Glassesdirect

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Glasses Direct, is a UK Internet Business that supplies discount-priced spectacles. It was founded by James Murray Wells in 2004 when it created its sector. [1] It has recently received investment from two major venture capital firms. It is also notable for the legal/regulatory attempts to close it down by several major bricks and mortar competitors - see "Controversy" below.

Contents

[edit] Overview

In the UK a customer can go to an opticians (shop) on the high street and purchase a fixed price eye examination, from which the optician will issue a written prescription. This can then be used at any opticians to have spectacles made.

A common complaint is that the prices UK opticians charge for spectacles are too high (see e.g. [2]). Such claims about UK prices are common in many areas of retail and services in the UK, see Rip-Off Britain.

Glasses Direct is a UK Internet Business that attempts to undercut bricks and mortar high street opticians by supplying glasses at a lower cost.[3].

[edit] Business

In 2004, its first year of business, Glasses Direct sold 22,000 pairs of glasses, and had an annual turnover of £1m. [4]

In 2007 Glasses Direct had over 30 members of staff and claimed to receive an order every ten minutes, with over 100,000 customers served. [5]

In July 2007 Glasses Direct received $6M of new venture capital from Index Ventures and Highland Capital Partners. The company stated that much of the money would be spent on marketing, with the aim of transforming the spectacles market to one where people were more likely to own multiple pairs, matching particular occasions or looks, due to lower prices, comparing this to the model used successfully by the wristhwatch company Swatch. Saul Klein a partner at Index Ventures also suggested that expansion of Glasses Direct to markets other than the UK was likely[6].

[edit] Marketing

Current methods of marketing for the company include use of Google's AdWords service on its UK portal [7] and pay-per-click internet affiliate marketing [8]. Glasses Direct has also been successful in achieving newspaper and television coverage through a public relations campaign, see [9] for the company's own summary of coverage and links to articles.

[edit] Controversy

In 2005, rival businesses including Boots and Specsavers, attempted to use legal action and an unsuccessful complaint to the General Optical Council (GOC) to close the company down[10].

In 2006, Glasses Direct's founder James Murray Wells sought election to the GOC, claiming that a representative from the internet was needed. He withdrew after Specsavers managing director Doug Perkins objected to his candidacy and Murray Wells accused Perkins of rigging the election. Perkins maintained that he was concerned that Murray Wells is not a qualified optometrist although this is not a requirement for membership[11].

[edit] See also

[edit] References

  1. ^ http://www.growingbusiness.co.uk/YfQdNns.html
  2. ^ http://www.weeklygripe.co.uk/a365.asp
  3. ^ http://www.timesonline.co.uk/article/0,,2095-1441455_1,00.html The Times: Online optician is making high-street chains see red
  4. ^ http://www.youngbizuk.co.uk/Students/CaseStudies/TeenTreps/JamesMurray-Wells.html
  5. ^ http://www.glassesdirect.co.uk/release_000/our_story.htm
  6. ^ http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article2115113.ece
  7. ^ http://www.google.co.uk/search?q=spectacles Google search] for "spectacles"
  8. ^ http://www.glassesdirect.co.uk/release_000/affiliates.php
  9. ^ http://www.glassesdirect.co.uk/release_000/press.htm
  10. ^ http://observer.guardian.co.uk/business/story/0,6903,1446134,00.html
  11. ^ http://www.optical.org/index_files/aboutus/contact_2.html

[edit] External links