German fashion brand Hugo Boss has revealed its new growth strategy, named Claim 5, which aims to double sales to €4 billion by 2025. The company plans to achieve this by accelerating growth across all brands, touchpoints, and geographies, as well as refreshing the branding of both Boss and Hugo. In order to appeal to a younger consumer demographic, Hugo Boss will invest heavily in product development, branding, and digital experiences. The company’s goal is to achieve a strong EBIT margin of around 12% by 2025 and establish itself as one of the top-100 global brands.

Claim 5 is built on five key pillars. The first pillar, Boost Brands, involves revamping labels, logos, and marketing, alongside introducing new designs in retail and digital experiences. The aim is to completely rejuvenate the look and feel of the brands. The second pillar, Product is King, prioritizes creating versatile products that can be worn for different occasions, with a focus on casualization and comfort. Hugo Boss will also emphasize its price-value proposition, ensuring premium quality, innovation, and sustainability, to solidify its position in the premium/affordable luxury segment.

The third pillar, Lead in Digital, commits to digitizing all aspects of Hugo Boss’s business activities, from trend detection and digital product development to AI-enabled pricing and expanding its digital showrooms globally. The company plans to establish a digital campus to enhance its capabilities and improve the consumer experience through data-driven strategies.

The fourth pillar, Rebalance Omnichannel, aims to translate the brand’s power into all consumer touchpoints. Hugo Boss intends to increase its digital revenues to over €1 billion by 2025 and expand digital penetration to between 25% and 30% of total sales. Additionally, the company will optimize its brick-and-mortar retail operations and target retail revenues of approximately €2 billion by 2025. This will be achieved through improving store productivity and refreshing the global store network.

The fifth and final pillar, Organize for Growth, focuses on driving growth across all geographies while balancing the global footprint. The Asia/Pacific region is expected to contribute over 20% of total revenues within the next five years, with a particular emphasis on China. Hugo Boss will also maintain its leading position in premium apparel in Europe, with projected sales growth in the low- to mid-single digits annually. Key markets such as Germany, the UK, and France will play a crucial role in driving growth through retail expansion, wholesale partnerships, and digital advancements. In the Americas, the company aims to take advantage of the casualization trend in the US market and achieve mid-single-digit revenue growth between 2019 and 2025.

By implementing Claim 5, Hugo Boss hopes to revitalize its brands and achieve significant growth. The strategy encompasses product development, digitalization, omnichannel expansion, and global market balancing. Ultimately, the company aims to become the leading premium tech-driven fashion platform worldwide, doubling its business and establishing itself as a top global brand in the fashion industry.

For more information on Hugo Boss’s growth strategy, you can visit their official website [here]({target=”_blank”}.

You can also check out this article from Business of Fashion for additional insights [here]({target=”_blank”}.