InterviewDavich Optical CEO eyes health care as future driver

A Davich Optical retail outlet in Seoul / Courtesy of Davich Optical

Davich Optical is bolstering its market position as optical health care provider, extending businesses from retail distribution of glasses and lens to tech-based health care services including smart glasses.

CEO Jacob Kim has since last month broadened the company’s scope by signing two notable memorandums of understanding (MOUs) with specialist firms. One is a major Korean home electronic appliance developer focused on wellness lifestyle; the other is an Israeli smart glasses developer.

The back-to-back deals, signed last month and this month, are still in their inception phases but point to the scope of the company’s ventures.

Davich Optical CEO Jacob Kim / Courtesy of Davich Optical

On Feb. 9, Kim inked a deal with Ceragem, agreeing to jointly develop health care services in conjunction with Davich’s nationwide offline retailer network and Ceragem’s health care technologies. Their objectives include introducing offline customer spaces for wellness services, marketing cooperation, developing next-generation health care services and solutions, and developing new innovation and growth engines.

Ceragem’s cafe franchise business, Well Cafe, features the company’s health care devices inside coffee shops, allowing visitors to experience equipment like lumbar treatment machines and massage chairs. Kim believes the cafe-plus-health care feature will also grease the two firms’ new partnership, making it more sustainable.

“We both have offline bases and are focused on health care,” Kim said in an interview with The Korea Times at Davich Optical’s headquarters in central Seoul’s Jongno District.

“I think we can develop new visual correction and treatment technologies with Ceragem, like a dry eye treatment device. We could also introduce Well Cafe to some of our large retail outlets, which are larger than our typical 231-square-meter stores. Those large stores can feature our Davich merchandise and Ceragem’s Well Cafe under one roof.”

Davich Optical CEO Jacob Kim, second from right, poses with Ceragem CEO Lee Kyung-soo, second from left, after signing a memorandum of understanding for jointly developing and introducing health care solutions at Ceragem's office in Seoul's Gangnam District, Feb. 20. Courtesy of Davich Optical

Established in 2003, Davich Optical now runs 310 franchise retail outlets nationwide and has nabbed the grand prize at the Consumer Love Brand Awards, hosted by weekly paper Joongang Sunday, for 14 consecutive years.

The company caters to local consumers with a well-established brand image and easy accessibility to its retail network. Its private brands for glasses frames include SEERIES and BIBIEM, and it also offers contact lens under Davich Lens.

“As an eyewear chain, we have been providing daily life services to customers based on vision health. Through this agreement, we look forward to exploring collaboration opportunities with Ceragem to deliver tangible health care experiences that customers can directly experience in our stores,” Davich said after signing the MOU with Ceragem at the latter’s headquarters in Seoul’s Gangnam District.

Kim further expanded Davich’s business portfolio by signing a MOU with Everysight, an augmented reality (AR) smart glasses spinoff from Elbit Systems based in Haifa, Israel. Kim sees the partnership as a breakthrough bringing Davich’s services to people with visual and hearing impairments by offering the latest eyewear technologies.

Under the deal signed on March 5, Everysight and Davich agreed to collaborate on developing a lineup of smart glasses designed as assistive tools for people with impaired vision. The devices’ AR interface will deliver real-time information to users and support people’s daily communication needs, according to Davich.

Davich will launch a new platform to distribute the products and provide related services. It will also distribute Everysight’s products in Korea through its retail outlets.

“Everysight is a tech firm specializing in head-up displays for air force pilots. They retain both software and hardware capabilities. As they are now interested in the Korean market, our company’s role is to give them directions," Kim said.

Davich Optical's retail outlets distribute private brand glasses frames and contact lenses, and offer vision correction services. Courtesy of Davich Optical

“Since Davich’s goal is to support visually impaired people, we’ll request Everysight to develop technologies dedicated to disadvantaged consumer groups. The Israeli firm also needs our advice on design elements regarding their quest into Korea, as their products tend to not fit the facial features of Asian people.”

The two MOUs have begun shaping Davich’s future as a fledging health care provider with a robust distribution network. Unlike Ceragem and Everysight, Davich is not a tech firm, which is why the company has teamed up with them, keen on utilizing consumer data it has built up so far and advancing product ideas into solutions for its consumers in more sophisticated and effective ways.

Davich’s key target consumers are older adults. Kim said the domestic market alone has significant value due to Korea’s aging population and low birthrate.

“We estimate the market is currently worth around 3.5 trillion won ($2.3 billion). If we expand our health care businesses, the market could balloon to at least 6 trillion won,” Kim said.

The eyewear market in Korea, unlike other industries, is opaque when it comes to information about market shares. More than 75 percent of firms are smaller, with five or fewer employees, and 90 percent of products are imported. Davich, among the few large firms in the sector, currently wields influence over the domestic market, according to Kim.

“We estimate Davich’s market share at up to 15 percent. Considering the large number of enterprises in the sector, I believe the figure is a pretty strong for a single platform,” Kim said.