Strategy

“CLAIM 5” Growth Strategy

Our ”CLAIM 5” growth strategy – introduced in August 2021 – is closely linked to our vision and ambition of being the leading premium tech-driven fashion platform worldwide and becoming one of the top 100 global brands. In this context, more than ever before we are putting the consumer at the center of all our activities, especially focusing on younger customer groups, such as Millennials and Gen Z. We are turning consumers into true fans and retain their loyalty to BOSS and HUGO.

Two years after introducing “CLAIM 5”, HUGO BOSS looks back on significant progress achieved across all five strategic priorities. Driven by the powerful and rigorous strategy execution and supported by its bold branding refresh initiated in early 2022, momentum for both BOSS and HUGO has since accelerated sharply. In doing so, both brands have strongly expanded market shares worldwide and made significant progress in increasing brand relevance. Consequently, HUGO BOSS raised its mid-term top- and bottom-line ambition in June 2023.

Learn more on our 2025 financial ambition

"CLAIM 5" Strategy

  • CLAIM 1 – BOOST BRANDS

    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.

  • CLAIM 2 – PRODUCT IS KEY

    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. In 2023, building on the success within BOSS Menswear, the Camel line was also introduced to Womenswear while also having reintroduced the Orange line. In addition, we will explicitly seize opportunities in denimwear with the launch of the HUGO BLUE brand line in early 2024. At the same time, the existing product range will be available under HUGO RED from now on, placing a strong emphasis on street tailoring. Both brands, BOSS and HUGO, will maintain their superior price-value proposition, thus fostering their unique positioning in the premium / affordable luxury segment.

  • CLAIM 3 – LEAD IN DIGITAL

    Digitalization is an important enabler to deliver on our vision of being the leading premium tech-driven fashion platform worldwide. An essential part of our Group strategy is therefore our clear commitment to further driving digitalization along the entire value chain. Since the introduction of “CLAIM 5,” we achieved strong progress in digitalizing important business activities – from digital trend detection and product creation to AI-enabled pricing, digital showrooms, and innovative experiences in the metaverse. 

    The HUGO BOSS Digital Campus, launched in 2021, is at the heart of our digital journey. It significantly expands our Company’s digital analytics capabilities, first and foremost aimed at taking the consumer experience to new levels through the systematic use of data. Serving as an innovative and creative data hub, the Digital Campus puts strong emphasis on strengthening our global online business while driving meaningful insights and efficiencies along the entire value chain. In this context, HUGO BOSS also aims to make the best-possible use of the many advantages offered by AI. Among other things, this should enable us to link digital and physical retail even more closely in the future, to provide consumers with a seamless, best-in-class omnichannel experience.

  • CLAIM 4 – DRIVE OMNICHANNEL

    We will continue to fully leverage our high-quality channel mix on a global scale. With brick-and-mortar retail contributing more than 50% of Group sales also going forward, this channel is, and will remain, by far our largest in terms of revenues. 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, brick-and-mortar wholesale is expected to continue contributing around 25% of Group sales. Since the introduction of “CLAIM 5,” we have made important progress in fostering our position in brick-and-mortar wholesale, having noticeably increased visibility and market presence of both our brands. To take our business in emerging markets to the next level, we will strengthen our global franchise business. Digital revenues are expected to continue their double-digit growth trajectory also in the years to come. Accordingly, the share of our digital business is targeted to increase to a level of more than 20% of Group sales by 2025. Above all, we aim to continuously improve the digital journey and drive further market share gains – from our own online flagship hugoboss.com, to our online concession business as well as digital wholesale. For its license business, which among others includes fragrances, eyewear, and watches, HUGO BOSS sees revenue potential of up to EUR 200 million as part of “CLAIM 5.”


    Besides further growing across all consumer touchpoints, as part of “CLAIM 5,” it is our clear ambition to continue driving broad-based growth and gaining market shares across all geographies. In the EMEA region, key markets such as Germany, the UK, and France, as well as important growth markets such as the Middle East, are all set to contribute to further revenue improvements. Growth will be supported by further enhancing and upgrading our distribution network, accelerating our franchise business, and capitalizing on business opportunities across brand lines. In the Americas, we will continue to push our 24/7 brand image particularly in the important U.S. market, where we recorded exceptionally strong momentum over the past two years. On top of that, HUGO BOSS aims to further expand visibility in U.S. department stores, rolling out digital marketplaces, and strengthening its store network in Latin America. For Asia/Pacific, the region’s revenue share is expected to grow to around 20% as part of “CLAIM 5.” In this context, HUGO BOSS will continue to unleash the brands’ full potential in both China and Southeast Asia & Pacific. To secure our affordable luxury position across the region, we will further strengthen our distribution footprint, which also includes boosting digital and social commerce with key partners.

  • CLAIM 5 – ORGANIZE FOR GROWTH

    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 flexibility 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.

Sustainability throughout

Sustainability continues to be at the heart of “CLAIM 5” – a cause that is essential to our corporate responsibility and ongoing business activities. We will therefore further intensify our efforts in this important area, focusing primarily on making an imminent contribution to a planet free of waste and pollution. As part of our sustainability strategy, we will, among other things, strongly increase our circularity initiatives, drive digitization and data analytics, leverage nature-positive materials, fight microplastic, and keep pushing towards zero emissions.

Learn more on sustainability at HUGO BOSS

Shareholder value creation

To deliver on our mid-term financial ambition, the rigorous execution of “CLAIM 5” will continue to take center stage. Against the backdrop of our regained brand momentum and taking into account the strong progress we have made along our various strategic initiatives, we have created a solid foundation for sustainable and profitable growth in the years to come. Therefore, even though our industry continues to face increased macroeconomic and geopolitical uncertainties, HUGO BOSS remains confident to continue gaining market share, achieving robust earnings improvements and generating strong free cash flow to ensure sustainable value creation for shareholders until 2025 and beyond.

Further details on “CLAIM 5” can be found here and in our 2023 Annual Report.

Further information

Group Strategy

Learn more on "CLAIM 5“ in the Annual Report 2023.

Brands

More than the perfect suit. The BOSS collections also feature casual and athleisure pieces. With its progressive and cool looks, the HUGO brand inspires true style individualists.

2025 Financial Ambition

With its strategy ‘CLAIM 5’, over the next five years, HUGO BOSS is fully committed to strongly accelerate top-line growth. Learn more on the financial ambition 2025.