Even though there are a lot of new businesses operating in India, Lenskart is one of the few brands that has gained such rapid popularity. The company has expertly evolved from its start as a pure-play internet eyewear store to an international enterprise. This strategic development has generated an appealing opportunity for its owners under a franchise-owned, franchise-operated (FOFO) model. But the main question remains: is it advisable to invest in a Lenskart franchise? Read this till the end to clear your doubt.

Why India is a Top Spot for Eyewear Manufacturing?

The parent industry must be considered before investing in a retail franchise. The Indian eyeglass sector, which was formerly dominated by unorganised local opticians, is experiencing a drastic change. The sector is expected to grow more than 13%, reaching an estimate of ₹1,483 billion by FY2030.
Firstly, India has a sizable market base because of its youthful, technologically advanced population. Increased screen time due to work and entertainment has led to a rise in digital eye strain and the need for corrective eyewear. This market sees eyewear as fashion accessories as well as a medical need.
Second, the need for high-quality eye care is being driven by growing health consciousness and rising disposable incomes, especially in Tier-2 and Tier-3 cities. With a predicted 31% contribution by 2030, the organised retail sector is well positioned to take a sizable chunk of this market. A brand with an established reputation and trust benefits greatly.

Also read: Lenskart raises Rs 400 crore from various investors

How Lenskart's operations save you money

Physical or 360-Degree Model:

• The smooth integration of Lenskart's online and physical channels is the company's main tactic.
• Before visiting a real store for a professional eye inspection and fitting, customers can begin their trip online with virtual try-ons.
• On the other hand, consumers who first shop at a physical location can order from a larger selection online and have it delivered to their house.

Vertical Integration:

• The business has made investments in its own manufacturing processes, employing robotic technology.
• This method saves money and guarantees quality control.
• It enables faster delivery, which improves client satisfaction.

Technology in Retail:

• Modern technology is installed at Lenskart's physical locations to improve customer satisfaction.
• AI-powered eye testing offers precise and up-to-date diagnoses.
• A strong point-of-sale (POS) and customer relationship management (CRM) system controls sales, maintains customer data, and facilitates loyalty programmes.

The Financial Investment and Potential Returns

The initial investment for a Lenskart franchise is typically ranging from ₹30 to ₹40 lakh. This cost is broken down into several key components:

Franchise Fee:

This one-time fee, usually between ₹2 to ₹5 lakh, is for the right to the franchise brand.

Store Setup and Interiors:

This is the largest capital expenditure, estimated at ₹10 to ₹25 lakh. This cost covers lighting, furniture and all the interior to meet the brand image.

Equipment and Technology:

Approximately ₹5 to ₹8 lakh is required for essential tools - machines, eye testing technologies, etc.

Initial Inventory:

A lump sum of ₹2 to ₹5 lakh is needed to stock a representative selection of frames, lenses, and sunglasses.

Working Capital:

An essential part of the investment, a sum of ₹5 to ₹10 lakh is required to cover operational expenses like rent, staff salaries, and marketing for the first few months until the store achieves profitability.
Lenskart offers a commission-based revenue-sharing model with high revenue and profitability projections. Monthly revenues range from ₹8 to ₹12 lakh, with a high gross profit margin in the eyewear sector. The net monthly profit is between ₹1.5 to ₹2.5 lakh, resulting in an annual profit of ₹15 to ₹20 lakh.

Also read: Lenskart.com adds another outlet down South

Why It Could Be a Great Investment

Investing in a Lenskart franchise comes with multiple benefits.

Powerful Brand Equity and Trust:

• In the eyewear industry in India, Lenskart is a well-known brand.
• A new franchisee benefits immediately from the brand's reputation for affordability, design, and technology, which has been boosted by intensive marketing efforts.

Comprehensive Support System:

• Lenskart covers all phases of its franchise partners' operations, from pre-launch to continuing assistance.
• This includes help with site selection and feasibility research, retail design and setup, employee recruiting and training, and effective supply chain and inventory management.

Technology-Driven Efficiency:

• In addition to improving the client experience, the use of AI, virtual try-on, and a smooth CRM system gives the franchisee access to robust data and business management skills.
• Real-time sales tracking, effective inventory management, and promotions are all operational advantages that traditional firms do not have.

The Omnichannel Advantage:

• One of the main draws is the physical model. Foot traffic may be increased by directing a customer who finds a product online to the closest physical store.
• On the other hand, a consumer who walks in can be sent to the internet to view the whole selection of products.

Associated Risks

A Lenskart franchise has hazards despite its attractive features. The possible drawbacks must be well understood in order to make a fair judgement.

High Initial Investment:

Even while the ROI is appealing, the substantial investment needed may be a significant obstacle. Securing financing for a single franchise can be challenging, especially for entrepreneurs who do not have ₹30-40 lakh in cash capital.

Strict Franchisor Control:

As a franchise, you must follow Lenskart’s operating rules. It might be difficult for entrepreneurs who want a more autonomous business strategy. Royalties and revenue sharing are also included in the agreement.

Intense Market Competition:

Even though Lenskart leads the market, there is intense competition in the eyeglasses sector. The thousands of local opticians that have cultivated client loyalty all over this time must be competed with by a franchise.

Also read: Lenskart Launches the First & Only Eyewear App in Singapore and Middle East

Wrapping up

In conclusion, there is a complex response to the query of whether a Lenskart franchise is a wise investment. For a correct person, it is without a doubt an appealing and thrilling prospect. India's eyeglass industry is expanding, and Lenskart has a strong market position, a tested business plan, and a well-known brand that provide a new franchisee a strong starting point.
In the end, purchasing a Lenskart franchise is a strategic investment in India's organised retail industry. It is an alluring chance for an entrepreneur who has the required funds and is dedicated to brand standards to own a successful, tech-enabled company in a rapidly expanding industry.

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