Jamestji Tata is often referred as the father of Indian industry. His multinational conglomerate, Tata Group, has constantly helped India to strive for business growth. The foundation of industrial growth laid by Jamestji Tata was successfully carried by his heir Ratanji Tata. When India started its startup journey, true to its legacy, the Tata group took an active part in nurturing niche industries.
Lenkskart, an eyewear company founded in 2010 by an ex-Microsoft techie Peyush Bansal also strived in the startup journey of India. In earlier days when Lenkskart was struggling with initial funding, it was established companies like Tata who not only provided funding but all technical and logistical support to nourish the niche company. This support system provided by these established companies has reached such an extent that they are now giving neck-to-neck fights to their own subsidiaries using their own playbook of business.
Lenskart Defeated Tata
Titan Eye Plus is a subsidiary of Tata Group. Started three years before the formation of Lenskart in 2007, the company deals in the business of sunglasses, frames, contact lenses, and prescription eyewear. The subsidiary of Tata has about 550 exclusive stores operating in over 229 cities. Initially started with a dominant position, Titan Eye+ now seems to be taken over by Lenskart.
Reports suggest that when total sales of Lenkart in the closed financial year ending March 2020 was over Rs 1000 crores, Titan Eye+ was struggling with Rs 544 crores. Where Lenskart grew with a 100% growth rate on a year-on-year basis, Titan Eye+ plus grew with a mere 6%. Currently, a market leader with a 25% share, Lenskart is ready to capture a 50% market share of eyewear in the coming years.
Money and Strategy of Tata
In the early days of Lenskart, when the startup was exploring the possibilities to raise funds in order to expand its business, it was Ratan Tata himself who helped them. Reports suggest that in 2016, Ratan Tata invested about Rs 400 crores in the niche company. Without thinking about the competition from its own subsidiary Titan Eye+, the great Ratan Tata helped Lenskart to grow in the same domain of business. Unlike the predatory business tricks, which try to capture the small business with handsome money, he provided both financial as well as logistical support to Lenkskart.
In the healthy competition of business, Lenskart not only used Tata’s money to grow but also used its playbook to expand its business. Tanishq, a jewellery subsidiary of Tata Group is one of the most growing brands in India. With a reputation for exceptional craftsmanship, unique designs, and high-quality products, Tanishq became the most trustworthy brand in India.
Using the four foundational market strategies, that is Product, Price, Place, and Promotion, Tanishq dominated the jewellery market. They categorized the higher class, middle class, and lower class products according to their demand and targeted their customer base. Considering India’s middle and lower middle-class society, they kept the price competitive for their products. As jewels are expensive and luxurious products, they prioritize their sales through retail shops. Moreover, through extensive digital marketing promotion, Tanishq reached every home in India.
Yet the Winner is Lenkskart
Following the strategy of Tanishq, Lenkskart too developed its brand. In the digital world, where most startups are focusing on the online expansion of business, Lenskart adopted a hybrid model. They not only made the online presence but considering the eyewear’s adaptability to customers, they opened a large number of retail shops. Lenskart has over 1050 stores in India, Singapore, the US, and UAE combined. Reports suggest that in the next five years the company targets to open another 5,000 stores across the globe.
Unlike other startup companies, Lenskart analyzed its own domain of business and focused on offline shops. They used digital presence to multiply their business and used Tanishq’s strategy to expand their business. Like Jewellery, eyewear too needs critical adaptability for customers. They not only look for fitting but also technical criticality, which can only be taken through physical presence.
In a way, Peyush Bansal, the founder of Lenskart, used both the money and strategy of Tatas to master the business. His brilliant plan not only made Lenskart a unicorn startup but also profitable. In the winter of cash crunch, where startups are struggling to manage their funding. Leave the question of profits, Lenskart managed to outrun giants like Tata. The story of Lenskart and Peyush Bansal is legendary. Now, Peyush Bansal is helping newcomers in the industry like Ratan Tata helped him. The foundation of industrial growth laid by Jamestji Tata was truly carried by Ratanji Tata. Now, entrepreneurs like Peyush Bansal are taking it forward.
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