Did you know that 64% of adults worldwide wear eyeglasses for vision correction? And when we think of glasses, isn’t Lenskart the first brand that comes to mind? The company is no longer just a business, but a necessity for many of us.
In this article, we will discuss Lenskart’s business model and how Lenskart generates revenue.
Introduction of Lenskart
Lenskart is a leading eyewear retailer in India that offers a wide range of eyeglasses, sunglasses, contact lenses, and other vision-related products. The company was founded in 2010 by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi with the aim of revolutionizing the eyewear industry by providing customers with high-quality, affordable eyewear that can be purchased online or in-store.
Since its inception, Lenskart has grown rapidly and has become a household name in India. The company operates over 1400+ physical stores across more than 175 cities in India, as well as an online platform that allows customers to browse and purchase eyewear from the comfort of their own homes.
In addition to offering a wide range of eyewear products, Lenskart has also introduced several innovative technologies such as 3D try-on, virtual mirror, and home eye check-up, which have made the eyewear buying process more convenient and personalized for customers.
|Lenskart Solutions Private Limited
|Amit Chaudhary, Peyush Bansal, Ramneek Khurana, Sumeet Kapahi
|Number of Employees
Business Model of Lenskart
Lenskart operates through a unique business model that has helped it become one of the largest eyewear retailers in India. Here’s a closer look at Lenskart’s business model:
Lenskart has developed strategic partnerships with several key players in the eyewear industry. It has collaborated with manufacturers to source high-quality frames and lenses at affordable prices. The company has also partnered with lens manufacturers to develop its own lenses, which it sells under its brand name.
Additionally, Lenskart has partnered with technology providers to create a seamless online shopping experience for its customers. It has also partnered with brick-and-mortar stores to expand its reach and provide customers with a personalized in-store experience.
Lenskart generates revenue through several streams. Its primary source of revenue is the sale of eyewear products, including frames, lenses, sunglasses, and contact lenses. The company has a wide range of products, catering to customers of all ages and needs.
Lenskart also generates revenue through its subscription-based services. It offers a subscription service called Lenskart Gold, which provides customers with exclusive benefits, such as free eye tests, free home eye check-ups, and discounts on eyewear products.
Lenskart’s cost structure is based on several factors, including the cost of goods sold, marketing and advertising expenses, and technology expenses. The company has a vertically integrated supply chain that helps it keep its costs low. It sources its products directly from manufacturers, eliminating the need for middlemen and reducing costs.
Lenskart invests heavily in marketing and advertising to increase brand awareness and attract new customers. It uses a combination of traditional and digital marketing channels to reach its target audience.
Finally, the company incurs technology expenses to develop and maintain its online platform. It has invested in advanced technologies to provide customers with a seamless online shopping experience and personalized recommendations.
Customer Segments in Lenskart’s Business Model
Lenskart’s customer segments can be broadly classified into the following categories:
- Budget-conscious consumers: Lenskart caters to customers who are looking for affordable and value-for-money eyewear solutions. This segment comprises individuals who are price-sensitive and are looking for affordable eyeglasses, sunglasses, and contact lenses without compromising on quality.
- Fashion-conscious consumers: Lenskart also targets customers who are fashion-conscious and seek eyewear that reflects their style and personality. This segment comprises individuals who are willing to spend more on designer eyewear and are looking for a wide range of trendy and fashionable eyewear options.
- Individuals with vision problems: Lenskart also caters to customers who have vision problems and require prescription eyewear. This segment includes individuals who require corrective glasses or contact lenses for nearsightedness, farsightedness, or astigmatism.
- Tech-savvy customers: Lenskart also targets tech-savvy customers who prefer to shop online and use digital channels to browse and purchase eyewear products. This segment comprises individuals who are comfortable using online platforms to browse, select, and purchase eyewear products.
Value Propositions in Lenskart’s Business Model
- Wide range of products: The company offers a wide range of eyewear products, including prescription glasses, sunglasses, contact lenses, and eye care accessories. Customers can choose from a large selection of styles, materials, and colors.
- Affordable pricing: Lenskart offers affordable pricing on its products, making eyewear accessible to a wider audience. The company often runs promotions and discounts, making it an attractive option for cost-conscious customers.
- Convenience: Lenskart offers a convenient shopping experience to its customers. Customers can shop online or in-store, and can even book a home eye check-up service through the company’s website. This makes it easy for customers to get the eyewear they need without having to leave their homes.
- Personalization: Lenskart offers a personalized shopping experience to its customers. The company uses a virtual try-on feature on its website, allowing customers to see how different frames will look on their face. Lenskart also has trained optometrists in its stores who can help customers find the perfect pair of glasses.
- Quality: Lenskart offers high-quality products that are made with durable materials. The company also offers a 14-day return policy, allowing customers to return products if they are not satisfied with their purchase.
Key Activities in Lenskart
- Product development: Lenskart designs and develops eyewear products, including prescription glasses, sunglasses, and contact lenses.
- Supply chain management: Lenskart manages its supply chain, including sourcing raw materials, manufacturing eyewear products, and shipping them to its warehouses and retail stores.
- Marketing and sales: Lenskart conducts marketing activities to promote its products and attract new customers. This includes advertising campaigns, social media marketing, and discounts and promotions.
- Retail operations: Lenskart operates both online and offline retail stores, providing customers with a convenient and personalized shopping experience. The company also offers a home eye check-up service.
- Customer service: Lenskart provides customer service to help customers with their queries, complaints, and returns. The company also offers a 24/7 customer support service.
Key Resources in Lenskart
- Manufacturing facilities: Lenskart has its manufacturing facilities where it produces eyewear products.
- Retail stores: Lenskart has a network of retail stores across India where customers can purchase eyewear products and receive personalized assistance.
- Technology infrastructure: Lenskart uses technology to offer customers a personalized shopping experience, including a virtual try-on feature on its website.
- Supply chain: Lenskart’s supply chain is a critical resource for the company, ensuring the timely delivery of high-quality eyewear products.
- Workforce: Lenskart has a team of employees that includes optometrists, customer service representatives, marketing professionals, and retail staff. They are essential resources in ensuring the smooth operation of the business.
Conclusion: What Sets Lenskart Apart in the Eyewear Industry
Lenskart has established itself as a major player in the eyewear industry in India, and several factors set it apart from its competitors. Firstly, Lenskart has an omnichannel presence, offering customers the option to shop online or visit one of their many retail stores. This provides customers with a personalized and convenient shopping experience, which sets Lenskart apart from other online eyewear retailers.
In addition, Lenskart uses innovative technology to enhance the customer experience. Its virtual try-on feature allows customers to see how different frames will look on their face, making it easier for them to find the perfect pair of glasses. Moreover, Lenskart uses AI technology to provide customers with personalized product recommendations based on their browsing and purchase history.
Furthermore, Lenskart offers affordable pricing on its products, making eyewear accessible to a wider audience. The company’s pricing strategy, along with its promotions and discounts, helps to differentiate it from its competitors in the market.
Lastly, Lenskart’s trained optometrists provide personalized service to customers, ensuring that they find the perfect pair of glasses for their needs. The company also offers a home eye check-up service, which makes it easier for customers to get their eyes tested without having to visit a clinic or hospital.