The founder Piyush Bansal
Piyush Bansal is the founder and CEO of Lenskart. He is also the judge of the famous Indian Shark Tank. Piyush Bansal was born on 26 April 1985 in New Delhi, India. Piyush Bansal is 36 years old in 2021. Piyush Bansal is of Indian origin and Piyush Bansal is a Hindu religion with a dark complexion and a stellar character. Piyush Bansal is very popular online for judging Shark Tank in India.
800 stores across India
If we talk about the big startups of India, then Lenskart comes on top of them. Lenskart was started 12 years ago by Piyush Bansal from a garage along with two of his colleagues. The same Lenskart today holds 30% of the market for the eyewear industry and has 800 stores across India as well as online and dominates the online market as well as the offline market.
In the year 2019 and 2020, where Titan Eyewear was growing at 6%, Lenskart grew by 98% and in the same year Lenskart's company grew from 485 crores to 965 crores.
So today in this block we will know how Lenskart became such a successful startup in India and what were their strategies in giving a good growth to the company.
About 20 years ago
About 20 years ago today, that is, around the year 2000, it was a very difficult task to find a good glasses for yourself. Actually, for this people had to first go to the optician and find out the correct number of their eyes.
Then he used to make glasses there and there were a few frames from which he had to select a frame and after all this, it used to take about a week for people to get their glasses.
At that time the Indian eyewear market was full of local sellers selling glasses without warranty. And the glasses which were of good quality were available only at a price above Rs 1500. Due to which the products here used to get away from the reach of the Indian middle class.
At that time no reputed brand in India used to sell glasses less than 1500, after all we see that the cost of selling such expensive glasses would have been high, that is why the company is selling that glasses so expensive but it was not so.
If we consider the production cost of these glasses separately, then the reality becomes something else, for example, the cost of frame and lens of America's famous brand Warby Parker is ₹ 750, shipping cost is ₹ 700 and advertising cost is ₹ 350 and This glasses are ready in 1900 to 2000, but this company sells this glasses for about 7200 rupees. This company earns about 75% profit from each of its glasses.
In the same way, the lens and frame of the world's largest brand Look Optical costs ₹ 1800 and advertising cost ₹ 450, shipping cost ₹ 140 and royalty cost ₹ 150 and this company sells its glasses for ₹ 15000. Earning a profit margin of 85% behind a glasses.
So why does this company not sell in the market by reducing its cost and profit and accordingly many more people will be able to buy their glasses, but these companies know that their product will be sold at any cost, the customer will buy it because Their product is related to such a problem of the customer that the customer has to buy this product to fix his vision.
The story begins here
15 years ago today, the eyewear company was taking advantage of these weaknesses of the people and was making a lot of profit, at that time Piyush Bansal came to know that this is a very big problem and it is necessary to solve it. He came across three such big problems that it was very important to solve them.
The first of these was the problem of costing where there was no option for the people between 250 to ₹ 1500.
The second problem he saw here is that in India the wearers of spectacles are made fun of and they are called by the name of battery or spectacles.
At that time, where the big company Titan used to sell its glasses from 1500 rupees, the same lenskart started selling its glasses by reducing this price to just ₹ 250. Lenskart was able to do this because one was doing this business there on a large scale and second thing was that it had saved 70% cost by eliminating middleman through its online business.
And while local vendors used to take a week to make the glasses, Lenskart started delivering their glasses in 72 hours.
Where the customer used to get only selected frames at local shops, Lenskart gave the option to the customer to choose from 5000 frames. And where local shopkeepers did not give any guarantee and warranty on their glasses, Lenskart started giving 1 year guarantee to the people on their lenses and frames. Also, if you do not like the product, then Lenskart also gave a 14 day return policy which no shopkeeper used to give.
And where there was some mistake in making local opticians, same lenskart brought its product in the market with zero error tolerance. So in the same way, Lenskart gave all the facilities at a low cost, which big companies used to give to the customer at expensive prices.
Big Problem in Lenskart
Lenskart knew that despite doing all this, many people are hesitant to take glasses from them, that's why they came up with a lot of offers like first frame free option, they used to give their first frame free to the people and they have made a tremendous feature on their website. With the help of which people could sit at home and see which frame looked good on their face.
Similarly, Lenskart also spent a lot on marketing to make Power glasses a lifestyle so that people do not hesitate to wear Power glasses. This is how Lenskart made a good hold in the eyewear market.
But looking at all these things, Lenskart found a big drawback in their business, in which their business model was in such a way that first the customer had to go to an optician to find out his eye number and then there was a problem with Lenskart. He used to book his glasses by visiting the website, but here many customers used to make their glasses from the optician itself.
It was here that Lenskart understood that if they wanted to scale their business to a greater level, they would need to eliminate the need for the customer to visit an optician.
For this, he joined hands with companies like 6 over 6, this is how Lenskart was able to start its eye check service. That is, Lenskart goes home to do an eye test and also gives the option to the customer to try their top 100 best selling frames so that if they like any frame, then they can buy glasses directly from the executives of Lenskart.
In this way, with the help of all these strategies, Lenskart was able to win over the trust of the customer and the glasses of Lenskart are so accurate that their return rate is only 4% where the return rate on e-commerce is 20 to 25%, while Lenskart's is very less. is the return rate.
Lenskart has opened its online as well as offline physical stores so that people who do not shop online can also become customers of Lenskart.
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