Strategy

In order to significantly increase the relevance and perception of our brands, we comprehensively renewed the brand images of BOSS and HUGO in January 2022 – from logos, to product and marketing, up to new design concepts for our consumer touchpoints. To further increase brand relevance, particularly among the younger audience, we will continue to pursue our two-brand strategy. 

Two clearly distinguishable marketing strategies for BOSS and HUGO aim at activating consumers across all touchpoints. In this context, we will continue our successful digital-first marketing strategy, supported by star-studded campaigns, strong collaborations, and unique brand events. Marketing investments will continue to range between 7% and 8% of Group sales until 2025. By 2025, we are targeting sales of around EUR 3.5 billion for BOSS Menswear, around EUR 500 million for BOSS Womenswear, and around EUR 1 billion for HUGO.

Our products are at the very heart of all our business activities. As part of “CLAIM 5,” we put strong emphasis on enhancing both brands’ 24/7 lifestyle images, ensuring that customers are perfectly dressed for every occasion. To live up to this target, we will fully exploit the potential of our BOSS Black, BOSS Orange, and BOSS Green brand lines for the Menswear collection, and leverage the exclusive BOSS Camel line introduced in late 2022. Further building on these successes, BOSS reintroduced its Orange line to Womenswear while also introducing the Camel line. In addition, with the upcoming launch of the HUGO BLUE brand line in early 2024, HUGO BOSS will explicitly seize opportunities in denimwear to further win over the Gen Z and young-minded consumers. Both brands, BOSS and HUGO, will maintain their superior price-value proposition, thus fostering their unique positioning in the premium / affordable luxury segment.

Leveraging the full potential of digitalization will be a key driver to deliver on our vision of becoming the leading premium tech-driven fashion platform worldwide. Over the past two years, we achieved strong progress in further digitalizing important business activities – from digital trend detection and product creation to AI-enabled pricing and innovative experiences in the metaverse – thereby laying the foundation for further initiatives. 

The HUGO BOSS Digital Campus, established in late 2021 and physically inaugurated in Porto, Portugal, in 2022, is at the heart of our digital journey as it significantly expands our data analytics capabilities. By capitalizing on data-driven insights, the Digital Campus drives meaningful insights and efficiencies along the value chain, while also supporting the goal of creating a seamless customer experience across all consumer touchpoints.

We will continue to fully leverage our high-quality channel mix on a global scale. We thus aim to increase revenues in brick-and-mortar retail to more than EUR 2.5 billion by 2025. In this context, we are targeting store productivity improvements of at least 3% per year, supported by investments of up to EUR 600 million between 2021 and 2025 to modernize, further optimize, and selectively expand our global retail footprint. At the same time, HUGO BOSS will continue to build on its regained strength in brick-and-mortar wholesale. To take our business in emerging markets to the next level, we will strengthen our global franchise business. Overall, HUGO BOSS is targeting brick-and-mortar wholesale sales of around EUR 1.3 billion by 2025. Our digital business is expected to continue its double-digit growth trajectory in the years to come, with digital sales expected to mount up to more than EUR 1 billion by 2025. In this regard, we will focus on further driving traffic and conversion at our digital flagship hugoboss.com while, at the same time, fostering growth with digital partners. Our license business is expected to contribute up to EUR 200 million to Group revenues by 2025.

From a regional perspective, HUGO BOSS will drive broad-based momentum. We remain committed to fully exploiting our strong momentum in EMEA, where sales are forecast to grow at a mid to high-single-digit CAGR (2022–2025) to a level of more than EUR 2.8 billion, with strong contributions expected from both key markets and important growth markets such as the Middle East. In the Americas, revenues are projected to grow at a high single-digit CAGR (2022–2025), mounting up to around EUR 1 billion by 2025. In particular, we will push our 24/7 brand image in the important U.S. market. In Asia/Pacific, revenues are set to grow at a low double-digit CAGR (2022–2025) with the region’s revenue share to expand from currently 13% to around 20% by 2025, implying a revenue level of around EUR 1 billion. In this regard, unleashing the brands’ full potential in China will be of particular importance. In addition, we are equally committed to leveraging our full potential across South East Asia & Pacific.

Over the past two years, we successfully transformed our operating model to a platform approach and implemented a streamlined, brand-led organizational setup that enables profitable growth and ensures rigorous strategy execution at a global level. In order to foster growth and further drive efficiencies going forward, we will step up investments into our supply chain.

We recently launched the important Digital Twin initiative, aimed at enabling smart decision-making through a tech-driven business operations platform and being a key enabler to meeting consumer demand even better in the future. While further increasing the stability and transparency of its global supply chain, the Digital Twin will positively contribute to our future growth, profitability, and sustainability ambitions. At the same time, we are expanding our global logistic capacities by around 40% as well as continuing our nearshoring initiatives by bringing production even closer to EMEA and the Americas.