Multinational corporations and conglomerates that specialize in luxury and fashion are among the most successful businesses in the industry. These businesses control a limited number of brands and houses, such as LVMH, Kering and Farfetch, Richemont and OTB, Capri Holdings and Inditex.
Hugo Boss from Germany, a brand based in Metzingen, will be aware that only 10 groups generate the luxury market worldwide, which is currently valued at 300 billion dollars. A small percentage of this pie could yield huge profits.
Hugo Boss could also consider buying other brands in the next phase of its growth. Hugo Boss Chief Executive Daniel Grieder stated clearly in an interview with Manager Magazine: “We are pursuing platform approach that will enable us to grow further also via acquisitions,” adding that he saw particular potential within Europe’s premium market.
Hugo Boss has ambitious sales targets of reaching 4 billion euros by 2025. This means that Hugo Boss will need to do more than just sell its product to double its sales. Grieder stated that the company’s vision is to be the most technologically advanced fashion platform in the world and will transform the way consumers interact with them.
Brand Finance, the experts in ranking, has calculated the brand value for Hugo Boss nine times between 2013-2021. Hugo Boss has been featured in 17 brand rankings. These include the most valuable European brands and the largest Apparel brands.
Hugo Boss’s next question is what brands might be attractive acquisitions. Hugo Boss is a leader in premium lifestyle and has a solid business model. It sourcing volume of 17 percent comes from its own facilities. The company’s wholesale turnover is 30 percent. This could be reduced and the company could grow via its own retail channels and e-commerce. The company’s centralised warehouse in Germany seamlessly distributes its products across 47 international markets.
Who is the Boss?
Grieder stated that it was his goal to make Hugo Boss one the top 100 global brands, and that he would spend more than 100 millions euros on marketing between now and 2025.