Hugo Boss is the latest brand to begin consolidating its sub-labels to boost business.
The German brand told investors Wednesday that it would re-focus its portfolio on two brands: Boss, with its higher-end luxury suiting, and Hugo, a more contemporary offering at a lower price point targeting younger consumers. Thus, the fashion-focused Boss Orange and sportswear-inspired Boss Green will be integrated into the main Boss line. Regarding prices, Hugo’s entry-level price range will be around 30 percent lower than Boss.
“In Boss and Hugo we have two strong brands with their own identity, which appeal to different target groups,” Mark Langer, chief executive officer, said in a press release. “With Boss we want to be the most desirable brand in the upper premium segment. Positioning Hugo in future as a progressive brand with an attractive value proposition will open up extra growth possibilities for us.”
The company expects to complete the realignment with the delivery of its Spring 2018 collections.
Womenswear will be scaled back, too, as Hugo Boss focuses more closely on its men’s business. As such, Boss will show only menswear at New York Fashion Week next year. In addition, the company will increasingly digitize and accelerate its processes to react more quickly to customer demands and market trends. For instance, sold-out items will be restocked within season and individual pieces can be added to collections based on short-term trends.
To ensure a consistent brand image worldwide, Hugo Boss will also harmonize its price architecture globally by cutting prices in Asia and raising them slightly in Europe, though prices should stay stable in North America. The company also reiterated its intention to slow down store openings as online plays an even more important role going forward as a sales channel.
Earlier this month, Hugo Boss said while sales in the third quarter slipped 6 percent to 703 million euros ($781 million), the company achieved savings of 65 million euros ($72 million) and expects to return to growth in 2018.