Do you want to know how Lenskart originated and established itself as a unicorn startup?
In this article, we have shared the business model of Lenskart, problems identified, marketing strategies, and the Lenskart franchise model.
With the dream of creating history, “Peyush Bansal” started his unique startup, Lenskart, from a garage that became a unicorn startup in 2019. Currently, Lenskart holds around 30% market share with a competitive advantage.
About Lenskart
- Lenskart Founder – Peyush Bansal, Sumeet Kapahi, Amit Chaudhary
- Lenskart CEO – Peyush Bansal
- Industry – Eyewear
- Founded – 2010
- Website – Lenskart.com
- Specialisation – prescription eyewear, sunglasses, and contact lenses
Business Model Of Lenskart
Lenskart is a Faridabad-based – Indian optical eyewear retail chain with 800+ offline stores and an E-commerce platform for eyewear, such as eyeglasses, frames, goggles, sunglasses, and contact lenses.
Initially, Lenskart started its journey with contact lenses only. Later on, its product got a huge attraction, and the company started expanding its portfolio by adding eyeglasses and sunglasses.
The ultimate purpose of the business model of Lenskart is to revolve entirely around the eyewear section, including
Home eye check-up services
Lenskart also provides a “Home eye-check-up service,” which is a revolutionary in the eyewear industry. In the home eye check-up services, they offer their own eye check-up services to the customers.
Besides that, their executives also visit customers’ houses and give them the option to try their best 100 frames at home. Customers can choose and even directly buy from the Lenskart executive.
3D visualization
In addition, the company also launched a 3D visualization tool, where the customers can try out any type of eyewear in their homes. They don’t need to visit the stores to wear and try every frame. The 3D visual tool uses face-mapping technology and artificial intelligence to help customers decide which frames suit their faces.
Lenskart Blu – Protect Eyesight
In 2019, they launched Lenskart Blu. It is an eyewear solution that protects eyesight by blocking the harmful rays from our screens.
Lenskart Products And Services
Lenskart is specialized in selling contact lenses, sunglasses, computer glasses, kids glasses, and reading glasses to let their customers see the world with more clarity. They have eyewear for everyone (men, women, and kids).
Today, Lenskart offers 45 different kinds of lenses and 5000 frame styles of eyewear.
Its product ranges from Rs. 345 to Rs. 30,000, starting from the basic to the premium versions.
Problems Identified
Lenskart Founder Peyush Bansal came to know that “1/3rd of our population needs glasses, but they don’t have access to them, especially in terms of cost, and there are more than over 15 million blind people.”
While looking for the solution to the “spectacles” accessibility problem, he further researched that there are basically two eye-care sectors:
1. Organized sector: The organized eye care sector, which includes reputed brands like Titan, Rayban, and Oakley, sells eyewear at a high price, i.e., starting from INR 1500 in India to INR 3000 in other countries. So, he learned that such high prices are not affordable for middle-class customers in India.
Furthermore, these reputed brands have limited design options, which don’t offer variety to the customers.
2. Unorganized sector: The unorganised eye care sector is basically working on the traditional business model, i.e., people have to visit the stores for an eye checkup and wait for 5-7 days to get their eyewear.
Besides, these stores sell cheap products and don’t provide a warranty.
So, here, Peyush Bansal saw the opportunity to solve the middle-class customer’s problem and build the business model of Lenskart.
As we know how the company has identified the problem, the next step is to explore the Business model of Lenskart.
Let’s check out how Lenskart actually works.
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Lenskart Business Model – Omni-Channel Strategy
The business model of Lenskart is B2C, in which they directly sell their products to the customers by following the “Omni Channel Experience.” It allows customers to choose the shopping method that’s most convenient to them, whether a physical store or an online Lenskart website.
The purpose of starting omnichannel is to build trust with the customers. He realized that Indian customers prefer to have a touch and feel of the product before buying a high-involvement product.
The business model of Lenskart is based on “Wider choices, more inventories.”
Step 1: Own frame designers and stylists
The first step of the Lenskart business model is to understand how the company works on glasses frames. Lenskart has its own designers and stylists team to create trendy frames. The company focuses on what customers actually love to wear and follows the same design to offer the customers.
Step 2: Outsource designs to manufacturers
Lenskart also has a factory in Zhengzhou, China, that handles around 20% of its production of frames. It passed the designs to the manufacturers in India and China.
Step 3: Multi-operations channel to sell
Customers can buy the products via online portals or by visiting nearby stores.
So, this was the business model of Lenskart, which has its own expert team of designers to attract a broader range of customers as per their tastes and choices.
Solutions offered in the Business model of Lenskart
Now that we have understood the business model of Lenskart, let’s check what solutions it offers to the customers.
As Peyush Bansal identified the problems that are mainly faced by the Indian middle-class family, he followed the customer convenience approach and focused on finding solutions to issues such as
- Costing
Lenskart started selling its eye care products from Rs. 345 onwards, which are affordable for anyone. They also offer the first frame free to new customers.
- Accessibility
As Lenskart has adopted the “Omni channel experience” for its customers, it is convenient for them to either buy online or visit the offline stores. Lenskart has over 900 offline outlets in India that promise to deliver the product in 72 hours.
“Did you know Lenskart opened 73 stores in 46 cities and 19 states in a Day?”
- Converted fun into lifestyle
In March 2011, the company also converted the problem of making fun of the “chashmish” people into a lifestyle to increase customers’ confidence in wearing spectacles. They started to add sunglasses to their portfolio as a fashion accessory and built a reputation in the fashion industry.
- Warranty and return policy
The company also offers a warranty on lens and frames for 1 year along with the 14 days return policy.
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Lenskart Business Model – Marketing Strategies
When we talk about the company’s revenue and profitability, Lenskart’s 90% of the revenue comes from its own retail brands. The company is profitable because it is directly dealing with the customers, i.e., there is no middleman in between to distribute the profits.
Now, let’s discuss what marketing strategies Lenskart followed to sustain its business and take competitive advantage:
- Sign Up and Get your first frame free
Lenskart works on a “razor-blade model” to attract customers, i.e., it offers bundled products like buying two at the cost of one, loyalty programs, and giving the first frame for free.
- Free eye checkup at home
Another best market strategy is offering free eye checkups at home for the customer’s convenience, where they can also choose a maximum of 5 frames and try them at home before buying.
- Marketing in IPL “Nazar Ghati Durgahtna Ghati”
In the IPL season 2021, lenskart promoted its “Virtual Augmented Reality” feature that allows users to try out glasses online at home. And the company has witnessed 3x growth in just two weeks.
- Virtual try of eyewear at home
The innovation feature 3D virtual try gives a hit to the business model of Lenskart.
Lenskart Competitors
Lenskart’s competitors include both online and offline players, who specialise in eyewear. The major competitors are:
- GKB Opticals
- Coolwinks
- Specsmakers
- Lawrence and mayo
- Deals4Opticals
- Lensbazaar
- Vision Express
- Titan Eyeplus
Besides the prominent market players, Lenskart also faces competition from e-commerce portals such as Amazon, Flipkart, Snapdeal, and Paytm Mall, who are trying to beat the business model of Lenskart.
Lenskart Franchise Model
Do you also want to take advantage of the “Lenskart franchise model?” You can join “Lenskart partner today” and become the owner of a branded Lenskart store.
With the mission to provide high-quality eyewear at affordable prices, Lenskart allows us to become the partner with them so that their services reach the remote corners of India.
Further, the company offers two types of franchises in India, i.e., premium stores (tier 1 and tier 2 cities) and economy stores (tier 3 and tier 4 cities).
Eligibility Criteria For Lenskart Franchise Model
- The franchisee must have entrepreneurial skills, i.e., the ability to manage business and sales.
- The franchisee must have a strong educational background.
- The franchisee must have investment capacity, i.e., an investment of Rs. 35-40 lakhs to establish a premium store of Lenskart in India and around Rs. 25-27 lakh for the economy store.
You can expect a minimum return on investment of around 25% – 30% per year per outlet with a quick break even.
If you find you match the eligibility criteria and are interested in the business model of Lenskart, you can enrol on the Lenskart website and submit the application.
Frequently Asked Questions
1. Is Lenskart a Chinese company?
Ans- No, Lenskart is an Indian retail chain, having its in-house manufacturing units in China for spectacles, glasses, and contact lenses.
2. Is Lenskart a profit-making company?
Ans- Yes, Lenskart is a profit-making company. It reported revenue of INR 967 Cr in FY2020, with a profit of INR 18Cr.
3. Can I buy the Lenskart franchise?
Ans- The company offers the Lenskart franchise model to entrepreneurs. You can check the eligibility criteria on their website and the initial capital requirements for premium and economy stores.
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