Hugo Boss reportedly moving focus away from luxury

Image from Hugo Boss’ “Rhythm & Moves”

German fashion label Hugo Boss’ CEO told European business newspaper Handelsbladtt that he plans to get back to the brand’s premium roots following a challenging move upmarket into luxury.

Mark Langer, the former chief financial officer of Hugo Boss who was promoted to CEO in 2016 after 13 years in the company (see story), said in his first interview since taking the helm of the label that he would be focusing more on its high-end suiting than its luxury positioning. Mr. Langer is looking to turn around profitability at the label, which has seen lower sales in key markets such as China and the United States.

Change of plan
Mr. Langer’s predecessor Claus-Dietrich Lahrs looked to build up Hugo Boss’ luxury positioning, by opening high-end boutiques and expanding its women’s line.

In the inteview, Mr. Langer is quoted as saying, “The effort to make in-roads in the luxury market didn’t prove to be particularly helpful for our business.”

This new strategy includes business suits for the mainline Boss label starting at a price point of €500, or about $545.

Mr. Langer intends to cut costs by $54 million, in part by closing about 40 of its underperforming stores.

With this refocus on its former strategy surrounding menswear, Hugo Boss confirmed to British Vogue that it would be retaining its women’s wear collection and its relationship with designer Jason Wu.

Hugo Boss spring/summer 2016 collection

Other brands have reacted to luxury’s stalling sales with more affordable options.

Italian fashion label Trussardi is showcasing its enhanced focus on its leather goods business with the release of a handbag designed to be a constant companion.

Part of the house’s planned five-year transformation toward accessible luxury, the Lovy bag features the craftsmanship and design details at an approximate $600 price point. As the luxury industry seeks growth in a difficult climate, a number of brands have reorganized their businesses with profitability in mind (see story).

from Apparel and accessories – Luxury Daily https://www.luxurydaily.com/hugo-boss-reportedly-moving-focus-away-from-luxury/
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