Does HEMA’s positioning help sell health insurance?

HEMA provides a wide range of household items and stands for simplicity, low prices, decent to good quality, and a touch of ‘hip’ design. Its success, both domestically and now even abroad, is mainly attributable to HEMA’s dedication and focus on this genuine positioning. Recently, HEMA has ventured into a new field for them, health insurance. It advertises a premium of €69 per month, and insured individuals also lure in 10% discount on almost the entire HEMA assortment in stores. Can this be successful, and does it actually align with the successful positioning?

Hema Positioning Podcast

Recently, some time after writing this article, we recorded a podcast about HEMA’s recent success. Our conclusion in this article turned out to be prophetic, as HEMA, now under new ownership, is fortunately doing better:

In the realm of health insurance, there still exists a feeling that consumers have very little choice. Despite promised market competition, the prices of different providers don’t really vary much. Moreover, the difference mainly lies in the fine print. Whether or not to insure dental care, and for what amount per year. €100 more or less deductible. It remains fiddling in the margins. Therefore, there is certainly room for a fresh new provider.

Positioning of HEMA and Health Insurance

It seems like a fantastic combination, HEMA and health insurance. HEMA is known for both its simplicity and its aversion to fine print, and also the entry premium of €69 is clearly distinctive as other providers charge around €100. Are you getting a eureka feeling yet? Unfortunately, after inspecting the available fine print, we must quickly conclude that HEMA’s insurance is not very distinctive. The deductible is set at €850 per year, and you have no emergency care abroad; adjust this, and you’re just as expensive as other providers. Again, fiddling in the margins, with the additional risk that your premium could go up in the future due to your purchases of the famous (and fatty) HEMA sausage!

We are thus disappointed by the Hollandsche Eenheidsprijzen Maatschappij Amsterdam. Upon closer inspection, the latest expansion in the product range breaks with the positioning that has made the company well-known and loved, only superficially fulfilling the brand promise. We see this as two cardinal sins, breaking with the positioning and ‘lying’ to your customers. Our expectation is that the HEMA insurance will not cause ripples in the insurance landscape and may only detract from their distinctive positioning.