INTRODUCTION
Earlier, purchasing spectacles involved visiting an optician, trying on numerous frames, and then returning to the shop later to pick up your glasses. Only about 5% of the eyewear market was organized, offering a variety of frames with quality assurance. The rest consisted of small shops where there was no guarantee of quality, limited options, and poor customer service. To ensure quality, you had to pay more, but if you chose cheaper products, it often ended up costing you more in the long run.
Recognizing this gap, Piyush Bansal saw an opportunity to revolutionize the eyewear industry. He developed a business model focused on providing not only high-quality products but also exceptional customer service, a wide range of frame options, and a seamless shopping experience. With this vision and determination, he founded Lenskart, aiming to bridge the gap between quality and affordability while making the eyewear shopping experience convenient and accessible for everyone.
He aimed to bridge the gap in accessibility and availability, recognizing that over 50 crore people need glasses. However, a lack of awareness, especially in rural areas, and the scarcity of quality stores in tier 2 and tier 3 cities have limited access. Even in tier 1 cities, there are fewer eyewear shops compared to other stores like mobile phone outlets, despite the growing necessity for spectacles.
He also aimed to mitigate the gap of accessibility and availability. He recognised that more than 50 crore people are in a need of specs but there is no enough viability as there is lack of awareness especially in rural area and there were few good shops in tier 3 and tier 2 cities. Also, there were no shops if we compare it to other shops such as phone even in tier 1 cities even when specs are more at necessity.
Challenges face by LenseKart
- Fear of e-commerce
One of the biggest challenges Lenskart faced was the general fear and hesitation of consumers to buy spectacles online. Traditionally, people preferred visiting an optician to try on frames, get their prescription checked, and make their purchase in person. The trust issues surrounding online shopping, particularly when it comes to eyewear, posed a significant barrier. However, Piyush Bansal’s vision transformed this fear into an opportunity. Lenskart differentiated itself by offering a vast variety of eyewear, providing over 5000 styles—five times more than what any physical retailer in India could offer. This enormous range gave customers the freedom to choose from a variety of frames that suited their tastes and needs, without being limited by what was physically available in stores.
Additionally, while traditional retail stores typically take 6-7 days for delivery, Lenskart managed to innovate by providing a delivery time of just 72 hours, significantly improving the convenience factor. Furthermore, Lenskart ensured that its eyewear options ranged from budget-friendly to premium, maintaining high quality across all price points. Their strategic approach to offers, such as 70% discounts or “Buy One, Get One Free” promotions, played a key role in building consumer trust and attracting new customers. People, who once preferred visiting a physical store, started enjoying the convenience of shopping from home. As a result, Lenskart’s model became popular, and it was able to reduce mistakes significantly—while the error rate in retail shops is around 15%, Lenskart reduced it to just 4%.
- Lack of trial
A major concern for online eyewear shoppers is the inability to physically try on frames before making a purchase. In a traditional retail setting, customers can instantly try various styles to see how they look. Lenskart tackled this challenge by providing an innovative virtual trial option on its website and mobile app. Using augmented reality (AR) technology, customers can upload their photos and virtually try on different frames, making the online shopping experience more interactive and personalized.
Moreover, Lenskart understood that some customers might still have concerns even after the virtual trial. To address this, they introduced a hassle-free return policy, allowing customers to return their eyewear within 14 days if they weren’t satisfied with the product. This return policy greatly reduced the perceived risk of buying eyewear online and gave customers the confidence to make purchases they might have otherwise hesitated to do.
- Skepticism
Another significant hurdle Lenskart faced was the social stigma associated with wearing spectacles. Glasses were often seen as a medical necessity rather than a fashion statement, and people who wore them were sometimes made fun of. To overcome this, Lenskart embarked on a marketing campaign that successfully changed the perception of eyewear. By partnering with well-known celebrities and influencers, they transformed glasses into a trendy and fashionable accessory. The campaign positioned eyewear as an essential part of personal style, helping shift the narrative from glasses being a medical tool to being an essential fashion accessory. This cultural shift made eyewear more acceptable, and many people began embracing spectacles as a way to express their individuality.
- Check facility
In addition to offering a wide selection of frames and improving the shopping experience, Lenskart also recognized the need for accessible and convenient eye exams. In many parts of India, people often struggle to find time or resources to get their eyes checked. To address this challenge, Lenskart deployed a dedicated team for eye checkups and launched a home service. This innovative service sent Lenskart’s trained professionals directly to customers’ homes to conduct eye exams and provide prescriptions on the spot. This service proved especially beneficial in small towns and rural areas, where access to optical stores and eye care professionals is limited.
By addressing these challenges with innovative solutions, Lenskart was able to not only build trust in the online eyewear market but also revolutionize the way consumers view and purchase glasses in India. Their strategic approach and commitment to improving customer experience have helped them become a leader in the eyewear industry.
How Lenskart Makes Money
Lenskart’s business model is designed to generate revenue through strategic pricing, bulk purchasing, and innovative marketing. Here’s a breakdown of how Lenskart generates profits:
Bulk Purchasing and Cost Reduction
One of the key reasons Lenskart can offer affordable eyewear while maintaining profitability is its ability to buy in bulk. While a small business owner may only purchase a maximum of 1,000 units, Lenskart purchases eyewear in lakhs, which allows them to significantly reduce the per-unit cost. This scale of operation gives them a competitive advantage in terms of pricing.
Lower Profit Margins with Higher Volume
Traditional eyewear brands often have high-profit margins, sometimes as much as 80-90%. For example, a pair of specs that costs Rs. 300-400 to manufacture is sold to consumers for Rs. 1,500 or more. In contrast, Lenskart operates with a lower profit margin but makes up for it by attracting a larger customer base. The high volume of sales allows them to earn more in total revenue despite lower margins.
Direct Sales to Consumers
Unlike traditional retail shops, which have to pay 30% commissions to resellers, Lenskart sells directly to consumers through its online platform. This direct-to-consumer model enables Lenskart to keep costs lower and earn more by bypassing intermediaries. Even with slightly reduced profit margins, Lenskart benefits from the volume of sales made directly to customers.
Premium Brands for High-Income Consumers
To increase revenue further, Lenskart launched its own eyewear brands such as Vincent Chase and John Jacobs. These exclusive, premium eyewear lines are designed to attract higher-income customers willing to spend more on stylish and quality eyewear. By catering to the affluent market, Lenskart continues to expand its customer base and diversify its revenue streams.
Expansion into Physical Retail Stores
In addition to their strong online presence, Lenskart expanded into physical retail stores as they gained popularity. This move was aimed at tapping into the segment of consumers who were still hesitant about shopping online. By offering both online and offline shopping options, Lenskart created an “endless aisle” strategy, ensuring that they could cater to customers in various ways, making their products more accessible and convenient.
Franchise Model and Store Conversion
Lenskart further expanded its reach by converting existing eyewear stores into Lenskart-branded outlets. These franchisee stores receive a 25% margin for selling Lenskart’s products, allowing the company to grow its physical footprint without the overhead costs of owning all locations. This franchise model has been highly effective in scaling their business and increasing brand visibility across the country.
By combining online sales, exclusive brands, and a growing network of physical stores, Lenskart has created a highly successful and sustainable business model that continues to attract and retain customers across India.
Watch this insightful video on Lenskart Franchise model-
Conclusion
Lenskart’s success story is a testament to how understanding consumer pain points and implementing innovative solutions can disrupt traditional industries. By addressing the challenges of accessibility, affordability, and quality in the eyewear market, Lenskart has created a customer-centric business model that blends the best of both online and offline retail. From revolutionizing the online eyewear shopping experience with virtual try-ons and home eye checkups to creating premium brands and expanding its physical retail presence, Lenskart has effectively catered to a wide range of consumer needs.
Their strategic pricing, bulk purchasing, and direct-to-consumer approach have allowed them to scale rapidly while maintaining quality and keeping costs low. Lenskart’s decision to launch exclusive eyewear brands and embrace a franchise model further solidified its position as a market leader. By providing a convenient, accessible, and seamless shopping experience, Lenskart has successfully shifted the perception of eyewear from a medical necessity to a fashion statement, making it an essential accessory for all.
You can get more information about Franchise business through this video-
