LENSKART

Vision for a Billion by Dr. Milan Patel

Reframing a Medical Problem as Fashion

In 2010, getting glasses in India was a medical chore. You went to a doctor, then a dusty local optician, and paid ₹3,000 for ugly frames.

Peyush Bansal saw a gap. 50% of India needed vision correction, but only 25% wore glasses. The barrier wasn't cost; it was vanity. By positioning glasses as a "fashion accessory" (3 pairs for the price of 1), Lenskart created a market where people bought glasses to match their outfits, not just to see.

Stores (2024)
2,500+
Valuation
$5 Billion

The Omnichannel Surge (Revenue in ₹ Cr)

The "Zero Friction" Funnel

Lenskart's biggest marketing innovation wasn't an ad. It was operational: "Home Try-On" and "3D AR Try-On". They removed the fear of buying online.

The Lenskart Sales Funnel

Unit Economics: The "BOGO" Magic

How does Lenskart afford "Buy 1 Get 1 Free"? Vertical Integration.

Avg. Order Value (2 Pairs) ₹3,500
COGS (Frames + Lenses) -₹800
CAC (Marketing/Store) -₹1,000
Logistics/Ops -₹400
Contribution Margin ₹1,300 (37%)
Insight: Manufacturing their own frames (John Jacobs, Vincent Chase) gives them 80% Gross Margins, allowing aggressive BOGO offers that competitors can't match.

CEO Simulator: The Next 100 Stores

You are Peyush Bansal. It is 2022. You have ₹500 Cr to expand. Where do you open stores?

Analysis: The "Billboard" Effect

Good for brand building, but bad for scale. Malls have limited reach. This strategy builds prestige (John Jacobs) but doesn't solve the "Vision for a Billion" problem. You capture the top 1%, but miss the mass market.

Analysis: The Lenskart Winning Move

Correct! This is Lenskart's actual strategy. By saturating neighborhoods, they effectively "blocked" local opticians. The low rent allows profitability even with lower volumes, and the "Omnichannel" trust (try offline, buy online) skyrockets.

The "Shark Tank" Tech Stack

AR Try-On

30% of app users try frames virtually. This reduces return rates by 40%.

Automated Plant

The Bhiwadi plant (world's largest) cuts lenses with 0.1mm precision, shipping 50k glasses/day.

Lenskart at Home

Uber-style model for eye tests. Optometrists on bikes reach your home in 2 hours.

Classroom Discussion Points

1. The "Warby Parker" Copycat?

Lenskart is often called the "Warby Parker of India." However, Warby Parker struggles with profitability while Lenskart is profitable. Discuss how Lenskart's **Manufacturing capabilities** (Vertical Integration) gave it an edge that Warby (which outsources) lacks.

2. Is it a Tech Company or a Retailer?

Lenskart trades at a tech multiple but holds inventory like a retailer. With 2,500 stores, is it now just a modern "Titan Eye+"? Discuss the valuation risks of heavy offline capex.