How Lenskart Is Using Tata’s Strategies Against Them

How Lenskart Is Using Tata’s Strategies Against Them Jamestji Tata is often regarded as India’s “industrial pioneer.” His global commercial empire, Tata Group, has been instrumental in advancing India’s economic agenda. Jamestji Tata’s son and heir, Ratanji Tata, built upon his father’s foundation of industrial expansion. The Tata group actively supported India’s emerging niche industries when the country first began its startup journey.

Another Indian business success story is Lenskart, an eyewear brand launched in 2010 by ex-Microsoft programmer Peyush Bansal. Established firms like Tata offered financing and full technical and logistical support to nurture Lenkskart in its early days when it struggled with initial funding. These well-established firms give such a strong foundation that they are now engaging in head-to-head battles with their subsidiaries using their playbook of business strategy.

Lenskart Defeat Tata

Tata Group’s subsidiary, Titan Eye Plus, is a member of the Tata family of companies. The company, which began its operations three years before the launch of Lenskart in 2007, sells sunglasses, frames, contact lenses, and prescription eyeglasses. Over 229 different locations host 550 exclusive outlets for the Tata subsidiary. Titan Eye+ was once the market leader, but Lenskart appears to have usurped its position.

After the completion of the fiscal year in March 2020, reports indicate that Lenkart’s total sales were over Rs 1000 crores, whereas Titan Eye+ only managed to rake in Rs 544 crores. Titan Eye+ plus’s annual growth rate was only 6%, while Lenskart’s was 100%. Lenskart is currently the market leader with a 25% share, and it plans to increase that share to 50% in the next years by offering more affordable and fashionable eyeglasses.

Tata’s Finances and Business Model

Lenskart owes a great deal to Ratan Tata, who assisted the young company in its early stages while looking into potential avenues for expanding its business by raising capital. The speciality company reportedly received an investment of over Rs 400 crores from Ratan Tata in 2016.

The legendary Ratan Tata helped Lenskart expand without worrying about the threat posed by its subsidiary, Titan Eye+. While other business predators try to lure tiny businesses with flashy cash offers, he helped Lenkskart in more ways than one.

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Lenskart, in the spirit of healthy economic competition, not only made advantage of Tata’s funding for expansion but also adopted many of Tata’s strategies. Tanishq, a Tata Group jeweller, is rapidly becoming one of India’s most popular names in jewellery. Tanishq became the most reliable brand in India due to its commitment to meticulous craftsmanship, innovative design, and superior quality.

Tanishq achieved its dominant position in the jewellery market by focusing on the four pillars of marketing: product, price, location, and promotion. Marketers segmented their offerings into three tiers—premium, midrange, and economy—to better serve their customers.

They priced their goods affordably, keeping India’s middle- and lower-middle-class consumers in mind. To maximize profit, the jewellery industry places a premium on selling through traditional retail outlets due to its wares’ high price and high status. With the use of digital marketing, Tanishq could enter every single Indian household.

However, Lenkskart emerges victorious

Lenkskart followed Tanishq’s lead and invested heavily in building its brand. In today’s Internet-driven economy, when most new companies concentrate on growing their online presence, Lenskart took a different tack by utilizing a blended strategy.

They established a strong online presence and many physical stores because of the versatility of the eyewear. Lenskart operates more than 1050 retail outlets across India, Singapore, the United States of America, and the United Arab Emirates. The corporation reportedly plans to add another 5,000 locations worldwide during the next five years.

Lenskart, in contrast to many other startups, has carefully studied its industry niche and decided to concentrate on brick-and-mortar stores. They adopted Tanishq’s plan and leveraged their online presence to rapidly grow their company’s revenue. Eyewear, like jewellery, requires significant customization for the best consumer experience. They are looking for both a good fit and technical criticality, which can only be assessed in person.

Lenskart’s founder, Peyush Bansal, is often credited with borrowing financial resources and commercial acumen from Tatas to succeed. In addition to turning a profit, his strategic vision for Lenskart helped to make it a unicorn firm. In this harsh financial season, many new businesses have difficulty keeping their finances afloat. Putting aside the issue of profitability, Lenskart has surpassed industry heavyweights like Tata.

Legend has it that Peyush Bansal and Lenskart started the company. After receiving assistance himself from industry veteran Ratan Tata, Peyush Bansal is now giving back to the next generation of professionals. Jamestji Tata provided the groundwork for Ratanji Tata to take industrialization to new heights. Entrepreneurs like Peyush Bansal are now moving the industry forward.

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