1. HUGO BOSS BRAND©
PRODUCT
STRATEGY

2. The HUGO BOSS Group is one of the market leaders in the premium
and luxury segment of the global apparel market. The Group, which is
based in Metzingen in Germany and employs a workforce of almost 12,500
people, generated annual sales of EUR 2.4 billion in fiscal year 2013
and is among the world's most profitable apparel manufacturers of the apparel
market with its brand world, HUGO BOSS
targets different, clearly differentiated consumer groups.
BRIEF HISTORY
1924 Company founded by Hugo
Ferdinand Boss
1970 HUGO BOSS developed into a
fashion-lifestyle company
1985 Going public
2007 Permira takes over share
majority
2012 Record sales and profits
Headquarters, Metzingen

3. The brands cover an extensive product range consisting of classic-modern
business wear, elegant evening wear and sportswear, shoes and leather
accessories, licensed fragrances, eyewear, watches, children’s fashion,
motorcycle helmets, mobile phones and accessories, and home textiles.
HUGO BOSS sells its products in 127 countries worldwide. Today customers can
purchase HUGO
BOSS products at more than 7,100 points of sale.

4. •Christoph Auhagen(CBO)
• Responsible for Brand
Management, Creative
Management, Sourcing and
Manufacturing
Member of the Managing
Board since December 2009.
• Mark Langer (CFO)
• Responsible for
Controlling, Investor
Relations, Finance,Legal
and Compliance, HR,
Logistics, IT and Central
Services Director for
Labor Relations.
• Member of the Managing
Board since January 2010
• Claus-Dietrich Lahrs
(CEO)
• Responsible for
Distribution, Retail,
Licenses,
Communication and
Global Replenishment.
• Member of the
Managing Board since
August 2008.

5. CORE IDENTITY
• The brand stands for innovation,
creativity and progress
• The brand implements stringent
design and quality standards to
produce superior products that
deliver value for money.
• All the brand collections adhere
to a lifestyle philosophy featuring
a distinctive brand signature
• The country of origin for the
brand is Germany

6. EXTENDED IDENITTY
• The main fashion brand, BOSS, is modeled by a chisel-
chinned hunk with the long hair of a racecar driver. He
doesn’t look like he would be anybody’s boss though,
more the maverick loner than a dynamic leader with your
destiny in his hands. The women counterpart is a striking
and arrogant-looking and in her late twenties
• The BOSS consumer no longer worries about "making it."
He has achieved a success level that is beyond the norm,
allowing him to enjoy the most luxurious cars, yachts and
private jets the world has to offer. Men who choose BOSS
are to be admired and envied in equal measure

7. EXTENDED IDENITTY
• The essence of Hugo BOSS fashion: Confidence, Power,
Masculinity. Personal and professional goals achieved
with easy self confidence
• The BOSS consumers have fun, enjoy life and take risks.
They don't care about rules but live their life on their own
way. Independent, unconventional and modern Creative
people who are on the move. HUGO is the look and feel of
London, Berlin and New York — the style for
individualists.

8. BRAND POSITIONING
• Fashion statement dictates brand positioning

9. BRAND ARCHITECTURE
• The men’s wear collections is represented by the BOSS BLACK, BOSS
SELECTION, BOSS ORANGE AND BOSS GREEN LINES AND THE
HUGO-BRAND
• Strengthen product offering in luxury segment
• Sharpen DNA of ‘Sportswear Elegance’
• Increase focus on the Asian consumer
• Offer the best price-value relationship in the premium segment
• Enhance clarity of product branding
• Firmly establish BOSS Orange as key premium lifestyle brand at wholesale
• Convince in leading edge technical innovation
• Strengthen distribution in golf performance accounts
• Maximize commercial potential of golf pro cooperation

10. BRAND ESSENCE

12. STRATEGIC RATIONALE
CUSTOMER / BRAND
SEGMENTATION goes vertical
BOSS: Distribution to increasingly
penetrate luxury segment
BOSS ORANGE / BOSS GREEN:
Traditional positioning with
enlarged distribution
HUGO: Refocus brand on tailoring
Key focus on
premium
department
stores, relevant
multi-brand
retailers and
pure online
Key focus on
monobrand stores
(incl. airports), SiS
lifestyle presen-
tations in key luxury
departments stores,
and opinion-leading
wholesale accounts
Key focus on SiS
lifestyle presen-
tation and
utilization for
category
expansion

13. VALUE PROPOSITION
• Functional benefits include high-
quality, fashionable clothing with
European design
• Emotional benefits of this brand are
that it makes you feel like the
consummate sophisticate, for whom
only the very finest fabrics and
tailoring will do
• Self-expressive benefits include its
ability to allow your self-expression
to have a strong sense of character

14. BRAND STRATEGY
• Has high brand awareness – 90 – 100% amongst target audience and
Has high share of buyers within target group
• 40 – 60% buyers at BOSS BLACK/SELECTION/HUGO, 15 – 30% at
BOSS ORANGE/GREEN
• Further leverage existing strengths to continue growth with BOSS
BLACK in premium men’s wear
• Expand the share of business done with BOSS Selection to underline
core competence in men’s wear (full canvas)
• Make sure that women get the same attention as men already enjoy

15. To make a more visible fashion statement with the shoes
and accessories range
To avoid cannibalization, the focus will be on stand alone
positioning for each brand in comparison with the past
where brand architecture showed overlapping and similar
price positions
Unlock the brand potential by developing retail strategies
that will: Gain more control over brand and product
presentation
Unlock potential in major growth markets with focused
retail expansion in the right format

16. Intensify online shopping in key markets to benefit from growth story
Control factory outlet business more closely
Focus on geographical expansion to drive business outside Europe to:
Be less dependent on mature markets in Western and Central Europe although
there is still market share to gain
 Benefit from double digit growth in emerging markets in Asia, Russia and Eastern
Europe
 Find the right access to mature markets such as the USA and Japan to capture the
full momentum of the premium market

17. Deliver sustainable and profitable growth by:
Monitoring and improving profitability of own retail
 Managing trade partner profitability more
stringently Reducing net working capital to a healthy
level
Decreasing complexity in operations, sourcing and
manufacturing as well as the supply chain
Performance initiatives launched in in anticipation
of weakening market conditions:
 Strengthening cost cautiousness and tight
monitoring of cost drivers Retail turnaround
Fine tuning the regional price structure Net
working-capital optimization

18. MAJOR COMPETITORS

19. REVENUE – BY PRODUCT CATEGORY
Boss Orange
12%
Boss Green
8%
Hugo
9%
Boss Black
71%
Boss Orange
Boss Green
Hugo
Boss Black

20. REVENUE BY REGION
royalties
2% asia pacific
14%
americas
24%
european
countries
60%
2013 SALES - EUR 2,432 million.
royalties
asia pacific
americas

21. GLOBAL MARKET PRESENCE
0 2000 4000 6000
Europe
Americas
Asia/Pacific
5100
1550
450
576
200
234
17
2
2
700
80
250
Franchises
Showrooms
DOS
POS