Alessandro Zanardo on the expansion and strategy of LVMH eyewear manufacturer Thélios

Since coming under the full control of LVMH in 2021, the start-up created in 2017 by the number 1 in luxury goods with Italian eyewear manufacturer Marcolin has doubled its surface area and tripled its workforce, It now manages the eyewear collections of thirteen houses, including eleven of the group’s labels: Dior, Fendi, Celine, Givenchy, Loewe, Stella McCartney, Kenzo, Berluti, Bulgari, TAG Heuer and Fred, as well as Vuarnet and Barton Perreira, acquired this autumn. At the helm of Thélios since 2022, CEO Alessandro Zanardo talks to FashionNetwork.com about the company’s massive expansion and explains its strategy.

FashionNetwork.com: How is Thélios positioned on the market today?

Alessandro Zanardo: We are a different player from what we were in 2021, while maintaining consistency with the initial philosophy of the project in 2017. We continue to position ourselves as a player that targets a very well-defined market share and wants to play an active role in raising the level of product quality and distribution in the eyewear market.

FNW: So it’s a top-of-the-range positioning?

A.Z: Yes, exclusively luxury and top-of-the-range, relying on very few points of sale with which we work.

FNW: How many retailers do you have?

A.Z: We don’t divulge this figure. They are few. Let’s say a fraction, a single-digit percentage compared to the number of specialist optical shops there is in Italy and France. Then there are the LVMH brand boutiques and, in some markets, such as the United States, also the department stores.

FNW: Are you also developing concept stores for travel retail under the Thélios banner? 

A.Z: No. We have done a travel retail concept store in Doha, but it’s not Thélios. It’s operated by Qatar Duty Free. It’s true that we were involved in the strategic implementation of this shop, overseeing the design, layout, etc. But it’s not a concept store. But it’s not a focus for our development in direct retailing. Nevertheless, we are interested in this mixed model. In other words, a wholesale model, but still with a partner to whom we leave the running of the shop, while having a greater say in the layout, the consumer experience and the range. In line with our initial philosophy of elevating this category of luxury eyewear, the idea is also to create new standards that can inspire other opticians, while helping us to better understand how to manage the presentation of our products.

FNW: Has your scope also changed over the last three years?

A.Z: From a portfolio point of view, we added four brands between the end of last year and the beginning of this year, with the eyewear collections of two other Group companies, Bulgari and TAG Heuer, and then with two acquisitions, Barton Perreira and Vuarnet. So the portfolio is more complete. 

FNW: Do these acquisitions mean a change of strategy for you?

A.Z: No, it’s not a change of strategy. It means that we have a more complete and synergistic portfolio. Before, we only had fashion brands. Now we’ve taken on Vuarnet, which is more outdoor-oriented, and Barton Perreira, which is very much focused on eyewear, to complete our offering to our customers. It’s true that these independent brands require a different kind of work from that involved in managing in-house licences, but we have also brought brand management skills in-house. What’s more, these acquisitions have enabled us to integrate directly managed shops.

FNW: Which ones?

A.Z: We have eight single-brand shops. Three Vuarnet in France and the United States, and five Barton Perreira. This helps us to better understand consumer behaviour, which benefits all our activities. We will be opening a few more shops, but very selectively, just a few units. It’s more a question of establishing these brands in certain markets than a real retail development strategy.

FNW: What is your objective for Vuarnet?

A.Z: Above all, we have a qualitative objective. It’s a somewhat forgotten brand that we want to re-launch in the minds of consumers. Starting in France, where it is still well established, even if not all generations are familiar with it, then in the United States and Italy. We don’t want to turn it into a big brand. It has been in the past. But we want it to be a unique brand in terms of positioning, at the crossroads between nature, outdoor and style. Although Vuarnet glasses were born on skis, they could just as easily have been used by Alain Delon in the film La Piscine. We have a project to develop their mineral glass factory in Meaux and a project to relaunch new collections that are superior in quality to the current collections, because we will be making them in-house. We’ll be presenting them at the Silmo optics trade show in Paris in September, and they’ll be in shops in early November.

FNW: What about your expansion around the world?

A.Z: We have completed our international presence, and now have fifteen subsidiaries around the world in the main direct markets. We opened Dubai and Japan this year. Last year we opened Mexico and Benelux. We have a direct presence in all the major markets and I think we’ll probably stop there. In addition to all the European markets, we have a direct presence in the United States, Brazil and India.

We have also strengthened our production capacity with the acquisition of Metallart in 2022 and, at the end of 2023, of the former Safilo plant specialising in metal treatment and galvanisation. So our shoulders are stronger. We now have all the capacity to manage the 360-degree bezel category. That’s why we considered acquiring independent brands.

FNW: How is the integration of the former Safilo site going?

A.Z: Much better than expected. When we bought it, we undertook to take on its 250 employees too. We had planned to integrate them gradually over a period of eighteen months. In fact, within six months, they had all been integrated. We have now launched renovation work on the site, which will be completed by the end of the year. It’s a factory from the 1990s that we’re going to restructure to standards comparable to those of our own factory, so as to have a homogeneous campus. The site will specialise in metal transformation and galvanisation in particular.

FNW: What are your ambitions in the metal sector?

A.Z: Metal is a material that has become very important in eyewear over the last eighteen months. We have different quality objectives to those of the market. We want to raise the standards of this process. For example, with Bulgari, we have developed metal finishes comparable to those found in jewellery. This is quite rare in this market.

FNW: Are you going to buy other factories?

A.Z: Not for the moment. In this district, there are a lot of small suppliers who sometimes decide to retire and don’t have a successor. We’re keeping a close eye on them, but for the moment there are no plans to acquire them.

FNW: What can you tell us about the growth of Thélios?

A.Z: Since 2021, our sales have increased by a factor of two and a half, and we’re continuing to see double-digit growth this year. All this is happening in a context of limited distribution, which means that we decide how fast we grow. Over the next few years, I’m obviously expecting more moderate growth, given the age of the company and the fact that we’ve taken certain steps that were lacking in terms of geographical coverage. Some of our houses obviously represent a very large part of our business, such as Dior, Celine and Fendi. But we intend to develop strongly the two new brands, TAG Heuer in particular, and Bulgari. TAG Heuer used to have a presence in eyewear, where it was a historic brand, but withdrew from this sector twelve years ago. Now we want to bring it back into the market as an eyewear brand with something to say.

FNW: Do you have any other acquisitions in mind?

A.Z: For the moment, we’re concentrating on our latest acquisitions, both industrial and in terms of brands. It all happened in a very short space of time. It wasn’t planned, but when opportunities arise, you have to seize them. So we’re concentrating on integration and development. Then, if there’s something, a pearl for sale, we’ll seize it.

FNW: Some LVMH houses, such as Pucci, have not entrusted you with their eyewear collections.

A.Z: Pucci has another eyewear partner (Marcolin). Other houses have long-term licences. We’ll see when these contracts come to an end. For the moment, we are concentrating on what we have, in particular TAG Heuer and Bulgari, which have great potential for development.

FNW: How do your competitors in the eyewear sector view you?

A.Z: Well, in terms of size, we have reached and surpassed some of them. The market is vast, it’s growing, it’s a very traditional market, but over the last eight to ten years it’s been stimulated by new players, not just us, who have pushed it to evolve. It’s a market with many different segments and positioning. What’s special about eyewear is that there are a few big players and a fair number of small ones. As far as Thélios is concerned, our niche is very, very clear.

FNW: What are your objectives?

A.Z: Sustainable growth that is maintained consistently over the years, working with a few customers in the optical sector, while focusing on very high quality, limited production according to the needs of the houses, with perfect execution. We aim to do things well, rather than to make big numbers. For our shareholder, the way we work is more important than the turnover. We serve our customers. With them, there is total integration in terms of product, distribution and representation.

FNW: How is the eyewear market doing, particularly in the luxury segment?

A.Z: I would say that the market remains healthy. According to my estimates, in recent years the luxury eyewear market has seen low double-digit growth, even before the Covid crisis, and it will probably continue this trend in the years to come, with obviously very, very significant regional differences.