Saturday, August 23, 2014

Lenskart -- An Eye for an eye [Business Model]

Lenskart is e-commerce portal focusing on selling eye wear. It product ranges includes regular eye wear, sunglasses, power sunglasses, sport wear trendy eye wear and contact lens. With its extensive tie-up with third party logistics, its products are delivered across India. To enable customer have feel of product before buying, company has introduced franchise model. 

Innovative Feature:
1. First frame free: Lenskart gives first frame to its customer for free to encourage customer to buy goods online. Lenskart provides large variety of frames, which enables customer to make best selection. If customer is not satisfied, then can return frame within 14 days of delivery.

2. Exchange old frame for new: Customer can exchange their old frame with new one by register with lenskart. On registration, coupon code is generated and customer to courier their product to lenskart (courier cost borne by customer). Product is verified for its quality, if product meets the criteria, then coupon code is shared with customer. This code can be used by customer to make new purchase. However, if quality check fails and customer wishes to have its product back, then courier charges are borne by customer.

3. Virtual try-on: This feature enable customer to try frames on model's photograph. Customer can also upload their own photo, try different frames on it and can share it on social media for friends & family to comment on it.

4. Try-at-home: Customer can select upto 5 frames to try out. Selected frames are delivered at home on payment of verification charge of Rs.1 per frame. Customer would try frames delivered, selected those they like most. Then all frames are returned to delivery service (selected ones with lens prescription and others return back). The final order is then delivered with in next 3-5 days.

5. Doctor locator: Company has database of ophthalmology across India. It provides information about years of experience, consultation charges, availability time along with address. Once, the appointment is confirmed by doctor, then confirmation is sent through email or SMS. Further, it also encourages patients to share their experience with that doctor and provide recommendations. This makes it easy for new customer to select doctor in their vicinity.

6. Home Eye-check up: Customer can get their eye site checked at home. Once appointment is booked with lenskart, the optical specialist will visit customers residence at determined timings. Optical specialist will carry along with him eye check machine and 150+ frames to choose from. So, after eye check up customer, they can try out different frames before placing order with lenskart.

7. Franchise model for optometrists: To make its presence felt across, Lenskart has expanded into franchise model. Any entrepreneur meeting franchise criteria (related to area, investment & location) can register with lenskart. They would receive branding support from company. 

8. Buying guide: To ensure that returns are minimized and customer has pleasant experience buying glasses, lenskart provides extensive and detailed buying guide for frames and lenses.

How do they make money

Business Model characteristics
1. Giving freebies to attract customers
2. Social Media interactions and 24X7 helpline service
3. Good blend of product (frames) and services (eye check up)
4. Effective delivery mechanism 

Excel Version:
Lenskart Analysed based on Business Model Generator