- Group pursues two brand strategy with BOSS and HUGO
- Focus on personalization and speed to further increase brand desirability
- Operating profit to grow significantly faster than sales by 2022
The environment faced by HUGO BOSS has changed radically in recent years. Growth rates for the premium and luxury apparel industry have slowed substantially, particularly in the area of classic tailored fashion. At the same time, casualwear and athleisurewear segments of the global apparel market and the contemporary fashion area are recording significant growth. Equally, the paths taken by consumers to buy apparel have changed. Consumers today are primarily using digital channels to keep up with trends and the ranges on offer. Although the vast majority of purchases are still made in brick-and-mortar stores, online business is currently enjoying overproportionate growth. Moreover, customers expect the digital offerings and the brick-and-mortar shopping experience to complement one another seamlessly.
The Group strategy takes these changes into account. It is aimed at growing Group sales faster than the relevant market segment in 2019 and beyond. In addition, the operating profit (EBIT) should grow significantly faster than sales starting in 2019. The Company’s actions are guided by its vision of being the most desirable fashion and lifestyle brand in the premium segment. HUGO BOSS believes that brand desirability will be the most important factor in the Group’s long-term success. The objectives of employing the right people, maximizing customer satisfaction and offering the best products in the industry are in line with this fundamental belief and are predicated on profitable growth. To further drive the desirability of its brands, HUGO BOSS is focusing on two strategic priorities in its 2022 business plan: Personalization and speed. Group Strategy, Business Plan 2022
The Company will therefore expand its focus on personalized offerings in coming years. The intent is to increase customer satisfaction sustainably by employing a more individualized customer approach, a personalized product range, and a unique shopping experience. In doing so, HUGO BOSS is building on its strengths: its global retail network, its systematic customer relations management, and its extensive experience in made-to-measure apparel.
In addition, HUGO BOSS will accelerate central business processes and design them to be much more agile. This will enable the Company to react to customer needs and new market trends even more quickly and flexibly in the future. The existing skills of HUGO BOSS in product design and development, its modern logistics and IT infrastructure and the use of digital showrooms will be the key levers.
The two priorities of personalization and speed are guiding the specific action of the Company within the four strategic fields of action: HUGO BOSS is realigning its brand portfolio and the positioning of its brands. It is consistently enhancing its distribution strategy on this basis. In addition, the Group is advancing the digital transformation of its business model and is striving to transform its operating model and its corporate culture in order to make its key business processes faster and more agile, and to promote entrepreneurial thinking and actions.