yuan on the group purchase website.

In addition to online group purchase packages, offline stores also have many discount activities. Recently, the reporter visited a store in Futian District, Shenzhen. The sales staff of the store told the reporter that at present, Dr.’ s own brand, Leibotede, has launched a discount package. The price of the frames is 199 yuan, 299 yuan and 699 yuan, all of which are plate frames. If you want lenses, you can give a pair of lenses worth 390 yuan just by adding 1 yuan.

"Lenses can also be dispensed with the 390 yuan package. We also have imported lenses, such as TAG Heuer lenses with a refractive index of 1.74, and the price is 4,980 yuan. In contrast, the price of domestic lenses will be low, but the highest refractive index can only reach 1.67, and the price is around 720 yuan. The higher the refractive index, the thinner the lens will be, and the corresponding price will be more expensive, mainly depending on your degree. If the degree is small, you can choose a domestic one with a lower refractive index, and the price is cheaper, and there are also one or two hundred. " The aforementioned salesperson added.

Regarding whether there are such discounts for glasses of other brands, the salesperson said that at present, all consumers of imported brands such as Ray-Ban enjoy a membership discount, that is, 8.8 discount for those who spend more than 2,000 yuan and 9.5 discount for those who spend less than 2,000 yuan.

When the reporter asked whether the individual optometry could be free, the salesperson said that if you don’t wear glasses, 20 yuan optometry fee will be charged separately for the individual optometry, and optometry fee will not be charged for the glasses.

Wang Xiangfei, a senior researcher in the optical industry and chief consultant of inquiry and consultation, told the reporter that for retail optical shops, the price offered to consumers is not only a pair of glasses, but the key to matching a pair of glasses is the accuracy of optometry, and the real value is optometry service. However, in the optical retail industry in China, most of this service is free of charge, while it is charged abroad.

"Going to every store is told that there is a discount, which actually shows that the price of products in the industry itself is opaque, and consumers have no idea about the price of glasses." A retail researcher who did not want to be named said frankly.

● Sales expenses account for half of the revenue.

It is worth noting that even with the support of high gross profit and the promotion of online and offline discount promotions, the profitability of Dr. glasses is still insufficient. The reporter studied the company’s prospectus and found that although the operating income of Dr. Glasses in 2016 was 415 million yuan and the gross profit was 315 million yuan, the net profit was only 37.7847 million yuan and the net interest rate was only 9.1%.

The reason why the company’s net profit is low can be seen from the sales expenses. In 2014, 2015 and 2016, the sales expenses of doctor’s glasses showed an upward trend year by year, accounting for 184 million yuan, 202 million yuan and 224 million yuan respectively, accounting for 50.97%, 53.84% and 53.88% of the revenue respectively, which swallowed up most of the gross profit.

According to the prospectus, the sales expenses of doctor glasses mainly consist of employee salary, rental fee, depreciation and amortization fee, etc. Looking closely at the sales expenses, we can find that in 2016, the company’s rent, property and utilities reached 113 million yuan, accounting for 50.67% of the sales expenses. If we count wages and social security, the total proportion of the two has exceeded 90% of the sales expenses.

According to Wang Xiangfei’s analysis, for the glasses industry, the sales expenses account for more than 50%, which is normally about 40% in the industry. The main reason is that most shops of doctor glasses are concentrated in Guangdong, especially Shenzhen, and all expenses are high.

In this regard, Dr. Glasses also admitted in the prospectus that the annual increase in sales expenses is mainly related to the expansion of the company’s business scale and the increase in the number of stores. Most of the stores in the company are directly operated stores. Due to the high requirements for store location, the rent per unit area is high, and the number of rented stores is large, resulting in higher sales expenses.

Doctor glasses explained that the basic salary was raised according to the local minimum wage standard policies. In addition, with the expansion of business scale and the increase of market promotion activities, the sales commission and promotion incentive expenses in employee compensation increase.

Doctor glasses claims to be one of the leading glasses chain retail enterprises in China in terms of sales scale and number of stores. By the end of 2016, the company had 318 chain stores, including 304 direct stores and 14 franchise stores. The data shows that in 2016, the total business volume of the company’s direct stores was 405 million yuan, and the average output value of a single store was only 1.335 million yuan, of which the average revenue of doctor glasses was 1.3236 million yuan/store and that of president glasses was 2.4605 million yuan/store.

Wang Xiang Fei said frankly, from these data, Dr. Glasses and President’s Store all belong to the industry average, but in a big city like Shenzhen, the output value of a single store has been difficult to make a profit. According to the prospectus, among the 15 wholly-owned subsidiaries of Doctor Glasses in Jiangxi, Beijing, Chongqing and Chengdu, 9 are still at a loss. Among them, Anhui and Shenzhen suffered the most losses. In 2016, the two companies lost 1.52 million yuan and 1.1 million yuan respectively.

"If these stores are used to sell clothes, or far exceed the above sales, glasses themselves are a low-frequency sales category. If there is no such high gross profit margin support, there is no way to pay the corresponding expenses in Shenzhen. If the gross profit margin is lower, these stores simply can’t hold up." Wang Xiang fly further explained.

"From the perspective of return on investment, because Dr. Glasses is going public, many things are done in a more standardized way." For example, Wang Xiangfei said that in terms of employee insurance, taxation, etc., if only individuals invest in opening an optical retail store, there is no need to pay employee insurance, and the profit is considerable. However, if employee insurance, taxation and other expenses are added, the net interest rate is less than 10%. It is normal, not only for doctoral glasses, but also in the optical industry.

● Unreasonable distribution of upstream and downstream profits in the industry.

At present, there is no enterprise whose main business is glasses retail in A-share listed companies, and it is difficult to find a company that can compare with Dr. Glasses in financial indicators and business models. Before the listing of doctor glasses, the "profiteering" of the glasses industry has long been an open secret.

In this regard, many practitioners in the optical industry "cried grievances" to reporters, saying that it is unfair to force the "profiteering" label to be attached to the optical industry, and the optical retail store itself does not actually make money.

In Wang Xiangfei’s view, at present, the profit distribution in the entire glasses industry chain is unreasonable. For example, the suppliers at the production end have very thin profits, and more gross profits appear in retail terminals, which also leads to no brand appearance of glasses suppliers because there is no profit to be a brand.

Take Connett (300061, SZ), which is also listed on the A-share market and is known as one of the largest suppliers in China in the global glasses market, as an example, mainly engaged in the research, development, production and sales of resin glasses lenses and mirror cases. The data shows that as of the third quarter of 2016, Connett’s revenue was 554 million yuan and its gross profit was 184 million yuan. The gross profit margin of its main business averaged 33.46% and its net interest rate was 8.76%.

As consumer products, the net interest rate of the glasses industry is not low. For example, Huang Shanghuang (002695, SZ), who sells duck necks, had a net interest rate of only 7.65% last year. But compared with the clothing industry, doctor glasses are slightly inferior. The reporter compared Jiangnan Buyi (03306, HK), a Hangzhou clothing company listed in Hong Kong last October. According to the latest performance report for the second half of 2016, although the gross profit margin of Jiangnan Buyi is slightly lower than that of Dr. Glasses, it is as high as 64.4%, with a net profit margin of 17.4%, and its earning power is far better than that of Dr. Glasses.

The aforementioned retail researcher, who did not want to be named, said that compared with other terminal retailers, the average gross profit margin of 70% of doctor glasses is indeed high, but if some enterprises in the clothing industry are still somewhat inferior, it is only because the brand added value of the glasses industry has not been reflected, including the value of services, which has not been perceived by consumers.

The operator said

The sigh of a senior optometrist: the deformed industry adds all the costs to glasses.

For consumers, optometry is the first step to match a pair of suitable glasses, but in domestic retail optical shops, most of them do not charge optometry fees, and even many shops carry out "free optometry" activities to attract business.

It is worth noting that when explaining the high gross profit margin, the prospectus of Dr. Glasses gives three reasons, one of which is that optometry professionals are needed to provide customers with optometry and custom-made services in the sales process of glasses retail industry, and the retail price of glasses products includes the value of optometry professional and personalized customized services. This also means that optometry is actually not free, because its cost has been added to the sales of glasses.

So, how valuable is optometry? How much does it cost in a glasses retail store? Recently, the reporter interviewed Zhang Shilang, a senior optometrist and founder of Cloud Vision. In his view, optometry is the core of optical shops, and the cost of optometry is higher than the purchase price of glasses themselves. If optometry is not available, there is no difference between optical shops and clothing stores, and optometry should be charged.

Optometrist and salesman can get commission.

Zhang Shilang told reporters that an optometrist, including social security, should be paid at least 5,000 yuan a month, and each optical shop should have at least 2 optometrists. "Optometrists also sell and can get commissions."

According to the National Professional Standard for Optometrists, the professional qualifications of Optometrists are divided into five levels, namely, primary, intermediate, advanced, technician and senior technician. However, since 2014, the State Council has cancelled 319 professional qualification licenses and certifications in six batches, including the cancellation of the examination and approval of professional qualification certificates for optometrists and fitters.

According to the First Announcement of the Ministry of Human Resources and Social Security on Cleaning up and Standardizing Professional Qualifications, the professional level evaluation of opticians and opticians is undertaken by approved and authorized local and industry skill appraisal institutions. Even so, the gold content of its professional qualification certificate is not recognized by the industry.

Zhang Shilang said that for practitioners, the cancellation of approval has little impact. Professionals are still professional, and unprofessional people can still buy certificates. Professional qualification certificates are not a threshold for optometrists.

Zhang Mingyuan, general manager of Zhongshan Mingyuan Glasses, once admitted in an interview with the media that the cancellation of the examination and approval system for optometrists and assemblers is not to cancel the validity of the certificate, but to be certified, and the management department has never conducted supervision and inspection on whether or not to be certified. "One of my employees worked for me for two months, and did not contact optometry at all. He quit his job and became an optometrist in other stores."

Does this lead to uneven optometrists in China? Zhang Shilang said that most optometrists in large and medium-sized optical retail stores in China are qualified, and a few are unqualified. In his view, most optometry mistakes are not technical incompetence, but carelessness or hurry, while the optometry technology of small glasses retail stores will be slightly worse.

Zhang Shilang explained to reporters that the traditional optometry process generally takes 25 minutes, and it is not beneficial to optometry for too long. Generally, optometry does not exceed 40 minutes, and lenses with different degrees are repeatedly tried back and forth. Once it exceeds 40 minutes, users’ eyes will be tired and optometry will be more inaccurate. 25 minutes to 10 minutes is a more responsible eye speed.

"Optometrists can be employed after training for one to two months. The domestic technical threshold itself is not high and cannot be compared with programmers." Zhang Shilang also told reporters that although many optical shops offer "free optometry", they don’t write prescriptions for optometry without glasses, because computer optometry sheets can’t be used as prescriptions for glasses, mainly to prevent customers from getting glasses online.

Zhang Shilang said that the flow of people in most optical shops is very small, which is caused by the low frequency of glasses consumption. Generally, it takes about one year for a pair of glasses to be purchased and sold. The efficiency is very low, the service radius is small, and the frequency is low, which leads to the traditional optical shops having to cover up the inefficiency with high gross profit.

Take doctor glasses as an example. In 2016, the inventory turnover rate was 1.45. Wang Xiangfei, a senior researcher in the glasses industry and chief consultant of the consultation, explained that after conversion, the popular point is that its inventory is turned over once every eight months.

Dr. Glasses also pointed out that there are many materials, color codes, styles and brands of glasses, especially glasses frames and sunglasses, which leads to the need to store more goods for customers to choose, so the general inventory balance is large. In addition, customers generally have certain functional needs when buying glasses. Except for contact lenses, the cycle of changing glasses is generally long, which leads to the slow turnover of glasses.

For example, Zhang Shilang said that large and medium-sized retail stores generally have to pay 17% value-added tax, the rent accounts for about 23%, and the labor cost accounts for more than 20%. The price of a complete set of domestic optometry equipment is 50,000 to 100,000 yuan, and the labor cost is basically the same as the rent. These pieces together account for nearly 50% of the revenue. If inventory and financial costs are added, the profit is minimal. In contrast, small optical shops have higher profits because of their lower costs.

Can optometry and glasses be "medically separated"?

Qian Guanglai, an eye optometrist, once wrote that in Britain and the United States, if you want to be an optometrist, you must graduate from optometry, which is the most basic threshold. Those who have not graduated from this major, including ordinary ophthalmologists, are not allowed to engage in optometry. The purpose is to ensure professional counterparts and let people with real professional knowledge engage in optometry. Some countries have a higher threshold and need to obtain a doctorate in optometry before issuing an optometry license.

Zhang Shilang admits that there are more than 300,000 optometrists in China, and if they are trained by professional classes, there are not enough talents. Foreign optometry requires an appointment, and the optometry price is mostly more than 100 dollars, while glasses, which have tens of dollars or even 10 dollars online, are equivalent to medical separation.

"The cost of optometry itself is more expensive than glasses." Zhang Shilang said that glasses are only produced on the assembly line, but consumers in China are not willing to pay for the service, but are more willing to pay for the real thing.

"Most people don’t want to accept 200 yuan for optometry, but adding 200 yuan for optometry to 100 yuan for glasses is acceptable to most people." Zhang Shilang said helplessly.

In fact, there has always been a voice in the industry, hoping to charge high fees for optometry, thus reducing the price of glasses. Qian Guanglai mentioned in the above article that the optometry access system in Britain and the United States should be introduced to improve the treatment of optometrists in optometry, and the glasses sales organizations should implement optometry fees and optometry in strict accordance with standard procedures. The price of glasses should be reduced, that is, the sales model of "optometry fees and glasses at low prices" to ensure the accuracy of optometry and eliminate the harm of glasses with unqualified degrees to the eyes.

Zhang Shilang believes that this is a more reasonable result and expects such a result. However, the reality is that domestic hospitals generally only charge 20 to 30 yuan for optometry because of government subsidies, and no one in the industry has dared to receive optometry fees above 200 yuan. In fact, the optometry fees in 200 yuan are counted as wages and rents, and there is no profit for retail stores. This has led to a vicious circle, and the deformed glasses industry has added all the costs to glasses.

For example, he said that if a pair of glasses costs 100 yuan and is sold in 800 yuan, consumers can still reluctantly accept being slaughtered. If glasses cost 200 and optometry costs 600, no one will accept it. At present, optometry fees cannot be set at a higher price.

In Zhang Shilang’s view, the future glasses industry should go in the direction of artificial intelligence, that is, robot optometry should be realized, all of which is systematic. This also means that computer optometry and ordering can be realized at home without optometrists and optical shops.

(Every reporter Ou Yangkai, every edited Zhao Qiao)

Industry observation

Doctor’s glasses "close the store while opening the store" Internet glasses gallop around.

For a long time, the development of traditional glasses retailers has been constrained by rising costs such as rent and labor. Doctor glasses, an optical retail enterprise, has long been in the state of "closing the store while opening the store". From 2014 to 2016, Doctor Glasses opened 147 stores and closed 76 stores in three years.

In contrast, Internet glasses retailers have obvious competitive advantages in terms of rent and labor costs, and have spawned a large number of new enterprises, such as Wangke glasses, LOHO glasses, Yichao glasses and Yishike.

Li Ming, the founder of Yinmi glasses, said in an interview that the integration of online and offline in the future glasses retail industry must be the general trend. Internet glasses retail will force the reform of traditional optical shops, reduce various costs with efficient operation, collect and feedback consumer demand timely and accurately while reducing the retail price of glasses, and take the demand of end consumers as the guide to fix production by sales, breaking the previous seller’s market model of traditional glasses industry.

Opened 147 stores and closed 76 stores in 3 years.

At present, the direct chain stores operated by Dr. Glasses mainly acquire real estate through leasing or sign cooperation agreements with shopping malls, and the rental expenses are a relatively large operating cost.

According to the prospectus, from 2014 to 2016, the rental expenses of doctor glasses (including property and utilities) were 95 million yuan, 106 million yuan and 116 million yuan respectively, accounting for 26.33%, 28.26% and 27.91% of the operating income in the same period respectively.

As for the reasons for the increase in the company’s store rental expenses, Dr. Glasses explained in the prospectus that on the one hand, the scale of its chain operation is constantly expanding, and on the other hand, it is due to the increase in rents.

With the increasing rent level of shops, Dr. Glasses not only bears higher and higher rental costs, but also faces uncertain risks in its business model.

According to the disclosure in the prospectus, street shops generally sign a lease contract with the owners for 3 to 5 years, while shopping malls generally sign a cooperation agreement every year according to the investment requirements of various shopping malls. Dr. Glasses faces certain risks of renewal or renewal due to various uncertainties. In fact, it has long been in a state of "closing the store while opening the store".

By the end of 2014-2016, the number of doctor’s glasses direct stores was 260, 268 and 304 respectively. Among them, in 2014, Dr. Glasses opened 55 new stores and closed 28 stores in the same year; In 2015, 29 new stores were opened and 21 stores were closed in the same year; In 2016, 63 new stores were opened and 27 stores were closed in the same year.

Dr. Glasses said in the prospectus that the specific reasons for closing the store include the demolition of the leased property due to urban planning, the company’s inability to renew the lease due to the adjustment of the property’s shop, the increase in rent beyond the tolerable range, the change of its own development strategy and the significant changes in the surrounding environment of the business circle.

Among them, from 2014 to 2016, the number of direct-operated stores closed by Dr. Glasses due to the expiration of lease or joint venture contract was 10, 6 and 11 respectively, accounting for 3.85%, 2.24% and 3.62% of the total number of direct-operated stores at the end of each period.

An industry insider told reporters that for physical optical shops, just the store decoration fee is a big cost. If an optical shop closes in a short time after opening, the cost of decoration will not be recovered.

Online and offline integration is the trend.

Compared with the traditional business model of the glasses industry, Internet glasses retailers have obvious competitive advantages in terms of rent, labor cost and logistics, and they have developed rapidly in recent years.

In recent years, a large number of new-type optical enterprises focusing on concepts such as "O2O" and "internet plus" have begun to enter the public’s field of vision. Wangke glasses, LOHO glasses, Yichao glasses and Yishike have risen in succession, and they have been favored by capital many times. Among them, Yishike and Yichao Glasses took the lead in using online to offline to provide optometry car-to-door optician services.

Because some retail links of glasses products, such as optometry and after-sales service, need the support of physical stores, some online glasses companies have begun to go offline.

Four Seasons Mingtong, a subsidiary of Yinmi Glasses, which mainly sells online, officially landed on the New Third Board in August 2016. Previously, Yinmi glasses have been sold through online channels such as Tmall, and now they have gone from online to offline. Two physical glasses retail stores have landed in Beijing.

According to the statistics of the National Light Industry Glasses Information Center, in 2014, there were about 60,000 glasses retail stores in China, about 12,000 glasses retail enterprises, and the e-commerce sales were about 6 billion yuan. The online penetration rate of glasses e-commerce was only about 9%, and most of them were sunglasses.

Li Ming believes that whether it is glasses retail or the entire retail industry, physical stores have embraced the Internet, and Internet companies are also accelerating their landing. The integration of online and offline in the future is the general trend. He said that Yinmi glasses will continue to expand the layout of offline stores, and physical stores like Dr. glasses will inevitably face transformation.

According to the prospectus, Dr. Glasses started its e-commerce business in 2013. In 2014, its total sales of e-commerce channels accounted for 1.63% of sales, and in 2015 it dropped to 0.15%, while in 2016 it was 0.28%.

Internet may force industry reform

According to the prospectus, from 2014 to 2016, the average unit prices of the lenses purchased by Dr. Glasses were 43 yuan, 32 yuan and 28 yuan, respectively, and the corresponding average unit prices were all above 200 yuan.

In this regard, Li Ming told reporters that in the traditional glasses model, in addition to store rent and labor costs, channel costs can not be ignored. Traditional glasses retailers must change the previous lengthy channel model, reduce various costs with efficient operations, and lower the retail price of glasses. However, this is not easy for traditional retail enterprises.

According to the prospectus, at the end of 2014-2016, the inventory balance of doctor glasses was 77,292,900 yuan, 74,266,600 yuan and 65,407,200 yuan respectively, accounting for 27.14%, 26.25% and 21.90% of the total assets at the end of each reporting period.

From the data point of view, although the inventory ratio has declined, it is still high. Doctor glasses said in the prospectus that due to the high inventory balance, it occupied more working capital, which reduced the company’s operational efficiency to some extent.

According to Li Ming, the retail of Internet glasses adopts the direct consumer mode, eliminating the intermediate agent joining link, and at the same time using the Internet to improve operational efficiency, so that the retail price of products is 50%~70% lower than that of traditional glasses. Internet glasses retail parity products may force the reform of traditional optical shops.

Wang Kai, a senior optometrist of Haimen Mingshi Glasses, told the reporter that today’s glasses consumers pay more attention to functional lenses and beautiful fashion. Only by conforming to the current trend of fashionable and fast consumption, can glasses retail enterprises continue to remain competitive in the future market by taking the multi-brand route.

Doctor glasses said that on the basis of maintaining the original brand positioning of high-end customer base, we will create new fast-moving fashion brands and further expand new business and profit growth points.

Data comparison

The supplier purchase data of the new and old prospectus "Data Fight" of Doctor Glasses are inconsistent.

On March 15th, 2017, Doctor Glasses was officially listed on the Growth Enterprise Market. Through combing, the reporter found that the company with the halo of "the first retail share of A-share glasses" had a "data fight" problem in the prospectus, and the purchase amount and proportion corresponding to the top five suppliers in the same year were inconsistent.

At present, the main products sold by doctor’s glasses include frames, lenses, sunglasses, reading glasses, contact lenses and contact care solution, etc., and adopt the procurement operation mode of unified purchase, centralized procurement and unified pricing.

The latest IPO prospectus (hereinafter referred to as the new prospectus) disclosed on the website of the China Securities Regulatory Commission shows that the purchase amount of Doctor Glasses from the top ten suppliers in 2014-2016 accounted for 71.73%, 70.49% and 73.92% of the total purchase amount of the company in the current period, respectively, and the main suppliers were relatively concentrated.

According to Dr. Glasses, compared with the glasses retail market, the market supply of high-end and international brand-related products is relatively concentrated. At the same time, in order to reduce procurement costs and obtain continuous after-sales service, the company chose to conduct centralized procurement from long-term cooperative suppliers.

However, by comparing the new prospectus of Doctor Glasses with the prospectus previously disclosed in November 2015 (hereinafter referred to as the old prospectus), the reporter found that there was a "data fight" in the purchase amount and proportion of the top five suppliers in 2014.

According to the old prospectus, the top five suppliers of doctor glasses in 2014 were Haichang Contact Lens Co., Ltd. Shanghai Branch, Lu Xun Tika (Shanghai) Trading Co., Ltd., Beijing Bausch & Lomb Eye Care Products Co., Ltd., Shenzhen Meichen Optics Co., Ltd. and Wuhan Huali Eye Care Products Co., Ltd., The corresponding purchase amount (including tax) is 19,080,800 yuan, 18,838,800 yuan, 14,499,200 yuan, 9,033,500 yuan and 6,742,700 yuan respectively, accounting for 14.06%, 13.88%, 10.68%, 6.66% and 4.97% of the total purchase amount.

According to the new prospectus, the purchase amount (including tax) of Dr. Glasses from the top five suppliers in 2014 was 20,082,200 yuan, 19,650,200 yuan, 15,594,900 yuan, 9,403,900 yuan and 7,489,000 yuan respectively, accounting for 14.80%, 14.48%, 11.49% of the total purchase amount respectively.

It can be seen that the purchase amount and proportion of suppliers in the new prospectus of Dr. Glasses are slightly higher than those in the old prospectus.

The reporter sent an interview letter to Dr. Glasses on this matter, but no reply was received before the deadline.

(Every reporter Xiang Yimei, every editor Yao Zhiyu)