Thursday, 13 February 2020

Lenskart Case Study - ALL you need to know- FAQ

Lenskart  Case Study - ALL you need to know-  FAQ

ABSTRACT
vaibhav patil
vaibhav0222@gmail.com
The case “Lenskart.com: Setting Its Sight on the Indian Eyewear Market” talks about the various business aspects that led to the rise of Lenskart as a disruptive eyewear solutions company in India. The case starts out by mentioning Lenskart’s early days as a start-up vertical ecommerce company and the business practices it adopted to make buying eyewear online popular in India’s highly fragmented eyewear market. It then describes the different marketing and promotional strategies implemented by Lenskart to entice customers. The case provides the factors that pushed Lenskart to becoming an omni-channel retailer with both an online and offline presence. Lenskart’s tie-ups and investments in start-ups working on either products or technologies in the eyewear space are also described. The case ends with a look into the challenges being faced by the company. How can Lenskart sustain its position in the Indian eyewear market and achieve its aim of coming out with an Initial Public Offering (IPO)? Can Lenskart’s Founder and CEO, Peyush Bansal (Bansal), overcome the big challenge of leading the company to success in the highly competitive but vastly untapped Indian eyewear market?


PROFILE OF THE COMPANY

Market Share India
According to the latest Government reports, the total Indian eyewear segment is growing at 30-40% per year!About a quarter of the world’s blind population lives in India 
As per Lenskart estimates, there are 550 million people in the country who need reading glasses but only 170 million wear them.


Having said that, more than one-third of our population has a vision correction problem, but only 25% of these use any kind of eyewear.
 In March 2016 it was reported by NDTV that two lakh visitor’s visit Lenskart.com every day and it ships nearly 800-900 glasses on a daily basis.
 Lenskart witnesses a remarkable growth with a 300% increase in its turnover every year through online marketing




 In 2007, Peyush Bansal saw an opportunity in the reservations of students in India & developed searchmycampus.com. A classified site for students that went beyond accommodation to books, part-time jobs, carpool facilities and internship opportunities. • Although searchmycampus.com was a hit, Bansal ventured into the e-commerce world. He launched Flyrr.com. An online shopping portal, based in the U.S, which exclusively sold eyewear.

 After the success of searchmycampus.com & Flyrr.com, Bansal wanted to test the waters of the Indian e-commerce scenario. In November 2010, Lenskart came into existence. Initially, Lenskart started off by selling contact lenses only. A couple of months later, eyeglasses were included and in March 2011 sunglasses were added.


PROFILE OF THE COMPANY
Lenskart becomes the last unicorn company in the year 2019. Lenskart is a New Delhi based startup founded in 2010. Lenskart app is with the widest collection of Specs, Sunglasses, Goggles, Frames, Anti Glare, Contact Lens, etc. Lenskart is India’s No.1 Online Shopping app for Specs, Sunglasses, Goggles, Frames, Anti Glare, Contact Lens, Reading Glasses, Computer Glasses, Try Glasses at Home, Prescription Sunglasses & Eye Accessories.

Founded by Peyush Bansal, Lenskart.com is India’s only dedicated e-retailer of eyeglasses, sunglasses and contact lenses.
Lenskart Solutions Private Limited owns and operates an online shopping portal for men and women eyewear in India.
It provides goggles, contact lenses, and sunglasses, as well as frames and sunglasses for kids. The company also owns and operates
eyewear retail stores in India; and provides home eye check-up services in Mumbai, Bangalore, Chennai, Hyderabad, Kolkata,
Pune, Delhi, Gurgaon, Noida, Faridabad, and Ghaziabad. Lenskart Solutions Private Limited was formerly known as Valyoo
Technologies Private Limited and changed its name to Lenskart Solutions Private Limited in May 2015. The company was
incorporated in 2008 and is based in New Delhi, India with retail stores in Delhi, Agartala, Nagpur, Ahmadabad, Mangalore,
Kolhapur, Visakhapatnam, Hyderabad, Bengaluru, Sangli, Mumbai, Pune, Bhubaneshawar, Siliguri, Haridwar, Lucknow,
Faridabad, Meerut, Erode, Ludhiana, Jamshedpur, Kolkata, Varanasi, Trivandrum, Kochi, Chennai, Tirupati, Raipur, Surat,
Ranchi, Cuttack, Kannur, Dhanabad, Indore, and Madurai, India; and Goa. Founded in 2010, By an ex-Microsoft 'techie' with no
money but truckloads of relentless passion to make a difference in this world, Lenskart is India's fastest growing eyewear business
today.
With a rapidly growing business reaching out to over 1,00,000 customers a month via a unique combination of a strong
online business as www.lenskart.com, uniquely designed physical stores, as well as a first of its kind 'home eye check up' service,
Lenskart is revolutionizing the eyewear industry in india.
Cause: 1/3rd of our population needs glasses but doesn't have access to them, making us the blind capital of the world
with over 15 million blind people.
With the cause in mind, Peyush along with his two co-founders Amit Chaudhary and Sumeet Kapahi founded
'VALYOO technologies'.
The aim was in truly add 'valyoo' in customers' lives by eliminating the retailers, setting up our own high quality
manufacturing and supply directly to the consumer everywhere in India. This not only cuts costs,but also helps us maintain high
quality standards. Our in house robotic lens manufacturing and assembling ensures 100% precision and top quality control.
Offering the best quality products at affordable prices helped us grow more than 200% in the last 2 years and we are
among the top 3 optical businesses in India today. From servicing 30 customers per day to more than 3000 today, we have came a
long way. Our commitment to consumer satisfaction and innovative technologies has given us tremendous support from those who
believe in our cause.
GREAT QUALITY
Made by robots
We are India's first and the only brand to use robotic technique that delivers glasses which are accurate to 3 decimal
places. These machines imported from Germany, ensure perfection on all front: an automated system that allows to inspect lenses,
determine the geometric center, and load the lenses for edging without the need of a finishing block.
Mind of machine
Our people have zero tolerance to error and our call center aims to delight every customer, solve their problems and
work on their feedbacks.
VARIETY
We let the numbers talk. We have over 5000 styles of eyewear, which is 5 times more than that any retailer in India.
From big brands like RayBan and Oakley to the best in house brands.
 An eye for an eye from sunglasses to reading glasses to contact lenses, we make everything that can help you see
this beautiful world with more clarity. We got the whole world yes it is true make eyewear for men, women, kids, for all humans of
the world.
 All covered we have it all. Everyday basics. Everyday fashion. Evening wear. Not just that, we update our styles
every year to keep up with fashion trends around the globe, taking inspiration from fashion capitals and the best designers of the
world.
VALUE FOR MONEY
 Not all good things in the world are expensive our prices are lower than any of your local optician. Our customers
can find the most attractive packages on contact lenses
 No middle man.No extra cost.No middleman simply means no middle ground. Our products come straight from the
manufacturer, hence getting rid of all extra costs and burden.
 One for everyone we have a wide variety of prices to suit all th customers. Prices range from Rs.345 to Rs. 30,000.
never forget that the first frame you buy is absolutely free.
 Your friendly neighborhood Lenskart we bring to you the Lenskart experience alive via brick and marter stores.
With over 80 retail stores across the country, we have just started this journey.
TRUST
14 day refund all our product, including prescription lenses come with a 'no question ask' 14 days return policy.


RESEARCH GAP
Previous studies done on retailing and e-tailing concentrate only on the buying behavior and the factors influencing the sales. This study wants to unravel the real scenario and also look into the complementarity of the retailing on e-tailing with respect to lenskart. This study is very much relevant to present times as this will make awareness about
lenskart retail stores and its impact upon lenskart
sales. In this study, an attempt has been made to
see that lenskart retailers become aware of the
upcoming challenges that is expected to loom over
their business in the near future so that they can

make appropriate arrangements to face the same



FEATURES
Infinite EyeWear.
Suit Your Style.
Find frame Size.
Latest Collection.
Book Eye Check-up at Home,
Shop from a range of 100% Authentic Brands.
Order online & pay CASH ON DELIVERY.
Scan product barcodes with the camera.

Live chat with the customer support team.



FUNDING
The total funding of Lenskart is $429.5 million. 
Oct 2011 raised $4 million in series A.
Feb 2013 raised $10 million in series B.
Jan 2015 raised $21.9 million in series C.
Apr 2016 raised $60.1 million in Series D.
Jan 2017 raised $3.5 million.
Sep 2019 raised $55 million in series F.

Dec 2019  raised $275 million in Series G.

INVESTORS 
SoftBank Vision Fund, Kedaara, Chiratae Ventures, T&R, Unilazer, IFC, TPG, Adveq, IDG Ventures

COMPETITORS 

GKB Opticals, CoolWinks.com, Specsmakers, Deals4Opticals, LensBazaar, Vision Express, Titan Eyeplus, Gangar Eyenation, Optiaxis.com, and 99Lens.

Some of its competitors are as follows-
 •Lens Bazaar
•GKB Opticals

•Deals4opticals

Brand Ambassador: Bhuvan Bam  

FOUNDED:  2010
HEADQUARTERS: New Delhi.
CEO: Peyush Bansal.
REVENUE OF LENSKART: $68.3 Million.
PLAYSTORE RATING: 4.1
EMPLOYEES: 4000.
TWITTER FOLLOWERS:20,007

FACEBOOK FOLLOWERS: 1,556,432


Product in the Marketing Mix Of Lenskart.Com :

Lenskart.com is the only eyewear brand in India that uses the robotic technique for delivering glasses accurate up to three decimal places. It has imported special machines from Germany to ensure perfection by using an automated system for inspecting and loading lenses and determining its geometric centre. It offers nearly five thousand products for kids, men and women and its portfolio includes-
•Eyeglasses in brands like Vogue, Carrera, Fossil, Ray-Ban, Vincent Chase and Tag Huer. These are available in styles like half-rim, full-rim and bifocal and shapes like aviator, rounder and rectangle
•Sunglasses are available in the latest collection including nightwear, retro, polarised, power, premium and sports and in brands like Fastrack, Ray-Ban, Vincent Chase, IDEE, Tom Ford, Oakley and Mask.
•Premium Glasses offers superior performance because they are made with help of TR-90 materials that are ultra light and corrosion free
•Contact lenses of different brands with several lens types like daily disposable, monthly disposable and yearly disposable
•Power Glasses in different shapes and size like aviator, rounder’s, oval and wayfarer

•Accessories like lens cleaner spray solution, contact lens cases, screwdriver, cleaning wipes, eyewear cases and eyewear stand

Private label 
AquaLens, which was launched a year ago, is the firm’s third private label brand. The other two are premium eyewear brands John Jacobs and Vincent Chase. According to Bansal, the organised eyewear segment in India is significantly underpenetrated, with only 5% of eyewear users wearing contact lenses. Globally this number rises to about 35%, he added. “The contact lens market in India is a small one — about Rs 600 crore currently — which has not seen any disruption so far, and has been dominated by a few global names… It should be a Rs 2,000-3,000 crore market, if not more,” Bansal said. 



Places in the Marketing Mix Of Lenskart.Com :

Lenskart.com has a Pan-India presence with its headquarters base at New Delhi. It has adopted a hybrid business model for its company that includes selling of its products via retail stores and online stores. First franchise outlet of Lenskart.com was opened in the year 2014 at Chandigarh and since then it has opened nearly two hundred and fifty stores in cities, towns and metros like Mumbai, Delhi, Kolkata, Shimoga, Rourkela, Patna, Bangalore and Chandigarh. It has a manufacturing facility at Okhla in Delhi and another at Greater Noida. Lenskart.com has opened its official website to display and market its products to its customers with help of a single click of the mouse. It has a strong distribution channel that includes a workforce of nearly one thousand capable and trained employees to offer best possible services.

Lenskart goes offline.. Lenskart’s vision of providing clear vision to all Indians has gone a step ahead now with the offline stores. Lenskart has 23 stores today in different cities. The stores are present in Delhi, Chandigarh, Pune, Mumbai, Bangalore, Mangalore, Nagpur, Goa, Ahmedabad, Vishakhapatnam, Hyderabad & Panaji. Not restricting itself to the metros, Lenskart has opened the franchise stores small towns such as Agartala, Teensukia, Kolhapur & Sangli.

 . Not like a conventional optical store. With modern wooden structures & zero counters. Clutter free display of eyewear. Equipped with touch-screens to access the full collection on lenskart.com. Free eye check-up by a trained optometrist. By the end of 2014, Lenskart plans to set up 100 stores pan India   


Prices in the Marketing Mix Of Lenskart.Com :


Lenskart.com has grown at an astounding rate of 150% in just one year and its gross merchandise value is estimated at rupees 300 crores. It wanted to reach as many customers as possible by offering them products at affordable rates. Hence Lenskart.com set up the direct supply chain to cut production costs. It believes in customer satisfaction by offering innovative technologies and stylish and trendy products. Hence Lenskart.com offers products in three price segments luxury, value and premium to meet demands of every section of society. It has adopted value-based pricing policy and offers best possible products at reasonable rates.


Promotions in the Marketing Mix Of Lenskart.Com :
Lenskart.com is a contemporary company with a modern outlook and a new perspective. It has adopted several product-related schemes as promotional plans. In December 2013, it introduced a new concept for its customers by offering a check-up program from either home or office to save time.
A client has to book in advance for an appointment and company Optometrist will make a visit carrying at least one hundred frames for trial. The customer can also make a choice of five frames from its website and the company will send someone for free trial.

Lenskart.com offers several incentives to its customers like the first frame is offered free of cost and a client has to pay the price of glasses or lenses. Other promotional schemes include PAYTM voucher and purchasing two premium glasses at rupees 2500 only.  Lenskart.com has launched e-mail campaigns via online mediums. Its ads are also shown in television, newspapers, magazines and billboards.
 Popularity of Lenskart was so high due to digital marketing campaign that it got 6K+ Tweets in just few days.They goes by the slogan “Log on, Play on”.
They have even successfully used email marketing campaign, which was good enough to get Lenskart included in “Create and design E-commerce” category of Marketing Sherpa Email Awards 2014 as “Honourable Mention”.emails

People:


Since Lenskart is a new company, based on an entrepreneurial work style; the employees are young and high spirited. The team is driven everyday to first bring value to its employees and then its customers. The employees are treated as the biggest assets of the company. Experiential learning is given importance by inculcating a learning culture through certification courses and training facilities. 

Process:


The Lenskart brand provides access to sophisticated technology that uses the robotic technique to deliver micro-precision glasses with errors correct up to 0.00 degree. They import machines from a US based company called Welch Allyn, which produces sophisticated machines which have the capability to detect flaws in eyesight of a three-month baby as well.


Physical Evidence:


Lenskart manifests itself as brand with high recall that has online stores as well as offline stores. The logo is identifiable with customers of the young generation. With Purab Kohli as the brand ambassador, they launched several advertisement campaigns in an attempt to tap on the young market looking for trendy eye wear. Hence this concludes the Lenskart marketing mix.



Approach
• Reaching out to every nook and corner of the country through social media
• Sparking word of mouth marketing through social media
• Paying major attention towards customer retention and encouraging them to come back repeatedly


  Results
• One Lakh visit per day
• Almost 2000 orders per day
• The only eyewear shopping portal to reach far into every corner of the country.



Lenskart.com with Octane.in developed a strategy to connect with
customers and build relationships through triggered mailers.
Lenskart.com worked closely with the Octane’s Services to revamp its
lifecycle of triggered emails. Octane.in helped Lenskart.com to
generate a Triggered Based Email Program which created high-value
interaction with its audience, delivering the right content they needed
exactly at the right time. Both Lenskart.com & Octane.in believed in
serving the customers best at the time they need.
The new triggered based Email Program series helped Lenskart to get:
• 10X growth in email traffic in 6 months
• The per session value became 1.5X better then the push email program
• The traffic increased from 0% to 5%
• ROI became 2X of present ROI 


(Referenece- website at www.octane.in)

Bansal
We want to disrupt contact lenses and repeat what we have done in the eye glasses sector, where we have emerged as the largest player in the organised market in the country,” Bansal


The top issue faced by Lenskart app are-
 User interface
 Technical glitches
 Customer service
To deal with this problem team proposed 3 pronged strategy
1. Change – Change the current UI to revamp the user experience
(Overall make app seam bug free)
2. Communicate – One time aggressive communication using promotions that push users towards the app use easy referral schemes & focus on category drivers of the platform.
3. Engage – Use In-store engagement Program
Recommendation
 Short term
1. Introduction of 3D try on on mobile app
2. Introduce the share try on lens image with friends with lenskart logo to create brand awareness through digital visibility.
3. Rope in Style consultant to fashion seekers in selecting best frame for them
 Long term
1. Bring Doctors into value chain as validators for the daily eyewear users

Source: This case study was being solved by IIM lucknow teams orange mithai & blizaars in network 18 program.




MARKETING STRATEGY OF LENSKART
Lenskart chose different strategies to market its products to customers. What made the company distinctive was that it did not target any market segment or age group in particular, but designed its products in common for all the customers.

CHALLENGES GALORE
Despite its innovative business practices and the ability to attract investment, the company’s financial position continued to remain weak. The losses at Lenskart widened by 78% to Rs. 1.13 billion in 2015-16 from 2014-15, even as it posted a 63% jump in revenues to Rs. 990 million, as per documents filed with the Registrar of Companies, India (RoC).

THE ROAD AHEAD
As of June 2018, Lenskart was the largest optical retailer in India. Its app had five million plus downloads, and it had an offline presence of 410 stores having 200 opticians. The company claimed that almost 50% of its total sales came from its offline stores. Stimulated by the encouraging results from its offline foray, Lenskart planned to open 15 new stores each month, mainly in the tier I and tier II cities of India.







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