You might not be aware of the Lenskart Business Model, If you come to be aware of the business model of Lenskart, you would be inspired to execute your own business within a short time.
The start-up value of Lenskart has reached $1.5 Billion and Lenskart has entered the Unicorn Club.
The companies whose start-up values are more than $ 1 Billion, are called the Unicorn Startup, and Lenskart is one of them now, and Ratan Tata and owner of Infosys has also invested in Lenskart startup.
In this article, we are going to explore the Lenskart Case Study which changed the concept of business when online shopping was not too trusted and reliable from the point of view of the Indian population, and lenskart not only survived but became a huge brand.
Who Started The Lenskart?
Peyush Bansal, who is the owner of Lenskart, has started the Lenskart in 2010, and after almost 10 years, Lenskart has been converted into one of the greatest brands.
Peyush Bansal has passed out Bachelors’s in Electrical Engineering, and IT& Automation in 2006, and he applied his knowledge to start up a sustainable business idea.
After completing the graduation, he returned to India and completed his post-graduation from the Indian Institute of Management, Banglore.
An instant after completing the post-graduation, he performed a job in Microsoft as a programming manager and after a certain time, he left that job also to jump into the business.
He started up a company named Valyoo Technologies in 2007 which was his first startup in which they are running the website named searchmycampains.com which was a classified website providing different types of services.
Having experience regarding the online community business in India, he moved to the abroad business and started a website named Flyrr.com which was capturing the Eyewear Market of USA.
Considering the massive success of flyrr.com in the USA, he made up his mind to launch the eyewear startup in India with a different idea, and finally, he launched Lenskart.com in India in 2010.
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Products of Lenskart
With the starting phase of Lenskart’s startup, they were selling the contact lenses only, and they started also to sell the eyeglasses later on.
Considering the better success of the lenskart startup and the unexpectedly positive response of the Indian population, they increased their product treasury by adding reading glasses, computer glasses, sunglasses, smartphone glasses, and various frames.
Amongst all the products, he focused on the eyeglasses market and captured well, he launched several marketing campaigns and executed them nicely which cause the massive growth of lenskart.
Lenskart Business Model
As the concept of selling eyewear was quite new in India, they were supposed to implement a quite different business model, and there were many challenges to executing the business idea of selling eyewear online in India.
It was the time of around 2010-2012, and the Indian population was neither relying nor trusting more on online products, purchasing, and services.
Lenskart is selling their products online and offline both, they sell their products online on their products and they approached the franchise model for the offline selling.
The best part of the business model of lenskart is they execute the free home delivery in 24 to 48 hours after ordering by the customer on their portal.
They have approached a different business model, to avoid the barrier of selection for the customer of the frame, an executive goes to the customer’s home or preferred location and offers them different frames or inquired products.
This concept changed the business from the root, and the lenskart business was getting a massive positive response from the audience, and they continued this business model, which is till continue.
Execution of a proper business model is not quite easy, they need to focus on quality and rate attributes simeonteously, i.e. price must not exceed the quality, and the quality must be provided the best according to the price.
During 2017-2018, lenskart entered the profitable zone and in 2019, it became the unicorn startup.
Lenskart Business Model is an inventory-led business model where they are providing more than 5000 frames to the customer along with 45+ lense qualities.
Instead of tieing up with other designers, lenskart has its own designers and stylist who customize the designs and style for frames, lenses, and all products which they outsource to Manufacturers in India and China.
They are not focusing only on just one platform to grow the sales, they are covering both online and offline selling methods.
They have their own portal for those customers who want to purchase the products of lenskart online, and for offline customers, they are offering franchise models and outlets in different cities.
Lenskart Franchise Cost And Model in India
If anyone wants to get the franchise of Lenskart, he can visit the Franchise Portal of lenskart, where they will have to submit the details asked on the page, and the team of lenskart will contact him back in a few days after reviewing the application.
The total cost of acquiring Lenskart Franchise is around Rs. 25 Lakh INR and Lenskart is offering a 30% commission per sale of that product’s price to the owner of the lenskart franchise.
Pricing And Quality
As I mentioned, Lenskart Business Model is taking of customer’s buyer potential, and in spite of being a huge brand, they do not offer only expensive glasses, frames, and other products.
They are starting from just Rs. 400 which is affordable for each class of customer, and this is the key point of the lenskart business model that they are covering each category of the customer which makes their business profitable, scalable, and sustainable.
If we analyze the lenskart case study and the reason for success for the lenskart business model, we found that the reasonable price of quality products is one of the most important key points.
They targeted each class of people of India and made products that can be affordable for each one who needs them.
Lenskart Marketing Strategy
The role of marketing strategy is one of the most attributes which contributes to the massive success of any business.
I have already shared this truth that you can sell the worst product with the best marketing strategy and you can’t sell the best product with the bad marketing strategy.
The business concept of selling eyewear was quite new in India at that time and that’s why he was supposed to implement a quite different marketing strategy.
He launched and ran the first campaign of ” First Frame Free” under which they were providing the first frame free of cost to the customers.
This is the strategy to convert the one-time or first customer into a loyal and long-lasting customer.
This campaign was very successful and they acquired a lot of new customers by running a first frame free campaign.
This campaign was for those customers who were trying eyewear first time ever in their life and this campaign was too successful.
Another successful campaign of lenskart was TRY FRAMES AT HOME in which an executive of Lenskart comes to your home and offers you various frames for your trial and selection.
Along with this, they are providing the FREE EYE CHECKUP AT HOME, with the same strategy which worked wonderfully.
Hence, these services are barriers by location limitations, and they are expanding it day by day in different cities covering the states.
Results of These Marketing Strategies
According to Lenskart business stats, these marketing strategies return around 50% conversions.
It means if they would have visited around 500 homes in a month, they got almost 250 conversions and customers.
They have not stopped here, they are very near to implementing the technology in the lenskart business and currently, they are working on the 3D Visualization technology.
As a result of this technology framework, when you will purchase the frame online from the lenskart site, you will be able to check how will that frame look on your face.
They also launched another campaign named “NAZAR HATI, DURGAHTNA GHATI” during the IPL season of that year.
Competitors of Lenskart
A big player faces big competition, according to this sentence, lenskart is competing with certain huge brands.
Hence, the list of Lenskart Competitors is too long, but if we focus on the major competitors of Lenskart, GKB, Lawrance and Mayo, VisionExpress, Specsmakers, Deals4opticals are the major competitors of lenskart.
In the era of technology, lenskart have to compete with e-commerce site like Amazon, Flipkart, Walmart also which are promoting and selling other brands’ eyewear.
Conclusion on Lenskart Business Model
Lenskart Business Model is totally various from another business model because they are focusing on the most minute attribute of the business, they are offering a heavy discount also by tieing up the deals with the online payment transaction merchants.
As I tell in many of my blogs that there is not any greater business, but a good business idea makes the business great.
Now, rewind the time, and think that the selling of eyewear is a very old business, right? But the lenskart business model made it totally different than others.
Before lenskart came, thousands of businessmen were selling and are selling the eyewear, but lenskart touched $1.5 Billion, and others did not.
The business model of lenskart made it strong and stable, Peyush Bansal also ran an old business, but with new ideas, and it is the key point of his success.