WARBY PARKER

Liz . Olympia . Vishali

COMPANY HISTORY

2008

2003 - 2008

LaunchFeb 2010

$2500Seed Investment

MBA

Buy 1, Give 1Model

Corporate name: JAND Inc. Kerouac characters Warby Parker = Warby Pepper + Zagg Parker

Virtual and home try on program

100 employees in 2011, almost 400 by 2014

By 2014, 1 million had been distributed, in 2016, that number is now 2 million.

After selling 20,000 pairs in their first 3 weeks, In April 2013 opened their first store in New York City’s SoHo

“Designer eyewear at a revolutionary price, leading the way for socially conscious businesses “

Certified B Corporation since May 2011 (112 / 200)

In May 2011, Warby Parker raised its first round of funding totaling $2.5 million, followed by $12.5 million in September 2011, $37 million in Fall 2012 and finally $4 million in Feb 2013.

CURR

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ASKEY PARTNERS

CUSTOMER SEGMENTS

VALUE PROPOSITION

KEY ACTIVITIES

KEY RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

- Manufacturing in China

- Italian family owned company

- VisionSpring- Celebrity

designers- Nordstrom - pop

up shop- B corp

- Men- Women- High-End design seekers- Low price seekers- Fashion conscious - Customers seeking Prescription eye wear.

→ High - end design

→ Boutique Quality

→ 5 days trial for 5 different frames.

→Free Shipping and 30 days Return Policy

→EyeWear at a revolutionary price point

- Inhouse Design- Cutting & Assembly - Online Platform- In-Store Experience- Distribution- Buy 1 give 1 model- Marketing

- Social Media - Fashion Blogs, Facebook, Instagram, etc - Offline store fronts- VisionSpring- Word of mouth- Social Events

CUSTOMER RELATIONSHIPS

- Online Sales - Store front sales

- Design- Platform (Software and Maintenance)- Distribution

- Designers - Software & Platform Developers

- Direct - Loyalty- Brand Advocacy (85+ NPS)

- Salaries - Marketing- R&D- ECommerce- VisionSpring Sourcing

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ENTS WARBY PARKER:

VALUATION 20151.2 billion

ESTIMATED REVENUE2013: $35 million2015: $100 million

TRUE VALUE: It won’t be known until its growth stabilizes

EV/SALES RATIO: 12 (based on 2015 valuation)**compares total value of the company to its sales

PREDICTION: if they can grow their revenue by 50% every year for the next 10 years, it could theoretically generate $5.8 billion in revenue by the 10th year

Net Sales: $434.8 100%Cost of Sales: ($178.9) 41%Gross Profit: $255.8 59%

S/M expenses: ($199.5) 46%O/A expenses: ($32) 7.4%Income/Expenses $3.8 .9%

Operating Income: $28 6.5%Total Income+Cost: $(20.6) (4.7%)

Profit before tax: $7.6 1.7%Income tax: ($10.1) (2.3%)

Net Loss: ($2.5) (.6%)

Net Sales: $100Cost of Sales ≈ $41Gross Profit ≈ $59

S/M expenses: ($46) 46%O/A expenses: ($7.4) 7.4%Income/Expenses $.9 .9%

Operating Income: $6.5 6.5%Total Income+Cost: ($4.7) (4.7%)

Profit before tax: $1.7 1.7%Income tax: ($2.3) (2.3%)

Net Loss: ($.6) (.6%)

Marcolin (millions)

Warby (millions)

CURRENT ADMIRABLE LEADER

NEIL BLUMENTHAL

“People can copy your model but they can’t necessarily copy your brand. A brand is a point of view and a world you create.”

Knew from an early age that - entrepreneurship was his destiny

“Sometimes you don’t need the newest technology to create the best customer experience”

After college, craved the satisfaction of a direct impact on the world.

Five-year stint as Director of VisionSpring, a non-profit social enterprise that trains impoverished men and women on how to perform eye exams and sell affordable eyeglasses.

was named a Fellow for Emerging Leaders in Public Service at NYU

Responsible for the ‘buy one, give one’ business model at Warby Parker.

CUSTOMER FEEDBACK RESEARCH

“Frankly, I think I'll only be buying glasses from these guys from now on”

“Guess who just made my day .. Warby Parker!” #VIPStatus

Customer focused culture

- Treat customers the way we’d like to be treated

- Create an environment where employees can think big, have fun and do good

- Get out there- Green is good

59.2K

82.5K

290K

Followers

“They have a customer for life!”

“My glasses came two weeks, 3 phone calls and an email after I placed my order in the store!”

5 out of 100 are dissatisfied with Warby Parker

23 out of 100 are returning customers of Warby Parker

“How likely are you to recommend this company to a friend?” NPS 85+

“They delivered my glasses 3000 miles away and then charged me for not returning them!”

CURRENT CHALLENGES

Frames Revenue (EUR Millions)

NOT ENOUGH MARKET SHARE

- Small Target Market- Limitations size and types of lenses - No options for elders and kids

COMPETITORS

- Luxottica (60% -80%)- Marcolin, Coastal, Zenni Opticals, Made Eyewear (price and personalization advantage)- Local emerging competitors (China, Japan) - Jins

NOT PROFITABLE

- Limited prescription options- Numerous storefronts; large expense :- 8 in California, 7 in NY (47 in US, 2 in Canada)- Company has become stagnant.

CUSTOMER EXPERIENCE

- One size does not fit all- Virtual try on does not provide a true fit- Delayed deliveries

MANUFACTURING

- Don’t own their own manufacturing facility

STRATEGIC RECOMMENDATIONS - PIVOTINCREASE MARKET SHARE

MAKE PROFITABLE FIX CUSTOMER COMPLAINTS

Subscription based upgrade program- Upgrade your eyewear every one Year (re-cycle the old pair)- Target Audience - College students

Eye Exam via Mobile App- eliminates the need for separate prescription eye exams.

Bifocal/Trifocal lenses - stable target market - Target Audience - Baby boomers

Instaframes - camera-enabled eyewear to record videos and upload to instagram later. - Target Audience - Young People

Stop opening Brick & mortar + it’s expensive and time consuming.

Improve home try on with ready to go solutions ( 3 Prescription try on eyewear)

Invest in own production (manufacturing company) will help with further customization for better user experience and reduce overall cost of production

Improve speed of delivery with ready to wear prescription

Improve the online virtual try on

Virtual customer service (automated customer care dialogue box) for online queries and purchases.

FURTHER INNOVATION

‘A way to see’ program in partnership with eSight

Developing VR tech for returning sight to the near blind allowing them to go about their daily lives independently.

In addition to the “buy 1 get 1 model” via VisionSpring

STRATEGIC RECOMMENDATIONS - PIVOTINCREASE MARKET SHARE

MAKE PROFITABLE FIX CUSTOMER COMPLAINTS

Subscription based upgrade program- Upgrade your eyewear every one Year (re-cycle the old pair)- Target Audience - College students

Eye Exam via Mobile App- eliminates the need for separate prescription eye exams.

Bifocal/Trifocal lenses - stable target market - Target Audience - Baby boomers

Instaframes - camera-enabled eyewear to record videos and upload to instagram later. - Target Audience - Young People

Stop opening Brick & mortar + it’s expensive and time consuming.

Improve home try on with ready to go solutions ( 3 Prescription try on eyewear)

Invest in own production (manufacturing company) will help with further customization for better user experience and reduce overall cost of production

Improve speed of delivery with ready to wear prescription

Improve the online virtual try on

Virtual customer service (automated customer care dialogue box) for online queries and purchases.

FURTHER INNOVATION

‘A way to see’ program in partnership with eSight

Developing VR tech for returning sight to the near blind allowing them to go about their daily lives independently.

In addition to the “buy 1 get 1 model” via VisionSpring

p

MAKE IT SUSTAINABLE100% Carbon Neutral Material

Limit the number of Brick and Mortars

Upgrade ProgramRecycle the old pair

Less material waste

Use of more Plant-based and Recycled Material for products and packaging

Better In-home try on (ready to go) & online customer care and service.(elimination of showroom requirement)

Use showroom space as an Innovation lab

In-house App based eye exam‘Buy 1 Get 1’ model - VR

headset (‘a way to see’ program)

CIRCULARECONOMY

1 year warranty

Own Manufacturing Unit(Customization and Personalisation)

Generate more employment via VisionSpring(‘a way to see’ program)

NEW

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INES

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CAN

VAS KEY

PARTNERSCUSTOMER SEGMENTS

VALUE PROPOSITION

KEY ACTIVITIES

KEY RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

- Italian family owned company

- Non-profit VisionSpring

- Celebrity designers

- Instagram- eSight

- Existing Customers- New prescription customers- Older generations- Millennials and younger generations (Instagram stories users)- Visually Impaired people

→ Variable sizes→ Ready to go→ Long term customer retention (Subscription)→ Instaframes→ Eliminating eye exams via mobile phone application→ VR to restore sight to the blind, ‘A way to see’ program

- Manufacturing - Inhouse Design- Online Platform- In-Store Experience- Distribution- Buy 1 give 1 model- Marketing

- News publications and Outlets- Instagram - TV Shows and commercials- Social Events- VisionSpring- Instore

CUSTOMER RELATIONSHIPS

- Online Sales - Store front sales- App eye exams - Instaframes

- Design- Platform (Software and Maintenance)- Distribution- Manufacturing

- Designers - VR developers- Software Engineers - Platform Developers

- Direct - Loyalty- Professional- Brand Advocacy (85+ NPS)

- Salaries - Marketing- R&D- ECommerce- VisionSpring Sourcing

- Upgrade program- Bifocals/trifocals prescription

BUS

INES

S M

ODEL

CAN

VAS

- LON

G TE

RMKEY PARTNERS CUSTOMER

SEGMENTSVALUE PROPOSITION

KEY ACTIVITIES

KEY RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

- Italian family owned company

- Non-profit VisionSpring

- Celebrity designers

- Instagram- eSight- Virtual Reality

developers

- New prescription customers- Older generations- Visually Impaired people

- R & D- Manufacturing - Inhouse Design- Online Platform- In-Store Experience- Distribution- Buy 1 give 1 model- Marketing

- News publications and Outlets- TV Shows and commercials- Social Events- VisionSpring- Instore

CUSTOMER RELATIONSHIPS

- Online Sales - Store front sales- App eye exams

- Design- Platform (Software and Maintenance)- Distribution- Manufacturing

- Designers - VR developers- Researchers- Software Engineers - Platform Developers

- Direct - Loyalty- Professional- Brand Advocacy (85+ NPS)

- Salaries - Marketing- R&D- ECommerce- VisionSpring Sourcing

- Upgrade program- Bifocals/trifocals prescription

→ Eliminating eye exams via mobile phone application→ VR to restore sight to the blind, ‘A way to see’ program