India’s leading eyewear brand has rolled out a massive rural expansion strategy through its franchise models
Founded in 2010, by Peyush Bansal an ex-Microsoft ‘techie’ with no money but truckloads of relentless passion to make a difference in this world, Lenskart is India’s fastest growing eyewear business today. With a rapidly growing venture reaching out to over 1 lakh customers a month via a unique combination of strong online business, uniquely designed physical stores, as well as a first-of-its-kind ‘home eye check-up’ service, the brand is revolutionising the eyewear industry in India. Lenskart currently operates 550+ stores across the country; and further plans on opening 500+ stores within the next two years. Excerpts from an interview with Kulpam Peshin, Vice President, Business Development, Lenskart:
Most of the brands are devising low-cost franchise models. How are you tapping this space?
Lenskart is currently present in 120+ cities with 550+ outlets and is expanding rapidly with a focus on smaller cities in the country. The brand has launched the Lenskart LITE (FOFO) model to attract micro-entrepreneurs; the business model requires a smaller investment of Rs 20 lakhs compared to Rs 35 lakhs for a regular Lenskart outlet. The monthly revenue of a regular Lenskart outlet in a Tier II or III city amounts to Rs 8-10 lakhs; on the other hand, a Lenskart LITE store in Tier IV and V towns can generate revenues of Rs 4-6 lakhs. The Lenskart LITE model is designed for a smaller format store, with a simple yet appealing design. The business model is aimed to yield high margins and ROI as well as allowing a faster payback period.
How do you help franchisees to achieve higher RoI?
Lenskart believes in growing with its franchisees. To enable high RoI to our franchise partners, we ensure 25-30% margins across our franchise models, quick breakeven within two years and zero stock risk. In addition, we provide full support in site selection and finalisation, store layout and design, staff hiring, and training. We track franchisee NPS on a continuous basis and training is given accordingly to help maximise revenues.
What are your priorities in the next 2-5 years?
Lenskart was created with the mission to give ‘vision to India’. We expect 50% of our up-coming stores to be set up in Tier II and III cities, predominately focusing on expanding in rural areas with Lenskart LITE. We aim to be present in 500+ cities to provide quality eyewear to customers across the country. Over 550 million people in the country need reading glasses yet only 170 million people wear them. Lenskart’s aim is to increase the adaptability in the coming years by providing high-quality eyewear to millions of Indians at affordable prices, even in the remotest segments of the country. We plan to open 500+ stores in the next two years, and take our total store count to 2,000 within the next five years.
Franchising since: 2013
Total outlets: 550+
Investment: Rs 20-35 lakhs
Area: 300-500 sq. feet
Break-even: 18 months