Lara Schweizer

Khushboo Agarwal
Anice Bakker
Charlotte Borst
Sven van Egteren
Anne Kwak
Daniel Nikolov

TABLE OF CONTENT
Introduction: The current brand situation..page 3
Internal Analysis

History....page 4
Brand Identity ...page 5
Mission and vision.....page 5
Core values.....page 5
Products and collaborations...page 5
Consumer profile......page 6
Organisation......page 6

External Analysis

DESTEP.....page 7
Competitors...page 12

Conclusion

SWOT Analysis....page 15
Brand Strategy.............................................page 16

Brand-Extension To New Fashion Brand

Introduction...page 17
Brand Identity...page 18
Mission and vision......................................................................................................page 18
Core values................................................................................................................page 18
Target group.....page 18
Product..page 18
USP....page 19
Price positioning and consumer value.....page 20
Positioning Matrix showing relevant competitors....page 21
Reference list......page 22

INTRODUCTION
For this assignment, we were assigned HAY as our research brand. For the concept report, the brand
will be analysed. Based on this analysis, a fashion collection will be created as an extension of their
product line. HAY is a non-fashion brand that creates furniture inspired by Danish Modern. As the brand
considers it their principal task to provide functional answers to functional needs, HAY is exploring and
looking for meaningful and authentic products that have a long life span and are available at a
democratic price. To achieve this goal, HAY works with some of the worlds leading designers, who
deliver innovative, quirky and unconventional ideas that can be translated into innovative form.

INTERNAL ANALYSIS
HISTORY
HISTORY OF THE FOUNDERS
The founders of the brand HAY are Rolf and Mette. They founded the brand in 2002. At that time, Rolf
did not have any education. He only went to high school. He started working for different design
companies in Denmark. This is where Rolf got his experience. Working for the different design
companies in Denmark resulted in him knowing what he wanted to do with his life: working in the
furniture sector. Mette on the other hand grew up in the furniture design industry, thus having a lot of
experience at a very young age. Her parents were the owners of a design store in Denmark. They made
her work in their shop at a very young age and this helped her developing her talent for designing. After
working for her parents, Mette also worked for different Danish furniture designers. At the age of 22,
Mette meet Rolf and two years after this they started the brand HAY. The reason for starting HAY had to
do with both working for the Danish company that represented Cappellini in Denmark at that time. Their
interest for the Danish Modern came from Cappellinis work. However, they felt like his designs were not
available for everyone. This had to do with the high cost prise Cappellini applied to his designs. This led
to HAYs mission: designing high quality, durable furniture for an affordable price range.
HISTORY OF THE BRAND
In 2002, Rolf and Mette founded HAY. Both worked for the Danish company that represented Cappellini
in Denmark and this is where their interest for the Danish Modern started. They wanted to design
Danish Modern for an affordable price but still containing quality. Within a year the company succeeded
in launching its first furniture collection at the international furniture fair IMM in Cologne. This marked the
beginning of the international ambition that HAY has pursued over the past decade. HAY wanted to
create durable quality furniture inspired by the Danish Modern at affordable prices to allow as many
people as possible to enjoy excellent design.
In 2005, HAY launched an accessory line with selected products found around the world. HAY started to
use different designers for its collections. The products started to have an original story and were
perfect for both the modern workplace and private homes. HAY started to become more popular and
opened their first few shops around Europe.
Today, HAY is a global corporation that employs hundreds of people in countries around the world. HAY
has retailers in most countries as well as flagship stores in Europe and Asia. The brand stands open for
finding new designers and new ideas. Everyone can apply on the HAY website for becoming a designer
at HAY. In 2013, HAY founded the international co-brand Wrong Fro HAY in cooperation with the
acclaimed designer Sebastian Wrong, who in addition to his own designs also spots new talent capable
of creating relevant and cutting edge products for the brand, which enjoys an eclectic and international
vantage point from its base in Londons multicultural melting pot.

BRAND IDENTITY
VISION & MISSION
The starting point which sets the conceptual base for HAY design and its brands philosophy is the
quality, craftsmanship and humanistic design of the Danish Modern Age which once helped Denmark to
its design related international recognition and popularity.
Here fore, the brands vision is to carry on the basic principles of this cultural heritage and adapt it to
contemporary needs and consumption behaviours, merging it with innovative, technologies and quality
materials and new production approaches in collaboration with new design talents from all over the
world. The result are meaningful, value-generating quality products worth an investment, which are
defined by straightforward, uncomplicated and joyful aesthetics.
These characteristics built up the main mission of HAY: to offer durable quality design at democratic
prices.
CORE VALUES
The core values forming the base of the brand which can be noted and experienced in all of their
products can be concluded in functionality, durability, collaboration, affordability and playfulness.
First of all, HAY aims to give functional answers for functional needs of today. The resulting products
are defined by a clear, minimalistic character, reduced to their essence and purpose without superfluous
additions.
Additionally, the durability and qualitative level of their products are crucial for HAY. In tune with the
characteristics of their conceptual starting point, the Danish modern design, HAY wants to offer valuable
products with a long life span, which is guaranteed by the use of innovative quality materials and refined
manufacturing techniques. Moreover, the brand gives detailed care advices to their customers to help
them maintain the quality standard of their products as long as possible, which also underlines the
sustainable approach of the company.
Concerning the production chain, HAY values constant collaboration and openness to work together
with new international designers as a way to include constantly new creative ideas and support young
design talents at the same time.
In comparison to other Danish design brands, HAY wants to offer the same high quality standard at
more affordable prices and make good quality design accessible for everyone. Apart from the clear,
straightforward aesthetics of the products, there are still some playful elements included like the use of
bright colours and shapes similar to childrens toys, which gives the brand a joyful, approachable
character.

PRODUCTS

HAY is known for its furniture and little accessories they create. Their product range goes from small
paperclips up to large furniture pieces such as sofas and tables. All the products HAY sells are inspired
by the Danish Modern, where quality, craftsmanship and humanistic design is the main focus. Durably
plays a huge role within the HAY designs, since craftsmanship is one of the main focuses. As HAY says
themselves: Our world is constantly changing, and our habits and our need for flexibility change with
them. Meaning HAY should be and is looking towards the future by exploring the current possibilities
inherent in new technologies, new materials and new ways of living with furniture to keep up with the
changing world. Since HAY considers it their principal task to provide functional answers to functional
needs, they try to create authentic products that have a long life span and are available at a democratic
price.

In 2002, HAY launched their first furniture collection at the international furniture fair IMM in Cologne.
This moment marked the beginning of the international ambition that HAY has pursued over the past
decade. From this moment on they started to create different furniture collections and expanding the
brand.
In 2005, HAY launched an accessory line with selected products found around the world. Since HAY
back then already worked with different designers, both the up-and-coming and the more established,
they got designs with an original story behind it. The accessory collection was perfect for both the
modern workplace and private homes. This is the standard HAY is still aiming for in their development
of their own accessories, ranging from paper articles, storage solutions and tableware to textiles, small
furniture pieces and blankets. These products are created in cooperation with international designers
and their own in-house design team and fit both the modern workplace and private homes.
Since HAY started their brand with a whole collection, back in 2002, they do not have a specific furniture
piece that created the brand HAY. However, when you see designs from HAY, you will immediately
recognise that designs as their designs. This is because of the combination of Scandinavian influences
and quality craftsmanship within their designs. Also the fact that their products are inspired by the
Danish Modern will help recognise their products, since they give the Danish Modern their personal
touch in every single product. By making playful designs with only functional needs, so without all the
useless extras, HAY distinguishes itself from other furniture brands, where creativity and decorations
mainly play a huge role within their designs.
Looking at the colours HAY uses within their collections, pastel colours are the ones that pop out the
most. By using these pastel colours, HAY creates clean and sophisticated furniture. By using different
pastel colours in one collection, so making use of the term colour blocking, they add a playful aspect to
their collections and designs. This way the use of colour helps creating the mood the brand wants to
establish; a clean, sophisticated, playful atmosphere within their collections.

CONSUMER PROFILE

According to companys founder Rolf Hay, the brand targets a broad customer group from 20 to 70
years interested in good quality design.
The common customer of HAY is a person that is very conscious about new trends and innovations and
appreciates good quality products with a long life span. As mentioned before, the consumer profile of
HAY is not mainly focused on a certain age group but more on a modern, active person mainly focused
on their professional career, seeking to express their lifestyle through the interior design of their homes.
On the other hand, especially young people from 20 to 30 are seen as an interesting potential target
group to focus on in the future. If some decades ago young people could not afford high quality design
and did not bother about it, this has changed significantly in recent years. Today, this age group is
better informed and independent as consumers as ever before and they recognise and appreciate good
quality products. Interior design has also become an important part of todays lifestyle which is a trend
that will last for longer and make this age group an attractive target group for HAY.

ORGANISATION

Over the years HAY has become a global corporation. They employ hundreds of people in their stores
and offices all over the world. Because of the brands Danish origin, the head office is located in
Horsens. Their goal is to be inclusive and to create sustainable workplaces.
Most of the HAY stores are located in Scandinavia and Western Europe, however, it does not stop
there. They are expanding worldwide with stores in Asia, Australia and the USA.
Besides that HAY has an international co-brand since 2013 called Wrong For HAY. This is a cooperation with the English designer Sebastian Wrong, who works from his head office in London.

EXTERNAL ANALYSIS
DESTEP

DEMOGRAPHICS
The age structures of Denmark and the Netherlands do not alter a lot from each other, only around 0,5
percent, whereas China clearly shows a higher percentage among the age group of 25-54 years. On the
other hand, the 65+ group is unequivocally lower than the European countries which is possibly caused
by an estimated life expectancy at birth of 75, 41 years. Denmark and the Netherlands beat this with
79,25 and 81,23 years.
Age
0-14
15-24
25-54
55-64
65+

Denmark
17%
13,1%
39,2%
12,4%
18,4%

Netherlands
16,7%
12,2%
40,1%
13%
17,9%

China
17,1%
13,8%
48%
11,1%
10%

As commonly known China belongs, with its surface of 9.596.960 km, to one of the five biggest
countries in the world so it is at least 223 times larger than the two European countries (Denmark 42916
km and Netherlands 41543 km). When talking about top rated positions, the Netherlands appertains to
one of the most populous countries, containing no less than 408 people per km. For Denmark this is
130,5 and for China 142,5. At the hand of Chinas giant surface the population density is low, however,
the cities are very populated. Hong Kong, for instance, has a population density of 6690 km. From the
1,367,485,388 people in China a 48 percent is established religious. Buddhism forms the greatest group
with 18,2 percent. The Netherlands practically reconciles with 51 percent religious persons, whereas the
largest group is formed by Catholics with 24 percent. Denmark diverges from the other two countries by
having 90 percent of their population being Protestant.

ECONOMICS
Denmark
Netherlands
China

DKK
1
7,45
1,02

EUR
0,13
1
0,14

CNY
0,98
7,27
1

USD
0,15
1,12
0,15

Attached diagram shows the exchange rate of the valuta of Denmark, China and the Netherlands. The
three countries are not using the same currency. Denmark uses the Danish Krone, China the Yuan
Renminbi and the Netherlands the Euro. While the Euro is used in about 30 countries, the Krone and
Yuan are only used in their own country. All currencies are compared to the Dollar of the United States
to get an idea of the worth of every valuta. The Danish Krone and the Chinese Yuan do almost meet
each other and are both valued at 0,15 USD. The Netherlands make a big difference with a value of
1,12 USD. 1 Euro has a value of no less than 7,45 DKK and 7,27 CHY. In addition to the exchange rate
have the Netherlands also the most profitable inflation rate, which is 0,3 percent (2015 est.). Inflation is
the rate at which the general level of prices for goods and services is rising and, consequently, the
purchasing power of a currency is falling. Inflation is always indicated by percentages while a lower rate
is better. Denmark follows up with their 0,6% and China has a inflation rate of 1,5 percent. 1,5 percent is
very low for Chinese standards, the inflation rate could have been higher. Inflation Rate in China
averaged 5,51 percent from 1986 until 2016, reaching an all time high of 28,4 percent in February of
1989 and a record low of -2,2 percent in April of 1999. China is now expecting an economic growth of
7,2 percent for 2016, which is in Western European countries at no time higher than approximately 2,0
percent. This note points out that China is still a economically instable market. The national income of
Denmark lays on 51424 USD and the Netherlands of 44333 USD, however the national income of
China touches the 8280 USD. Hong Kong almost touches the Netherlands with 42097 USD,
nonetheless Hong Kong was a colony of United Kingdom and more independent than the other cities in
China. Therefore Beijing is a more useful criterion. The average salary of urban employees in Beijing's
public sector is 16 475 USD, as much as 1.9 times more than those in the private sector.
SOCIOLOGICS
Of Denmarks 5690000 people is the division male/female practically equal. Likewise For the
Netherlands this is 78,9 percent, which is called Dutch. Since the 1960s the Netherlands has had
substantial immigration. In these years, thousands of Turkish, Moroccan, Indonesian and Surinamese
people arrived in the Netherlands. Other ethnic groups are mostly Western 5,8 percent. Non-western
ethnic groups frequently moved to the large cities. As well as Denmark, China is mostly populated by
their own inhabits; 91,6 percent Han Chinese. Furthermore 1,3 percent is Zhuang and others are 7,1
percent.
Although every country has different ethnic groups, they forms together one society. They have their
standards and values, preferences and rejections, good and bad habits. Since global warming became
aware to our society and, primarily, the part that people were causing this negative environmental
development sustainability came up as a trend. Slowly, but upcoming. The Chinese population cares
about the environment and sustainability, yet they do more than the government. In Denmark a lot of
people strive to create a better environment by developing new and greener ways of living, greener
transportation, town planning, industry, etc. Denmark is for instance well known for its great wind mill
production and Copenhagen is famous for its biking culture. Previously called, also applies to the Dutch
population. Besides that, the Netherlands is one of the leading recycling countries. Glass, paper, garden
and household organic waste, construction and demolition waste, electrical appliances and other
materials are recycled. In the Netherlands, waste is collected by local authority cleansing departments
or waste collection companies. There are also numerous municipal waste recycling centres where

people can take their waste. Each municipality operates its own waste collection system: some work
with wheeled bins and underground containers, in other municipalities waste bags can be put out. They
are always trying to raise recycling rates and optimise processes. The Dutch government and industry
have agreed that by the end of 2010 42% of all plastic packaging will be efficiently recycled.
Additionally, another good or bad habit since the last 5 years is the use of social media. Denmark is
really active on social, it is estimated that there will be around 3,6 million social network users in
Denmark. Last year, seven in every ten Dutch internet users aged 12 years and older were active on
social media. The proportion of social media users in the Netherlands is among the highest in the
European Union. Nearly all young people are regular users of Facebook and Twitter. Chat sites and
professional network sites like LinkedIn are used by 35 and 22 percent respectively. The use of social
media is closely related to age and falls from 93 percent of 12 to 18-year- olds, 98 percent of 18 to 25year- olds, 87 percent among 25 to 35-year-old internet users to 18 percent among internet users over
the age of 75. Social media usage continues to grow across the world, and China is no exception. With
censorship laws that prohibit those consumers from participating in the social networks that dominate
the rest of the world in popularity, China did the inevitable and created their own platforms and
networks. Considering that Facebook has around 1,3 billion users, some of these Chinese platforms,
like Tencent Weibo, are boasting user bases exceeding half a billion accounts.
TECHNOLOGICAL
New production methods
Denmark is very focussed on the use of new and innovative production methods. They try to work with
new technologies like 3D-printers, CNC-mills and laser cutters. Therefore they create the possibility to
produce products in a different way than they did before. For new production methods, the Netherlands
are mainly focussed on new innovations in the agriculture. They try to make certain processes faster
and more beneficial. In China are the new technologies mainly focussed on accelerating the production
process, to make their economy grow. For HAY it is really positive that Denmark is focussing on
innovative technologies, because HAY is a Danish brand. These new types of technologies and
production methods could be things that in the future, will help HAY creating their furniture.
ECOLOGIC
Pollution
For Denmark is air pollution caused by vehicles and power plant emissions the biggest problem. Beside
that the North Sea suffers from pollution caused by nitrogen and phosphorus, which has multiple
negative side effects for Denmark because the main part of their country exists out of coastlines.
Because the Netherlands are adjacent to the North Sea as well, they cope with the same type of water
pollution. In China it is just the north of the country that undergoes water pollution, mainly caused by
untreated wastes. Another big pollution problem for both the Netherlands and China is acid rain as a
consequence of air pollution.
Climate
The western part of Denmark has a slightly different climate than the eastern part. The western part is
closer to the Atlantic ocean which causes a more Atlantic climate and for the eastern part of the country
applies a climate with a more continental influence. However, both climates are quite similar and
temperate with mild temperatures, windy winters and cool summers, with a more humid atmosphere in
the west part. The Netherlands have a temperate maritime climate due to the big amount of water in
and around this country. This climate type is very comparable with the climate in Denmark and also
includes cool summers, mild winters without any extreme temperatures.

Because of Chinas size assigning them one type of climate is impossible. The climates in China are
extremely diverse, which can be seen in the figure below.

For all three countries applies that due to the global warming and pollution the climates have changed
these past years, and they continue to change faster than ever.
Landscape
The Danish landscape exists out of coastlines, because Denmark is a peninsula. These coastlines are
also the most impressive with their sandy and stony, evocative shores, which sometimes just exist out
of fjords. Besides the peninsula that is the main land, Denmark has multiple islands. In comparison to
Denmark where the water is an important part of their landscape because of the sea, water is just as big
of a characteristic of the Netherlands but in a different way. Spread over the whole country water is
coming back in different types, like lakes, rivers and canals. Another important characteristic of the
Dutch landscape is the lack of relief. Apart from the south of the country where there are a few hills, the
land is completely flat. This is very contrasting with the diverse Chinese landscape that has a lot of
mountains and highlands but also plains, basins and hills. Corresponding to Denmark and the
Netherlands is again the water. China has a lot of long rivers that cross the whole land.
The ecological part of this DESTEP shows that pollution and climate change could cause problems in
the future. Especially since water is a main subject in the landscape of all three of the countries, just as
water pollution. This shows that there is a need for a more sustainable environment, which really fits
HAY and their goal to produce durable and sustainable furniture.
POLITICS
Sustainability
The Danish government shows that sustainability is already in important subject to them. Recently the
project Energy Strategy 2050 was launched by the Danish minister of Climate and Energy. The goal is
to wean Denmark off fossil fuels by 2050. From 1980 till 2010 the share of renewable energy rose from
3% to 19%, and with this project the rise will continue up to 33% by 2020. Which means that one third of
the Danish energy will be produced by green energy. The Dutch government is stimulating sustainability
as well, except the fact they are more focused on the population creating their own sustainable
household. They encourage a efficient use of energy and water, and generating energy from more

10

sustainable sources. Sustainability wise, the Chinese government is not as involved as the Danish or
Dutch government. China still has to cope with millions of people living in poverty, which makes
economic growth a priority and puts sustainability and dealing with emissions on a second place.
Dominant party
Venstre, Denmarks Liberal Party, is a conservative liberal and agrarian party. This is the major party of
the centre-right in Denmark and right now the ruling party of Denmark. Their ideology is known to be
classical liberal and pro free market. In the Netherlands are ruled by a liberal party as well. VVD, the
Peoples Party for Freedom and Democracy, is a economically liberal party. They also support free
markets and are very pro Europeanism. The VVD has been the dominant party in the Netherlands since
2011.
The political situation in China differs a lot from both Denmark and the Netherlands. China is currently
ruled by the CPC, the Communist Party of China. Their ideology is based on the classical Marxism and
is ruled by the idea of democratic centralism. Even though this democratic strategy should induce
freedom and equal rights, this is not working properly which makes that the population is strictly
controlled by the government.
Co-operation/clashes
Denmark has been a member of the EU since 1973, and from there the EU and its influence has been
growing . EU allows Denmark to work together with other European countries in a more functional way.
Besides that Denmark is also part of a few intercontinental co-operations and organisations like the UN,
NATO and OECD. These co-operations are really similar for the Netherlands. They are a part of the EU
as well and the Netherlands prioritise enhancing the European integration and maintaining relations with
neighboring countries. China does not have the same type of co-operations as Denmark and the
Netherlands. China is more focused on international relationship that are focused on business and the
trade market.
On a political level the DESTEP shows that China differs a lot from Denmark and the Netherlands, and
that these last two are very similar. Looking at sustainability, HAY would have more success in
Denmark and the Netherlands, because of the countries attitude towards it. But looking at the cooperations it shows that all the countries a focused on working internationally, which can make it easier
for HAY to expand worldwide.

11

COMPETITORS

Analysing the strategic starting point for HAY, it is important to clarify the company's competitors and
their market position.
Generally, it can be argued that all furniture distributors and brands are potential competitors for HAY as
their products serve the same purpose. However, we are interested in investigating which companies
have exactly the same ambition, namely to sell high quality Danish design furniture at more affordable
prices than other brands of the same quality category.
On the one hand, important secondary competitors of HAY are for example the well-established Danish
design brands like Fritz Hansen, Kllemo, Swedese and Knoll. These are all Scandinavian designer
brands with high quality products and a similarly emphatic image. However, the difference between
them and HAY is that they are all high-end brands and their products are in a significantly higher price
range.
On the other hand, Scandinavian brands like Skagarak, Ferm Living, Muuto and Khler that just
emerged in the last decade with the same mission, to offer good quality design at a lower price level
than the popular danish design brands, are seen as primary competitors.
Under all different potential competitors we have chosen to focus on three successful furniture and
interior design brands, namely Vitra, Muuto and Ferm Living. Represented in the following chart, we
distinguish the three strongest competitors comparing product design, variety, price, popularity and
collaboration.

12

Product design

Variety

- similar design
- more variation
in style and
design
- slightly better
quality

Price

Popularity

Collaboration

- very broad
- slightly higher
product range
price range
which can also
be a
disadvantage
due to missing
focus
- products are
also specialised
on work and
public places

- better
established than
Hay due to
longer existence
and resulting
trust in the brand

- renown,
international
designers,
- own vitra
campus which
attracts a lot of
attention

- similar design
concept, merge
of tradition and
innovation
- products are
more varied in
designs

- similar product - similar price

range like Hay, segment
but more varied
designs

- same
popularity as
HAY, not only
focussed in
Danish but on
Scandinavian
design in
general

- also
collaborating
with new design
talents, but no
famous names

- focus is more
on accessories
than on furniture
- clean
minimalistic
design similar to
Hay

- similar product - slightly lower

range like Hay price
but more
focussed on
decoration and
accessories

- not as known
as HAY

- less
collaborative
than HAY, more
focussed in own
craftsmanship

Being comparable to HAY in many important aspects, we would like to lay special emphasis on Vitra as
a Primary competitor.
Vitra is a furniture company founded in 1950 that strives to develop healthy, intelligent, functional and
durable solutions for the office, home and public spaces. Vitra's products and concepts are developed in
Switzerland by applying a diligent design process that brings together the company's technical expertise
with leading international designers. In addition to their very broad product range, Vitra is also known for
its campus located in Weil am Rhein in Germany.
Despite the fact that the brand is already many decades in the market in comparison to HAY and the
other mentioned brands which emerged quite recently, Vitra managed to maintain its image over the
years by using well-known international designers, which is a great strength and let assume that they
have built up a certain level of trust ties with customers and distributors.
Besides being present in various shops, Vitra also works with showrooms and exhibitions around the
world, making it possible for distributors to get a good insight into the whole products range.
Taking these factors into account, it can be concluded that Vitra is a big competitor for HAY due to the
broader product range which is also extended to work and public places, a campus that is well attended
and international popularity and collaboration with famous designers. However, their broad assortment
may also be a disadvantage since it makes the companys profiling slightly unclear. In conclusion,

13

considering their overall image and worldwide recognition over the last decades and despite HAY's
rapidly growing success in Denmark, Vitra is still in a stronger position than HAY and one of the main
competitors.
However, in comparison to other emerging Scandinavian design brands like Muuto and Ferm Living,
HAY managed to gain better recognition due to better positioning, the use of good quality materials with
the incorporation of innovative production techniques and collaboration with new designers like
Sebastian Wrong and brands like COS.

14

CONCLUSION
SWOT ANALYSIS
Strength

Weakness

1. Collaboration with the designers.

1. The brand is not well known in England

2. Keeping the traditional designs of

1950s and 60s with the
contemporary Danish design.

2. Price is underestimated according to the

quality.

3. The Scandinavian design, which is

new and exciting.
4. 40% of furniture sales are made
through e-commerce.
5. Manufacturing in the same factory
where the largest and most famous
icons are made, which ensures the
quality.
Opportunity

Threats

1. Increase in the sale due to increase

in usage of sustainable product.

1. Increasing competition in the furniture

market.

2. Maximum population of the target

group (25 54)

2. Now every brand is turning towards

sustainability, which will lead towards excess
competition

3. Increase in disposable income of

consumers on the home furnishing
brands.

15

BRAND STRATEGY

Having already a well-established position in their stationary target market, owing to recognisable high
quality products. HAY is not just selling furniture, but also a lifestyle based on design and durability.
Their consumer knowing that they are buying a lifestyle just as well as their furniture in addition to HAYs
customer communication supplies them with a very loyal consumer base as foundation.
Having branched out and collaborated with different companies already, we want to introduce HAYs
products into the fashion world.
During constantly changing market situations, it makes sense to take advantage of an established brand
and extend its reach to different product classes with an overlapping target consumer base. Not only will
HAY increase market coverage, but also it will bring new consumers to the Hay franchise.
HAY being a brand which is based around a way-of-life, making a fashion collection will bring more
awareness to the brand and also consolidate their current market position, while keeping developing
costs of a new brand low.

16

THE BRAND EXTENSION TO NEW FASHION BRAND

Extending the product range of HAY can be a brilliant marketing strategy. By creating a clothing
collection as an expansion of their products, HAY will attract a lot of media and public attention, which
can result in widening their target group and consumer range which will led to an increase in their
profits. A clothing collection will bring the customers of HAY the playful and yet functional, minimalistic
feel the products of HAY usually awakes among their buyers. In addition, by creating a clothing line for a
furniture brand, the brands popularity will increase rapidly because people will see HAY on the streets
and not only at home or at someone elses home.
If you look at the website of HAY, you get a clear image of what they stand for. Also looking at the
products they sell, functionally and playfulness are the first things that pop up in your mind. Even though
HAY clearly knows who their target group is and what they stand for as a brand, an expansion of their
product line could deliver the brand exciting refreshments. HAY is a company that works together with
different designers to create their products, meaning HAY stands open for new, fresh ideas from people
outside the company. On their website people can apply easily for becoming one of their designers.
This shows their collaborative side. Of course there are some rules attached for becoming one of their
designers, with the most important one that the products should be inspired by the Danish Modern. We
want the collection to be based on product diversification. This will keep our customers interested in the
brand and will broaden the target group of HAY as well.
Considering the core values of HAY while creating a new line of products for the brand is a must.
Playfulness, functionality, durability, collaboration and not to forget the accessibility the brand thrives on
will be the lead in our collection. By focusing on the shape, colour, mood and functionality of the
garments, we will try to conclude the core values within the garments of the collection made as a
product expansion for HAY.
The clothes of the collection for the product extension will be made for both men and women, meaning
the collection will be unisex. This is due to the gender neutrality that has been going on in fashion lately.
Since HAY is not focused on any specific gender, this is a wise strategy to apply in the clothing
collection to reach todays society. In addition it will fit their brand identity perfectly. Furthermore, the
clean aesthetic trend seen in todays fashion world can be applied to the new clothing collection we will
make for HAY. The brand uses a lot of simple, pastel colours for their furniture, which give their
products a clean, aesthetic and simplistic feeling. Additionally, since HAY chooses functionality above
decorative features for their furniture and product range, it will be wise to not chose for decorative
garments for the clothing collection made for HAY. This way the brand will reach the target group of the
clean, aesthetic, minimalistic fashion trend, thus widening their customer range. The style for the
collection will be functional, minimalistic and inspired by basics, just like the furniture HAY sells. We will
mainly sell our collection online. Of course the garments will be available in the HAY shops, however,
since HAY does not have that many shops and is mainly focusing on the internet/web shops, it will be a
wise decision to sell the collection online. This decision is also based on the analysis of our target
group; social media and the Internet are very important within the target group of HAY and todays
society in general.
The durability HAY stands for is also an aspect that can be included within the clothing collection. One
of the social trends nowadays is eco efficiency; people are more aware of the environment in every
sector. Since HAY is also focused on producing sustainable products, they can easily reach this target
group with the garment pieces since they know how to apply this within their products. This way, the
collection will fit their brand identity perfectly and will HAY still be loyal to their old customers.

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TARGET GROUP

The aspired consumer group we are focusing our new fashion brand on consists mainly of young urban
professionals around 27 to 35, who recently graduated from their studies and just started their career.
This group is independent and flexible, they don't have the expenses and responsibilities of a family yet
and all their money and time to spend on their own. At the same time they are very concerned about
conscious consumption and most of all about the quality of the products they purchase - high quality
gadgets are an important part of their lifestyle and worth an investment. Moreover, they are very
informed about current affairs and trends with an exclusive and sophisticated taste and sense of
aesthetic, as well as great interest in design and art.

VISION & MISSION

The vision of our new fashion line for HAY is to extend the comfort and well-being connected to our
home and private life to nowadays flexible, interconnected professional and personal environments by
providing (multi)functional, gender-neutral quality home-wear.
We see a great potential in home-wear and the merge of its emotional connotation with comfort,
cosiness and recreation with a more appealing and wearable aesthetic than other comparable home
wear brands which are only designed for the home environment. We believe that by adding high quality
materials and straight forward, minimalistic designs, our customers will enjoy the advantage to move
freely in their most comfortable clothes independent from occasion and location, which suits perfectly to
their fast paced lifestyle.
Accordingly, in tune with the brands philosophy, our mission is to offer multifunctional, high quality
home wear which is accessible for a broad customer group, independent from gender and wearable at
multiple occasions. The clean, sober aesthetics and high quality materials make the garments easy to
adapt to any body shape and suitable to wear at home as well as work, street and even sportswear.

PRODUCT

The main focus for the collection that will be designed for the product extension of HAY will be the core
values of the brand. These values will be translated into basic, minimalistic products, which are
functional and comfortable at the same time.
In addition, the collection will add a sense of quality to the brand. By adding this sense of quality and
consideration to the pieces, the garments will feel anything but mass-produced. It is also about buying
into an aesthetic rather than picking a new clothing piece. The clothing that will be designed for HAY will
be serious and designed to fit into the lives of its aficionados. By playing with different fabrics and
proportions, rather than follow fashion trends for the designs, we hope to create styles that last beyond
the season, like the furniture of HAY.
To be more specific about the collection, it will be designed
for both men and women, meaning the collection will be
unisex. By choosing for an unisex collection, the garments will
fit the image of HAY as the brand chooses for a minimalistic
yet playful style for their designs. Since HAY is a furniture
brand, it makes clear sense to create a collection based on
home wear. However, HAY creates furniture for both the
modern workplace and private homes. We want to bring this
multifunctional aspect back within the clothing collection by
designing multifunctional clothing. This means the clothes can
be worn as home wear and outdoor wear at the same time.

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This can relate to one of the core value of HAY, functionality, as again the garments are wearable
outside as stylish fashion and having the function of being comfortable at the same time.
Furthermore, one of the core values HAY pursues is collaboration. HAY uses different designers within
their brand. By using different designers to create one brand, HAY has diversity in their product range.
This is something that must come back within the garments they will sell. Every garment piece should
be an individual piece but being a part of a whole at the same time. Taking the core value of accessibly
in account will make sure the collection will be at an affordable level. The collection will mainly be
designed for the mid range. Since HAY is neither an ordinary cheap furniture brand nor exclusive top
range brand, we want to make sure the collection will be in the mid range, thus containing excellent
quality at affordable prices.
The colours used for the collection will be seasonal, but subtle. It will just be like the pastel colours used
within the HAY furniture. By not choosing for rainbow colours, HAY will establish to create a clean,
sophisticated atmosphere rather than a cheap, childish one. To strengthen the e-commerce and
acquaintanceship of HAY, the collection will mainly be sold online. However, this does not mean the
garments will not be available in the few shops HAY owns. In addition, in order to cut back on
transportation costs and looking at environmental aspects, the production will take place within Europe.
USP OF THE NEW FASHION BRAND
Gender neutral is the new trend but a gender-neutral home wear line is a completely different concept,
which will make our brand unique and interesting. Our brand will focus on comfort, design and its playful
image.
The new fashion line will be about putting everything you can wear at home into a new perspective of
gender neutral. We dont want to distinguish people by age, size or gender. We aim to create a world
where everybody is free to wear what they love and what reflects their own personality. Our garments
we will create an open-mindedness and fluidity in society towards age, size and gender. We will
combine artwork, design and a great sense of styling and aesthetics. In our collections and garments
we will communicate our mission and aim to transform society in a more tolerant, open-minded
environment. A place where equality, acceptance and respect for everyones differences is self-evident.
Apart from fashion from street it will be a comfortable and stylish approach to the home wear line.

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PRICE POSITIONING AND CONSUMER VALUE

1. Consumer Insights:
conscious when choosing material production and price for value
minimalist uncomplicated & straightforward
utilitarian needs comfort, accessibility
2. Product Features:
Durable, innovative materials, low-impact production
Unisex, basic but authentic
Versatile (outer+comfort wear)
3. Rational:
- Customer receives a satisfactory value for price durable, inventive garments at a midsegment range (COS price-range)
- Customers need for uncomplicated design and increased versatility will be met with
gender-neutral, basic styles that fit multiple age groups.
- Our line will present the customer with the opportunity to be worn in both home and outdoor
settings.
4. Emotional:
- Emphasis on conscious production innovation and quality for a fair price;
- Timeless, humanistic design which carries through seasons;
- Freedom to move from comfort space to dynamic environment;
As young professionals who are just establishing their personal stability and comfort, our customer has
more time to consider their purchasing choices, and therefore choose the best value for money. They
are intelligent, concerned about the composition, production and life-span of their apparel, and therefore
do not support fast fashion. They have a taste for a clean, sober aesthetic which is also versatile and
can be applied in different contexts. They are dynamic and transition between various environments on
a daily basis, which makes comfort empirical for their decision-making.
Since HAY strongly believes in durability, innovation and accessibility, we see a window of opportunity
to offer a line of gender-neutral, quality garments that are suitable both for comfort occasions and for a
fast-paced lifestyle. The use of innovative textiles and treatments to enhance the feeling, performance
and durability of the garments, as well as a low-impact production chain will appeal to our chosen target.
Underlining the versatility both for gender and occasion will provide a strong USP, since nowadays we
are appreciate and try to find space for comfort more and more, and as our need for definitions
becomes less evident.
We believe that projecting HAYs core values on to a unisex collection will immediately trigger an
emotional connection with the target, and we can therefore set the price range at a high street level,
similar to the one of COS.

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Price +

Quality -

Quality +

Price -

21

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22-03-2016
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HAY store Antwerp
2-03-2016
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24-02-2016
HAY head office Naarden
18-03-2016

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