In the interview, Daniel Grieder, CEO of HUGO BOSS, reveals how the company is successfully implementing its growth strategy CLAIM 5 and managing to achieve profitable results in saturated markets and despite strong competition. The expert explains how the brand has expanded its product range and omnichannel strategy to reach new target groups. He also discusses the role of innovation and sustainability in the fashion industry and shows how artificial intelligence and digitalization are supporting growth at HUGO BOSS.
Some traditional German brands have recently slipped into the red or even had to file for bankruptcy. HUGO BOSS is growing. What is your company doing differently?
GRIEDER We have the right strategy at the right time, and we implement it consistently. We have made our brands BOSS and HUGO relevant again with a comprehensive brand renewal and addressed new and younger target groups with a social-first marketing strategy.
Additionally, we have invested heavily in the product, redefined our product range, and gained additional market share with our 24/7 lifestyle approach. Our DNA is still, of course, the suit, but today we dress men and women perfectly for all occasions – from sportswear, outdoor jackets, and hoodies to suits. We have also developed the latter into a performance suit, using materials from the sports sector for more comfort and functionality.
Furthermore, we drive digitalization in all areas of the company, along the entire value chain, and are already benefiting from the efficiency gains of these investments.
From your personal perspective, what’s the issue with traditional brands that don’t manage to make the shift?
GRIEDER I don't want to presume to judge that from the outside. However, the key is to remain relevant as a brand. What is good today may not be good enough tomorrow. Therefore, you have to constantly evolve and listen carefully to what customers want. We at HUGO BOSS believe that innovation is an important growth driver and essential for the future of a company.
Many markets are saturated, and there is a distribution battle. What growth opportunities does your company see for the next year(s) – in which regions and target groups?
GRIEDER Our CLAIM 5 strategy is a broad-based growth strategy. This means we want to grow in all regions, with all brands, and at all customer contact points. Above all, we also want to generate sustainable and profitable growth for HUGO BOSS in the long term.
To fully exploit the potential of our brands, we have reintroduced the brand lines Orange and Green under BOSS and added our highest quality line, BOSS Camel. Under HUGO, there is the new line HUGO Blue, with a focus on denim. This has given us more placements and visibility with our trade partners, gaining additional market share. We have also complemented our range with licensed products and are addressing new target groups, for example, with equestrian and cycling clothing or dog accessories. Therefore, we see growth opportunities in existing and new product groups.
In distribution, we rely on an omnichannel strategy. We want to be wherever the customer expects us to be – whether in our own stores, with our trade partners, or online. Each channel fulfills specific customer needs. We are currently rolling out our online store hugoboss.com in more countries. In addition, there is the digital business with partners. We have also massively invested in our store network in recent years. So it is not about one channel or one region, but about a healthy balance worldwide.
To what extent do new technologies such as AI help you to achieve your growth goals?
GRIEDER Our vision is to be the world's leading technology-driven fashion platform in the premium segment, and "Lead in Digital" is one of the five pillars of our CLAIM 5 strategy. This, of course, includes the use of AI systems to make workflows faster and more efficient, correctly analyze data, and achieve even better results.
For example, we use AI-based chatbots in customer and product consulting in our online store and achieve higher conversion rates. We also have our own internal HUGO BOSS AI assistant and train our employees in dealing with AI.
How do you define growth in terms of a successful further development of your business apart from revenue and EBIT?
GRIEDER Our goal is to sustainably increase the corporate value of HUGO BOSS. We focus on long-term maximization of free cash flow to support the long-term growth of the company. CLAIM 5 is therefore a growth strategy, and it is primarily about laying the right foundations to continue growing in the future, and above all, sustainably. Today, HUGO BOSS is a platform on which in the future, alongside BOSS and HUGO, other brands will have a place, too. In addition to sales and EBIT, we also focus on short-term operational net working capital and value-oriented investment policy as key control parameter.
What are the biggest challenges for your company and for the industry?
GRIEDER For the fashion industry, sustainability is currently one of the biggest challenges. Microplastics are a major problem for the fashion industry, which we as a company actively address. We aim to completely replace polyester and nylon in our collections with alternative materials by 2030. To this end, we have entered a long-term partnership with HeiQ, a Swiss innovator in the textile industry, and have also invested financially in the company.
Our sustainability strategy aims to keep our planet free of waste and pollution. We want to take on a pioneering role in the fashion industry on these issues. Data is also a crucial success factor for us to produce in a more customer-oriented way and avoid overproduction. Our Digital Campus, with teams in Metzingen and Porto, plays an important role in this. These teams work on three main areas: e-commerce, advanced business analytics, and data analytics.
What improvement in framework conditions – here in Germany – would most quickly or strongly boost your company's growth?
GRIEDER One key lever would be to reduce bureaucracy and simplify processes. In my opinion, companies in this country face obstacles far too often. I would like to see the government to engage even more with the business sector, to talk to companies and find the best solutions for the future together. Germany and Europe as a whole must not lose their competitiveness in the world.
To what extent does HUGO BOSS (still) identify as a German company?
GRIEDER We are an international company with German roots. Our products are available in 131 countries. We have 41 sales subsidiaries worldwide. But we are also clearly committed to our home location in Germany. We have also set the course for further growth here by expanding, upgrading, and enhancing our company headquarters in Metzingen. We are investing over 100 million euros here, which also includes the construction of an additional administration building. And we are investing another 100 million euros in our logistics center near Stuttgart.
HUGO BOSS celebrated its 100th anniversary in 2024. Our goal is to create a healthy foundation so that the company can continue to exist for the next 100 years.
About Daniel Grieder
Daniel Grieder has been CEO and Chairman of the Board of HUGO BOSS AG since June 2021. He is responsible for several business units, the areas of corporate strategy, global marketing, product development and procurement, license management, HR, and corporate communications. Previously, he was significantly involved in establishing Tommy Hilfiger in Europe and became CEO of Tommy Hilfiger Europe in 2008. After integrating the brand into PVH Corporation, he became CEO and President of Tommy Hilfiger Global and PVH Europe in 2014.
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