Founded in France in the late 1960s, Krys--the flagship of the Krys Group, a major player in the French optical sector--set foot in the grand duchy this spring with the opening of a sales outlet on Place de Paris. With a network of more than 1,500 shops in France, as well as in Belgium, Morocco and Switzerland, the group relies on a cooperative model whereby each optician is both a local entrepreneur and a partner in the group.
With a surface area of 300 square metres, the sales outlet opened in Luxembourg employs three people. It’s the result of a gamble taken by four partners, including Jean Mallavergne, who runs several shops in France on the Moselle side of the border. “Luxembourg was a natural fit for me,” explains the co-manager, whose plans in the grand duchy don’t stop there.
Pierre Théobald: Why did you decide to set up in Luxembourg?
Jean Mallavergne: Krys does not intend to expand internationally, unless a member wishes to do so. In that case, the cooperative supports them. It’s different from a traditional chain, such as Alain Afflelou, which manages its own international development. With us, as independents, it’s up to each individual to take the initiative. Luxembourg has been on my mind for about twenty years. But getting started takes time and commitment. It’s not a poker game.
How was the opening of the project structured?
The project was born in May-June last year. The first step was to get [the partners] together, reach an agreement and--above all--find a good location. We visited fifteen, twenty potential locations, looking for a location with good commercial visibility. The Place de Paris was a natural choice, with a tram stop right next door, a shopping street below and a good flow of customers. We’re both visible and accessible.
Despite the reputation of the Gare district?
The Place de Paris is a neighbourhood in itself. Local residents will tell you: there’s the Place de Paris on one side and the Gare district on the other. In the evenings, it can get a bit hectic, but during the day it’s very well supervised.
What is the business model for this first outlet?
This is not a franchise. We’re the ones investing in fittings, stock, etc. We’re talking about a budget of €400,000 to €500,000. After that, the commercial activity should enable the investment to be repaid.
We haven’t set a precise number, but we’ve identified five to seven interesting locations.
Is this shop a test for other openings in Luxembourg?
Yes, clearly. We’re considering other openings if this first one is a success. As partners, we’re at different stages in our careers, so there will be a gradual handover. Our aim is also to obtain a master franchise for the country. This would eventually allow us to either open other shops ourselves or allow others to open them under our aegis.
Do you already have some locations in mind?
Yes, we have identified several on the outskirts of Luxembourg, in shopping areas. We haven’t set a precise number, but we have identified five to seven interesting locations.
Isn’t the optical market in Luxembourg saturated?
Not really. In France--and the figures should be comparable in Luxembourg--28% to 30% of the population is over 65. This figure will rise to over 50% in the next 15 years. This is a very demanding customer group when it comes to vision. The market is therefore growing, even though many chains are setting up shop.
Who is your target customer?
There’s a bit of everyone: residents, cross-border commuters, expats. A lot of cross-border commuters like me, to whom we explain that using their Luxembourg health coverage can be more attractive than buying in France. But our core target remains residents, even though 70% of people living in the grand duchy are foreigners. Krys is well known in France, somewhat known in Luxembourg, but not at all for someone from India or Russia, for example. That’s why we’ve focused on the customer experience: to get people talking about us.
How are you positioned in relation to the competition?
We recruited people who were already working in Luxembourg, in shops or ophthalmology practices. People who know the local codes. In terms of technology, we have a lot of tools: assisted measurement, virtual reality, visagism... Things that are common in France that we bring here. Finally, we have a range of prices to suit all budgets, including those on very limited budgets.
Here, eyewear isn’t just a tool, it’s an object of pleasure.
On the technology side, is there a “war” between opticians?
Not all brands are on the same level. Krys has a strong technological appetite. As an independent, everyone chooses what they integrate into their shop.
Do you operate in Luxembourg as you do in France? Or are there differences?
There are specific features. In France, the customer looks mainly at what the complementary health insurance does not cover. In Luxembourg, service and product come first. Customers are more aware of the value of things, whereas in France, third-party payment somewhat masks this perception.
What strategies do you use to raise your profile locally?
We’ve focused on partnerships, such as one with the Tour Auto Luxembourg, where we’re giving away 150 numbered glasses to participants. This creates word-of-mouth, it makes sense and it’s long-term.
Your ambition is to carve out a place for yourself in a very specific market. Do you feel that this is possible?
Yes. The market isn’t huge, but it’s dynamic. Customers want to treat themselves. Here, eyewear isn’t just a tool, it’s an object of pleasure. And that changes everything, even for us salespeople.
This article was originally published in .