Hugo Boss is expanding in China
The manufacturer of upscale sportswear and suits, German Hugo Boss AG is about to make China one of its biggest market
Hugo boss has already 86 stores in China and plans to open further 60 stores. The expansion is part of the strategy to boost revenues from Asia to 20 % of global sales by 2015, in 2011 the Asian share was 15 %. The China expansion was announced at a critical moment, because it is believed that the days when luxury companies experienced growth rates of 40 to 50 % are not expected to continue at the same levels. But there is also some light because apparel – in contrast to smaller actual growth in sales of watches and jewellery – could remain strong voices Boston Consulting Group and will contribute in the next five years 30% to the growth of the global fashion market. Sales of clothing and apparel jumped in 2011 to CNY 460 billion (around USD 73 billion or +15%), up to 2015 estimations are that it will be boosted to over CNY 800 billion.
Hugo Boss is dedicating most of its marketing budget (globally 7 % of turnover) to Asia and China in particular. It will be pushing its sales in China towards high-end men’s wear, for instance suits ranging from CNY 16450 to CNY 46000 (between USD 2600 to 7300) and also women lines will be present in the new Chinese stores.