Hugo Boss AG · XETR:BOSS
Hugo Boss — Investor Day (November 2011)
43 slides from Hugo Boss's investor day presentation, Nov 8, 2011
Slide 1: HUGO BOSS
HUGO BOS S$
Slide 2: Brand Strategy
Brand Strategy Christoph Auhagen, Chief Brand Officer November 8, 2011 HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 2 / 43
Slide 3: Agenda
AGENDA STRONG BRANDS OPERATIONAL EXCELLENCE SUMMARY HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 3 / 43
Slide 4: Agenda: Strong Brands
AGENDA STRONG BRANDS OPERATIONAL EXCELLENCE SUMMARY HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 4 / 43
Slide 5: Different brands targeting clearly defined consumer segments
HUGO BOSS – Different brands targeting clearly defined consumer segments HUGO BOSS Brand Portfolio HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 5 / 43
Slide 6: BOSS Selection – Brand DNA
BOSS Selection – Brand DNA ■ Role within HUGO BOSS The most luxurious brand with the highest quality standards ■ Brand Personality Luxurious, modern, authentic ■ Brand Promise Exquisite style, high value materials and workmanship ■ Point of difference Innovation in style and taste ■ Brand Purpose Cr
Slide 7: BOSS Black – Brand DNA
BOSS Black – Brand DNA ■ Role within HUGO BOSS Core brand of HUGO BOSS ■ Brand Personality Modern, superior, premium ■ Brand Promise Being impeccably and appropriately dressed in every situation ■ Point of difference Contemporary elegance and perfection associated with a desirable lifestyle ■ Brand
Slide 8: HUGO – Brand DNA
HUGO – Brand DNA ■ Role within HUGO BOSS The fashion spearhead of HUGO BOSS ■ Brand Personality Edgy, progressive, creative, individual ■ Brand Promise Avant-garde / contemporary fashion that underlines a creative and individual attitude ■ Point of difference Unconventional & progressive without bei
Slide 9: Clothing – Three strong Group brands dominating the market
CLOTHING - Three strong Group brands dominating the market market segment luxury premium fashion modern statement modern progressive authentic sophisticated avant-garde HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 9 / 43
Slide 10: Clothing – Clearly differentiated brand identities
CLOTHING – Clearly differentiated brand identities modern modern progressive authentic sophisticated avant-garde HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 10 / 43
Slide 11: BOSS Orange – Brand DNA
BOSS Orange – Brand DNA ■ Role within HUGO BOSS Rough and unpolished side of HUGO BOSS ■ Brand Personality Urban, modern, confident ■ Brand Promise Modern casual wear that adapts to the lifestyle of the metropolitan inner-city ■ Point of difference Fashion-driven premium casual wear for individual s
Slide 12: BOSS Green – Brand DNA
BOSS Green – Brand DNA ■ Role within HUGO BOSS The golf & premium sportswear / lifestyle brand ■ Brand Personality Relaxed, sporty, optimistic, vigorous ■ Brand Promise Golf meets lifestyle in a premium sportswear collection based on vibrant colors ■ Point of difference Sophisticated lifestyle sport
Slide 13: Sportswear – Competitive market positions in premium and luxury
SPORTSWEAR – Competitive market positions in premium and luxury market segment luxury premium fashion statement casual Sportive modern urban chic relaxed sophisticated HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 13 / 43
Slide 14: Sportswear – Attractive offerings for different target groups
SPORTSWEAR – Attractive offerings for different target groups casual sportive modern modern urban chic relaxed sophisticated authentic HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 14 / 43
Slide 15: Eyan Allen, Brand & Creative Director Womenswear
EYAN ALLEN // Brand & Creative Director Womenswear HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 15 / 43
Slide 16: Womenswear – Building a world-class womenswear business
WOMENSWEAR – Building a world-class womenswear business HUGO BOSS womenswear Global womenswear market ■ High degree of brand credibility among the female consumer ■ Highly fragmented market ■ Highest standards in terms of ■ Market significantly bigger quality and fit compared to menswear ■ Steady gr
Slide 17: Womenswear – One dedicated organization
WOMENSWEAR – One dedicated organization Menswear Womenswear BOSS Black Clothing BOSS Black Sportswear Product Development Product Development Technical Realization Technical Realization Sourcing and Manufacturing Sourcing and Manufacturing Sales Sales HUGO BOSS Investor Day 2011 // Brand Strategy HU
Slide 18: Womenswear – Growth strategy refined
WOMENSWEAR – Growth strategy refined 01 Organization Dedicated womenswear organization across all functions 02 Brands Sharper and more focused brand image 03 Design Emphasize femininity across the product range 04 Product Range Grow luxury sportswear category 05 Communication Key communication focus
Slide 19: HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011
HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 19 / 43
Slide 20: HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011
HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 20 / 43
Slide 21: HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011
HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 21 / 43
Slide 22: Womenswear – Conquering the womenswear fashion market
WOMENSWEAR – Conquering the womenswear fashion market market segment luxury premium fashion statement casual sportive modern progressive urban chic relaxed sophisticated avant-garde HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 22 / 43
Slide 23: Womenswear – Different brand identities reflected in unique design languages
WOMENSWEAR – Different brand identities reflected in unique design languages casual sportive modern progressive urban chic relaxed sophisticated avant-garde HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 23 / 43
Slide 24: Christoph Auhagen, Chief Brand Officer
CHRISTOPH AUHAGEN // Chief Brand Officer HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 24 / 43
Slide 25: Shoes & Accessories – Exploiting growth opportunities
SHOES & ACCESSORIES – Exploiting growth opportunities TODAY GROWTH STRATEGY TARGET ■ Strengthen and enlarge design team ■ Facilitate and ensure close ■ Accounts for around 10% cooperation between of Group sales apparel and S&A ■ Dominant market position development teams in men’s dress and casual ■
Slide 26: HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011
HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 26 / 43
Slide 27: BOSS Selection – Addressing the luxury consumer
BOSS SELECTION – Addressing the luxury consumer ■ New brand direction ■ Clearly differentiated brand identity ■ Full range offer ■ Unique selling proposition… ■ Modern fashion statement ■ Superior price-value relationship ■ …reflected in strong consumer reception ■ Strong double-digit growth ■ Impor
Slide 28: BOSS Selection – Impressive brand presentation at Pitti Uomo
BOSS Selection – Impressive brand presentation at Pitti Uomo HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 28 / 43
Slide 29: Brand Communication – Showcasing our brands' values
BRAND COMMUNICATION – Showcasing our brands’ values ADVERTISING MEDIA SPORT SPONSORING Desirability & Status Precision & Success FASHION SHOWS ONLINE MEDIA Glamour & Perfection Community & Connectivity HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 29 / 43
Slide 30: Agenda: Operational Excellence
AGENDA STRONG BRANDS OPERATIONAL EXCELLENCE SUMMARY HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 30 / 43
Slide 31: HUGO BOSS growth strategy
HUGO BOSS growth strategy STRENGTHENING MAXIMIZING INDIVIDUAL CONSUMER FOCUS BRAND TO DRIVE RETAIL IDENTITIES D.R.I.V.E. STRIVING FOR EXPLOITING OPERATIONAL GLOBAL EXCELLENCE GROWTH OPPORTUNITIES *D.R.I.V.E. = Dynamic Retail Improvement & Vertical Expansion HUGO BOSS Investor Day 2011 // Brand Strat
Slide 32: Project D.R.I.V.E. – Striving for operational excellence
PROJECT D.R.I.V.E. – Striving for operational excellence Core Range Sourcing & Time to Market Manufacturing Quality D.R.I.V.E. Complexity Improvements Optimization Direct Development & Delivery Increase Product Efficiencies HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 3
Slide 33: Project D.R.I.V.E. – 38 week lead time fully implemented
Time to PROJECT D.R.I.V.E. – 38 week lead time fully implemented Market Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Product Development Sales Past Production Sell Thru Product Development Sales 4-cycle Production Feedback from market, sales, retail sales Sell Thru HUGO
Slide 34: Project D.R.I.V.E. – Streamlined prototyping and sampling process
PROJECT D.R.I.V.E. – Streamlined prototyping and sampling process Direct Development & Delivery ■ Raw material need defined at a significantly earlier stage ■ Close cooperation between designers, technical development and operations ■ Establishment of Technical Development Center ensures quick turna
Slide 35: Project D.R.I.V.E. – Virtual product development to gain importance
PROJECT D.R.I.V.E. – Virtual product development to gain importance Direct Marketing Development & Delivery Development Design Sales ■ Virtualization of design process offers potential advantages in terms of quality, speed and cost ■ Allows seamless cooperation and communication between different fu
Slide 36: Project D.R.I.V.E. – Showroom time reduction
Time to Market PROJECT D.R.I.V.E. – Showroom time reduction Before 9 D.R.I.V.E. Show- room time Today 6 ■ Showroom time reduced by three weeks ■ Seamless IT integration accelerates ordering process of own retail organization HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011
Slide 37: Project D.R.I.V.E. – More focused development process reduces complexity
PROJECT D.R.I.V.E. - More focused development process Complexity translates into significant complexity reduction Optimization Number of styles 20,000 -34% 15,000 10,000 5,000 0 2009 2012e HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 37 / 43
Slide 38: Project D.R.I.V.E. – Efficient global sourcing activities
Sourcing & PROJECT D.R.I.V.E. – Efficient global sourcing Manufacturing activities EUROPE (62%) - thereof 17% HB IZMIR - NORTH AMERICA (1%) CHINA (16%) NORTH AFRICA (9%) SOUTH EAST ASIA CENTRAL & (11%) SOUTH AMERICA (1%) As of full year 2010. HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS ©
Slide 39: Project D.R.I.V.E. – Global rollout under way
PROJECT D.R.I.V.E. – Global rollout under way Rollout also in the Americas and Asia Pacific in 2012 and beyond HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 39 / 43
Slide 40: Agenda: Summary
AGENDA STRONG BRANDS OPERATIONAL EXCELLENCE SUMMARY HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 40 / 43
Slide 41: Summary – The winning formula
SUMMARY – The winning formula 5 strong brands 3 distribution channels 1 Project D.R.I.V.E. 25 %-EBITDA margin 3 billion euro of sales HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 41 / 43
Slide 42: Questions & Answers
QUESTIONS & ANSWERS HUGO BOSS Investor Day 2011 // Brand Strategy HUGO BOSS © November 8, 2011 42 / 43
Slide 43: HUGO BOSS
HUGO BOS S$