Imogen Bailey explores how Hugo Boss is merging tradtion with innovation.
2020 heralds the beginning of a new decade and the promise of new technological innovations for retailers.
However, retailer Hugo Boss is not quick to abandon more traditional communication methods, with some of its most successful campaigns in 2019 based in print.
Hugo Boss SEAPAC managing director Matthew Keighran says while digital elements are integrated into the business’ campaigns, print pieces are still garnering significant traction.
“We partner up with print titles such as Men’s Health and GQ, to support campaigns such as our Liam Payne x Hugo capsule and Rugby World Cup.
“Both of these had really surprising results in traction with integrated support in print, digital, native content and social.
“These are the most successful campaigns we have had. It comes down to great content supplied and great editors to work with,” he says.
Traditional face-to-face, high-quality store service is also key for Hugo Boss in Australia, with the business focusing on fostering personal relationships between the brand and customers.
“We pride ourselves on the personal relationships we have been able to develop with our customers at store level,” Keighran explains.
“The store teams know our customers very well. The relationship isn’t only focused on selling product, but also listening to them and what they need, getting to know their lifestyle and tastes.
“Whilst typically now considered a more traditional form of communication, we find that sending print invitations or new season look books to our customers through the mail has that personal touch that keeps them engaged and excited for what is in store.
“We of course also send emails and SMS campaigns to our database for updates on new season arrivals and sales. These have quite a high engagement rate for us as we notice the increase in foot traffic in stores.
“At the end of the day our customers want personalised service with people they know and trust. This is something that AI or online cannot yet deliver and in which we invest,” he says.
This store service is something the business will continue to invest in throughout 2020, following its refurbishment of its Melbourne flagship store, Keighran says.
“We are excited to announce that following the success of our Melbourne flagship refurbishment in 2019 at Collins Street, we will be renovating our Sydney flagship at King Street this year.
“We also have plans to expand into regions where we don’t have footprints (eg. Adelaide), expand where there is traffic for example in Collins Street store in Melbourne and key David Jones stores and renovate to create special experiences.
“We also plan to expand into eCommerce in the second half of the year which is an exciting step for us,” he says.
To further strengthen the in-store experience, Hugo Boss continues to focus on its staff to foster engagement in their jobs.
“We continue to invest in training and maintaining stability and engagement in staff,” Keighran says.
“We shifted our engagement level up seven points this year through various initiatives which is not an easy task.
“People make places – a clear strategy with enthusiastic motivated team members will always deliver. The idea is to go over and above what people expect.
“It takes a certain type of retailer to do this and it’s key those team members stay with us and bring more on board,” he explains.
Despite its investment into store experience, tough retail conditions in the Australian market could see Hugo Boss rationalise its network – in line with other retailers.
“We’re not shy to close locations that no longer work for us. Landlords need to come to the party and work with retailers to ensure we have a sustainable future – where rents can still allow retailers to invest in updating and keeping the space engaging,” he says.
Alongside its modern customer-facing stores, Hugo Boss’ support office will also undergo a revamp.
“2020 will see the relocation of our Melbourne support office to a new location in Collingwood. The new space has a six-star sustainability rating and is certainly in line with our stance on environmentally friendly practices.
“Aligning with our office move, is the move of our DC operating warehouse to a location near Tullamarine airport. The space will provide greater efficiencies for warehousing and distribution with prime positioning within the vicinity of key service providers,” he explains.
Relocating the Melbourne support office isn’t the only sustainable action the business is taking, with its innovations in sustainable packaging recognised at the recent Australian Packaging Covenant Organisation (APCO) Awards.
This includes ensuring the best possible reuse and recovery when packaging is redesigned, a reduction in packaging and increasing the use of recycled and certified materials.
However, the business isn’t stopping there Keighran says.
“A key element of our sustainability goal setting is ensuring sustainability within the supply chain. With regard to the materials of the products, by 2020, 50% of cotton used is to be sourced as sustainable cotton in accordance with our cotton guidelines.
“Alongside this, we have set ourselves the target of sourcing 90% of our procurement volume from finished goods suppliers (including our own production facilities) by 2020 who have achieved a satisfactory or better result in their last social audit.
“We have already met this target in 2018 (91%) and we aim to maintain this high percentage in the future,” he says.
Further to its sustainability efforts, Hugo Boss will continue to use traceable wool in its new season collections for both men and women Keighran says.
“The rapid shift into unconstructed, easy-care and easy-wear has transformed workplace attire. Knitwear replaces shirts, jackets and trousers replace suits, refined sneakers replace business shoes.
“In a continued effort to maintain our commitment to sustainability and socially responsible practices, the collections feature products using an innovative new form of production – traceable wool.
“This process involves wool being tracked from the sheep farm in New Zealand, all the way to production in the Hugo Boss factory in Turkey.
“This ensures that animal welfare standards are maintained from start to finish,” he says.