Daniel Grieder, the newly appointed CEO of Hugo Boss, has set an ambitious sales target of €4 billion by 2025. Grieder, who previously served as the CEO of Tommy Hilfiger, took over the leadership of Hugo Boss in June 2021. In his first strategy address, Grieder emphasized the continued importance of formal wear for the brand, despite the growing popularity of casual wear. He acknowledged the impact of the pandemic on the fashion industry and stressed the significance of digital infrastructure and the ability to design collections digitally. Hugo Boss has already embraced this digital approach, giving them a competitive advantage in the market.
Grieder unveiled his strategy, called “Claim 5,” during an online conference on August 4. The strategy focuses on five key elements to drive growth and success for the brand. These elements include strengthening the Hugo and Boss brands, optimizing the product range, increasing digitalization efforts, revamping the store network, and setting a strong foundation for growth. Grieder aims to attract younger consumers, enhance brand relevance, and optimize the distribution network to achieve the ambitious sales goal of €4 billion by 2025.
To resonate with the younger target audience, Hugo Boss plans to introduce a redesigned logo and collaborate with artists, athletes, and other industries to create a new narrative for its brands. The company will invest an additional €100 million in marketing efforts to achieve this. Additionally, Boss will reintroduce color segmentation in its menswear collections to provide clarity for customers and expand its presence in various retail outlets.
Digitalization is a crucial aspect of Hugo Boss’s strategy, with the goal of online sales accounting for 25% to 30% of total sales. The company plans to invest an additional €150 million in digital tools and establish an innovation hub in Porto, Portugal. The store network will also undergo a significant renovation, with a budget of €500 million allocated to updating monobrand stores.
In addition to growth and digitalization, sustainability is a key focus for Hugo Boss. The company aims to increase the proportion of products developed with a circular approach to 80% by 2030. Grieder believes that these efforts, along with a steady growth rate of 6% per year, will enable Hugo Boss to surpass €5 billion in revenue by 2030.
Overall, Grieder’s strategy for Hugo Boss is centered on unlocking the brand’s potential through targeting a younger demographic, optimizing products and distribution channels, embracing digitalization, revitalizing the store network, and fostering sustainable practices. With these initiatives in place, Hugo Boss is well-positioned to achieve its ambitious sales goals and continue its status as a leading global fashion brand.
For more information on Hugo Boss’s strategy and initiatives, please visit:
– Hugo Boss Official Website
– Vogue Business: Hugo Boss Strategy by the New CEO
