Explosive growth makes for exciting headlines. Venture capitalists celebrate hockey-stick revenue curves, and founders who achieve them become conference circuit celebrities. But Alejandro Betancourt López has learned that explosive growth and lasting success often require different approaches—sometimes contradictory ones.
When he took over as president of Hawkers in late 2016, the Spanish eyewear company was riding a wave of digital marketing success. Founded just three years earlier with roughly $300 in initial capital, Hawkers had discovered a formula that seemed almost too good to be true: sell stylish sunglasses at a fraction of designer prices, market aggressively through Facebook ads, and watch revenue multiply. Early advertising costs ran approximately €1 per sale, making customer acquisition remarkably efficient.
The model worked brilliantly—until it didn’t. As competitors copied the playbook and digital advertising costs climbed, the economics that powered Hawkers’ initial surge began to deteriorate. Alejandro Betancourt López recognized that sustaining the company would require fundamental changes to how it operated.
“It was the right time for that kind of marketing and the right time for innovation into a commodity type product,” he recalled of Hawkers’ early success. “Now it gets tougher. Everybody’s doing the same thing. So everybody goes to do the same thing, price goes through the roof, and the big winners are the social media companies like Facebook, Instagram—they’re making the money right now.”
The observation captures a dynamic familiar to anyone who has watched digital marketing channels mature. First movers enjoy cheap access to new platforms. Then success attracts imitators. Competition drives up advertising costs. Eventually, the platforms themselves capture most of the value, leaving brands to fight over shrinking margins.
From Digital-Only to Multi-Channel
Rather than clinging to a deteriorating model, Alejandro Betancourt López pushed Hawkers toward diversification. The company that had built its reputation on online sales began opening physical retail locations across Spain and Portugal. Over 80 stores launched, with 65 to 67 currently operating. Wholesale distribution expanded. Marketplaces like Amazon and Mercado Libre became significant sales channels.
The shift wasn’t merely tactical. It represented a philosophical change in how Hawkers conceived of itself. A digital-first disruptor became an omnichannel retailer competing across multiple fronts simultaneously.
“The margins are shifted in the chain of value to somewhere else,” Betancourt López explained. “So you have to reinvent yourself, create and grow into a different kind of company that doesn’t depend on social media or paid media marketing.”
Embracing Amazon required overcoming initial hesitation. Marketplaces offer volume but compress margins and place a third party between brand and customer. Yet Alejandro Betancourt López recognized that Amazon’s customer trust and reach outweighed these drawbacks for a brand still building global recognition.
The retail expansion carried its own challenges. Physical stores demand capital investment, lease negotiations, and operational complexity that pure e-commerce operations avoid. Some locations underperformed and closed. But the surviving network provided something digital channels couldn’t: tangible brand presence and customer experiences that build loyalty beyond algorithmic targeting.
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Building Robustness Over Hype
Alejandro Betancourt López describes the transformed Hawkers in notably modest terms. Where startup culture celebrates explosive metrics and aggressive projections, he emphasizes stability and predictability.
“Now it’s a robust company that doesn’t depend on one main stream of revenue,” he noted. “We have different mainstreams, different strategies at the same time, and it’s more sustainable. It’s not as high growth company, exploding revenues, but more of an established company and more predictable company, if you can say that.”
The language itself signals a shift in priorities. “Predictable” rarely appears in startup pitch decks. Founders chasing venture funding emphasize unlimited upside, not steady returns. But for Alejandro Betancourt López, predictability represents maturity rather than limitation.
This perspective reflects his broader views on sustainability versus profitability. Achieving profits in a given quarter or year proves easier than maintaining them over time. Fashion brands face particular pressure because consumer preferences shift constantly.
“Sustainability and profitability are two different things,” Betancourt López observed. “Profitability is tough, but is something easier to achieve than sustainability, because in any industry, it’s very hard to predict where the market is shifting. Hardest one is fashion. Fashion brands are valued at very low multiple levels because you don’t know for how long they’re going to be sustainable.”
Hawkers confronts this challenge daily. Unlike technology companies that can build durable competitive advantages through network effects or proprietary systems, eyewear brands must continuously convince consumers to purchase products that function similarly to competitors’ offerings.
“You have to convince everybody, all the market, everybody in the market, to buy a pair of sunglasses every day and put a lot of marketing and wake up the next day and do the same all over and all over and all over,” Betancourt López said. “So it’s a very, very, very hard sustainable company to keep it sustainable over time.”
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Manufacturing Control as Competitive Advantage
One response to margin pressure came through vertical integration. Hawkers invested in building its own manufacturing capabilities rather than relying entirely on outside suppliers. The company now operates production facilities in Spain, Italy, and China, giving it control over quality and reducing dependence on third-party manufacturers.
The COVID-19 pandemic accelerated this decision. Supply chain disruptions exposed vulnerabilities in outsourced production models, prompting Alejandro Betancourt López to prioritize manufacturing independence. An in-house factory launched in early 2021, eventually scaling from 30,000 to 90,000 units per month.
The investment in Italian machinery—with molds costing up to €80,000 compared to roughly $10,000 for Chinese alternatives—reflects a quality-focused approach. Advanced injection molding techniques create finishes without paint, allowing defective materials to be recycled into new production batches. The environmental benefits align with consumer preferences while reducing waste costs.
Owning production also enables faster response to market shifts. When a style gains traction, Hawkers can increase output without negotiating with external factories. When trends fade, production adjusts accordingly. This flexibility proves essential for a fashion brand competing on both price and design.
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The Long Game
Alejandro Betancourt López frames Hawkers’ transformation as a necessary maturation rather than a retreat from ambition. The company that once dominated headlines for its growth rate now operates more quietly, generating over $100 million in annual sales across markets including Australia, the United States, Canada, and multiple European countries.
“So you have to use all the tools you have in marketing, creativity, reinvent yourself constantly,” he said of maintaining relevance in fashion. “It’s a matter of being able to adapt constantly or in the long term or in the medium term.”
The workforce has grown from approximately 40 employees to 500. More than 60 retail stores operate across multiple countries. Mexico alone accounts for 35 to 40 percent of sales, supported by partnerships with high-profile figures including Formula 1 driver Sergio Pérez.
For Alejandro Betancourt López, the transformation demonstrates that startup energy and institutional durability need not be mutually exclusive—provided leadership recognizes when the rules of the game have changed.