Companies

Capitol Optical eyeing foreign forays

Nisha Ramchandani nishar@sph.com.sg 755 words 24 August 2013 Business Times Singapore STBT English (c) 2013 Singapore Press Holdings Limited

It will start with a 3,000 sq ft concept store in Chengdu next month Singapore BASKING in the glow of a successful launch of its latest concept store in Suntec City, homegrown Capitol Optical is now planning to make the leap overseas - with a planned concept store in China, and a possible three more outlets in Asia by next year. The group just opened a $4 million concept store in Suntec City - an 8,000 square foot retail store cum clinic called W Optics and Eye Clinic. It was a project that was 10 years in the making, according to managing director Francis Wong. "Over the years, I thought of going overseas," he said, adding however that he wanted to be able to differentiate the brand from its competitors. "With the concept store, you're bringing a higher standard of service, bringing value to the country. I think I've finally found the right way to re-engineer the way optical service should be and bring a higher standard of eyecare." The response to W Optics and Eye Clinic's soft launch has been encouraging, he said. Located near Marina Bay Sands, Suntec City, with its accompanying convention centre, is an ideal location as it will draw both leisure and business travellers, in addition to locals, Mr Wong reckons. The outlet carries brands ranging from Ray-Ban to Cartier to the solid gold Lotos eyewear, with prices ranging from $9,000 to as much as $500,000. However, Mr Wong is quick to point out that the store also offers more affordable options as well, starting from the $100-plus range. About half of the $4 million invested in the group's latest store has gone towards cutting-edge equipment and facilities aimed at enhancing customer experience. For example, Capitol Optical has implemented a wind-tunnel simulator - complete with a full-sized motorbike and a videoscreen - so that customers can test out polarised and wraparound sunglasses. Its Visioffice system helps to customise glasses specifically to suit an individual, providing the best-suited and most accurate prescription through a variety of eye tests. Meanwhile, doctors at the Eye Clinic carry out consultations for cataract as well as full Lasik procedures. With this successful outing, Mr Wong is now planning to take the concept to China, starting with a 3,000 sq ft retail outlet in CapitaLand's Jinniu Mall in Chengdu, come September. For Mr Wong - a second-generation businessman whose family launched the first Capitol Optical outlet in Outram Park in 1968 - Chengdu was an easy choice to make.

"Beijing and Shanghai are as expensive as Singapore, if not more expensive (due to) rental and labour costs," Mr Wong said, pointing out that competition is stiff too, which increases the risk factor. Guangzhou is too close to Hong Kong, which means that the luxury buyers will bypass the city in favour of Hong Kong, he reasoned. He believes that Chengdu is not only fashion-forward, but will require only "half" the investment needed in Singapore. In fact, his belief in Chengdu is so great that he already has a second outlet planned for the city next year. China aside, Mr Wong is also looking to open a W Optics and Eye Clinic in Kuala Lumpur by the end of this year, and a similar retail and clinic concept store in Phnom Penh, Cambodia, by June next year. He is also in talks on a potential project in Jakarta. In Singapore, the group has 33 stores, which include concept stores such as Specialist Eyecare Centre at Great World City and Shinagawa Optical at Wheelock Place. In the next five years, the group is hoping to double its annual revenue from $60 million to $120 million, with half of that coming from its overseas operations. All its overseas ventures are done with joint venture partners in each market. Investments in each project range from $1 million to $2 million, and Mr Wong targets a return on investment within three years. Mr Wong also has not ruled out further expansion in Singapore, where he says that the group has a 10 per cent market share in terms of turnover. "The company is still very young. We still can grow to 30 per cent in Singapore."
MR WONG The second-generation businessman hopes to open W Optics and Eye Clinic in Kuala Lumpur later this year and in Phnom Penh next year. - PHOTO: ARTHUR LEE Singapore Press Holdings Limited Document STBT000020130823e98o00010

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