To receive the Vogue Business newsletter, sign up here.
Two brands, two young demographics. German luxury brand Hugo Boss is looking to the future with a radical rethink of its direction focused on a much clearer targeting of its two brands, Boss and Hugo.
The rethink, which amounts to a full-scale rebranding complete with new logo, is being backed by two of the biggest marketing pushes in the company’s history. Boss is now aimed firmly at the millennials, aged 25-40, while Hugo targets Gen Z, aged under 25.
CEO Daniel Grieder, who took up his position in June 2021 after more than 20 years at Tommy Hilfiger, plans to double company sales to €4 billion by 2025.“Ten to 15 years ago, Hugo Boss was the north star for many brands, with perfect positioning and strong relevance,” he says. “Over the last six years, Hugo Boss has maintained its brand awareness but crucially lost its relevance in the fashion industry. Heritage is great and I realised that the potential of this brand is enormous — but we have to reframe it.”
During the fourth quarter of last year, sales surged by 51 per cent year-on-year as stores reopened after lockdown. In a preliminary release, Boss reported sales of €2.79 billion for the full year 2021, 43 per cent up on 2020, but 1 per cent down on 2019. A preliminary Ebit of €228 million is predicted, almost half of that from the fourth quarter. Final full-year results are expected on 10 March.
Here, Vogue Business outlines Grieder’s plans for Hugo Boss 2.0.
Hugo and Boss: a tale of two brands
Reinforcing the differences between the Hugo and Boss brands, which have not always been clear to the end consumer, is at the heart of Grieder’s strategy. Boss, the flagship brand, is aimed at the millennial shopper. The #BeYourOwnBoss campaign, which launches on Wednesday, features boxer Anthony Joshua, rapper Future and models Kendall Jenner and Hailey Bieber. Core marketing spend will focus on Instagram.
Hugo, at slightly more accessible prices, includes modern tailoring, denim and streetwear. It’s taking an aggressively youthful stance for the future, aimed at Gen Z customers. “When somebody has finished studying and is starting their first job, the first suit they’re going to buy is a Hugo suit,” Grieder says. Gen Z stars such as dancer Maddie Ziegler, model Adut Akech and Korean-American rapper Big Matthew, are tapped to star in campaigns. Marketing spend will be focused on TikTok. The new slogan, “You go your own way”, reflects the Gen Z emphasis on individuality and fluidity.
Marketing spend rises by €100 million
In September 2021, Boss set the pace with a blockbuster Spring/Summer 2022 show in collaboration with American sports brand Russell Athletic. Set in Milan’s Kennedy Sport Centre with mascots and cheerleaders, the show featured Big Matthew, model Gigi Hadid and, most notably, Khabane (Khaby) Lame, the second-most followed person on TikTok with over 130 million fans. Boss also launched a #BossMoves TikTok dance challenge in tandem with the show, presenting winners with an NFT jacket. The show notched up 4 billion impressions across social media platforms within the first four days.
Boss has since signed Lame as a long-term brand ambassador. “We saw very quickly the response that consumers had on social media,” says Grieder. “We saw new customers, younger customers and people who were absolutely in love with Khaby Lame come to the brand.” Lame will create a capsule collection for Boss this year.
“From Hugo Boss, it's kind of unexpected,” acknowledges Grieder. “That's why we love it so much. Boss, the serious German men’s tailoring brand, is surprising the whole industry with all these activations that we’re running.”
For key performance indicators, Boss has stepped up its monitoring. Social engagement, Google search queries and brand heat are all tracked on a daily basis, says Miah Sullivan, senior vice president global marketing and brand communications at Hugo Boss. “It's almost like having that whole [show] experience — that social moment — but every single month for the next five years.”
Re-emphasising multi-brand stores
Hugo Boss has focused in recent years on its own single-brand stores and e-commerce. Now, Grieder says the company will rebalance its omnichannel mix to position both Hugo and Boss more strongly in department stores and boutiques. “It doesn't matter where the end consumer is buying the brand. It doesn’t matter if it is in our own store, our online shop or in our partner shops as long as they buy it,” he says. The aim is to identify retail or e-tail partners that align with the customers of either or both of the brands. Digital and e-tail sales totalled 20 per cent of Hugo Boss group sales in Q4 2021, according to the company.
Modernising design codes and logos
The rebrand features new, simplified logos for both Hugo and Boss and a clearer design direction to attract the younger shopper, says Grieder.
In 2021, tailoring recovered better than Grieder had expected. However, while traditional suiting continues to perform for occasion wear sales, Boss and Hugo design teams are working hard to modernise everyday tailoring by injecting a performance element. The key tailoring is now focused on comfort with stretch fabrics that appeal to a modern customer, Grieder says. Within a core colour palette that includes red, beige, black and white, fabrics with water-resistant and anti-wrinkle are being given a new priority. “You can sleep in that suit and you can get up and it still looks like you just put it on,” says Grieder. “This is the new definition of tailoring.”
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
Plus-size men: “Luxury, we are ready for you”
Emerging men’s designers on the challenges of Autumn/Winter '22
From Louis Vuitton to Harrods: Luxury takes on skateboarding
