Sandro Veronesi shares insights on future ambitions and expansion plans

Tezenis is all grown up. Founded in 2003, this brand, a part of the Italian Calzedonia Group, alongside labels like Calzedonia, Intimissimi, Falconeri, Atelier Emé, and Signorvino, has spent two decades catering to the fashion needs of young audiences, particularly in the underwear and swimwear segments. It has successfully established its presence in 35 international markets, with an online footprint in 29 of them. Moreover, Tezenis has become one of the powerhouses within the conglomerate, boasting a remarkable 21.6% growth in revenue, totaling 3.047 billion euros, in the last fiscal year.

To celebrate its 20th anniversary, Tezenis chose to host an extravagant event on the enchanting island of Ibiza, attended by over 3000 international guests. This celebration, held at the renowned Destino Pacha Ibiza nightclub, was a unique blend of spectacle, fashion show, and an expression of gratitude to the brand’s sales teams, who constituted a significant part of the attendees, along with journalists and influencers.

In light of this grand celebration, FashionNetwork.com sat down for an exclusive interview with Sandro Veronesi, president and CEO of the Calzedonia Group. The conversation delved into Tezenis’ evolution, strategy, projects, and challenges, all while taking into consideration the other brands within the group and the current market dynamics.

FashionNetwork.com: What does Tezenis’ 20th anniversary mean for the group, and how would you assess the brand’s two-decade-long journey?

Sandro Veronesi: This marks a significant leap forward. Despite its two decades of existence, we believe Tezenis still has much to offer and a long road ahead. When we introduced Tezenis in 2003, following the success of Calzedonia (established in 1986) and Intimissimi (launched in 1996), our aim was to cater to a younger demographic. At the time, we felt that Intimissimi’s lingerie offerings might appear conventional or overly complex for the youth, so we endeavored to provide more practical and innovative products.

Over time, we realized that our initial vision and the achievements we were attaining were somewhat different. We initially anticipated that the brand would establish itself well in markets like Germany or Northern Europe. However, today we don’t have a physical presence in these regions. Instead, our success story unfolded in Italy, Spain, Portugal, Eastern European countries, and recently in France, where we’ve expanded to 30 physical stores. This success has been quite different from our initial plans.

FNW: What was the reason for hosting the grand anniversary event in Ibiza, and how will it impact your future aspirations?

S.V: The main idea behind this event was to express our gratitude to the people who have contributed to our journey. Ibiza was chosen because of its enchanting and elegant ambiance, a place where people consistently create wonderful memories. Additionally, the favorable weather conditions added to the appeal.

Looking ahead, we aim to continue investing in our development in markets like France. This is indeed a challenging endeavor since surprising customers with entirely new experiences is increasingly difficult. Nevertheless, we work diligently to maintain this effect.

FNW: Does selecting Ibiza as the event location signify a reaffirmation of your commitment to the Spanish market?

S.V: Spain stands as a remarkably strong market for us. With approximately thirty physical stores, we’ve experienced notable success. Hence, selecting Ibiza is undoubtedly a way to celebrate these achievements.

FNW: Now that Tezenis is entering a more mature phase, what are your plans concerning its brand positioning? Will there be a shift away from its youthful style?

S.V: Our primary objective is to remain forward-focused and responsive to the needs and desires of young people. As such, we intend to continue collaborating with musical talents, supporting festivals, and motivating new generations to pursue growth and success in life. Furthermore, sustainability is another area where we aspire to progress, aligning with the expectations of newer generations. Consequently, we are channeling significant efforts into creating more practical, higher-quality, and sustainable clothing.

FNW: What about Tezenis’ children’s line?

S.V: We have substantial plans for the expansion of this category, which, at present, represents a relatively small segment of the brand’s overall offering. Initially, we incorporated this line into Tezenis boutiques, and now we are launching standalone children’s stores. Our initial focus is on the Italian market, where we already have 10 dedicated stores. We believe this category offers significant growth opportunities. As a group, we aim to provide a comprehensive range for the entire family, encompassing children, teenagers, young women, and mature women.

FNW: How many stores does Tezenis currently operate, and in which markets?

S.V: We have a global presence with a total of 880 stores. While this is a substantial number, we have yet to reach our goal of 1000, which we aim to achieve next year by opening approximately 100 more stores. Italy remains our largest market, boasting about 379 points of sale, followed by Southern European countries and Eastern countries such as Hungary, Poland, and the Czech Republic. This distribution aligns closely with the presence of other brands within our group.

France is currently the market where we are most eager to expand. We see considerable potential in this market. Calzedonia is already achieving excellent results, and Intimissimi is performing well, especially considering the intense competition in that segment. In France, we believe Tezenis is well-positioned in a sector with fewer competitors. Although there are many “underwear” brands in France, Tezenis’ significant opportunity lies in its attractive pricing combined with a strong image, design, and identity. Much of the French market, offering similar prices, is dominated by supermarket or large retail chain purchases, which cannot match our image and product offering.

FNW: Does this signify your strong faith in the physical retail channel?

S.V: Absolutely, I have strong confidence in physical stores. In the case of Tezenis, online sales account for approximately 12% of total revenue, although this proportion varies significantly from one market to another. For instance, Germany and Switzerland are robust online markets, while France and Italy have lower online sales. Thus, there are still numerous opportunities and room for growth in physical stores.

Furthermore, our store teams are indispensable and form the core of our company. It’s important to note that finding salespeople today is increasingly challenging due to simple reasons like the requirement to stand throughout the day, work weekends, or have intensive working hours during early mornings and late evenings. Nowadays, people prefer fixed office hours and weekends off. Consequently, retaining our store personnel remains a significant future challenge.

“Customers want a sustainable product, with the same features, the same aesthetics and the same interesting price.”

FNW: Are you satisfied with the current distribution between online and physical sales?

S.V: We aim to expand further in the online market, and we are making gradual progress in that direction.

FNW: Regarding revenue, how are Tezenis’ results looking?

S.V: Tezenis’ sales are performing well. The summer season has been particularly strong, thanks to favorable weather conditions. Although it arrived later than usual, it is extending for a longer duration. Tezenis primarily focuses on underwear, which leads to relatively stable sales throughout the year. We are anticipating a robust Christmas campaign as December is consistently a strong month for our revenue.

FNW: Given the current market conditions, how do you envision the final months of 2023?

S.V: We don’t see the market in the best situation at the moment. Europe is currently experiencing a degree of recession, coupled with inflation, which has driven up prices in general. As a result, people naturally have fewer resources available for leisure activities or purchasing clothing.

FNW: What are your growth forecasts for the ongoing fiscal year?

S.V: I believe we will maintain stable sales per store, but we expect to see an overall increase of around 12% because of the additional boutiques we’ve opened.

FNW: Apart from inflation and recession, what do you consider the primary challenges for the market in the future?

S.V: I believe the most significant challenge revolves around sustainability and product usage awareness. One of our primary focuses is the development of more recyclable or reusable products to reduce their environmental impact.

FNW: Is this in line with customer expectations?

S.V: This is what customers are saying, but it’s not precisely the same thing. I believe we can continue to take steps like reducing packaging and single-use plastics. Concerning fabrics and materials, we are working to the extent possible with today’s available technologies. Unfortunately, many of the materials we must use are still synthetic. Thus, we are concentrating more on recycling. Nonetheless, materials such as organic cotton and recycled polyester are increasingly prevalent in our product range, and technology is advancing in this direction.

FNW: In your sector, is one of the primary challenges to discover new materials that offer the same performance and characteristics?

S.V: Absolutely, the significant challenge is to innovate responsibly while achieving the same level of performance. It’s essential to recognize a straightforward fact: customers desire sustainable products with the same attributes, aesthetics, and appealing price. And that’s not always easy to achieve!