Growth and Success of Lenskart

Introduction

• 2016: Ranata invested in an IA startup, which grew to become Lenskart, a major competitor and 5x bigger than a brand from the renowned House of Tata.
• New Series: Introduction to the profitable startup series on the Growthx WiFrame, focusing on Lenskart's rise to market leadership.

Historical Context

• 2010: The eyewear market in India was largely unorganized.
• Most purchases were made at local eyewear shops, similar to the restaurant or clothing industry.
• Founder: Peyush Bansal, ex-Microsoft engineer, aimed to create significant change after being inspired by Bill Gates.
• Early Ventures: Started with "Search My Campus" and "Flyer.com," which were not as impactful.
• Value Technologies: Collaboration with Amit and Sumit to create an e-commerce platform including Lenskart.

Market Opportunity

• Observed the lack of big brands in the optical space and shift towards branded products.
• 2010: Focused entirely on Lenskart, targeting India's largest retail chain, Titan i+.
• Today: Lenskart dominates with 25% market share and 3000 crore revenue, 5x of Titan's eyewear segment.

Core Problems Solved by Lenskart

1. Accessibility Problem

   • Blind Capital: 40% of the world’s visually impaired people live in India.
   • D2C Brand: First to adopt an omni-channel model (physical + digital).
   • Investor Backing: Included prominent figures like Ratan Tata and Azim Premji.
   • Store Expansion: Over 2000 stores in 200+ cities, superior in-store experience.
   • Online & Mobile Presence: Extensive insights into customer behavior, first app launch in 2017.
   • User Acquisition: Home eye checkups, virtual trial experiences, free home trials, viral referral programs.

2. Affordability Problem

   • Value-Based Pricing: Positioned as a super affordable product targeting average Indian consumers.
   • Premium Experience: Despite affordable prices, aimed to create higher perceived value.
   • Upselling Tactics: Focus on lenses for higher margins, gold membership for customer loyalty.
   • Price Standardization: Consistent pricing regardless of store location, building trust.

3. Awareness Problem

   • In-House Brands: Vincent Chase and John Jacobs driving sales beyond expectations.
   • Advertising: Sold glasses as a fashion statement, various campaigns targeting mainstream audiences.
   • Shark Tank: Massive national distribution, creating a relatable and recognizable brand image.

4. Unit Economics Problem

   • AI Implementation: Efficient management of inventory, stock levels, sales data, etc. using AI.
   • Factory Tech: Advanced manufacturing facilities, expanding globally with acquisitions like Owndays.

Conclusion

• Strategy: Aggressiveness in approach and big thinking set Lenskart apart from Titan i+.

• Importance of the eyewear segment to Lenskart versus Titan’s diversified revenue streams.

• Growthx Membership: Encouragement to apply for Growthx membership to join a community of high-achieving founders and professionals.