Lenskart

The business model of Lenskart on E-business

1. Lenskart Case Study by: 1713001 – Kunthal Aanchaliya 1722012 – Harsh Vasani 1712038 – Dhairya Kamdar 1712046 – Aniket Shah

2. INTRODUCTION Lenskart was 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. The company objective is to offer disruptive and one of its kind services to the consumers. It’s portfolio of products range from prescription glasses, contact lenses to sunglasses.

3. COMPANY OVERVIEW Peyush Bansal, a former Microsoft employee, founded Lenskart in 2010 along with Amit Chaudhary and Sumeet Kapahi . Peyush is founder and CEO of company Valyoo Technologies, which is the parent company of LensKart . Financial backers of Lenskart include TPG Growth, International Finance Corp and Adveq Management. Ratan Tata (of Tata Sons) and S Gopalakrishnan (of Infosys) have also invested in Lenskart . In March 2018 Wipro Chairman Azim Premji invested 400cr in the group taking the valuation of the company to 3000 Crore. The company had a valuation of $1.5 billion by Dec 2019 after Softbank invested around $275 million

4. INFRASTRUCTURE Lenskart has a young and passionate team of 2700 people, with 3 offices in Delhi, 1 in Mumbai, 1 in Kolkata and a Technology office in Bangalore. As a growing e-commerce company facing nearly 5M visitors every month, the technical team faced many architectural challenges. Growing infrastructural systems is never easy, but when you grow as fast as Lenskart has, the challenges tend to pile up faster than estimated Lenskat countered the issue with a growing chain of offline stores in all cities in India, and its unique Home Eye Check-up service which takes expert optometrists to customers homes/office for an eye test, Lenskart has done what no one could till now. Clearer vision is absolutely accessible now! ‘So, Log On, Play On!’

5. The Mantra of Success A big aspect of Lenskart’s success is in our Omnichannel approach which includes online, modern shops and home visits by optometrists on motorbikes. We are available wherever our consumers want us. We have implemented lot of innovation in our stores to keep them small, lean and profitable. The stores are unique, we don’t have an inventory and orders are placed through an iPad and served from a central warehouse. It is quite a unique model as we work all the way from manufacturing to front-end supply to provide affordable quality eyewear to our consumers.

6. The Challenges “Who wants to buy contact lenses or glasses online?” – one of the most frequently asked question. Lenskart’s aim is to address the knowledge gap between the customers and their eyewear products. With that in mind, the online-offline divide will slowly disintegrate. Moreover, the touch-and-feel segment is no longer a threat to e-commerce portals.

7. The Challenges(Cont.) But many people are still reluctant to buy eyewear products online. In order to address this, Lenskart has been offering various schemes/deals to tackle the issue. ‘First Frame Free’ – where customers will only have to pay for the lens on their first purchase. ‘Try At Home’ – where customers can choose a maximum of 5 frames & try them at home before making a final purchase.

8. Business Model of Lenskart Innovative Features include – First frame free Exchange old frame for new Virtual try-on Try-at-home Doctor locator Home Eye-check up Franchise model for optometrists Buying guide

9. Business Model of Lenskart Multi-brand eyewear seller has also expanded its reach via the offline medium Today, has over 100 stores across more than 66 cities in the country with delivery in over 100 cities, including tier 2 and tier 3 cities Uniqueness of Lenskart – No segmentation i.e. it does not target any market segment or age group in specific Lenskart has partnered with a range of third party logistics partners to deliver in various cities across India

10. How do they make money?

11. E-Marketing Strategies The main objective of Lenskart’s marketing strategy was to change people’s mindset and get them to accept online store as an alternative way of purchasing. Lenskart increased customer engagement and gain their trust and confidence. Lenkart first targeted those people who had subscribed with  Lenskart.com  but had not transacted. These subscribers had shown interest in the product but lacked trust in the brand to step forward to purchase.

12. E-Marketing Strategies Online campaigns – To create a branding of Lenskart Lenskart revamp hashtag. Email marketing campaign - to increase engagement with its customers and to gain their trust and confidence. Lenskart adopted an innovative approach to take customers in conversation with Lenskart via emails throughout the buying cycle.

13. E-SCM

14. E-CRM With consumer satisfaction becoming one of the top priorities for organisations , customer relationship management (CRM) is gradually becoming central to their digital initiatives. Lenskart.com, an online retailer of eyewear, has mobile-enabled most of its CRM channels. Lenskart CEO Peyush Bansal says, “We use best in industry solutions for each channel (voice/social media/email/chat) and integrate them with our homegrown system. Currently we are using this for experimentation; going forward, we plan to leverage it for more handy analytics and prompt response.”

15. E-CRM Trying frames online : The portal introduced this technology to allow customers to check frames online, making it easier to turn curious online shoppers into buyers. Partnering with non-optical people in tier 2 and tier 3 cities : In order to scale up business, Lenskart selected people from different tier 2 and tier 3 cities to promote free check-ups. This extended to visiting companies and giving free-check up to employees. Today, the company targets 90 companies every month to spread awareness on eye care. Partnering with doctors : The company is working closely with doctors to include eye specialists in its mission. Micro precision zero-error manufacturing : Lenskart uses robotic technique with laser precision machines to shape the lenses, beating the local optician with zero-error customisation process that is first of its kind in the country. Devices to check eyesight of kids aged three-six months : Lenskart has made accessible devices which can check the eyesight of even a three-month old baby. Around 100 such latest machines are imported from a US-based company Welch Allyn.