Why Has Borsalino Changed Hats?
By R. Gil
There's never a dull moment in the hat industry. Advertisers come and go, and some of them continue to go head to head only against competing slots. Totza'ot Efektiviot, the agency that just two months ago peacefully parted with 10-year client Ferster Hats, is already wearing a new, quality Borsalino hat.
The cynics claim that the void had to be filled therefore Tozta'ot Efektiviot rushed to console itself at Borsalino. The firm is refuting the rumors and speaking with a professional, directed approach. "We went our separate ways as friends," CEO Shaya Itzkovitz explains. "It was natural that sooner or later someone would leap at the wealth of experience we've acquired, and Borsalino identified it."
Is the hat change at Borsalino related to the budgeting problems that prevented McCann Sectors from providing its top marketing service? Borsalino owner Mendy Bistosky rejects the budget theories outright. "The change is based solely on advertising. McCann served us well, but we decided to change our advertising approach, switching to more focused advertising. Our budget is in the hundreds of thousands of shekels and the claim it was reduced is incorrect, especially not in a market growing by 5-7 percent annually. Soon there will be campaigns to prove it," he promises.
The hat market, at least according to the industry veterans we spoke with, has undergone change during the past five years. Despite the natural population growth, consumption has decreased and the market has diminished. There are more buyers but fewer sellers. Ferster, Baron and Fuchs share substantial segments of the market. Borsalino aims at the premium market and its target group is grooms and well-to-do customers. "Our strategy is not aimed at all comers. We'll maintain our high label without special offers," says Itzkovitz. "There are going to be some pleasant surprises and new launches. The first campaign will be before Pesach."