HELLY HANSEN How suitable are today’s approaches to regional markets and adaptation - PowerPoint Presentation

Slide1

HELLY HANSEN

How suitable are today’s approaches to regional markets and adaptation in product and promotion, and what is the best approach to Eastern European markets?

© 2018 Taylor & Francis

INTRODUCTION TO HH

HH SPORT

HH WORKWEAR

HH PRO

1877 Captain

Helly Juell

Hansen1949 Helox

1961 Fiberpile1970 LIFA1980 HellyTech1997 Investcorp

2006 Altor Private Equity Partners2012 Ontario Teacher’s Pension Fund

Themes:

Varying degrees of HQ control in different market, but a clear preference

for control

.

Some adaptation of both promotion and product

Many product categories cater to customers

who, although

culturally different, share a specific set of performance

needs.

Our angle: How suitable are the current approaches to adaptation/standardisation of brand,

promotion

and product? Furthermore, how should Eastern Europe be approached?

KEY DATES

*Sold 2010

THREE DIVISIONS

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Scandinavia

(Home market with straight extensions)

Norway “original” market, but today Scandinavia (+Finland) can be considered one

standardised

region and a “home region”Product offerings to Sweden, Denmark and Finland are straight extensions with no product adaptation or promotion adaptation (excl. products linked to a region or organisation, i.e. KNS, KSS, etc.)

Market insight is deep, and as a consequence decisions are taken at the HQ level“Core” product and branding – home of brand

heritageTo a large degree, the Nordics as a whole represent the “concept” being rolled outwards

HH© 2018 Taylor & Francis

NORTH AMERICA

(Targeted product adaptation)

Home to many of HH’s uniform programs (Aspen, Vale, etc.)Products partially adapted

For instance, the Fjord collection’s longer coats are not sold in the USA However, the Ask & Embla series is entirely unadapted, potentially because it targets an audience much more likely to wear “European” fashion and is a key brand-building lineIn general, adaptation is done to suit a few differences in cultural fashion preferences (colors, prints) and for size

Branding entirely standardised and HQ controlledNorth American owners may facilitate continued expansion

HH

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Southern Europe

Regional marketing managersEmpowered to adapt some products when necessaryTrends may differ between nations, for instance the recent proliferation of sailing jackets

among teenagers may be largely unique to Norway Ex. Southern European men wear shorter-cut jackets than Northern European mena product range for a market like

Italy may include shorter models, or front themSimilar to NA in many ways, but Europe is an incredibly fragmented market in terms of the competitive situationMany domestically strong brands even in relatively small markets (e.g. Norway

), while France has a slew of domestic brands

EUROPE

(Targeted product adaptation)

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ASIA PACIFIC(Dual adaptation)

Franchising common along with significant levels of licensed productionMarket adaptation is highHigh adaptation in product and less but still significant adaptation in promotion

Brand messaging is tightly controlled by HQ, while product promotion is frequently adaptedQuality Control

HH

Sporting equipment specialist

Double

role:

i

mporter/manufacturer

Adapted products and adapted promotion

SignifLocal

influence on marketing decisions significant

EXAMPLE: JAPAN

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GROWTH MARKETSSOUTH AMERICA & EASTERN EUROPE

Our chosen “topic”: Little to no adaptation as of today, largely because of a lack of targeted attentionGrowth/future markets – small markets today but volumes are expandingSold through a variety of methods (franchises, licensees, distributors and a few own shops) that follow marketing instructions from HQ and receive standardised products

Future: incremental adoption of “European” approach as Eastern European markets become increasingly integrated and resemble Western European markets more closelyWe’ll be looking at both the suitability of existing strategies, but primarily the roll-out of HH in Eastern European markets and which approach it should take in national markets

Today, but is it right?

© 2018 Taylor & Francis

THANK YOU FOR YOUR ATTENTION.

QUESTIONS?

© 2018 Taylor & Francis