CASE: ESSILOR’S BASE OF THE PYRAMID STRATEGY IN INDIA
NADIA CAMILA BARRERA O
Assuming that Essilor beyond only selling spectacles really want to provide affordable
vision to the masses; their initial work to identify the main problems of the access to eye
health was well done. As a first factor they identified that a high percentage of the
population was not aware of the need or did not know their visual problems, they manage
to establish an innovative business model that could cover these shortcomings. A second
factor was the distribution and occurrence of these businesses in rural or remote areas of
the main cities. The fact of gain access to spectacles and greatly reduce the economic
implications this entailed, reaffirm that the business model proposed would have an
excellent projection.
However, despite their high levels of product quality, being highly recognized in the world
market and through which their project was able to make important alliances with hospitals
– especially being part a collaborative work on free eye care campaigns- and NGOs – who
contributed with volunteer work-, the advice of specialized health professionals, the
geographic reach of the company and even its affordable prices, the sales levels did not
have a positive economic results as expected. Only a 40% who have the consultation,
ended up buying the spectacles. This could be one reason why only after five years of
implementation, until the fifth year they show some profitable numbers.
Then, the challenge is to discover possible reasons why more sales are not materializing,
possible new coverage areas and how to make this business even more profitable.
First, in order to increase sales; referring to volume, Essilor should be able to cover a
larger geographic area, for which they must initially leverage with third parties. Find
sponsors, related or highly involved with the initiative, making strategic alliances with
suppliers (frame producers for example) to help them reduce costs through scale
economies and thus help them to increase the reach. Also creating new models of financial
