Hugo Boss Targets Younger Buyers With New Strategy

Fashion brand Hugo Boss will focus more on young buyers. The German company is renewing its clothing collection as part of a broader plan from the new CEO Daniel Grieder. The new strategy should have doubled turnover to 4 billion euros by 2025.

 

Grieder revealed his plan on Wednesday. In addition to doubling turnover, the group’s profit margin must also increase to a pre-crisis level of 12 percent.

It is not the first time that Hugo Boss, best known for suits and other formal wear, wants to reinvent himself. The company was hit hard by the crisis because people often worked from home and, for that reason, more often bought casual clothes. However, Hugo Boss showed signs of recovery in the second quarter of the year as the corona restrictions were lifted.

In the new strategy, the company focuses in particular on the Hugo and Boss brands. Hugo will focus on trendsetting young clients. There is also more room for so-called streetwear and colourful designs. Boss continues to focus on quality suits with a twist, mainly in black, camel and white. It may also be a unisex collection.

Grieder does not rule out the possibility that Hugo Boss will eventually expand his collection of jeans, underwear, sneakers and make-up. But, in an explanation, he spoke of a “comeback” for the company.

The company plans to invest around €500 million by 2025 to refurbish 80 percent of its store network and more than €150 million to improve its digital capacity. For the promotion of the brand, Hugo Boss also seems to want to get some celebrities to get more fans and customers.

Grieder, who was previously a director at Tommy Hilfiger and joined Hugo Boss in June, also wants to sell more through third parties through so-called wholesale distribution. This is at odds with the course of luxury brands such as Burberry and Prada, which are actually scaling back wholesale activities.