Essilor's Strategy in India

Some ways are to control the costs:

1. By using liquefied petroleum gas instead of diesel vans:

Gas is cheaper than diesel and the pollution of gas is less than it of diesel. Also Essilor can work with oil companies in India that oil companies can provide sound price and Essilor allows to use its vans to hang on oil companies' banners.

2. By decreasing the cost of vans by 15% to 20% through bargain on volume:

To expand market in rural areas, it requires more facilities - equipped vans. Negotiation with car dealers or makers can save costs that being a stable customer is what car dealers or makers are looking for. Also getting well maintenance service is important.

3. By decreasing the number of people operating the vans

Controlling the labour costs is another key factor. Driver, lens grinder and salesman can be one person which saves at least half of the labour costs for 3 people.

Some ways to drive revenues:

1. By selling sunglasses to prevent cataracts

In India, about 9.5 million people lost visions due to cataracts. Sunglasses can well protect eyes from UV lights that do harm to eyes. So far, the sales of Spectacles vs. the sales of Sunglasses is 20:1 (annual) exhibited in Appendix 1b.

2. By increasing the conversion

As the eye sight test is free, people don't know how important to wear a pair of glasses that will improve their living quality, so without guidance, they won't purchase glasses.

Other ways, from my perspective, to either control the costs or make revenues:

- To work close with government, and use government's channels to educate people how important the eye cares are.

Public health and medical care services can educate people how important to wear spectacles to correct visions to improve living quality. For a long term vision, with corrected visions, those previously disabled now can work and ask for less helps from government, which lessens government's burdens.

- To develop more sponsors to let them sponsor more vans and facilities.

More sponsors or donators can help lower the expenses on facilities and vans. They can be encouraged to donate money or a van or some facilities as they can be educated that Indian society will be much brighter for people in need of spectacles with their support.

- Adopting VisionSpring's micro-franchisees program.

To develop franchise and provide trainings and supports, Essilor can save costs for operations on vans. Also this program can improve