Lenskart is an optician and eyewear retail chain and an Indian multinational company. Sumeet Kapahi, Amit Chaudhary, and Peyush Bansal founded the eyewear company in 2010. The company has established a network of approximately over 2000 retail chain eyewear optician stores in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Lenskart; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Lenskart
Some of the main political factors in the Lenskart PESTLE analysis are as follows;
I-Government Regulations
The consumer protection, health, and safety government regulations and policies are very strict and tight for the optician and eyewear companies. It comprises optician licenses from the government, health and safety laws, consumer protection laws, trade laws, labor laws, and others. However, the objective of strict government regulations is to ensure the health and safety of ordinary consumers.
II-Trade Policy
Lenskart procures raw materials and supplies from various countries across the globe. The trade policies of different countries are variable depending on their foreign policy and diplomatic relations with the Indian government. For instance, if a country doesn’t have good relations with India, it would impose high trade tariffs to decrease the trade with the particular company.
III-Political Stability
The stable political environment of the country plays a critical role in the growth of businesses and companies. If the raw material sourcing country is going through a violent political crisis and power change, then it disrupts the supply chain and distribution of material to the production facilities. As a result, the retail chain stores of Lenskart would experience the stock out of glasses and other supplies.
Economical Factors Affecting Lenskart
Some of the main economic factors in the Lenskart PESTLE analysis are as follows;
I-Economic Growth
The economic growth of the country directly impacts the retail business of Lenskart. When the country has a stable political and economic environment, people will have multiple employment opportunities. They have sufficient disposable income to spend on luxury items like optical glasses, sunglasses, and other eyewear products and accessories.
II-Currency Exchange Rate
Lenskart procures materials and supplies from various countries in multiple currencies. The currency exchange rate market is highly unstable and it keeps changing regularly depending on various factors. A small change in currency exchange rate would increase the costs and expenses of the companies. It negatively impacts the retail price, sales, revenue, and profitability of the company.
III-Expensive Raw Material
The cost of raw materials and supplies has been increasing due to various factors like high labor costs, increasing fuel prices, trade policies, and others. It has made it difficult for Lenskart to maintain the retail price and enjoy the cost-efficiency advantage. As a result, it negatively impacts the revenue and profitability of the eyewear company.
Social Factors Impacting Lenskart
Some of the main social factors in the Lenskart PESTEL analysis are as follows;
I-Increasing Customer Market
The customer market is becoming more exposed to digital screens and their screen time is high. It amplifies the risk of weak eyesight and they need glasses and lenses to see things clearly. However, it presents a great opportunity for Lenskart to offer eyewear, glasses, and lenses to the customer market to reach more people.
II-Changing Trends
The customer market trends are highly unpredictable and they keep changing every season. Lenskart should conduct thorough market research to become familiar with the needs and demands of the customer’s market. It allows them to develop the right designs and styles of glasses relevant to the demands of the customer market.
III-Health Conscious Trends
The consumer market has become highly cautious about their health and diet and they’re making conscious choices of their health and fitness. They engage in healthy activities like exercising and eating a healthy diet including eye health. However, it presents a great opportunity for to Lenskart offer eye health products and accessories to keep up with the growing customer market trends.
Technological Factors Affecting Lenskart
Some of the main technological factors in the Lenskart PESTEL analysis are as follows;
I-Advanced Technology
Lenskart is investing a lot of capital resources in advanced technological tools and equipment in its supply chain, production, and manufacturing units. It allows them to efficiently perform their production and manufacturing operations, optimum utilization of resources, and reduce the wastage of resources.
II-E-commerce Platform
Lenskart has invested a lot of resources in the development of its e-commerce platform. It helped them to offer its eyewear products and goods to customers online with the home delivery service. Online shopping trends have increased a lot over the past few years. It helps the company to keep up with growing online shopping trends.
Legal Factors Impacting Lenskart
Some of the main legal factors in the Lenskart PESTEL analysis are as follows;
Regulatory Compliance
Lenskart should comply with the government regulations and policies of various countries. They comprise labor laws, trade policies, optical store licenses, consumer protection laws, and health and safety laws. Regulatory compliance would help it to smoothly perform its retail operations without any delays and disruption.
Environmental Factors Affecting Lenskart
Some of the main environmental factors in the Lenskart PESTEL analysis are as follows;
Sustainability Initiative
Lenskart needs to make a strong commitment to environmental sustainability initiatives. It comprises investing in renewable sources of energy, ethical sourcing of materials, and ethical practices to reduce the carbon emission rate. However, it allows them to keep up with the growing environmental sustainability trends.
Conclusion: Lenskart PESTLE Analysis |PESTEL Analysis of Lenskart |External Environmental Analysis of Lenskart | Strategic Analysis of Lenskart
After an in-depth study of the pestle analysis of Lenskart; we have realized that Lenskart is the world’s leading retail chain eyewear brand. If you are learning about the Lenskart PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
