Glassesdirect
Encyclopedia
Glasses Direct is an online retailer based in the United Kingdom
that supplies discount-priced spectacles.
It was founded by James Murray Wells
in 2004 joining the small existing sector of online retailers. It has recently received investment from two major venture capital
firms.
It is also notable for the legal and regulatory attempts to close it down by several major bricks and mortar competitors.
s (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. Such claims about UK prices are common in many areas of retail and services in the UK, see Rip-Off Britain
.
Glasses Direct attempts to undercut bricks and mortar high street opticians by supplying glasses at a lower cost.
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.
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.
In 2008, the company underwent significant internal changes, which resulted in a considerable number of the workforce being retrenched. This included the departure of the marketing director, the COO and other senior members of staff.
service on its UK portal and pay-per-click internet affiliate marketing. Glasses Direct has also gained newspaper
and television
coverage through a public relations
campaign.
, Specsavers
attempted to use legal action and an unsuccessful complaint to the General Optical Council
(GOC) to close the company down.
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.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
that supplies discount-priced spectacles.
It was founded by James Murray Wells
James Murray Wells
James Murray Wells is an English entrepreneur and founder, owner and executive chairman of Prescription Eyewear Limited , London, which he started whilst at university.-Early life:...
in 2004 joining the small existing sector of online retailers. It has recently received investment from two major venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firms.
It is also notable for the legal and regulatory attempts to close it down by several major bricks and mortar competitors.
Overview
In the UK a customer can go to an opticianOptician
An optician is a person who is trained to fill prescriptions for eye correction in the field of medicine, also known as a dispensing optician or optician, dispensing...
s (shop) on the high street
High Street
High Street, or the High Street, is a metonym for the generic name of the primary business street of towns or cities, especially in the United Kingdom. It is usually a focal point for shops and retailers in city centres, and is most often used in reference to retailing...
and purchase a fixed price
Fixed price
The term "fixed price" is a phrase used in the English language to mean that no bargaining is allowed over the price of a good or, less commonly, a service...
eye examination
Optometry
Optometry is a health care profession concerned with eyes and related structures, as well as vision, visual systems, and vision information processing in humans. Optometrists, or Doctors of Optometry, are state licensed medical professionals trained to prescribe and fit lenses to improve vision,...
, from which the optician will issue a written prescription
Eyeglass prescription
An eyeglass prescription is an order written by an eyewear prescriber, such as an optometrist or ophthalmologist, that specifies the value of all parameters the prescriber has deemed necessary to construct and/or dispense corrective lenses appropriate for a patient.If an examination indicates that...
. 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. Such claims about UK prices are common in many areas of retail and services in the UK, see Rip-Off Britain
Rip-Off Britain
Rip-off Britain is when some products and services cost significantly more in the United Kingdom than in other places, especially the United States and other member states of the European Union....
.
Glasses Direct attempts to undercut bricks and mortar high street opticians by supplying glasses at a lower cost.
History
In 2004, its first year of business, Glasses Direct sold 22,000 pairs of glasses, and had an annual turnover of £1m.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.
In July 2007 Glasses Direct received $6M of new venture capital from Index Ventures
Index Ventures
Index Ventures is a venture capital investment firm based in Geneva, Switzerland, with offices in London, Jersey, and starting in 2011, Silcon Valley. The firm was founded in 1996 by Neil Rimer and Giuseppe Zocco. Since its inception, the firm has raised four main venture funds and a growth...
and Highland Capital Partners
Highland Capital Partners
Highland Capital Partners is a venture capital firm that focuses on investments in seed, early, and growth stage companies in the communications, consumer, digital media, healthcare, and information technology sectors. The firm's partners include: Peter Bell, Sean Dalton, Bob Davis, Richard de...
. 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
Swatch
Swatch is a brand name for a line of wrist watches from the Swatch Group, a Swiss conglomerate with vertical control of the production of Swiss watches and related products...
. Saul Klein a partner at Index Ventures
Index Ventures
Index Ventures is a venture capital investment firm based in Geneva, Switzerland, with offices in London, Jersey, and starting in 2011, Silcon Valley. The firm was founded in 1996 by Neil Rimer and Giuseppe Zocco. Since its inception, the firm has raised four main venture funds and a growth...
also suggested that expansion of Glasses Direct to markets other than the UK was likely.
In 2008, the company underwent significant internal changes, which resulted in a considerable number of the workforce being retrenched. This included the departure of the marketing director, the COO and other senior members of staff.
Marketing
Current methods of marketing for the company include use of Google's AdWordsAdWords
Google AdWords is Google's main advertising product and main source of revenue. Google's total advertising revenues were USD$28 billion in 2010. AdWords offers pay-per-click advertising, cost-per-thousand advertising, and site-targeted advertising for text, banner, and rich-media ads. The AdWords...
service on its UK portal and pay-per-click internet affiliate marketing. Glasses Direct has also gained newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
and television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
coverage through a public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
campaign.
Rivals
In 2005, rival businesses including BootsAlliance Boots
Alliance Boots GmbH is a leading international, pharmacy-led health and beauty group. It has two core business activities - pharmacy-led health and beauty retailing, and pharmaceutical wholesaling and distribution - and has a presence in more than 25 countries...
, Specsavers
Specsavers
Specsavers Optical Group Ltd is the biggest optical retailer in the UK and Ireland. It is also the biggest of the four major opticians that control 70% of the British market for spectacles and contact lenses, with Specsavers having a 39% share of the market...
attempted to use legal action and an unsuccessful complaint to the General Optical Council
General Optical Council
The General Optical Council is an organisation in the United Kingdom which was set up by the Opticians Act 1958 to maintain a register of opticians and to uphold the Act. Its purpose is to regulate the services provided by opticians and optometrists...
(GOC) to close the company down.
In 2006, Glasses Direct's founder James Murray Wells
James Murray Wells
James Murray Wells is an English entrepreneur and founder, owner and executive chairman of Prescription Eyewear Limited , London, which he started whilst at university.-Early life:...
sought election to the GOC, claiming that a representative from the internet was needed. He withdrew after Specsavers
Specsavers
Specsavers Optical Group Ltd is the biggest optical retailer in the UK and Ireland. It is also the biggest of the four major opticians that control 70% of the British market for spectacles and contact lenses, with Specsavers having a 39% share of the market...
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.