Hawkers
Hawkers

Hawkers, the Spain-based sunglasses company, has a new CEO. Pedro Beneyto's appointment to this role was formally announced in October 2022, although he started working for the company in a lesser capacity in May. The leadership change is part of Hawkers' overall strategy to achieve ambitious growth over the next few years. The firm is best known as a manufacturer and seller of durable, low-cost sunglasses, but it wants to move beyond this by gaining market share in prescription eyewear. In addition, Hawkers wants to penetrate global markets in the fashion accessory sector.

Beneyto has extensive experience in both optics and fashion. He previously worked at Alain Afflelou, a French chain of opticians that's a world leader in that industry. Beneyto also worked for the internationally known jeweler Suarez Group. Beneyto is particularly well qualified to lead Hawkers' transition to prescription glasses. Beneyto is very familiar with the optics industry, both through dealerships and Alain Afflelou's optician network.

This experience is key to achieving the three components of Hawkers' growth plan, which include international expansion, development of its franchise system, and strengthening its network of opticians. Hawkers' home market is Spain, which currently generates the majority of online sales for the company. However, Beneyto plans to explore growth opportunities in other markets, primarily by improving processes through developing technology. These changes will also help improve customer experiences for both internal and external customers.

Hawkers History

Hawkers' origins date to 2010, when Iñaki Soriano, Pablo Sánchez, Alejandro Moreno, and David Moreno decided to export a U.S. brand of sunglasses called Knockarounds, which were affordable but still high quality, to Spain. They used an initial investment of $300 to buy 27 pairs, which they sold through a classified site. They quickly sold out and ordered more, allowing them to continue their strong sales for the next three years. The friends founded Hawkers in 2013 and became the official distributor for Knockarounds in Spain.

Online sales were strong, but the company's earnings remained low due to the narrow profit margin on distribution. At this point, the founders decided to create their own line of sunglasses and began working with a manufacturer to create the products. However, Hawkers still lacked the working capital to grow - until it attracted the attention of Alejandro Betancourt, an entrepreneur and investor with an established track record for helping companies in many sectors.

"I was looking to do something new and modern after my experience in traditional sectors like energy and finance," Betancourt recalled. "A friend asked me if I wanted to invest in Hawkers, which only sold sunglasses through a webpage at that time. However, it was also the first Spanish company to do marketing with social media and its influencers. I got excited about the marketing strategy and invested in Hawkers through O'Hara, my investment firm. Today, Hawkers is the leading company for sunglasses in Spain."

Betancourt realized that Hawkers had the potential for explosive growth and was able to raise about $56 million for the company. He also wanted to be closely involved in the company's operations, which is standard practice for Betancourt when he takes an interest in a business. The founders of Hawkers appointed Betancourt as the company's president in November 2016.

From Digital to Physical

Hawkers was originally just a digital brand, and its rise to prominence has been based on its online marketing success. As of 2022, Hawkers' website is available in over 80 countries. However, the company has also begun to establish a physical presence, which now includes more than 70 stores in Spain, Italy, and Portugal. Furthermore, Hawkers Eyewear, a Hawkers brand specializing in optics, already includes 15 opticians in Spain and Portugal.

Hawkers is also diversifying into clothing. In 2021, it opened its first factory - in Elche, Spain - and is already one of the top 10 Spanish brands in international markets. In addition, the company is one of the top three brands for sunglasses sold through social media, including Facebook, Shopify, and Twitter. As of 2022, Hawkers was earning an annual profit of 70 million euros (about $74.42 million) by selling over 10,000 units per day.

A Social Media Trailblazer

Betancourt has disrupted the sunglasses sector through his use of social media as a marketing channel. He explains his visionary use of social media by saying, "I believe that you have to understand that the world is changing so fast, and with the world of markets, the appetites, the cultures, everything changes, and more technology, there is more adaptation; it's needed."

Before this, budget was a primary consideration for most sunglasses customers. They could buy an inexpensive pair in many general retail outlets, like grocery and convenience stores. While they might lose or break them within a short time, these events didn't pose a great financial loss due to their low cost. Another option was to visit a store specializing in designer sunglasses, such as an upscale boutique. In this case, the price would be high, requiring customers to be much more careful with them.

Nevertheless, they might eventually misplace or break them, resulting in a significant loss. Both methods require the customer to visit a physical store. With Hawkers, customers just need to click or swipe to receive an inexpensive pair of sunglasses delivered to their doorstep. Betancourt saw that the best way to sell a trending fashion accessory was to leverage social media, which was just entering mainstream use in 2016. He began investing in Facebook Ads at a cost of about $45. These small investments allowed Hawkers to connect with a large existing audience, making it easy to receive orders and share posts.

Ongoing Marketing Techniques

Hawkers has continued its success through the extensive use of Facebook Ads, spending $14,000 per day as of 2022. Its Facebook page has over 6.6 million followers, and the company's founders have presented their story to executives from Facebook and other companies. Hawkers also remains active on Instagram, where the brand can boost revenue through ad-based purchases. In addition, Instagram allows Hawkers to connect with many influencers and prospective customers by sharing hashtags like #hawkers or #hawkersco, which have appeared on over 630,000 pages.

Betancourt and his team have developed promotions that target social media users. For example, Hawkers provides influencers with discounts on their purchases. They also earn a commission for each order they generate from social media posts.

In addition, Hawkers has assembled teams of representatives to visit colleges. It now has over 5,000 brand ambassadors who post about what they see and do on campus. They also wear Hawkers sunglasses and provide other students with information on how to order them. These team members receive various incentives in exchange, such as travel vouchers and concert tickets.

Additional marketing approaches include providing fashion industry insiders with free samples in the hopes that Hawkers products will appear in published images. Hawkers also creates limited-edition product lines based on input from celebrities like Spanish model and actress Paula Echevarría and French race car driver Pierre Gasly. This approach is proving highly effective in building demand for future products.