Dr. Glasses: The glasses first in Shenzhen

- Dec 09, 2019-

Iron Man and Transformers taller than the figure; pendants with military elements can be seen everywhere ... If it is not for the characters "Doctor's Glasses" printed on the wall above the front desk, people who come here will be mistaken for it This is an animation base. 

"This new office location is very personal, right?" Under the leadership of Dr. Xiao, chairman of the board of directors of Xiaoguang, a reporter from Securities Daily visited the company's newest office in Qingshuihe, Luohu, Shenzhen on June 11. In this new office with an area of more than 4,000 square meters, more than 100 employees have settled in. At the same time, it also has the latest commodity logistics center, commodity exhibition hall, and a big data center for information system construction. 

"The company's registered place is Jingji One Hundred Building, where there is a lot of enthusiasm and it is where we started; now moving to this office building, quiet and suitable for thinking." When talking about moving to a new home, Liu Xiaoru said, After the hustle and bustle of the listing, we are now more committed to returning to our original intentions and making good quality. "And dressing up the office so personally is also because Liu Xiao wants employees to feel in a" serious and lively "office space. Go to "Stress and Power".

Since the first store of Dr. Optics opened in Hongli Road, Shenzhen in 26 years, Dr. Optics has opened the store to the whole country, with over 400 stores. Statistics show that the total retail sales of consumer goods nationwide in 1993 was 1,427 billion yuan, and in 2018 it was 38,878.7 billion yuan. The rapid development of PhD glasses is precisely to grasp the policy opportunities and share the reform dividend. 

After landing in the capital market in 2017, Dr. Optics still maintained double-digit annual growth. "As the consumer upgrade progresses, consumers' requirements for vision health, frame style materials, lens quality and functions continue to improve, and the retail industry of glasses is developing rapidly. I believe we will have more opportunities in the future." In future development, Liu Xiao looks confident. 

Plan for it and seize it 

Shenzhen in the early 1990s was a hot place for entrepreneurship. Under the plan of Deng Xiaoping, the chief architect of the reform and opening up, the Shenzhen Special Economic Zone attracted young people from all over the country with rapid development. Holding the "golden rice bowl" at that time, Liu Xiao also felt the heat of reform and entrepreneurship. "With such a good policy, I always feel that I have to do something to be worthy of myself and the country." Liu Xiao said.

As a result, Liu Xiaoyi in the system devoted himself to commerce. Plan and move. After examining several entrepreneurial projects, Liu Xiao finally set his sights on the eyewear industry. "At that time, the concentration of the glasses industry was not high, but the market space was huge and it was a blue ocean." Liu Xiao said. 

A guy with three gangs. Liu Xiao and Fan Qin, who had some experience in the eyewear industry at the time, and later became the general manager of PhD glasses, formed the "best partner". "I have the ability to operate, she knows the doorways, and we are inspiring each other." Liu Xiao said. 

With the joint efforts of both parties, the first store of Dr. Optics opened smoothly in 1993. The shop covers an area of 25 square meters and the monthly rent is more than 6000 yuan. Because he had no previous business experience, the landlord was very worried that Liu Xiao would have to close the door within a few months. He asked tentatively, "Will you not be able to afford the rent?" Liu Xiao was not timid, and replied "No!" 

In the 1990s, with the application of titanium metal frames and resin lenses, new technology and marketing technology led to the development of eyewear retail stores, and the eyewear industry entered a rapid growth period. And Dr. Optics has grasped the development trend of this era, gradually growing from a single store and becoming a regional leader.

Because the products are positioned in the mid-to-high-end market, they take a different route from other optical shops; at the same time, they choose street shops with high traffic and less competition from their peers as shops, plus strict cost control and refined management. The stores quickly achieved breakeven in two months. And this also strengthened Liu Xiao's determination to plow in this line.

In 2008, the financial crisis swept the globe. At that time, Dr. Optics had opened more than 40 stores one after another. In the face of the financial crisis, was it a retreat or an offense? "As entrepreneurs, the National Games is our destiny. Although the market was depressed at the time, I believe the Chinese government must have great wisdom to face the crisis (601519)." Liu Xiao said. 

With this conviction, Liu Xiao began to open stores against the market and won multiple stores closed by a real estate chain intermediary due to poor management at a lower price. In 2008 alone, Dr. Optics successfully opened more than 60 stores. By the end of this year, Dr. Optics had more than 100 chain stores, which are already quite large and well-known locally. 

Rapid development by capital 

Since then, with the introduction of a series of national policies to boost the economy, the Chinese economy has stood out from the rest of the world, with an annual GDP growth rate of more than 6%. At the same time, as residents' living standards have improved significantly, the quality of consumption and service-oriented consumption have been raised to a higher level. As a consumer product of glasses, naturally also made great progress driven by consumption upgrades, Dr. glasses quickly started from Shenzhen and radiated to other areas of Guangdong. It is also with the company's development that Liu Xiao has begun to have the idea of making Dr. Optics go public. 

In Liu Xiao's opinion, there are a large number of regional eyewear vendors in China, operating locally stably, but on a small scale, which is not conducive to the development of the industry. "Merchants settled down, made money but did not upgrade their technology and services, and consumers did not receive scientific vision services." Liu Xiao said, "So at this time, we are thinking about standing out and in 2008 The slogan of listing in the year was to use the power of capital to become bigger and stronger and provide consumers with high-quality and scientific services. " 

Under Liu Xiao's highly forward-looking strategic layout, in 2012, Dr. Optics launched the stock reform, and introduced strategic investors such as Huaqing Investment, Taorun Investment, and Jiuding Investment, which injected capital into the company's rapid development. In 2015, the company obtained strategic investment from Huagai Capital again. 

With the help of capital, the development of Dr. Optics entered the fast lane. By 2016, before the listing, the company's revenue had reached 416 million yuan, and the net profit was 37.787 million yuan. In 2017, with the reputation of “the first share of glasses”, Dr. Glasses successfully landed on the A share, and Liu Xiao was affectionately called “President of Glasses” by investors. 

Listing is not the end, but a new starting point. After the listing, Dr. Glasses has maintained rapid growth. In 2018, the company achieved revenue of 566 million yuan, a year-on-year increase of 20.1%; net profit attributable to mothers was 593.1515 million yuan, a year-on-year increase of 13.64%. As of the end of 2018, the company had 405 stores, and this number is still growing. 

Carry the Light of the Nation to the World 

How big is the Chinese eyewear market? At present, official data shows that it is about 80 billion yuan, and at the same time it is growing at an average rate of more than 10% each year. The true market size has already exceeded 100 billion yuan. 

However, in Liu Xiao ’s opinion, the domestic eyewear industry is still in the "Warring States Period"-as consumers ’lens habit is still stuck in the" one mirror to the end "state, resulting in a low degree of scale and industry concentration Not high, even the market share of leading companies is still small, compared with developed countries such as Japan, South Korea, Europe and the United States, there is still a large gap.

Relevant data show that the current sales of eyewear chains in China account for more than 60% of the total sales, and the United States has reached 80%. As a large-scale eyewear retail chain, the market share of PhD glasses is less than 5%. With the consumption upgrade and the increase in residents' income levels, higher requirements are put on glasses. Liu Xiao believes that the real glasses company is expected to emerge in the future, and Dr. Optics hopes to be the best among them. 

It is understood that after years of intensive cultivation, Dr. Optics has created four chain retail brands, of which: "Presidentoptical" is positioned as "high-end customization"; "Doctor Optics" is positioned as "professional vision"; "zèle" is positioned as " "Fast fashion" and "砼" are positioned as "personal tide cards." Through different positioning of different brands to meet different market needs. At the same time, in order to comply with the "new retail" development trend, the company actively explores business model innovation, continuously develops e-commerce business, and establishes joint ventures with professional teams to give full play to their respective advantages to achieve online and offline coordinated development of optical retail business . 

Liu Xiao said that in addition to investing in research and development of materials, quality control and design of its own brand, the company is also exploring and investing in professional vision and light comprehensive services, myopia prevention and control, and began to cooperate with Luohu Hospital. And other institutions in the medical field. 

In terms of returning investors, although the company has only been listed for only two years, Dr. Optics maintains an annual cash dividend. In the past two years, cash dividends totaled 60.665 million yuan, accounting for more than 50% of the net profit attributable to its mother during the same period. After the listing, Dr. Optics strives to achieve stable business growth and stable returns to shareholders, which not only reflects the social responsibility of entrepreneurs, but also the best return of listed companies' trust in investors.

Liu Xiao called the meeting room of Dr. Glasses as a "strategic command room." Four maps hanging on the wall caught the attention of the reporters of the Securities Daily.

"Shenzhen, Guangdong, China, and the world, these four maps are the strategic map of our development. We started from Shenzhen more than 20 years ago, and then moved to the country. The ultimate goal is to go global. Dr. Optics must strive to become a domestic optical retail company A new benchmark for going out. "Liu Xiao said firmly.