Visions From New Wolford UK CEO Ermes Stefanutto

A few years ago, I hardly ever saw girls wearing tights and now I see that it is a trend that is really catching," says Ermes Stefanutto, as he people gazes from his office off London's Oxford Street.

The new Wolford UK chief executive has already developed a taste for spotting his company's hosiery on the shoppers fighting their way through the crowded streets below.Staunchly loyal to the Wolford brand - despite just two weeks at the helm -Stefanutto joins the company at a point where its profile is at an all time high.

With celebrities such as Rihanna, Nicole Kidman, Madonna and Jessie J regularly spotted wearing the tights, celeb obsessed UK consumers are rapidly gaining awareness of the brand. And, the best thing about it, according to Stefanutto? It's completely free."We don't need to pay celebrities to wear our products," he says. "They wear Wolford because they love the products."It is a position that the CEO obviously identifies with. Stefanutto was working as the UK manager for shoe company Geox when he was approached by Wolford, having previously worked with Luxotica, owner of the Ray-Ban, Persol and Oakley brands. Though, at the time, he knew little about the company, after gaining feedback on the market and learning about the brand's heritage, he was eager to jump ship.

"I didn't know very much about the products, but then I discovered that my wife was already a customer, so that is always a good sign,"he says."Jokes aside, I was really impressed by the products, by the history of the company and also the position, and the distribution."A 13 year stint in UK fashion distribution has provided Stefanutto with strong relationships in department stores, chains and independents, and he is now determined to put these to good use in his new role.In charge of wholesale and retail for the UK, Stefanutto's day to day role is to manage the team and to ensure the continued growth of the brand. The company is currently looking to expand its retail presence and to increase brand awareness amongst consumers. It also aims to focus on several key categories as areas for potential expansion over the coming year.According Stefanutto, Wolford is already the number one brand for hosiery, but lingerie and ready-to-wear are its fastest growing sectors."There might be some room to expand, especially on the lingerie and on the ready-to-wear," he says. "But there is no pressure. From what I have seen, the policy of the company has always been to grow, but to grow in a healthy, organic and almost cautious way, which is the best for the brand, for sure."Part of this growth entails consolidating Wolford's existing retailer network. While it is not overly concerned with growing its network of stockists, particularly in the area of hosiery, it does want to ensure that the quality of its retailers is of the highest possible standard.

The independents that Stefanutto ideally wants to work with are those that possess a passion for the product, in addition to the 'right' type of position and clientele for the brand."We need to have the right partners to work with a brand like Wolford,"he says, "We don't want to be everywhere. We want to have a balanced distribution in the market."On the retail side, the majority of growth is likely to come from new distribution channels. These include not only developing the brand's own stores, but also seeking potential franchise partners in the UK. Wolford currently operates only one franchise in London, but Stefanutto has been quick to realise the benefits of the business model.

Wolford is keen to increase the profile of its expanding product range as, while its hosiery range has a popular following, many consumers may be less familiar with its other product lines. One advantage of a franchise store is that it will stock the entire Wolford range of products, something that existing independent stockists may be unable or unwilling to do."Of course, we would like someone who is able and capable to present the whole world of Wolford - can I say that?" Stefanutto says. "That would be ideal."Having a franchise partner will also cut down the time and cost that would otherwise need to be invested in managing a store."You have somebody running the store and ideally you don't need to monitor them too much." Stefanutto says, "You know they will make the most of it, because it is their own business. Of course, there are other elements that you have to monitor, like the marketing of the business. But, running the business ideally should be easier, because they take care of that. They care about it."The benefits do not all fall on the side of Wolford. In the challenging economic climate, working with the company could be an extremely attractive prospect for many retailers.

According to Stefanutto, not only do they benefit from existing brand recognition, which is invaluable in selling products, but they gain significant marketing support and the backing of a company that is financially sound.The Wolford UK boss claims that he is keen to meet anyone who is interested in working with the company."Call me,"he says. "Knock on the door.Or leave a message. I will be the person to contact. My general approach is that my office door is open. So, as much as I can, I will welcome everybody."Stefanutto states that he would ideally like to work with existing retailers. The qualities that he is looking for in potential franchise partners include strong positioning - in terms of finances, geographical location and standard of clientele - and passion and commitment to the brand."You can have a product that sells itself, but you have to do it with passion," Stefanutto says. "Because, we have the product. We have the product and we have the marketing."

The new chief executive has no fixed plans in terms of the number of franchise partners he wants to sign on over the next few years. The company also plans to roll out a number of its own stores and whether an outlet is run by Wolford or a retail partner will be largely dependent on the opportunities that present themselves to him in the upcoming months.At the moment, the concentration of Wolford stores lies mainly in the south, with only one store in Leeds and a factory outlet in Cheshire further north. Stefanutto therefore sees the north as an area for potential growth, despite its lack of tourists or a high average income, factors which make regions such as London so attractive to the brand.Stefanutto also realises the need to ensure that existing stockists do not suffer from the opening of own brand stores.

For this reason, he is likely to give existing retailers first refusal on operating a store in their area."We will be very careful," he says. "I think rather than seeing it as competition or taking away from our existing stockists, it is more like an opportunity for existing retailers to join the world of Wolford in a wider sense.If there is somebody around, we will obviously consult and see if there is an opportunity to do something with the existing retailer."I know that is one thing that retailers are very careful about. My experience in the past with other brands is that in occasional situations where you open a shop - not right in front, of course, you don't do that, but nearby - the [independent] business is not affected or, actually, it is improved.So, sometimes I think it is more of a psychological thing."Independents, own stores and franchise outlets are not the only channels through which Wolford sells its products and Stefanutto is also looking to develop the company's key accounts, the department stores. He is currently in talk with several big players to heighten the brand's presence in shops.This, explains Stefanutto, is particularly important in the UK market, where department stores account for a huge percentage of sales. Having worked in a number of multi-national companies in the past, he has gained significant feedback from other markets and so is cognisant of the unique vagaries of the UK setup.

"The perception and reality is that the UK market, definitely from a distribution point of view, is much more concentrated compared to any other market in Europe," Stefanutto explains, "especially Italy, France and Spain. Germany is a bit more similar, but it still doesn't reach the level of concentration that we have in this market. It is more similar to the US than the rest of Europe, because of the way the market is structured.”

With fewer independents in the UK and a greater focus on department stores, Stefanutto recognises that Wolford's approach to the market must be different, and not just in terms of distribution.Another key disparity lies in the area of consumer trends. Compared to other European countries, Stefanutto claims that the UK is extremely driven by celebrity endorsement."It is unbelievable," he says. "I think it is only the US that is similar to us in that respect. No other European country has the same effect with the celebrity element on fashions and trends... There is a fascination about celebrity."There are a few where you wouldn't consider them role models, but I think it’s just the fact of being on television or being in the magazines. I don't really know what goes on in the mind of the British people. I know for a fact that from a commercial point of view or a positioning point of view it is much more important than the classic advertising for the UK."With the impressive number of column inches it has stacked up over the couple of years alone, Wolford is in a prime position to take advantage of this free publicity.And, according to Stefanutto, this is being reflected in the bottom line of the company. While, because Wolford is a listed company, he is not allowed to provide exact data, he does reveal that the company is in a good position generally and in the UK, in particular."We are positive," he says, "so we are performing well and despite the economic climate we keep positive. Obviously, there are challenges now for the world economy, for the European economy, but we are in a very good position, where we are now and also with the prospects over the next months."

Within the next five years, Stefanutto hopes Wolford will still be number one for hosiery and, in ready-to-wear and lingerie, be recognised as one of the top brands.Stefanutto's vision is to open around 20 to 30 stores in the UK within this period."That is my personal vision,"he is quick to point out. "I haven't discussed the business plan yet, so take it with a pinch of salt. But, personally, I would be very happy with that."

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