LENSKART FRANCHISE MODEL

Introduction:

Founded in 2010 by Peyush Bansal, an ex-Microsoft 'techie' driven by a fervent desire to create impactful change, Lenskart has emerged as a leading force in the eyewear industry. Alongside co-founders Amit Chaudhary and Sumeet Kapahi, Bansal established 'VALYOO technologies' with a mission to enhance customers' lives by bypassing traditional retailers and directly supplying high-quality eyewear.

Leveraging in-house robotic lens manufacturing and assembly, Lenskart ensures unparalleled precision and quality control, leading to rapid growth and reaching over 100,000 customers monthly through a blend of online and physical store experiences. Lenskart's innovative approach is reshaping the eyewear landscape, setting new standards for the industry.

Brand Brief:

Lenskart prides itself on delivering eyewear of unparalleled quality, made possible through cutting-edge robotic technology. As India's first and only brand utilizing robotic techniques with precision to three decimal places, Lenskart ensures accuracy and perfection in every pair of glasses. German-imported machines oversee the entire production process, from lens inspection to edging, eliminating human error and guaranteeing optimal results. Complemented by a dedicated customer service team committed to resolving issues promptly, Lenskart strives to exceed customer expectations and continuously improve based on feedback.

Diversity is at the heart of Lenskart's offerings, boasting an extensive collection of over 5000 eyewear styles, five times more than any other retailer in India. From renowned brands like RayBan and Oakley to in-house designs, Lenskart caters to diverse preferences and needs, offering eyewear for men, women, and children worldwide. The brand's commitment extends beyond traditional eyewear, encompassing sunglasses, reading glasses, and contact lenses, ensuring everyone can experience the world with enhanced clarity and style. By updating styles annually to reflect global fashion trends, Lenskart remains at the forefront of eyewear innovation, drawing inspiration from fashion capitals and leading designers.

Lenskart's dedication to providing value for money is evident in its competitive pricing and attractive packages. By eliminating middlemen and sourcing products directly from manufacturers, Lenskart offers cost-effective solutions without compromising quality. Whether it's everyday basics or fashion-forward designs, Lenskart ensures accessibility to high-quality eyewear at affordable prices, making it a preferred choice for customers seeking both style and value.

Lenskart store, requirements and investment:

·         Area Requirement: Lenskart franchises typically require a space ranging from 300 to 500 square feet.

·         Investment Range: The investment for establishing a Lenskart franchise falls between INR 20 lakh to 30 lakh.

·         Number of Franchise Outlets: Currently, there are between 200 to 500 Lenskart franchise outlets in operation.

Lenskart Plan

CAPEX

OPEX

STORE ROI

Lenskart boasts several unique selling propositions (USPs) that set it apart in the eyewear industry:

1. Established and Credible Brand: Lenskart has established itself as a reputable name in both the online and offline optical sectors. With a strong presence in the market, it enjoys a high level of trust and credibility among consumers, making it an attractive choice for franchisees looking to align with a recognized brand.
2. Wide Range of Eyewear: The brand offers a vast array of premium eyewear brands and designs, catering to diverse preferences and needs of customers. This extensive selection ensures that customers have access to a variety of choices, enhancing their shopping experience and satisfaction.
3. Low Investment, High Return: Lenskart presents a lucrative business proposition for franchisees, requiring a relatively low investment while offering the potential for high returns. With a franchisee making 30% of net sales, the business model is designed to be financially rewarding.
4. Short Break-even Period: Franchisees can expect a relatively short break-even period of 15-18 months, indicating the potential for profitability in a relatively short span of time. This aspect of the business model provides assurance to investors seeking a timely return on their investment.

Regarding the eyewear market scenario:

1. Growing Industry: The Indian eyewear industry has witnessed remarkable growth, with projections indicating a substantial market size reaching $14,856.9 million by 2018. This growth trajectory underscores the significant opportunities available in the sector.
2. Consistent Revenue Growth: The industry has demonstrated consistent revenue growth over the years, with revenues increasing at a Compound Annual Growth Rate (CAGR) of 27% between FY 2007 and 2013. This consistent growth trend reflects the robust demand for eyewear products in the Indian market.
3. Rapid Growth in Premium Segment: The premium sunglasses segment, which constitutes 30% of the Indian eyewear market, is experiencing rapid growth, expanding at a rate of 40% per year according to the latest government survey. This indicates a shifting consumer preference towards premium eyewear products, presenting lucrative opportunities for businesses operating in this segment, such as Lenskart.

Lenskart's franchise support system encompasses various elements aimed at ensuring the success of franchisees:

1. Initial Brand Activation through Local Media: Lenskart assists franchisees with the initial activation of the brand through local media channels. This helps in creating awareness and generating interest among potential customers in the franchise's locality, laying the foundation for a strong customer base.
2. Stock Correction - No Dead Stock Ever: Lenskart emphasizes efficient stock management to minimize dead stock, ensuring that franchisees maintain a dynamic and profitable inventory. By continuously monitoring sales trends and adjusting stock levels accordingly, Lenskart helps franchisees optimize their product offerings and maximize profitability.
3. Site Selection and Interior Furnishing: Lenskart provides guidance and support to franchisees in selecting suitable locations for their stores. Additionally, assistance with interior furnishing ensures that franchise outlets are aesthetically pleasing and aligned with the brand's image, enhancing the overall customer experience.
4. Personnel Recruitment & Training Module: Lenskart offers assistance with personnel recruitment, helping franchisees identify and hire qualified staff members. Moreover, comprehensive training modules are provided to ensure that staff members are equipped with the necessary knowledge and skills to deliver exceptional service and uphold the brand's standards.
5. Branding Support by Experts: Franchisees receive ongoing branding support from Lenskart's team of experts. This includes guidance on marketing strategies, promotional campaigns, and brand positioning to effectively differentiate the franchise within the competitive eyewear market.

Conclusion:

In conclusion, Lenskart stands as a beacon of quality and innovation in the eyewear industry, driven by cutting-edge robotic technology and a commitment to customer satisfaction. With a diverse range of over 5000 eyewear styles, Lenskart caters to the varied preferences of customers worldwide, ensuring accessibility and style for all. Its franchise opportunities offer a low investment-high return proposition, backed by a credible brand and a short break-even period, aligning with the robust growth of the Indian eyewear market. Lenskart's comprehensive franchise support system further enhances the success potential for franchisees, reinforcing its position as a leader in the eyewear industry.