Optical Dispenser Conglomerate Leading the Way

OPSM: Luxottica Retail Australia Pty Limited

3. Good Health and Well-Being 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 10. Reduced Inequalities 12. Responsible Consumption and Production

Overview

There are multiple innovations OPSM implements to keep up with the 2030 agenda for sustainable development.

Author

Pubudu Gamagedera

Pubudu Gamagedera

School

Monash University

Monash University

Professor

Gitanjali Bedi

Gitanjali Bedi

Innovation

The first innovation is the partnership between OPSM and a charity called OneSight. “OneSight provides access to affordable, high-quality vision care to millions of people not only in Australia but throughout the world” (Elizabeth Kuzakov, OPSM). Another Innovation is the methodology behind being able to maintain a sustainable cycle in terms of consumption and production to reduce waste. As a retailer, customer satisfaction has to be a top priority, but OPSM ensures that the employees are always well trained, healthy, and happy. “If you create a healthy environment, your employees are more productive and this is done through official training nights, online training, employee incentives and safety, not only physical but mental safety either with my advice or help through a third party called the employee assistance program which is available to all staff members 24/7” (Elizabeth Kuzakov, OPSM).

Optical Dispenser Conglomerate Leading the Way

Inspiration

The inspiration behind the business innovation that is ‘OneSight’ arose as a result of its social impacts. “Not being able to see is more than just a health problem” (Elizabeth Kuzakov, OPSM), as more than 1 in 7 people on our planet lack access to vision care. OPSM was losing millions of dollars due to wastage. So, creating more revenue wastage was something all stores had to focus on. At the end of the day inspiration for creating an efficient and effective business model was for competitive advantage. A healthy work environment will allow employees to excel in the business as well as allow individuals to develop personally. As mentioned before, one of the biggest business benefits of aligning with the 2030 UN sustainable development goals is a competitive advantage. “Wastage in frames and lenses alone have more than halved this year and this is as a result of educating and training staff” (Elizabeth Kuzakov, OPSM). Well trained staff increase productivity which allows OPSM to cut the expenses through wages because fewer staff are required to do the job.

Overall impact

The benefits of the innovations of OPSM’s business model have a multitude of benefits socially, economically, and environmentally. As previously mentioned, OPSM’s vision defined by the four sustainability pillars is connected to 10 of the 17 sustainable development goals.

Business benefit

One of the biggest business benefits of aligning with the 2030 UN sustainable development goals is a competitive advantage. “Wastage in frames and lenses alone have more than halved this year and this is as a result of educating and training staff” (Elizabeth Kuzakov, OPSM). Well trained staff increase productivity which allows OPSM to cut the expenses through wages because fewer staff are required to do the job.

Social and environmental benefit

One of the company pillars (visual well-being) is connected to the SDG goals 8, 9, and 12. These are maintained through responsible management of waste, responsible marketing, and product quality + safety.

For the second pillar (social impact), OPSM ensures it has a positive impact on society by responsibly sourcing products, promoting employee well-being, diversity, and relationship with communities. Diversity is important for the business because “our clients come from different backgrounds and having that within the store is a reflection of the real world” (Elizabeth Kuzakov, OPSM). Diversity will allow a team to blend together and increase overall comfort for the customers. This pillar is connected to SDGs 3,4,5,8 and 10. The ability to see has a colossal social impact as it dramatically improves the quality of life for the economically disadvantaged through the OneSight program as it increases educational opportunities and allows these individuals to perform everyday tasks.

The last sustainability pillar (protecting the environment) is embedded within the business model primarily through the manufacturing process of glasses; through energy efficiency and water consumption but also the distribution, packaging, and waste management. The environmental pillar is connected to the SDG goals 6,7,8,9 and 12. The reduction of waste and energy efficiency is becoming a bigger problem moving forward in terms of greenhouse gasses and climate change.

Interview

Elizabeth Kuzakov, Retail Manager

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OPSM: Luxottica Retail Australia Pty Limited

OPSM: Luxottica Retail Australia Pty Limited

Melbourne, Victoria, AT

Business Website: https://www.opsm.com.au/

Year Founded: 1932

Number of Employees: 1001 to 5000

Luxottica is the conglomerate of the eyewear industry and the “leader in design, manufacturing, distribution of fashion, luxury, sports, and performance eyewear” (Luxottica, 2020). In 2003 the eyewear giant purchased controlling interest of what is now a subsidiary of Luxottica, OPSM.

OPSM, initially founded in 1932, is now located in several countries around the world including Australia, New Zealand, Singapore, Malaysia, and Hong Kong. The values of Luxottica have been adopted by OPSM where sustainability has been “deeply embedded within its business model and is defined by four pillars which are connected to 10 out of the 17 sustainability development goals. These pillars are commitment to excellence, visual well-being, social impact, and protecting the environment” (Elizabeth Kuzakov, OPSM).