Hugo Boss Ag · XETR:BOSS
Hugo Boss — Investor Day (November 2011)
32 slides from Hugo Boss's investor day presentation, Nov 8, 2011
Slide 1: HUGO BOSS
HUGO BOS S$
Slide 2: Asia Pacific Strategy
Asia Pacific Strategy Dr. Gerrit Rützel, President & CEO Asia Pacific November 8, 2011 HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 2 / 32
Slide 3: About me
About me ■ Born 29 January 1974 in Fulda, Germany ■ Education ■ 1993 – 1998 European Business School, Oestrich Winkel (Dipl.Kfm.) ■ 1998 – 2001 Johann-Wolfgang-Goethe University, Frankfurt (PhD) ■ Professional background ■ 2001-2008 HUGO BOSS AG DR. GERRIT RÜTZEL ■ 2001-2002 Country Specialist Spain
Slide 4: Agenda
AGENDA INTRODUCTION HUGO BOSS IN ASIA PACIFIC REVIEW OF REGIONAL STRATEGY SUMMARY AND OUTLOOK HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 4 / 32
Slide 5: Asia Pacific to remain engine of global growth
Asia Pacific to remain engine of global growth ■ Asia Pacific GDP growth expected to remain strong at 6-7% for 2011 / 2012* ■ China clearly being the “powerhouse” within the region ■ Japan on its way to recovery ■ Other Asian countries developing fast ■ Luxury brands strongly increasing their footpr
Slide 6: Asia Pacific expected to continuously increase its luxury share
Asia Pacific expected to continuously increase its luxury share 225-230 €B 191 €B 5% 173 €B 5% 5% 153 €B 20% REST OF WORLD 5% 17% 19% ASIA PACIFIC 15% 8% 10% 10% JAPAN 12% 30% 30% 30% AMERICAS 30% EUROPE 38% 37% 36% 36% 2009 2010 2011E 2014F Source: Fondazione Altagamma // Bain & Company, October 20
Slide 7: Global opportunities – Asia Pacific countries with high growth potential
GLOBAL OPPORTUNITIES – Asia Pacific countries with high growth potential HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 7 / 32
Slide 8: Agenda
AGENDA INTRODUCTION HUGO BOSS IN ASIA PACIFIC REVIEW OF REGIONAL STRATEGY SUMMARY AND OUTLOOK HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 8 / 32
Slide 9: HUGO BOSS in Asia Pacific today
HUGO BOSS in Asia Pacific today ~1,350 14 >430 EMPLOYEES COUNTRIES POINTS OF SALE 179 >250 >120 RETAIL WHOLESALE WHOLESALE PARTNERS POS POS HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 9 / 32
Slide 10: HUGO BOSS in Asia Pacific today – Organizational set-up
HUGO BOSS in Asia Pacific today – Organizational set-up HONG KONG Asia Pacific Headquarter / Showroom Tokyo CHINA, Shanghai Beijing Local subsidiary Shanghai Guangzhou Hong Kong CHINA, Beijing Local press office CHINA, Guangzhou Local sourcing office JAPAN, Tokyo Local subsidiary AUSTRALIA, Melbourn
Slide 11: Greater China most important contributor to sales growth in Asia
Greater China most important contributor to sales growth in Asia Sales in Asia Pacific 11% Rest of Asia (in EUR million) 16% 18% Oceania 230 21% 13% Japan 162 165 134 26% 123 58% Greater China* 37% 2006 2007 2008 2009 2010 2011e 2009 YTD Sep 2011 * Greater China = Mainland China plus Hong Kong and M
Slide 12: Agenda
AGENDA INTRODUCTION HUGO BOSS IN ASIA PACIFIC REVIEW OF REGIONAL STRATEGY SUMMARY AND OUTLOOK HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 12 / 32
Slide 13: Key value drivers for the years to come
Key value drivers for the years to come MARKETS BRAND & OPERATIONS RETAIL WHOLESALE MERCHANDISE HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 13 / 32
Slide 14: Brand & Merchandise – Key strategic initiatives
BRAND & MERCHANDISE – Key strategic initiatives ■ Strengthen luxury brand perception and demonstrate product competence ■ Generate strong growth in BOSS Selection ■ Shoes & accessories and womenswear as important categories for growth and image building ■ Expand formalwear segment (offer made-to- me
Slide 15: HUGO BOSS ranks amongst the best fashion labels in China
HUGO BOSS ranks amongst the best fashion labels in China ■ Continue to upgrade brand positioning and recognition through - flagship stores - intensifying editorial coverage - hosting retail events - strong online media presence - sport and art sponsorship activities - running major fashion shows Sou
Slide 16: Strengthen luxury brand perception – Flagship stores
Strengthen luxury brand perception – Flagship stores HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 16 / 32
Slide 17: Strengthen luxury brand perception – Retail events
Strengthen luxury brand perception – Retail events HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 17 / 32
Slide 18: Strengthen luxury brand perception – Editorial coverage
Strengthen luxury brand perception – Editorial coverage HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 18 / 32
Slide 19: Strengthen luxury brand perception – Online / social media
Strengthen luxury brand perception – Online / social media HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 19 / 32
Slide 20: Strengthen luxury brand perception – Sport sponsorship
Strengthen luxury brand perception – Sport sponsorship HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 20 / 32
Slide 21: BOSS Black is the strongest brand with BOSS Selection increasing its share
BOSS Black is the strongest brand with BOSS Selection continuously increasing its share Revenue split by brand / line 2% 2% HUGO 4% 9% BOSS Selection 6% 9% BOSS Green 10% 8% BOSS Orange 78% 72% BOSS Black 2009 YTD Sep 2011 HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8,
Slide 22: Luxury positioning of BOSS Selection generates strong growth
Luxury positioning of BOSS Selection generates strong growth BOSS Selection Asia Pacific in % of BOSS Selection HUGO BOSS Group Sales 40% 16% 2009 2011 BOSS Selection in % of sales of Asia Pacific China 9% 13% 4% 6% 2009 2011 2009 2011 HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS ©
Slide 23: Operations – Key strategic initiatives
OPERATIONS – Key strategic initiatives ■ Support regional growth through Shanghai & Hong Kong as logistic hubs improved warehouse network for Greater China ■ Gain market share through increased speed to market and faster replenishment China Mainland ■ Generate cost efficiencies Taiwan ■ Warehouse st
Slide 24: Sales channel – Continuously increasing share of retail sales
SALES CHANNEL – Continuously increasing share of retail sales RETAIL WHOLESALE China Plus Rest of Asia 16% Asia Pacific 70% 100% 100% 84% 30% 26% 2009 YTD Sep 2011 2009 YTD Sep 2011 54% Japan Oceania 74% 1% 1% 30% 46% 59% 99% 99% 70% 41% 2009 YTD Sep 2011 2009 YTD Sep 2011 2009 YTD Sep2011 HUGO BOSS
Slide 25: Retail – Key strategic initiatives
RETAIL – key strategic initiatives ■ Open flagship stores in key cities ■ Continue strong expansion in 2nd and 3rd tier cities in China ■ Strive for retail excellence ■ Improve CRM measures ■ Built e-commerce presence in China HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November
Slide 26: Early market presence and DOS network strongly distributed in Greater China
Early market presence and DOS network leaves HUGO BOSS strongly distributed in Greater China ■ 93 POS from own retail activities ■ Successful Joint Venture integration in 2010 ■ Franchise partner ImagineX (China) takeover in 2011 / 2012 ■ Franchise partner Chieh Ger (Taiwan) takeover in 2012 ■ Furth
Slide 27: Retail – New store openings China in 2010 / 2011
RETAIL – New store openings China in 2010 / 2011 HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 27 / 32
Slide 28: Wholesale – Key strategic initiatives
WHOLESALE – key strategic initiatives ■ Selectively grow wholesale business Japan especially outside Greater China (incl. new market entries, e.g. Vietnam) China ■ Strong focus on important POS as well Hong Kong as key customer growth (e.g. Indonesia) Thailand Vietnam Philippines ■ Travel Retail as
Slide 29: Agenda
AGENDA INTRODUCTION HUGO BOSS IN ASIA PACIFIC REVIEW OF REGIONAL STRATEGY SUMMARY AND OUTLOOK HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 29 / 32
Slide 30: Summary and Outlook
Summary and Outlook Asian Pacific to remain important growth region Strategic initiatives Selective Key marketing Continued retail in logistics and IT wholesale activities drive expansion to secure expansion to luxury brand ensure sustainable operational increase market perception profitable growth
Slide 31: Questions & Answers
QUESTIONS & ANSWERS HUGO BOSS Investor Day 2011 // Asia Pacific Strategy HUGO BOSS © November 8, 2011 31 / 32
Slide 32: HUGO BOSS
HUGO BOS S$