Internationalisation of Helly Hansen

Presentation

Helly hansen is a famous Norwegian textile company founded in 1877 by Captain Helly juell Hansen, who specialised in extreme conditions. 

 Initially created by a sailor for sailors, Helly Hansen clothing was later to become a reference for Nordic explorers, mountaineers and the inhabitants of the Nordic countries. 

Originally, the brand offered jackets, trousers, jumpers and canvas tarpaulins to help sailors face the harsh conditions of the world's northern seas, the brand began exporting in 1878 and began to become increasingly well known. 

The brand's fame grew thanks to its many innovations, discovering new fibres such as Helox (1949), Fiberpile (1961) and Lifa (1970). It was following these innovations that Helly Hansen's sales took off and they opened their production to new products such as shoes, backpacks and life jackets. 

Today the brand still offers all types of mountain equipment but has also become a lifestyle brand that can be worn in everyday life.  

Market/  Target/ Position

Helly hansen is a brand that does B2C as well as B2B. It sells its products directly to consumers via its shops located all over the world or via its website. 

Initially, in 1877, its creator had the simple ambition to sell his clothes to other sailors in his region, then in 1914, his son took over the business and decided to open it up to international markets and other companies. 

The strategy was then oriented towards Business to Business, Helly Hansen clothes were sold to oil platform companies and also to sports federations.

The company developed around a "wholesale market" strategy with the help of two large warehouses based in Europe and Asia. 

However, from the 1980s onwards, the brand decided to evolve and address a wider range of audiences, for which the brand reduced its wholesale manufacturing in order to open retail shops. 

Helly Hansen expanded into Canada and then into the United States with the help of licensed shops. 

On the official HH website we have a "ProStore" section. This is a programme where patrol boats, sailors, resort partners and industry professionals, among others, are invited to join to get exclusive benefits and access.

The brand has been able to develop a series of partnerships with organisations or events related to its identity. This is an opportunity for the brand to expose the value of the brand to as many people as possible while remaining true to its core identity. In France, for example, Helly Hansen is the official supplier of outfits for the French Ski School (ESF). HH is an official partner of "The Ocean Race", a race that takes sailors on a 38,000 nautical mile round-the-world voyage, visiting 6 continents and 10 stopover towns, and is described as the longest and most challenging sporting event in the world. Helly Hansen is also the official sponsor of the Canadian Olympic Alpine Ski Team.

HH positions itself primarily in the Outdoor Sports and Workwear segments, but overlap both with Organized Sports primarily where the organized sports have a strong outdoor focus such as free-skiing, cross-country skiing, and sailing. Similarly, they overlap with fashion but consider it a secondary requirement to functionality, as expressed in their vision of their consumer who needs functionality, but wants beauty.

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The company identifies as many as 150 competitors in Norway alone, including well reputed global brands such as Patagonia, Arcteryx, Timberland, Musto, North Sails, Columbia, Gill, Craft, ACG (Nike), Mammut, Black Diamond, The North Face, etc.

HH Chronology :

The brand was created in 1877 in Norway by Mr. Helly Hansen.Its aim is to produce and sell rainwear and other clothing adapted to extreme weather conditions for fishing, boating and the maritime industry in general.

1979 the company had begun to target other markets. The company moved beyond its nautical base into creating clothing for other outdoor industrial applications. Helly Hansen was established in its Scandinavian and European markets : Portugal, Ireland.

In 1991 the brand tackles the American market and opens its American headquarters in the city of Redmond, Washigton. He following year Helly Hansen also opened a Canadian subsidiary.

In 1984, the North American division of the brand employed 130 people and achieved a turnover of more than 100 million dollars.

In the mid-1990s Helly Hansen saw the emergence of numerous competitors such as The North Face and Timberland. The brand also suffered from the recession of the 1990s and started to lose profits.

 In 1995 Helly Hansen's parent Orkla agreed to sell 50 percent of the company to Resource Group International, a Seattle, Washington-based diversified holding group, for NOK 125 million (US $18.6 million).

 A new management team is then put in place and almost all of the company's manufacturing facilities close down

An office in Hong Kong is set up to oversee the outsourcing of the company's production requirements to a number of subcontractors based in the Far East.

Helly Hansen takes an important turn by creating a real brand image for itself

The 90s also saw the birth of the hip-hop wave. The brand received unexpected help from the rapper L.L. Cool Jay. Helly Hensen goes from the sea to the street.

The company has therefore expanded its line to include more fashion-oriented and less technologically sophisticated clothing.

The end of the 1990s was a landmark for the Helly Hansen brand. It opened its flagship shop in Seattle, Washington, while developing an extensive list of licensed retail shops, mainly located in North America.

The end of the decade was also marked by the company's desire to become an international brand beyond its nautical base. This desire led to the agreement to sell 70% of the shares (the 50% of Resource Group International and 20% of Orkla's stake) to Investcorp.

In October 2006, Investcorp sold its interest in Helly Hansen to Altor Equity Partners,

In 2007 the European development of the brand took another form. Helly Hensen signed a licensing agreement with Unlimited Sports Group to create the Norsk Sport BV entity.

 The year 2015 marks the development of the brand's positioning: "Helly Hansen manufactures professional quality equipment to help people stay and feel alive".

Helly Hansen is growing much faster than the market. This phenomenon is explained by the multiplication of distribution channels. 

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