Starting your own Optical Store in Canada: Target Market & Location
Choosing a target market is critical to the success of your optical store. You will need to identify the needs and wants of your potential customers and tailor your product offerings and marketing efforts accordingly.
If you are franchising, the target market is well defined by the franchisor already and you may have to adhere to their location requirement too. If you are purchasing an existing store, your location is locked and making changes to the target market may be hard. If you are starting from scratch, you have to decide which target market you want to operate in. This decision is closely linked with and is affected by the location you choose. The three main target markets for optical stores are high-end boutique, mid-level, and bargain style.
A high-end boutique target market is customers who value premium products and personalized service. They are willing to pay a premium price for these. This market will require a more upscale location and a higher level of service to attract and retain customers. Look for pockets in your city where designer boutiques reside. High-end shopping malls are also a good option but it might be difficult to get a store in such malls if your store brand does not have a history to show for.
You will be investing in higher-end designer frames inventory and will be selling high-end branded lenses. Such a store requires a much higher initial investment for renovation and inventory. The running costs are also higher. Sales will be fewer and the focus will be on personalized service to the client at an elevated price.
A mid-level target market is customers who are looking for quality products at a reasonable price. This market may require a store located in a commercial or retail area and a well-organized and well-stocked store to attract and retain customers. Shopping malls are also an attractive location option, however, keep in mind that rents in shopping malls are higher than retail plazas and malls may also take a cut from your sales. This is expected to be compensated by larger foot traffic, high sales volume and the possibility of charging higher than outside prices.
You will be selling a mix of branded and non-branded frames and lenses. Such a store will need a medium size investment. You will be competing with similar stores in neighbouring areas and the focus will be on increasing your share of the market with a good balance of service and price.
A bargain-style target market is customers who are looking for the most affordable products and a focus on price discounts and promotions to attract and retain customers. This market may require a store located in a low-rent area. Sometimes, smaller or partial units in industrial areas are suitable. Low-end and smaller shopping malls also work well to capture this target market.
Typically, you will be selling house-brand or non-branded frames and lenses. The initial investment and running costs may be lower in this segment but so are the profit margins, so you have to concentrate on selling in larger volumes and get repeat customers.
This post is part of our Starting Your Own Optical Store in Canada: A Comprehensive Guide to Success series.
