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In the past decades, soft contact lens industry was monopolied by four major corporations. They were Johnson&Johnson, Alcon, Bausch&Lomb, and Cooper Vision (the Big Four). The Big Four created entering barrier by the patents, and kept the new entrants out of the gate. However, many key patents expired after year of 2000. Thus, many Taiwanese companies started to invest subsidiary business and involve with soft contact lens manufacture. The Big Four cultivates the market for a long time. They have built a mature and completed industrial chain. Consumers are familiar with their brands, and also with high loyalty. New entrants need an effective strategy in order to penetrate the market.
By research of this case, we will analyze Pegavision’s sales strategy. Pegavision created the very first contact lens exlusive store to sell their own brand in Taiwan. Within 5 years, they became number two soft contact lense brand in Taiwanese market. In China, Pegavision sells their soft contact lense through internet. Moreover, through the permits acquisition by R&D’s planning, it becomes Pegavision’s bargain chip in ODM/OEM business. In the future, Pegavision can adjust the capacity and ODM/OEM price by using their own brand consumption. Also, by using Pegavision’s exclusive store, they can provide ODM/OEM customers an one stop solution, from manufacture, inventory, logistic, to retail sales channel. This competitive strategy can penetrate current industrial chain effectively, and provide a good study case for the industry.
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