How the New CEO of Hugo Boss Plans to Revitalize the Brand

The new chief executive of Hugo Boss said a plan to revive the struggling German fashion house by cutting brands and seeking to appeal to fashion-conscious younger customers will only bear fruit from 2018, sending its shares lower on Wednesday.
Mark Langer is returning Hugo Boss to its roots selling premium men’s clothing, reversing the course of his predecessor Claus-Dietrich Lahrs, who sought to make the label more of a luxury brand and invested heavily in womenswear.
Langer told an investor day the company will now focus on two main brands, one higher-priced premium line and another at lower prices for younger consumers, seeking to complement its smart business suits with more casual and sports outfits.

“We have placed a too-strong focus on a push into luxury price points,” he said. “We have to make sure we are perceived as a lifestyle brand beyond our suiting capabilities.”
Lahrs quit in February after a severe slowdown in luxury demand led to a steep fall in Boss sales in the United States and China. Lahrs was appointed head of Kering’s Italian luxury leather goods maker Bottega Veneta in September.
Langer said 2017 will be a year of stabilization after an expected fall of up to 3 percent in currency-adjusted sales this year, predicting a return to growth in 2018. Analysts had on average forecast 1 percent growth in sales for 2017 and 2.5 percent for 2018.
Shares in Hugo Boss, which have narrowed their discount to luxury peers since Langer took over, were down 6.4 percent by 1023 GMT, making them the biggest fallers among German mid-cap stocks 
Shares in rivals LVMH and Burberry, which have rallied in the past month on signs of a recovery in mainland China, also fell.
Boss said it will continue to bring the prices of its goods in different regions in line, leading to further cuts in Asia and a slight rise in Europe, while prices should stay stable in North America.
The firm will ditch the BOSS Orange and BOSS Green labels, the former more fashion-focused and the latter inspired by sports, integrating them into its main BOSS line.
It will revamp its HUGO line aimed at a younger, more fashion-conscious customer, pricing it at roughly a third less than the BOSS brand by the time of its Spring 2018 collection.
Langer said he would seek to speed up decision making at a business he said was hurt by “organizational inertia”, including making its supply chain more agile so it can restock best-selling items within the season and adapt to short-term trends.
Earlier this month, Burberry said it is cutting 15-20 percent of its product lines to focus on its newest ranges.
Boss said that womenswear would remain an important part of the business, and is continuing its collaboration with designer Jason Wu. However, the group will only present its menswear collection at the New York fashion week next year.
Boss reiterated that it would slow down the store openings, moving more of its business to online. It also plans to lift productivity in its retail business by around 20 percent over the next few years.
(Reporting by Emma Thomasson; Editing by Victoria Bryan and Louise Heavens)

The post How the New CEO of Hugo Boss Plans to Revitalize the Brand first appeared on Course Scholars.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic Guarantees
  • Free title page and bibliography
  • Free unlimited revisions
  • Plagiarism-free papers
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Progressive delivery
  • Plagiarism report
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double or single line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Writing quality papers is a TOP priority. One expert takes one order at a time.
The service package includes topic brainstorm, research, drafting, proofreading, plagiarism check, citation formatting, and revisions.

Money-back guarantee

We appreciate how valuable your time is. Hence, we make sure all custom papers are 100% original and delivered within the agreed time frame

Read more

Zero-plagiarism guarantee

Each paper is written from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

We see it as our duty to follow all instruction the client provides. If you feel the completed paper does not meet your exact requirements, we will revise the paper if you let us know about the problem within 14 business days from the date of delivery.

Read more

Privacy policy

Your email is safe, we use your personal data for legal purposes only and in accordance with personal data protection law. Your payment details are also secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

You can easily contact us with any question or issues you need to be addressed. Also, you have the opportunity to communicate directly with assigned writer, e-mail us, submit revision requests, chat with us online, or call our toll-free on our site. We are always available to our customers.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
-->