Investor Day Refocus the brands - Hugo Boss · 13 INVESTOR DAY –REFOCUS THE BRANDS +15% Sales...

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Investor DayRefocus the brands

Ingo Wilts

INVESTOR DAY – REFOCUS THE BRANDS01

Chief Brand Officer

November 15, 2018

INVESTOR DAY – REFOCUS THE BRANDS02

Successful launch oftwo-brand strategy

#ThisIsBOSS

#iamHUGO

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Addressing two distinct and unique customers

brandscustomerslifestyles

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Further sharpeningbrand positioning

Clear and distinct

brand values

Product andmarketing

BRAND STRATEGY

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Masculinity/Femininity

Sexiness

Success

Precision

Style

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FOR MEN ON THEIR WAYTO GREATNESS…

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FOR WOMEN MAKINGBOLD MOVES…

BOSSDRESSESTHE DRIVE

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Brand values are reflectedin product and marketing

360° marketingProduct

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Brand values are reflectedin product proposition

Product

Strengthen tailoring heritage

Grow Casual- and Athleisurewear

Drive product innovation

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Pursuing three key ambitions

Observation AmbitionPriority

Formalwear marketremains challenging

Innovation shapes brand desirability

Strengthen the strength

Challenge the status quo

Tailoring heritage1

Innovation3

Casual- andAthleisurewear

2Make the big biggerCasualization

trend continues

Product

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+15%Sales growth YOY

Mix & Match

Every 3rdBOSS suit sold with

Stretch Tailoring

+50%Sales growth YOY

Made-to-Measure

reason for customersto buy BOSS is the

QUALITY

#1

Product | Tailoring heritage

Strengthen tailoring heritageto drive customer value and brand desirability

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StrengthenBusinesswear

Intensify brand collaborations andcapsule development

Leverage tailoring heritageby realigning Womenswearcollection set-up

Upper premiumwear-to-work brand for female professionals

#1

Product | Tailoring heritage

Focus onkey categories

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ExclusiveItalian fabrics

Toni Garrn andDaniel Bruehl

Twelveselected pieces

Made in Germany

Product | Tailoring heritage

Capsule strengthensBOSS DNA of superior tailoring

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CAGR 2018-2022

double-digit

Product | Casual- and Athleisurewear

Exploit potential withBOSS Casual- and Athleisurewear

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Analyze product groups and

customer needs

Complexity reduction forBOSS Casual- and Athleisurewear

1

2

3

4

Reorganize collection

structure to minimize overlaps

Reallocate resources for

product innovation

Free up resources for

capsule collections

-30%2020 vs 2018

Product | Casual- and Athleisurewear

Product | Innovation

Fabric Personalization

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Driving innovationto excite customers

SustainabilityFunctionality

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Driving innovationto excite customers

latest technology

customer benefit

FUNCTIONALITY

HEAT JACKET

Product | Innovation

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Driving innovationto excite customers

WASHABLE SUIT

Product | Innovation

new product performance

changing customer demand

FABRIC

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Driving innovationto excite customers

Product | Innovation

high-end tailoring

individual product offering

PERSONALIZATION

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PIÑATEX®

SHOE

Driving innovationto excite customers

Product | Innovation

innovation in product and processes

changing customer demand

SUSTAINABILITY

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Brand values are reflectedin marketing approach

360° marketing

360° marketing

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Campaign “The Next BOSS”

Total reach on Facebook andInstagram within 2 months>40m

360° marketing

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Web

360° marketing approach to consistently engage with the BOSS customer

Social CRM Out of home Store

360° marketing

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BOSS x Michael Jacksoncelebrates a music legend & style icon

11 hours

The White Suit was sold outonline within

> 4m

Total reach on Instagramwithin 3 days

360° marketing

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Collaborative campaign “Holiday”with Jeremyville

360° marketing

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BOSS: California Breeze at theNew York Fashion Week

Collection Front row

360° marketing

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~ 5m

< 2m

2016 2018

< 3m

2017

Pursuing a holisticmarketing approach

# of Instagramfollowers

360° marketing

BRAND STRATEGY

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WE LIVE IN

THE AGE OF INDIVIDUALITY

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PREPARE TO

EMBRACE THE POSSIBLE

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The platform of self-expression

Globally engaged Citizens of everywhere

Always curious The next thing

Authentically expressive The power of real

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Brand values are reflectedin product and marketing

Product Marketing

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Brand values are reflected in product proposition

Create unconventional authenticity

Grow Casualwear

Drive product innovation

Product

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Pursuing three key ambitions

Observation AmbitionPriority

Customer strivesfor individualization

Innovation shapesbrand desirability

Strengthen the strength

Challenge the status quo

Unconventional authenticity

1

Innovation3

Casualwear2

Make the big biggerCasualizationtrend continues

Product

Businesswear Casualwear

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Unconventional

Offering progressive collectionsfor the “mix-masters”

InnovativeAuthentic

Product | Unconventional authenticity

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HUGO REVERSED offerspersonalized premium fashion

Product | Casualwear

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Successful launch of digitally developed HUGO collection

HUGO Bits and Bytes collection

DIGITAL

reduction of lead times&

no samples

Product | Innovation

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Brand values are reflectedin marketing approach

Marketing

Marketing

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HUGO campaign “Welcome to Berlin”

2xreach on Instagram compared to mirror

season

Marketing

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Marketing initiatives aim at connecting with the HUGO customer

Social Pop-up stores Fashion show

Marketing

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Co-creation withfollowers on social media

Marketing

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HUGO collaborates… …and inspires influencers

#iamHUGO

Marketing

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Fashion show in Berlincreates buzz for HUGO

Collection Front row

Marketing

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Key drivers of sales growth andEBIT margin expansion

= currency-adjusted

Online

Retail Productivity SalesGrowth5-7%

CAGR*

EBITMargin

15%

HUGO

Asia

Gross Margin Expansion

Efficiency Program

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