CLAIM 5: New growth strategy
HUGO BOSS presents plan to increase sales
HUGO BOSS has introduced its new 2025 growth strategy ‘CLAIM 5’ and provides its mid-term financial ambition. Over the next five years, the Company is fully committed to strongly accelerate top-line growth, claim its position in the consumers’ minds, and win market share for its strong brands BOSS and HUGO.
To deliver on its vision and ambition of becoming the premium tech-driven fashion platform worldwide, and one of the top-100 global brands, HUGO BOSS introduces its ‘CLAIM 5’ strategy, which puts the consumer at the core of its business activities more than ever before. ‘CLAIM 5’ is based on five strong pillars: Boost Brands, Product is King, Lead in Digital, Rebalance Omnichannel, and Organize for Growth. It also includes a bold commitment to sustainability, together with a strong executional road map and a clear plan on empowering people and teams.
CLAIM 1 – Boost Brands
To strongly elevate brand relevance, the Company is refreshing BOSS and HUGO – from logos over marketing, to brand new designs in retail and digital. As such, customers will experience both brands in a completely new look and feel. To become the leading power brands, it is the ambition to achieve around EUR 2.6 billion in BOSS Menswear sales and to double BOSS Womenswear sales to around EUR 400 million by 2025. This will be realized by enhancing the overall perception of BOSS as a lifestyle brand, increasing brand relevance, and strongly focusing on digital.
Two clearly distinguished marketing strategies – with a strong focus on digital as well as exceptional collaborations – are set to create excitement among consumers and unleash the full potential of BOSS and HUGO. Overall, incremental marketing spend will be more than EUR 100 million between now and 2025.
CLAIM 2 – Product is King
With product at the center of its new strategy, HUGO BOSS will create products to be worn 24/7 across all different wearing occasions. While casualization and comfort are key, HUGO BOSS will strongly invest in its price-value proposition to ensure premium quality as well as high levels of innovation and sustainability. In doing so, the BOSS brand will foster its unique positioning in the premium/affordable luxury segment. To become the first touchpoint for younger consumers, the HUGO strategy builds on a broad range of commercial and contemporary pieces reflecting the authentic and unconventional HUGO style.
CLAIM 3 – Lead in Digital
Digital is key in ensuring a personalized omnichannel consumer journey. The 2025 strategy therefore includes a strong commitment to further digitalizing the Company’s business activities along the entire value chain, from trend detection and digital product development to AI-enabled pricing capabilities and the global rollout of digital showrooms. This also includes establishing a digital campus to further expand the Company’s digital capabilities and to improve the consumers’ experience by leveraging data. The HUGO BOSS Digital Campus, based in Metzingen, Germany and Porto, Portugal, will strengthen the Company’s online activities as well as analytical, technical, and executional capabilities. It extends HUGO BOSS’ digital know-how with immediate effect by combining the Company’s own expertise with that of experts on data execution. Overall, HUGO BOSS will step up its investments into digital by more than EUR 150 million by 2025.
CLAIM 4 – Rebalance Omnichannel
To translate brand power into all consumer touchpoints, HUGO BOSS will rebalance its distribution footprint and strongly accelerate its omnichannel activities in the years to come. In this context, the Company aims at ensuring a seamless brand experience across all consumer touchpoints. The Company’s digital ambition includes a strong commitment to all digital touchpoints – from its own website hugoboss.com to its online partner businesses, including digital pure players, leading marketplaces as well as bricks and clicks.
HUGO BOSS will also unleash the full potential of retail. In this context, around 80% of own stores are set to be refurbished during the next three years already, with overall investments into brick-and-mortar retail targeted to total around EUR 500 million for the period until 2025.
CLAIM 5 – Organize for Growth
HUGO BOSS will drive growth across all geographies while further balancing its global footprint. In Asia/Pacific, revenues are set to grow at a low-teens compound annual growth rate (CAGR 2019-2025). Mainland China will continue to be of particular importance, with the Company putting a strong focus on the Chinese consumer also in the years to come. HUGO BOSS is equally committed to fostering its leading position in premium apparel in Europe. Key markets such as Germany, the UK, and France are all set to strongly contribute to growth by unleashing their full potential in retail. In the Americas, revenues are projected to grow at a mid-single-digit CAGR between 2019 and 2025, as the Company will strongly push the 24/7 brand image by fully leveraging the casualization trend in the important U.S. market.
‘Organize for Growth’ also means leveraging the Company’s existing operations infrastructure as the future platform for speed and growth. HUGO BOSS will therefore foster modular and digital product creation, continue to shorten lead times, increase flexibility in production and logistics, as well as push digitalization to further increase the overall efficiency and flexibility of its supply chain.
At the same time, HUGO BOSS will intensify its sustainability efforts to deliver both meaningful and measurable impact as well as emotional engagement with the consumer. The Company’s ambitious sustainability targets include the aim for climate neutrality within its own area of responsibility by
2030 and throughout 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 eight out of ten products to become circular by 2030.