A differentiated customer value proposition<\/u><\/strong><\/p>\n At its core, Warby Parker offers significant economic and functional value to the consumer by selling all eyeglasses at a flat $95 (lens + frame) per pair price. Traditional eyeglass designers typically charge separately for frames and lenses, and costs exponentially rise with eye conditions such as astigmatism and keratoconus.<\/p>\n Providing consistent and high quality customer service is central to Warby Parker\u2019s value proposition model. The company aims to provide an \u201ceasy and fun\u201d buying experience.2<\/sup> At inception, Warby Parker was a pioneer in utilizing e-commerce to sell eyeglasses but has since expanded by selling through 25 company-owned storefronts located in trendy, high-end locations across the US.2<\/sup><\/p>\n Warby Parker\u2019s brand is pervasive, creating a hip, cool factor. Their intention is to appeal to millennials and \u2018break into the world of health and fashion\u2019.3<\/sup> In fact, the company has been acclaimed by Esquire4<\/sup>, GQ5 <\/sup>and Vogue6<\/sup>, amongst other fashion magazines. Underpinning all this is a company that promotes socially conscious business through its \u2018buy a pair, give a pair\u2019 model. For every pair sold, Warby Parker, in partnership with VisionSpring (nonprofit), distributes another pair in developing countries. Warby Parker is a registered B-Corp. (for-profit company that meets rigorous social standards, maintains transparency and accountability) with a carbon-neutral production and distribution footprint.2<\/sup><\/p>\n Simplistic business model<\/em><\/strong><\/p>\n Source: http:\/\/bmtoolbox.net\/companies-and-stories\/warby_parker\/<\/a><\/p>\n Robust delivery of value<\/u><\/strong><\/p>\n Warby Parker\u2019s operating model is closely aligned with its business model and the strength of its operating model is central to its ability to deliver low cost, high quality, fashion forward eyeglasses with a strong social element.<\/p>\n This is achieved by disciplined supply chain management. Warby Parker bypasses the traditional model by being vertically integrated, enabling them to have direct control over costs. They procure high quality materials directly from overseas (Japan and Italy)2<\/sup>, design and produce all eyeglasses in-house and sell directly to the customer (online or through company-owned stores). Comparatively, the traditional supply chain model involves companies such as Luxottica selling production rights to other companies who then design, manufacture and sell eyeglasses to optical shops. Optical shops then add additional mark-ups before selling to the end consumer.2<\/sup> Consequently, Warby Parker saves significant costs on licensing fees and retail mark-ups, and pass these savings onto consumers.<\/p>\n Value chain comparison between Warby Parker and traditional industry competitors<\/em><\/strong><\/p>\n Source: Warby Parker (http:\/\/demandcaster.com\/2014\/03\/warby-parker-aligns-business-objectives-with-supply-chain-management-process-to-drive-growth\/<\/a>)<\/p>\n <\/p>\n As part of its customer offering to provide an \u2018easy and fun\u2019 buying process, the company\u2019s \u2018Home-Try-On\u2019 program allows customers a free 5-day trial period where they can order five frames online, and try them at home before deciding their preference. Customers can also try on frames virtually by uploading a photo onto Warby Parker\u2019s website and choosing their frames of preference.<\/p>\n Warby Parker also sells through company-owned storefronts where they provide additional in-store services such as eye tests. Physical stores have aided in enriching personalized customer service and increased brand resonance. In-store, each customer, shepherded by a dedicated salesperson, is able to try as many pairs as they want. Additionally, store design and layout, featuring open space, \u2018chevron wood floors, original murals paintings, banquette seating and magazine racks\u20197<\/sup>, is focused on providing a fun experience that will create a buzz and encourage a social atmosphere. Such has been the success of the company-owned stores that estimates show that Warby Parker are amongst the leading retailers in average sales per sq ft.7<\/sup><\/p>\n $ per sq.ft comparison<\/em><\/strong><\/p>\n Typical Warby Parker store layout<\/em><\/strong><\/p>\n Source: Wall Street Journal, November 17, 2014 and Warby Parker website<\/p>\n Effective human capital investment is critical to maintaining robust customer service. Warby Parker invests heavily in training and encourages creativity through a \u2018fun, open and growth-driven culture.\u2019 In addition to onboarding training, the company conducts monthly informal feedback sessions and 3600<\/sup> reviews to ensure accountability and enhance personal and professional growth.2 <\/sup>The company actually fired one of it\u2019s first employees because he wasn\u2019t friendly enough in emails to customers.3 <\/sup><\/p>\n Warby Parker continues to invest in process improvement and innovation. In 2014, they launched a proprietary retail point-of-sale system called Point of Everything that enabled payment processing, eye-test management and inventory control, amongst others, all through the use of iPad minis.2<\/sup> This technology greatly improved speed of customer service and internal company recording system.<\/p>\n Warby Parker has been able to build a revolutionary business model, disrupting the entire optical industry on the back of a creative, well-aligned and innovative operating model. While competitors ponder the next step, Warby Parker continues to break into unchartered territories.<\/p>\n Sources:<\/p>\n 1<\/sup> http:\/\/blog.hubspot.com\/marketing\/warby-parker-business-lessons<\/a><\/p>\n 2 <\/sup>Warby Parker website (https:\/\/www.warbyparker.com<\/a>)<\/p>\n 3 <\/sup>http:\/\/blog.hubspot.com\/marketing\/warby-parker-business-lessons<\/a><\/p>\n 4<\/sup> http:\/\/www.esquire.com\/style\/a13780\/warby-parker-prescription-shades-042012\/<\/a><\/p>\n 5 <\/sup>http:\/\/www.gq.com\/story\/exclusive-first-look-warby-parkers-hayworth-collection<\/a><\/p>\n 6 <\/sup>http:\/\/www.vogue.com\/871222\/vd-in-focus-warby-parker-eyewear\/#1<\/a><\/p>\n 7<\/sup> http:\/\/www.wsj.com\/articles\/warby-parker-adds-storefronts-to-its-sales-strategy-1416251866<\/a><\/p>\n http:\/\/mashable.com\/2014\/06\/16\/unique-business-models\/#mzWGQ8jNcSqR<\/a><\/p>\n http:\/\/www.inc.com\/kimberly-weisul\/how-warby-parker-took-the-risk-out-of-its-business.html<\/a><\/p>\n http:\/\/www.fastcompany.`com\/3041334\/most-innovative-companies-2015\/warby-parker-sees-the-future-of-retail<\/a><\/p>\n http:\/\/blogs.wsj.com\/digits\/2015\/04\/30\/eyeglass-retailer-warby-parker-valued-at-1-2-billion\/<\/a><\/p>\n http:\/\/www.newyorker.com\/magazine\/2014\/08\/04\/companies-benefits<\/a><\/p>\n http:\/\/www.psfk.com\/2013\/05\/warby-parker-retail-store.html<\/a><\/p>\n![\"1\"](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/16.jpg\")
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