Rise of Spinny during COVID

Previously, people would only buy new cars to increase their economic value, but as time has passed, this has changed. There is a shift towards buying used cars. Around 65 per cent of India’s population is under 35 years and for young buyers, buying a second-hand car is a much more sensible decision to be prepared for uncertainties in the future. Spinny saw a 20 per cent increase in sales over the previous year, owing to the fact that cars are now seen as a need rather than a lifestyle choice. Even with the lockdown in place, Spinny had sold over 6000 cars by October. Spinny had seen a 20 per cent rise in demand in 2019 compared to the previous year, with the majority of the credit going to its young customer base.  Spinny targeted the young buyers to give them a way to have good quality used cars and today around 80 per cent of their buyers are under the age of 35. The cultural stigma which is there regarding used cars is somehow coming to its end and that helped them in the growth during the festive season as well. Even during the time of COVID when we suffered an economic breakdown, Spinny sold over 5,000 used cars last year with the total number clocking over 9,100 units. Despite liquidity concerns, they sold a total of 9,100+ cars in 2020, owing to an increased network and more clients wanting safe personal transportation. Regardless of the lockdown, they sold almost 2,700 automobiles between July and August. They reached 5,000 automobiles in 2019 and were able to meet their pre-covid goal for 2020.

Making Everyone “Look Good, Feel Good”

Conventionally, eyewear is purchased from a physical store, but Lenskart has been on a mission to change this monotonous game since 2010. The company invaded a market at the time when eyewear was viewed solely as a medical solution. Over the years, Lenskart has managed to change the way eyewear is perceived. It brought in a completely new segment of customers who did not buy an eyewear for medical purposes, but as a fashion accessory. The company made eyewear “cool”.

The brand attempted to present eyewear as a category that makes people look attractive. The communication was also maintained in the same tone and the advertisements/ campaigns revolved around the same. This was coupled with the brand’s discount strategy to increase user base.

Bansal had mentioned that Lenskart campaigns have been about looking good, having fun besides understanding the impact of different pairs of glasses on a person’s face. In terms of branding, the first step was to make eyeglasses a fun accessory and the second was to make the product a fashion purchase.

In a smart move, the brand built an image primarily around “how spectacles don’t have to be a bad thing and not worn out of compulsion”.

The company faced a huge challenge in persuading clients to use the internet store as a substitute for traditional shopping. The company had to break people’s preconceived ideas about eyewear and create faith in them that they sell high-quality products at lower cost than their brick-and-mortar competitors. Second, the company also had to spread awareness around eye care and vision testing.

It introduced a first-of-its-kind ‘home eye checkup’. This offering for its potential consumers helped Lenskart create brand know-how, credibility and word-of-mouth marketing. It further offered the customer a choice of five frames from its website and the company will send someone for a free trial.

The team also started visiting companies and giving free-check up to employees and spreading awareness besides partnering with doctors.

From Digital to Brick-and-Mortar

Lenskart began as an online retailer and expanded into the conventional brick-and-mortar model in 2015, focusing on a larger segment of the market. Going offline improved the brand’s visibility dramatically and added to the trust factor which is a struggle for online businesses. This added to the company’s competitive advantage as well.

It implemented an omni channel distribution approach, which unified the in-store and online shopping experiences. Lenskart has not only established itself as a strong online player but also strengthened its retail presence with 730 brick-and-mortar stores located in 175 cities.

In order to place itself as a mass product and cater the Tier 2, 3 and 4 market, the company came up with Lenskart Lite – a low-cost franchise model which aims to create micro-entrepreneurs who invest a certain amount in a Lenskart franchise. This follows a small format store, with a simple yet appealing design.

Their business strategy is simple: provide a high-quality product at an affordable price. Pricing plays an important role in brand image. Lenskart uses value-based pricing, which means that goods are sold according to how much value they provide to consumers. Depending on the needs of the consumer, services are offered in the value or luxury segments.

Due to a B2C model, Lenskart is able to bypass a certain marginal cost in the supply chain, resulting in a 50% drop in the price of spectacles which the company is able to pass on to its customer in the form of low prices.

The company introduced Aqualens, everyday contact lenses that may be readily discarded. The company wanted to brand contacts as inexpensive and less complex eyewear alternatives and hence introduced this product, costing Rs 40, a pair.

Besides pricing, the company has strengthened its logistics and after-sales support for better customer retention. It has curated a ‘no-questions-asked’ return policy while the return rates are among the lowest in the industry, at around 4%. This further boosts the brand image.

A ‘Fashion Accessory’

Lenskart has done two things smart—craft its identity as a mass market brand and reposition spectacles as a fashion accessory and not just prescription wear. The objective is to increase the number of occasions of purchase and the per person consumption rate of the product.

The customers today check out the latest trends and style on the platform prior to making a purchase decision. It created an ‘endless aisle’, which provides consumers with an infinite number of choices from which to choose, leading to higher customer satisfaction. This is accompanied by in-house designers and stylists who are upbeat with the latest trends and are able deliver what their target audience looks for.

Bansal once mentioned that the company wanted to convey that selecting a pair of glasses is no different from choosing a pair of shoes or apparel!

Now since fashion and style is synonymous to Bollywood in the country, choosing the brand ambassador from the industry was the obvious choice for Lenskart, which got actress Katrina Kaif on board in 2017 and curated a series of campaigns. They created a communication of ‘vast range of trendy eyewear styles which compliment everyday looks’.

They started placing ‘trendy eyewear’ and ‘everyday look’ together to further boost conversions and popped up with varieties like – Cat eyes, round, tortoise, metals, pop colors, transparent, sporty, retro and others. The narrative was to ‘provide Indians an access to high-quality trendy and stylish glasses at affordable prices without compromising on the style quotient’.

In a bid to further connect with the millennials, who have been the major catalyst in the expansion of the eyewear market, Lenskart brought in comedian and influencer Bhuvan Bam in 2019.