Eyewear firm Lenskart is planning to build other streams of revenue, besides the existing e-commerce vertical and the chain of stores, as it eyes profitability, Peyush Bansal, CEO, Lenskart told FE. The company recently piloted a new programme. Under this a customer by simply sending a text message, can purchase a pair of glasses, without an Internet connection.
“The aim is to bring down the losses eventually by increasing distribution just like in case of an FMCG company, which believes in being at an arms length away from the customer base,” added Bansal.
Lenskart posted losses of R64 crore, on the back of revenue of R61 crore, for the year ended March 2015. Bansal added that the loss is largely because of the company spending on two key areas – advertising and marketing and technology. “We spend about R70 crore a year on advertising and marketing every year and another R40 crore on technology. The advertising spend which is also our cost of customer acquisition has not increased in the last two years, while we have gradually increased revenue,” he added.
The eyewear company claims that it clocks 1,80,000 orders a month, at present with an average ticket size ranging anywhere between R2,000-R2,500. Of this 80,000 orders come from the website, while the rest 1 lakh orders are generated across its stores. It same store sale growth is 60%. The company also started home eye check up service under ‘Home try on’ programme in 2014. Currently it generates less that 5% of its revenue from the home-services.
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“We have 250 stores and we can only open 25 new stores a month. But with home services we have access to wider customer base. For example in the last three month we got on board 100 new customers via our home service,” observed Bansal.
Lenskart plans to open close to 200 more stores in the next one year, largely in tier 2 cities. As per Bansal while the average revenue will go down as the ticket size will drop by 20-30%, the number of transaction is expected to increase.
In September this year, PremjiInvest invested about R200 crore in the Delhi-based company. The company currently has one manufacturing unit in Okhla, Delhi, where it manufactures 10,000 spectacle a day. It plans to open a second unit in Gurgaon. “Initially we will manufacture 30,000 spectacles a day in the second unit, later the number will be increased to 50,000 a day,” said Bansal.