A Case Study on Lenskart

    Introduction:

    The dramatic entry of Lenskart into the Indian eyewear industry landscape signaled a paradigm shift in conducting the business with complete reliance on the brick and mortar stores. 2010 is a milestone in the history of the Indian eyewear industry as it gave consumers more convenient options for buying eyewear products online.

    Until the end of the first decade of the new millennium, the optical business in India firmly held on to the traditional business model of conducting business through brick and mortar stores only.  One had to visit an optical store or any other retail shop that sold eyewear products for buying spectacle frames and lenses, contact lenses and sunglasses. Most optical stores provided the service of eye checkups for the convenience of customers, which also helped attract new customers. Although the E-commerce business was fast gaining traction during this time and online shopping was fast catching up, it focused mainly on household items and appliances, groceries, food and supplies, clothing, footwear, jewelry, electronics, toys and games, smartphones, and digital gadgets and many more.  Sunglasses were perhaps the only eyewear that was available online. However, one had to visit a physical store to buy spectacles and contact lenses.

    The change begins

    Peyush Bansal, the founder of Lenskart, dared to think differently and experiment with the online selling of eyewear products, which until then was unknown to Indian consumers. E-commerce was already quite popular; it seemed rational to sell eyewear products online. Still, the biggest challenge was to convince consumers about the business model’s viability. Moreover, there was a trust factor at play. Since spectacles and lenses relate to healthcare, consumers would not like to take chances with unknown brands and unreliable marketing channels. They would rather be comfortable ensuring the safety and quality of the products by getting a feel of them at any physical store. The Lenskart owner faced a considerable challenge to build a trustworthy brand first and then focus on growing sales.

    In November 2010 in Delhi, an Indian online eyewear brand named Lenskart was introduced by Peyush Bansal, and later, two more co-founders joined him named Sumeet Kapahi and Amit Chaudhary. The company’s main products start from contact lenses, glasses to sunglasses. The Lenskart owner was intelligent enough to realize that it would be a mistake to offer an exclusive online channel for selling contact lenses because it would be hard for the Indian consumer to accept the sudden change. It was necessary to gain consumers’ confidence about the viability of the new business model through gradual exposure that should help build trust in the brand and the products. As a result, Lenskart has come up with a unique kind of business model in which the brand is different from other brands, and it creates a connection between the gap of different touchpoints. Lenskart mainly provides a medium where a customer has the option to order from an online portal as well as from the store it allows an omnichannel experience for the customers.

    About Lenskart Company and its unique approach

    Providing more buying options to consumers was a masterstroke from the Lenskart founder as it helped to establish Lenskart as a trustworthy brand and, at the same time, allow consumers to trust the online buying process of eyewear products. The approach was similar to selling a new concept first and then bringing consumers on board to enjoy the convenience of buying eyewear products online.

    Lenskart works as both an offline and online distribution channel and is one of the leading e-commerce brands. Lenskart productions can be ordered by the customers through Lenskart’s creatively designed physical offline stores. The brand is brought up a revolution for the e-commerce eyewear industry by providing the facility of eye checkups at home. In the year 2019 Lenskart becomes the unicorn company.

    Lenskart has a widespread and fastest-growing business chain all over India, associated with above 120 cities, above 500 profitable stores and also more than 50 lakh happy and satisfied customers. It is registered under a parent company named Valyoo Technologies. Lenskart app comprises the widest college of eyewear and its app is in the number one position for online eyewear shopping. The collection includes computer glasses, reading glasses, contact lenses, anti-glare, goggles, specs, and also gives the facility to try out the eyewear at home followed by eye accessories and prescription glasses. You can visit Lenskart com to know more.

    Removing the barriers to business

    To help consumers overcome the initial hesitancy and embrace the online business model for eyewear products, the company’s hybrid business model worked wonders. To overcome the barriers in selecting spectacle frames online, consumers can reach out to the Lenskart Company’s franchises to choose the products. Alternatively, the company sends its executive to the customers’ homes or preferred locations and serves them at their doorsteps. All such confidence-building measures went a long way to establishing the brand on a firm footing and turning it into one of the most popular eyewear brands in India. 

    Gaining the trust of consumers

    In the beginning, Lenskart started selling contact lenses online only. Still, the lukewarm response that it received made the owner realize the need to rethink how to familiarize consumers with the new concept. It resulted in the adaption of the hybrid model that helped consumers get a better feel of the brand and develop trust. By visiting the stores, they could engage better with the brand and gather more insights that built confidence for the brand. Once consumers started trusting the brand, they did not mind buying the products online. 

    Expanding the reach

    The hybrid business model did a lot of good for the company is expanding its reach across broader demography. Since customers in the 18-35 age group are most inclined to online buying, the adoption of the franchise business model allowed the company to cater to older customers who were still comfortable buying eyewear products from the physical stores only. On the other hand, Gen Z, millennials, and teens find buying spectacles online more attractive and convenient. According to a Lenskart case study, it becomes clear that the hybrid model helped build the brand rapidly and helped it reach the broadest section of consumers regardless of their age. From the elderly to the teens, there is something on offer from Lenskart. 

    The brand’s popularity among offline buyers is gradually pushing them towards online buying. Even if they stick to the old habits of buying spectacles and contact lenses from the physical stores only, then also Lenskart is ready to serve them and fulfill their expectations about getting the best product. 

    A Sales oriented business model

    Although most discussions about the Lenskart business revolve around the hybrid business model, a solid sales-oriented business model is at the core. With a focus on achieving high sales, the company emphasizes retaining customers while adding new customers at a rapid pace. To accomplish the target, the company uses the hybrid business model craftily to generate high consumer engagement that triggers more leads and results in higher conversions. Online and offline selling offers more options to consumers who feel like getting the best of both worlds. As a result, they start relying more on the brand that can provide them with anything they want and serve them in the most preferred manner, online or offline.  

    The company was in no hurry to increase sales but spent more time on brand building, and once the brand became popular, sales picked up automatically. The Lenskart parent company took a slow but steady approach to build the business. In 2010, the company started its operations by selling contact lenses online, which signaled the entry of a new brand in the eyewear industry. As the brand gained recognition, the company adopted a hybrid business model to get closer to consumers and earn their trust. Once the brand received good acceptance in the market, the company gradually expanded its product range by adding progressively different glasses like computer glasses, smartphone glasses, reading glasses, sunglasses or glazes, and spectacle frames. Nowadays, Lenskart logo has become quite popular and synonymous with the brand.

    Enhanced convenience for customers

    The Lenskart business model is an example of putting customers ahead of everything else. The company does everything to please customers with more buying options and an amazingly expansive range of products. The company’s objective is to ensure that customers who reach the online or physical store do not go back empty-handed. There is always something to offer for everyone. Moreover, the franchise model of the business ensures that the company takes its business to the doorsteps of customers and provides the most convenient and pleasing buying experience. Assured home delivery of all products ordered online or offline within 24-48 hours enhances the credibility of the business and the brand. 

    Evidence of customer trust

    How much trust the consumer’s repose on the brand becomes evident from the growth figures of the company over ten years since its inception. The Lenskart valuation touched the $1.5 billion mark to become a member of the Unicorn Club that makes India proud. That investors like Infosys owner S.Narayanamurthy and Ratan Tata are investing in the Lenskart business bears testimony to the company’s strong foundation. The company uses the most advanced technology for its online eye checkup and 3D try-on services.

    History

    The CEO and founder of Valyoo Technologies which is Lenskarts parent company is Peyush Bansal. In 2006 he pursued his degree in bachelor of electrical engineering that is control and automation, IT from McGill University in Canada. He worked with Microsoft as a program manager for a year and then he moved to India, did his post-graduation from IIM Bangalore.

    In 2007 Peyush Bansal launched his first business portal associated with SearchMyCampus as a company named Valyoo Technologies. It was a site made for students which consisted of various options such as books, accommodation, internship opportunities, part-time jobs and carpool facilities as well. Peyush Bansal didn’t stop here he wanted to explore the world of e-commerce after the huge success of his last company. After a lot of research and exploration, he came up with the thought of an e-commerce business of eyewear segment and went on to start a business of his own related to eyewear.

    The idea of the business was a reason for the introduction of Flyrr.com, a website based in the US completely inclined to the eyewear market. The company did well and gained success, this is where it pushed him and he took the risk to launch an eyewear e-commerce business in the Indian market also in November in the year 2010. Firstly Lenskart started its business by selling eyeglasses and contact lenses, after a few months in march 2011 it started selling its new products like sunglasses which were in the accessory segment of eyewear fashion and so on.


    Growth and Features:

    Lenskart follows some unique ways for the growth of the e-commerce business. For attracting new customers it provides an offer of the first frame as free where the buyers will have to pay only for the lens and not for the frame on their first purchase. They offer a facility to try frames at home that is the customers can select up to 5 frames and call them to try the frames at home before the final decision of purchasing the frame. They have also introduced an eye check-up facility for the customers at their homes by a professional optometrist. They almost do more than 1500 check-ups per day for the customers. They also come with the creative and innovative idea of 3D face visuals that is when the customer is buying the eyewear only they would be able to see themselves like how the frames are looking on them and these make the customers easy to select what they like. 

    The business model:

    Lenskart proposes over 45 different variations of high-quality lenses of the glasses and also more than 5000 glasses and frames of different shapes as per the latest fashion and top quality. The company sticks to an inventory business model where equal acquiring is done from China and India. Lenskart is always up with the latest trending design in the eyewear segment and it has made its group of members stylists and designers that keep up with the latest updated fashion and trends. After completion of design and styling by the team members of Lenskart, it is given to the manufacturer for the manufacturing of the product.

    To cope up with the demand of the customers for trending and quality eyewear, they have started their venture in offline physical stores as well by using the franchise model. Lenskart has spread its business to over 66 cities and has successfully opened more than 500 stores including in tier III and tier-II locations such as Varanasi, Haridwar, Raipur, Siliguri, Tirupati and Agartala. They have possibly reached metropolitan as well as non-metropolitan cities and also currently serve over 4000 people per day and are expected to scale more than 200,000 customers in upcoming years.

    Lenskart follows four factors for the eyewear industry to reach its assigned goals, firstly the product portfolio, quality of the product, delivery time and most importantly the sales services. Lenskart provides quality eyewear products at a reasonable and affordable price because of its good value propositions. Lenskart comprises a team of more than 1000 employees who work as eye technicians, manufacturers, logistics, technology and customer service which are subject to change depending upon the demand of the customers. 

    Conclusion:

    Lenskart in the coming years would serve more customers and aspire to become a global company keeping the main focus of manufacturing in India so that in India Lenskart can generate a lot of employment opportunities. Though Lenskart has already provided a lot of employment opportunities for the country people both in terms of retails and manufacturing. Lenskart is planning to start eye technology in the next few years and is willing to invest more than $2 million. One of its technology projects includes providing the classes to the customers instantly on spot rather than wasting time waiting for the eye checkup and delivery. With 550 stores across the country, Lenskart is the numero uno brand in the Indian eyewear industry. 



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