Lenskart

Peyush Bansal, Amit Chaudhary and Sumeet Kapahi founded Lenskart in 2010, to offer affordable range of designer
and trendy eyewear and related accessories. Peyush's first venture, searchmycampus set up in 2008, focused on
classifieds for college students looking for jobs, accommodation, car pool or any such service. After completing a
program on entrepreneurship at IIM Bangalore in 2009, he started an online retail store—Flyrr —to sell spectacles,
sunglasses and contact lenses to customers in the US. After the initial success, he started encountering challenges in
product delivery.

Realizing the need to control operations and delivery, he shifted focus to the domestic market and set up Lenskart
in 2010 to sell a wide range of eyewear products at discounted prices, thereby, making the export-quality products
affordable to all. The eyewear market was then by and large dominated by unorganized retail—offering low
quality and low-cost products—with around 95% market share. The organized retail served high-end
customers with international brands such as Ray-Ban and Ralph Lauren at premium prices. Lenskart started its
business with a mission 'to provide every Indian access to high-quality designer glasses without shelling out
their pocket.'

Lenskart took control over the complete supply chain to maintain quality as well as manage costs. The
company invested in backward integration by setting up its own manufacturing unit. In addition, it also manages
the end-to-end logistics to ensure timely delivery.

The company acquired high end machinery for 'zero error tolerance', 3D try-on software and robotics technolo-
gies from reputed American and German suppliers. This automated equipment ensure perfection with robotic
systems to inspect lenses, determine geometric center, and load the lenses for edging without the need of a finishing
block. Shaping by laser machines delivers micro-precision glasses with 0.00-degree power error enabling
Lenskart keep its promise of high quality products.

The company set up chat lines to clarify customer queries and offered a 14-day, no-questions-asked returns policy
for all its products, including lenses. Lenskart products are accompanied with an authenticity card and a one-year
warranty. The authenticity card stands as a proof of quality and reinforces legitimacy. These customer-centric
approaches instilled confidence in first-time online buyers.

Customers are used to physical touching, feeling and trying out different eyeglasses frames before buying eyewear.
Lenskart started setting up retail outlets to manage the offline experiences and switched to an omni-channel model with
its physical presence complementing online retail. The trust and assurance expressed about the quality of frames and
lens before purchase resulted in reduced reluctance and improved product offtake. Customers can visit the stores to try
out the spectacles. They can also use Lenskart's '3D Try-on' feature in the mobile app to get a feel of how they
will appear with different models of spectacles online. Furthermore, the company's 'Try frames @ home'
service allows customers to try different frames in the comfort of their homes. An eye specialist carries over
100 types of stylish frames for trial at customer's doorstep. A membership program—Lenskart Gold
Membership program— for regular and loyal customers is an annual subscription plan of 7600 with multiple
benefits like additional discount, fast delivery, extended warranty and much more. Lenskart started attracting he
customers from the unorganized retailers by making designer eyewear solutions available to them directly.
With its omni-channel model and clear positioning, Lenskart soon captured a large share of eyewear market
by serving more than 100,000 customers per month. The prices offered by Lenskart ranges between Rs.345/-
to Rs. 35,000/-, with a vast range of products to meet the requirements of everyone. In addition, Lenskart's
exclusive offer of 'the first frame for free' to all its customers continues since inception.

The company has a wide reach with 750 outlets across India to complement its online and app-based
services.The physical presence created an image of Lenskart being a friendly neighborhood eyewear store that
is available,accessible, and affordable to all its customers. Lenskart also emphasizes its 'no middle-man' based
supply chain model that reduces costs for its fast delivery, high quality and affordability of products.

With a portfolio of more than 5000 styles of eye glasses and 45 types of contact lenses at affordable prices,
Lenskart justifies its tagline 'Aur Dikhao' (show more), which fits the Indian customer's mindset, to try out as
many options as possible. The brand is known for its quality and unique services to ensure all possible
support a customer might require before purchase. The eye test facility is also made available at the
doorsteps.

Lenskart's commitment to customer satisfaction and innovative technology has developed trust and brand
loyalty in its customers. With their quality products and affordable offerings, Lenskart have grown by more
than 200% in the last couple of years and is amongst the top three players in India's rapidly growing market
for eyewear. The company has successfully created an image of a brand which offers 'value for money'. Its
designer products at affordable prices, make customers believe that "not all good things in the world are
expensive".

With their 'all under one roof' concept, Lenskart has ensured the availability of a wide product portfolio
with all varieties of fashionable eyewear and accessories. The variety and types of styles offered by
Lenskart is more than five times the variety offered by other retailers. With its strategic position and
unique offerings, Lenskart is also working towards its vision `to reduce the number of people with
avoidable blindness by extending their service in each corner of India".55

After a decade's experience in the Indian market, Lens-kart received the unicorn status in FY2020, after
raising $275 million from SoftBank. In the same financial year, it turned profitable while generating a
topline of '894.22 crore.

Questions
1.What is LensKart's customer value proposition? Is this value proposition sustainable?
2.What are the points of panty and the points of difference for LensKart relative to its competitors?
3. What role does direct-to-consumer distribution play in LensKart's business model? What are the pros and
cons of LensKart making its products available in traditional eyewear stores?