Elevation of the BOSS core brand

Nuanced brand portfolio addresses different customer needs

The Group reaches out to consumers with its BOSS core brand as well as the HUGO brand. Whereas BOSS collections epitomize authentic and understated luxury, HUGO features progressive looks and a modern, urban flair. The BOSS Orange and BOSS Green lines are positioned beneath the BOSS core brand. BOSS Orange stands for trend-oriented casual wear expressing a laid-back approach to life. BOSS Green offers a collection of sportive elegant casual wear and sportswear characterized by high quality and functionality. With its brand portfolio, HUGO BOSS is able to respond to the diverse needs of different target groups, creating offerings for different occasions.

HUGO BOSS brand positioning

Elevation of the BOSS core brand supports increasing verticalization of the brand portfolio

HUGO BOSS is broadening its luxury offering to satisfy its customers’ demand for attractive products in the top fashion and quality segments and thereby to increase its sales. In this way, the Group is adding a complement to its historically grown strength in the premium segment. With the elevation of its BOSS core brand, particularly in markets where the brand has historically been perceived predominantly in a multibrand setting and via its entry-price products, the consistency of the BOSS brand’s global positioning is being reinforced. The Group assumes that it can more or less double the share of BOSS brand sales in the luxury segment, to around 20% by 2020. At the same time, BOSS is gradually withdrawing from entry-price points, which will in future be addressed particularly by HUGO and BOSS Green.

Expansion of BOSS luxury offering

BOSS is reinforcing its competence and credibility in the luxury segment by offering appropriate products and services. The Group benefits from its extensive expertise in craftsmanship by utilizing its own production facilities. Under BOSS Tailored, BOSS offers unique cuts, fabrics of the highest quality and exquisite designs. With the launch of series-produced full-canvas suits made in Metzingen, the brand is additionally highlighting tailoring capabilities of the highest quality. By doing so, it is providing a complement to its range of Made to Measure suits, shirts and, as of 2016, shoes, which mark the pinnacle of the collection in terms of both fashion and prices. In the sportswear segment, BOSS is investing in the quality of materials and workmanship in order to establish offers in the leading edge of fashion. Close alignment of the tailoring and sportswear collections ensures the creation of a uniform brand image and allows mixing and matching elements of both segments. Sourcing and Production

Distribution of the BOSS core brand concentrated on controlled retail areas

The elevation of the BOSS brand is also reflected in the Group’s distribution activities. The core brand is being given ever more space at the Group’s own stores compared with the other brand concepts, so that it benefits from the exclusive setting and the quality of the advice and service provided. The Group is also intensifying its control of the brand in the wholesale business by requiring its partners to distribute the BOSS core brand solely in a mono-brand setting, i.e. in shop-in-shops. These shop-in-shops are either still managed by the partner or by the Group itself in the form of the concession model. Category business, i.e. business in product group-specific departments with offerings across multiple brands, is now being addressed solely by HUGO (clothing) and BOSS Green (casualwear). This transition was successfully completed in Europe in 2015 and is planned for the Americas in 2016.

Communication activities supporting emotional brand perception

The reputation of the BOSS core brand shapes the global perception of the overall brand portfolio. Accordingly, the Group focuses its brand communication activities on its core brand, conveying the brand proposition of inspiring customers towards success in an emotional manner. HUGO BOSS focuses here on the quality of its products, fascinating sponsoring partnerships, its brand’s tradition and its advisory competence in the field of fashion. In the digital segment, which accounts for around half of expenditure, the hugoboss.com website forms the core of these activities. In addition, classic print advertising, particularly for womenswear, retail marketing activities targeted at the established flagship store portfolio, fashion shows and sponsorships play important roles.