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Hallenstein Brothers continues to go global, not local

  • News
  • February 15, 2016
  • Damien Venuto
Hallenstein Brothers continues to go global, not local

Alongside the stunning locations, Hallenstein Brothers has also added considerable cool factor to its brand by basking in the glow of various influencers. 

On the product development side, this has included a collaboration with will.i.am for the Ekocycle range; and, in its advertising, the likes of Jay Alvarrez, motorcyclist Carey Hart, The Script lead singer Danny O’Donoghue have all featured in previous campaigns.
 


And in keeping with this approach, the brand has teamed up with Jetman pilot Vince Reffet, who shows off his jetpack flying skills, obviously while clad in a suit.

In addition to Reffet, the spot also features a cameo from American actor Shaun Ross, who garnered international fame for being one of the first albino pro models after being discovered on YouTube.

In the context of changing perceptions on strength or beauty in mainstream media, the inclusion of Ross is important for the brand because it steps away from stocktype image of what constitutes handsomeness.   

The creative idea was again developed by Lachlan McPherson & Friends, and the agency’s founder Lachlan McPherson says the spot serves as the foundation for a broader campaign. 

“The launch spot sets the scene for a series of digital films exploring the notion of what it means to be a ‘Brother…” McPherson says.

This campaign comes off the back of a recent statement from Hallenstein Glasson Holdings forecasting that first-half profit for the retailer (which includes both Hallenstein Brothers and Glassons) is expected to drop by 20 percent from last year’s figure of $8.6 million.

This dip has been attributed to a drop in value of the Kiwi dollar, which has led to the buying power of the currency decreasing in the international market. 

The retailer says in the announcement its balance sheet remains strong, with stock levels under control at "historical levels".
  
It's worth pointing out that this drop in profit isn’t necessarily indicative of Hallenstein Brothers performing poorly, in that the numbers also include Glassons' revenue figures.

In 2015, the Hallenstein Brothers New Zealand chain performed strongly and kept the overall company buoyant. Full years sales grew by 6.8 percent while net profit after tax increased by 29 percent.

In contrast, the womenswear arm of the company, Glassons, recorded a loss of 16.5 percent in profits. This was attributed to changes in management disrupting business. 

At the time, Hallenstein Glasson said Hallensteins had lifted its profits through its innovative marketing campaigns, which had resonated well with consumers and in turn, improved sales. 

In an unusual move, it also diversified outside the local market last year by teaming up Coca Cola and musician will.i.am's label Ekocycle to make eco-friendly suits under the name 'H Brothers' in the UK.

The suits retailed at £500 and were sold through high-end UK department store Harrods.

Hallensteins' growing profitability could also be attributed to what has been dubbed 'the Don Draper effect', with the dapper Mad Men character inspiring men to suit up.

Market research company Euromonitor International predicts menswear will account for nearly US$40 billion in the global apparel market by 2019. 

Euromonitor’s head of apparel and footwear research, Magdalena Kondej, linked the growth to an increased focus by men on personal appearance, as well as comparatively large disposable incomes for spending.

Hallenstein Glasson Holdings’ full earnings results for this year will be released on 23 March.         

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