Hugo Boss Ag · XETR:BOSS
Hugo Boss — Investor Day (November 2015)
58 slides from Hugo Boss's investor day presentation, Nov 24, 2015
Slide 1: HUGO BOSS
HUGO BOS S§S
Slide 2: HUGO BOSS Investor Day 2015 Omnichannel Strategy
HUGO BOSS Investor Day 2015 Omnichannel Strategy Patrick Berresheim (Director Digital Retail) Bernd Hake (Senior Vice President Europe, Middle East, Africa & India) Gerd von Podewils (Senior Vice President Global Communication) Metzingen, November 24, 2015 HUGO BOSS Investor Day 2015 // Omnichannel
Slide 3: Agenda
Agenda Content-focused website upgrade builds emotional brand perception hugoboss.com offers convenient online shopping and drives customers to store Omnichannel services make shopping experience “noline” HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 3
Slide 4: Gerd von Podewils, Senior Vice President Global Communication
Gerd von Podewils, Senior Vice President Global Communication HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 4
Slide 5: Agenda
Agenda Content-focused website upgrade builds emotional brand perception hugoboss.com offers convenient online shopping and drives customers to store Omnichannel services make shopping experience “noline” HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 5
Slide 6: What we achieved: Website upgrade has driven sales
What we achieved: Website upgrade has driven sales Development of online sales ■ Online frontend insourced in early 2014 (in EUR million // fx-adj. change) +10% ■ Website relaunch in autumn 2014 has 62 68 enhanced emotional appeal of commercial 49 platform 33 ■ Strong traffic increase has supported
Slide 7: What was a linear relationship once…
What was a linear relationship once… CONSUMER PRODUCT EXPERIENCE HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 7
Slide 8: …has become a multi-touchpoint relationship today
…has become a multi-touchpoint relationship today MOBILE REAL TIME DATA BIG DATA PERSONALIZATION THE AGE OF THE .COM RESEARCH ONLINE Millennials HUB PURCHASE DIGITALLY STORE PAGES OFFLINE WEARABLES CONNECTED CONSUMER My CONSUMER EVENTS INSTANT DELIVERY HUGO BOSS VIRTUAL FITTING SOCIAL MOBILE MEDIA A
Slide 9: From creating an unattainable world…
FROM CREATING AN UNATTAINABLE WORLD … HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 9
Slide 10: …to participatory exclusivity
…TO PARTICIPATORY EXCLUSIVITY HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 10
Slide 11: From controlled experiences…
FROM CONTROLLED EXPERIENCES … HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 11
Slide 12: …to the consumer being BOSS
… TO THE CONSUMER BEING BOSS. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 12
Slide 13: The brand website is the key digital channel behind physical stores
The brand website is the key digital channel comes close behind the physical stores Omnichannel retail: Importance of selected digital channels when making a purchase (June 2014 // in %) Traditional store experience 72 Site 67 In-store technology 53 E-mail 48 Mobile app/mobile web 42 Social media 36
Slide 14: Driving NOLINE sales and profit is the overarching goal in digital
Driving NOLINE sales and profit is the overarching goal of everything we do in digital INCREASE SALES AND PROFIT LEVERAGE EMOTIONAL INCREASE QUALITY OF IMPROVE CUSTOMER INCREASE EFFICIENCY BRAND PURPOSE CUSTOMER EXPERIENCE DATA AND ANALYTICS AND REDUCE COMPLEXITY HUGO BOSS Investor Day 2015 // Omnic
Slide 15: Success is personal
Success is personal. It means something different to everyone. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 15
Slide 16: Success is universal
Success is universal. It is a driving force that is deeply rooted within each one of us. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 16
Slide 17: This will to succeed is fueled by confidence
This will to succeed is fueled by the confidence that enables us to achieve whatever we strive for in life. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 17
Slide 18: Making our customers feel more confident
Making our customers feel more confident is at the core of everything we do at HUGO BOSS. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 18
Slide 19: Our signature: craftsmanship in tailoring and artistry of modern engineering
Our signature is the combination of craftsmanship in tailoring and the artistry of modern engineering – a combination that ensures the uniqueness of all HUGO BOSS products and services. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 19
Slide 20: Building confidence through garments rooted in legacy
HUGO BOSS builds confidence through garments and accessories that are rooted in legacy but modernized by constant innovation. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 20
Slide 21: Building confidence through structured creativity
HUGO BOSS builds confidence through structured creativity which is always refined and never complicated. We push the aesthetic boundaries by drawing on a modernist approach. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 21
Slide 22: Building confidence through outstanding quality and perfect fit
HUGO BOSS builds confidence through always delivering outstanding quality and the perfect fit. We know that when your outfit simply feels right you are ready to achieve whatever you are striving for in life. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 22
Slide 23: HUGO BOSS inspires people to succeed
HUGO BOSS inspires people to succeed by fostering the most fundamental element of success: the confidence that you can. HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 23
Slide 24: Focus on emotional brand perception drives all our communication
The focus on building emotional brand perception drives all our communication Emotional level Connect through SHARED VALUES Brand strategy Emotional brand (purpose) perception Inspire and enable When a garment simply people for success feels right you are ready to achieve whatever you are striving f
Slide 25: Four focus areas guide digital reset
Four focus areas guide digital reset PERSONALI- CONTENT ZATION ADVISORY CONVENIENCE HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 25
Slide 26: Strong lineup of topics creates storytelling website content
Strong lineup of topics creates storytelling website content FASCINATING #1 GREAT PRODUCTS #2 SPONSORSHIPS UNMISTAKABLE UNIQUE ADVISORY #3 BRAND DNA #4 COMPETENCE HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 26
Slide 27: Hub pages are key elements of future hugoboss.com website
Hub pages are key elements of future hugoboss.com website Topic-specific HUB PAGES will connect EMOTION and COMMERCE, integrating editorial content, advisory elements and access to store. EMOTION COMMERCE HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 27
Slide 28: Hub pages are starting point of customers' on-site journey
Hub pages are starting point of customers’ on-site journey HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 28
Slide 29: Hub page structure adapts dynamically to visiting customer
Hub page structure adapts dynamically to profile of visiting customer Unrecognized customer Recognized customer (through seeking advice IP, cookie or registration) seeking inspiration ? A B C D READ Profile Content Profile Content READ Profile Content Local APPOINT- MENT Content BUY H U B P A G E HU
Slide 30: my HUGO BOSS offers personalized customer experience
my HUGO BOSS offers personalized customer experience ■ Pilot rollout in Austria, Switzerland and Belgium started in September ■ Rollout across all other European e-Com countries and other non- e-Com countries planned in 2016 ■ Continuous addition of personalization options in 2016 and beyond HUGO BO
Slide 31: Digital marketing channels drive customers to hugoboss.com
Digital marketing channels are all tools to drive customers to hugoboss.com Search Engine Advertisement (SEA) Affiliate / Publisher E-Mail Display Online Banner Social Media Search Engine Optimization (SEO) Push of social media to accelerate move from owned to earned media HUGO BOSS Investor Day 201
Slide 32: Social media reach is being further extended
Social media reach in being further extended Follower growth (Jan-Oct 2015) Instagram +224% 823,000 followers Twitter +50% 560,000 followers Facebook +5% 7.5 million fans Target to double Instagram reach by March 2016 based on NYC Fashion Show activation HUGO BOSS Investor Day 2015 // Omnichannel St
Slide 33: Continuous engagement tracking helps evaluate content effectiveness
Continuous engagement tracking helps to evaluate content effectiveness Instagram engagement (w/c Oct 11, 2015, in % // average engagement: 5.8%) 7.9 7.4 6.5 6.3 6.0 5.8 6.1 6.1 5.5 5.6 5.1 5.3 5.2 5.2 5.0 4.9 4.1 MTM FW15 CTG Bespoke FW15 WW NSC FW15 MW CTG FW15 MW CTG FW15 MW CTG F1 Congrats FW15 N
Slide 34: All digital marketing activities drive traffic to hugoboss.com
All digital marketing activities drive traffic to hugoboss.com Search Engine Search Engine Display Online Affiliate / Print Advertisement E-Mail Social Media Optimization Banner Publisher Advertising (SEA) (SEO) hugoboss.com “NOLINE” NET SALES HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO
Slide 35: Patrick Berresheim, Director Digital Retail
Patrick Berresheim, Director Digital Retail HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 35
Slide 36: Agenda
Agenda Content-focused website upgrade builds emotional brand perception hugoboss.com offers convenient online shopping and drives customers to store Omnichannel services make shopping experience “noline” HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 36
Slide 37: hugoboss.com scores high on convenience and usability
hugoboss.com scores high on convenience and usability PayPal / PayPal Express Live chat Tablet optimization Back-in- Service Cross-Device stock notification Excellence Mobile store Customer facing Infrastructure ‘Find in store’ Search as Cross-seller, you type similar Omnichannel Features / products
Slide 38: Live chat adds convenience
Live chat adds convenience Live Chat… ■ …is an important tool to offer personalized fashion and product advice ■ …improves conversion rates and average order values ■ …offers deep insights into customer behavior and preferences Live chat capacities to be expanded significantly going forward HUGO BOS
Slide 39: Paypal introduced successfully across all markets and devices
Paypal introduced successfully across all markets and devices Customer choice of payment options per device (in %) PC / laptop 40 41 Tablet Mobile phone 33 30 31 31 29 22 22 8 7 6 Credit card Invoice Paypal (Express) Other ■ Introduction of Paypal has been well received by customers ■ Paypal Express
Slide 40: Mobile on the verge of becoming the most used device
Mobile on the verge to becoming the mostly used device Traffic development by device Traffic / transactions / revenues by device (in %, last twelve months) (Oct. 2015) 70 Desktop Desktop Mobile Mobile 60 Tablet Tablet 50 42% 67% 67% 40 30 41% 20 14% 12% KW 05 CW 40 CW 45 CW 50 CW 10 CW 15 CW 20 CW 2
Slide 41: Easiness to purchase crucial in driving sales
Easiness to purchase crucial in driving sales ■ Shoppable lookbooks, campaigns and runway styles emotionalize and drive conversion ■ Sophisticated site search includes auto-complete functionality with thumbnail preview ■ “Style With”, “Similar Products” and “Recently Viewed” support cross-selling Ma
Slide 42: 'Find in store' functionality leverages strength of retail network
‘Find in store’ functionality leverages strength of retail network Top 10 locations by usage (based on IP address, Oct 2015) London Paris New York Berlin Los Angeles Hamburg Amsterdam Madrid Munich Vienna ■ High levels of usage in key metropolitan areas ■ Particular relevance for high-value product
Slide 43: hugoboss.com plays an important role in driving customers to store
hugoboss.com plays an important role in driving customers to store Generates Drives traffic Drives traffic online sales to store to store For every 100 …130 visitors use …and 87 use the customers buying the store locator,… ‘find in store’ tool online… Source: Online Tracking EMEA, October 2015 HUGO
Slide 44: The role of hugoboss.com is changing
The role of hugoboss.com is changing Digital reset focus areas PERSONALI- CONTENT ZATION Upgrades across all four dimensions elevate hugoboss.com to state-of-the-art center of all digital activity at HUGO BOSS ADVISORY CONVENIENCE hugoboss.com is changing from a pure distribution channel into a sour
Slide 45: Detailed KPI framework measures digital success
Detailed KPI framework measures digital success CONTENT NET SALES 1 REACH ? 2 ACT ? 3 CONVERT ? 4 ENGAGE Awareness Search* Traffic CRM Data Sales value Share of Sales Customer satisfaction Reach Paid In-store Qualitative Conversion Click & Impressions Organic Bounce rate Quantita
Slide 46: Omnichannel requires region-specific approach
Omnichannel requires region-specific approach Europe Americas Asia Pacific Size of online business Rollout of omnichannel Broadening of China and cost reduction services in the US started online assortment by potential warrant in current set-up with virtual integration of insourcing of key fulfillme
Slide 47: Key elements of digital retail value chain in Europe to be taken over in 2016
Key elements of digital retail value chain in Europe to be taken over in 2016 Services currently outsourced to arvato Digital Financial Global digital Backend IT / imaging, Performance Global lead services / Logistics / Customer Sourcing platform / order copy, marketing agency payment / customs serv
Slide 48: Insourcing of online fulfillment will enhance service levels and lower costs
Insourcing of online fulfillment will enhance service levels and lower costs Current status New set-up (fulfillment outsourced) (fulfillment insourced) Cut-off at 3:30 pm Cut-off at 6:00 pm Service Varying service levels, delivery High service levels times can be > 2 days One-by-one handli
Slide 49: Bernd Hake, Senior Vice President Europe, Middle East, Africa & India
Bernd Hake, Senior Vice President Europe, Middle East, Africa & India HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 49
Slide 50: Agenda
Agenda Content-focused website upgrade builds emotional brand perception hugoboss.com offers convenient online shopping and drives customers to store Omnichannel services make shopping experience “noline” HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO BOSS © November 24, 2015 50
Slide 51: The impact of omnichannel on physical retailing
The impact of omnichannel on physical retailing OMNICHANNEL 2015 and before 2016 2017 and beyond RETAIL Digital store locator Online in-store Ship from store EXECUTION ‘Find in store’ tool appointment Click and reserve (in-store inventory Order from store Same day delivery availability
Slide 52: Integrated CRM enables seamless customer service across channels
Integrated CRM enables seamless customer service across channels ■ In-store application provides store personnel with full customer data based on integration with my HUGO BOSS ■ Easy access via iPads and cash desk ■ Rollout starting early 2016 HUGO BOSS Investor Day 2015 // Omnichannel Strategy HUGO
Slide 53: Evolution of organization to reflect omnichannel
Evolution of organization to reflect omnichannel OMNICHANNEL 2015 and before 2016 2017 and beyond RETAIL Centralization of Integration of both In-house ORGANIZATION physical retail buying, planning and omnichannel buying, planning and merchandising customer service merchandising teams team R
Slide 54: Organization is aware of the challenges of omnichannel implementation
Organization is aware of the challenges of omnichannel implementation Provide seamless Deliver a consistent Establish an omnichannel and reliable service brand experience operational framework Develop end-to-end systems Align online, mobile, and Perform training and and processes in-store tech
Slide 55: Omnichannel builds brand equity
Omnichannel builds brand equity Better brand equity Ensure consistent brand experience across all touchpoints Allow the shopping experience to be emotionalized Engage customers across the path-to-shop Increase customer satisfaction Digital will be the key future business driver at HUGO BOSS
Slide 56: Omnichannel enhances customer experience
Omnichannel enhances customer experience Richer and easier shopping experience Enable researching and buying anywhere, at any time, on any device Personalize the shopping experience Upgrade service levels Allow for broader choice Digital will be the key future business driver at HUGO BOSS HU
Slide 57: Omnichannel grows enterprise value
Omnichannel grows enterprise value Greater sales and profitability Drive sales online and offline Leverage strength of existing IT and logistics backbone to create cost efficiencies Improve inventory visibility and flexibility of merchandise allocation Increase marketing effectiveness Digita
Slide 58: HUGO BOSS
HUGO BOS S§S