Strategy

In order to significantly increase the relevance and perception of its brands, the Company comprehensively renewed the brand image of BOSS and HUGO – from logos, to product and marketing up until a new design concept for the Company’s digital business and brick-and-mortar retail. With the brands’ Spring/Summer 2022 collections, which are available since early 2022, customers around the world are experiencing both brands with a completely new “look and feel” for the first time. 

The BOSS brand’s premium position is to be further strengthened across all wearing occasions – in both menswear and womenswear. As part of its ambition of becoming one of the top 100 global brands, BOSS menswear sales are expected to increase to around EUR 2.6 billion by 2025 and BOSS womenswear sales to around EUR400 million. For the HUGO brand, which aims to be the first point of contact for younger customers, sales are targeted to grow to around EUR 800 million by 2025. The Company’s license business, which also includes fragrances, watches and eyewear, is expected to contribute up to EUR 200 million to sales by 2025.

As part of “CLAIM 5”, HUGO BOSS has realigned its global marketing activities in 2021. From now on, two clearly distinguished marketing strategies – with a clear focus on social media and exceptional collaborations – are to inspire customers and to exploit the full potential of BOSS and HUGO. The additional marketing investments are expected to total more than EUR 100 million by 2025. The launch of the new global marketing campaigns of BOSS and HUGO in early 2022 represents an important first milestone in this context. 

Products are at the very heart of HUGO BOSS’ new strategy. In this context, the Group will particularly strengthen the positioning of BOSS in the premium segment. The Company has the clear ambition to establish BOSS as a true 24/7 lifestyle brand covering all wearing occasions. As the first point of contact for younger customers, HUGO will from now on focus on a broad range of trendy and modern products that reflect the brand’s authentic and unconventional style. 

HUGO BOSS is committed to exploiting the full potential of casualwear and thus also to being among the forerunners of the trend towards a more casual lifestyle. In addition to a wide range of casualwear styles further expansion in this segment will also focus on further blurring the lines between casualwear and formalwear. At the same time, the Company will further strengthen its important formalwear business.

HUGO BOSS sees digitalization as key for a personalized, omnichannel customer experience. At the same time, it is a key enabler for implementing the vision of HUGO BOSS to be the leading premium tech-driven fashion platform worldwide. An essential part of “CLAIM 5” is therefore the clear commitment to further driving the digitalization of the Company’s activities along the entire value chain. Overall, HUGO BOSS plans to increase its investment in digitalization by more than EUR 150 million by 2025. The Digital Campus, which was established in 2021, will play a key role in this, as it will further expand the Company’s digital expertise and take customer experience to a new level through the targeted use of data. One of the Campus’ first priorities was the successful implementation of the global relaunch of hugoboss.com in early 2022.

In order to translate brand power into all consumer touchpoints, HUGO BOSS will further optimize its distribution structure as part of “CLAIM 5” and significantly advance its omnichannel activities in the coming years.

Digital revenues are expected to increase to more than EUR 1 billion by 2025. The Company aims to establish a strong presence at all digital touchpoints. The online flagship hugoboss.com, which was redesigned in early 2022, contains numerous elements intended to significantly improve the customer experience and further increase traffic and conversion. In addition, the Company plans to continue its geographical expansion of hugoboss.com. In the medium term, customers in around 120 markets will be able to purchase the entire product range via hugoboss.com (2021: 59 markets).

HUGO BOSS also aims at increasing sales in its brick-and-mortar retail business to a level of around EUR 2 billion by 2025. Growth is to be achieved by growing productivity in its own stores by around 3% per annum and by further optimizing and modernizing the global store network. In total, HUGO BOSS is planning investments in its brick-and-mortar retail business of around EUR 500 million by 2025.

In addition, HUGO BOSS plans to grow sales in brick-and-mortar wholesale to a level of around EUR 1 billion by 2025. The Company is firmly committed to fostering its position in this important distribution channel by strengthening existing partnerships and increasing its market share in key product categories. With a particular focus on its most important business partners, BOSS will establish itself as a true 24/7 lifestyle brand in the wholesale business. The introduction of the BOSS Camel line and the re-introduction of BOSS Black, BOSS Orange and BOSS Green also play an important role in this context.

As part of “CLAIM 5”, HUGO BOSS intends to drive growth across all regions, while continuing to further balance its global presence. In Asia/Pacific, revenues are set to grow at a low-teens compound annual growth rate (CAGR) between 2019 and 2025. With regard to Europe, HUGO BOSS is striving to foster its leading position in premium apparel. Here, sales are forecast to grow at a low to mid-single-digit rate per annum (CAGR 2019 –  2025). In the Americas, revenues are projected to grow at a mid-single-digit CAGR between 2019 and 2025.

“Organize for Growth” also means leveraging the Company’s existing operations infrastructure as the future platform for speed and growth. In order to further increase efficiency and flexibility along the value chain and to push digitalization here as well, HUGO BOSS is working on advancing modular and digital product development, shortening product lead times and further improving flexibility in production and logistics. The Company has set itself the goal of developing more than 90% of its products digitally by 2025 and reducing lead times by around 30%. 

Daniel Grieder, CEO: “We want to grow fast but sustainably. We have an excellent team and the right strategy to lead our Company successfully into the future.”

At the same time, HUGO BOSS intends to further intensify its diverse activities in the important area of sustainability in order to deliver both, a clear, measurable impact and emotional engagement with the consumer. The Company has set itself ambitious sustainability goals and aims for climate neutrality in its own area of responsibility by 2030 and along the entire value chain by 2045. In addition, HUGO BOSS will put particular emphasis on establishing an end- to-end circular business model. In this context, the Company aims to enable 80% of all BOSS and HUGO products to become circular by 2030.