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вЂњBut at the bottom of the recruiterвЂ™s note, there was a sentence saying prescription eyewear in North America is a multi-billion-dollar industry, and less than 2% is being purchased online.вЂќ To Magness, growth of the online eyewear market seemed inevitable, and the challenge to harness it was irresistible, so he accepted the position of vice-president of marketing and moved to Vancouver with his wife, son and dog.The Coastal Eye Surgery Center offers our patients the latest in technology from Refractive Cataract Surgery, Lifestyle Lens Implants and RLE to Pterygium.Coastal offers the largest, in-stock selection of designer and brand name eyewear at up to 50 off optical store prices We inventory every frame on our site, so most orders ship within 24 hours. Currently I am getting the correct lenses inserted as we speak through my optometrist for a lovely 115.00.вЂњWhen they first contacted me, my reaction was that I donвЂ™t wear glasses or contacts, and I donвЂ™t know this industry,вЂќ says Magness. Even uploaded my prescription to Coastal online and somehow Coastal sent me a pair of glasses with -1.00 prescription lenses.

вЂњGlasses are a $50-billion-a-year category in the world, and less than 1% of that is online. вЂњWhen you think about categories that havenвЂ™t been disrupted by the Internet yet, there arenвЂ™t many left,вЂќ he says. He believes consumers are on the cusp of a fundamental shift in the way they buy eyewearвЂ”not just in North America but around the world. Hardy co-founded the company in his basement in 2000 with one phone, one computer and a Ping-Pong table. Weve got great deals on all products.This success has done little to satiate the appetite of Roger Hardy, CoastalвЂ™s CEO. So far, results have been good: the companyвЂ™s North American hub shipped 83,066 prescription eyeglasses in January compared with 38,207 in same period in 2011, an increase of 117%.Find the best deal on Derek Cardigan Elm (49) Eyeglasses and Frame in Black Plastic - Online Coastal on SheFinds.

ThatвЂ™s because whether glasses and contact lenses can be deemed a medical product or not depends on rules specific to each province. Google вЂњcheap glassesвЂќ or вЂњcontact lens,вЂќ and almost all the hits will be for businesses clustered on the West Coast. Its principal Canadian lab and distribution centre is situated in what has become CanadaвЂ™s online optical hub. ThatвЂ™s how fast I think itвЂ™s going to happen.вЂќCoastal is well positioned to take advantage of that growth, not just because of its business model and longevity, but also its geographic location. And within five years, it might reach 30%.

вЂњBut that provider should be caring for your eyes, not worrying about the retail.вЂќMagness cites a recent episode of CBCвЂ™s Marketplace, which conducted a comparison between a pair of glasses bought from ClearlyContacts.ca and a pair bought from LensCrafters. вЂњWe want customers to have a wonderful relationship with their eye-care provider,вЂќ he says. Magness isnвЂ™t swayed by this reasoning. The new rules also let companies like Coastal Contacts fill prescriptions from anywhere (including the rest of Canada, where the rules may be different) and to ship orders without verifying prescriptions with the issuers.Organizations such as the Canadian Association of Optometrists say only doctors should be responsible for issuing medical aides (which it believes glasses and contacts are), and have expressed concern this change will lead to people skipping eye exams, which could delay the diagnosis of serious eye disease. Ministry of Health Services allowed anyone, not just optometrists and opticians, the right to sell eyeglasses.

Broughton was the first analyst to cover Coastal Contacts and remains one of just three analysts who follow the company today. вЂњIf you see me on the street, you wouldnвЂ™t even know if I was wearing contact lenses, but to convince someone that you can buy something online that you wear as a fashion statement on your face is a risky proposition,вЂќ says Sheila Broughton, a consumer products analyst with PI Financial. Where contact lenses are functional, glasses dictate your style. Adding the eyeglasses division meant Coastal was committed to changing the public perception that something as personal as glasses canвЂ™t be bought online. вЂњThe amazing thing about that is that the glasses they featured in that episode are by Joseph Marc, one of our private label brands,вЂќ Magness says.To make sure Coastal stands apart from its digital competition during the online optical boom, the company is investing heavily in its marketing strategy.

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вЂњPeople had been selling glasses online for at least 10 years before we got into it, and I think many didnвЂ™t succeed because they werenвЂ™t focused enough on the customer service.вЂќ Customers want their products as soon as they click Buy Now, so Coastal drove down the average time of order placement by the customer to purchase shipment to 0.7 days.Like Zappos, Magness insists that impeccable customer service is CoastalвЂ™s greatest asset and the most important tool to help the company grow internationally. He just needed to convince them to try Coastal out. Hardy was confident consumers would be satisfied with his product. вЂњI went down to Las Vegas and spent a day with Tony Hsieh, the CEO of Zappos, and we talked about building this customer-centric model that allowed customers to try a product risk-free, with free shipping and a 365-day guarantee,вЂќ he says. Hardy believed global consumers had the same hesitations about buying glasses online that theyвЂ™d once had about shoes before Zappos.

вЂњTheyвЂ™re still growing, so theyвЂ™re advertising like crazy and investing in the top line to grow market share. вЂњThe greatest challenge for this company, historically and going forward, is that the amount of money theyвЂ™re putting into advertising to drive sales is hurting the bottom line,вЂќ he says. Gibson explains that ad spending was to blame for that dip. вЂњLinden is driving brand awareness, but itвЂ™s big dollars.вЂќ There was red ink on the books in the fourth quarter of last year, with net losses that totalled $1 million. вЂњEyeglasses is a relatively new venture for the company, and they are really putting a lot of money into advertising to grow this business,вЂќ says Robert Gibson, an analyst at Octagon Capital. With an online presence that dates back more than a decade (and includes more than a million Facebook friends), Coastal has a digital brand-equity advantage over newer competitors when curious shoppers Google eyewear-related keywords.This year, Coastal has also invested heavily in television ads, going so far as to hire former Vancouver Canuck Trevor Linden as a spokesman.

During this period, CoastalвЂ™s business suffered, and confidential financial information leaked out. Coastal eventually took legal action against Muhlbach, alleging he had reached out to third parties and lenders to try to buy Lensway back. In 2010, Coastal terminated the services of Daniel Muhlbach, LenswayвЂ™s founder who had stayed on with the company (and joined as a director at Coastal). The move wasnвЂ™t without its troubles, however. The Stockholm centre also manufactures glasses now.

We looked at a lot of deals before we did any,вЂќ he says. And I think the company is back on track now.вЂќ Hardy says the company will continue to use the same method to approach future deals. вЂњIt was definitely a hiccup,вЂќ says Broughton, вЂњbut it was one that, I think, would have been hard to predict.