In two years, the group belonging to the German haute couture brand BOSS will usher in its centenary birthday, which is a well-known "national brand" in Germany, which also has a high reputation in the Chinese market, and maintains a traditional way of communication with consumers with German rigor.
And this inherent impression is gradually being broken!
Recently, BOSS officially released the BOSS Spring/Summer 2022 series #BeYourOwnBoss #自我主宰广告大片, which was performed by the all-star lineup, kicking off the historic brand renewal campaign.
The campaign was shot by renowned fashion photographer Mikael Jansson and shot around the globe, focusing on a diverse celebrity mix including Future, Hailey Bieber, Joan Smalls, Kendall Jenner, Anthony Joshua, Alica Schmidt, Khaby Lame, Lee Min-ho and Matteo Berrettini.
Just this month, the Group released its exciting fourth quarter 2021 earnings report, the strongest quarterly sales ever. CEO Daniel Grieder said that in the coming weeks, more important milestones will be witnessed: we will launch a new brand image and launch the largest brand marketing campaign in the company's history.
Consumers' cognition of the brand or the establishment of the brand is often accumulated over time, and it is not easy to combine multiple elements such as people, products, and teams. This article will review several key transformations of the BOSS brand in history, and explore why the BOSS brand chose to reinvent itself at this point in time, and how to promote large-scale brand renewal actions step by step.
Several key transformations in the history of the BOSS brand
In August 2021, the Group announced a new "Five Propositions" growth strategy aimed at doubling sales to €4 billion by 2025 and becoming one of the top 100 global brands.
The "Big Five" includes five strong pillars: brand lifting, product is king, digital leadership, rebalancing omnichannel and organized growth. Accordingly, the BOSS brand will strengthen its unique positioning in the field of haute couture.
According to this growth strategy, menswear sales of the BOSS brand will increase to about 2.6 billion euros by 2025 and double boss womenswear sales to about 400 million euros. According to the Group's 2019 annual report (before the epidemic), the Group's sales increased by 3% year-on-year to EUR 2,884 million, of which the BOSS brand was EUR 2,488 million.
The large-scale renewal of the BOSS brand is not a sudden move, but a natural result of the promotion of the "five propositions" strategy.
Looking back at the development of the BOSS brand, several key transformations have played an important role in promoting:
In 1885, the brand's founder, Hugo Ferdinand Boss, was born into an ordinary German family and worked in a textile factory as a teenager. In 1924, he established a men's clothing factory in Metzingen, southern Germany, which became the predecessor of the group.
In the 1950s, the group transformed into custom suits and began making suit ready-to-wear in 1960, laying the foundation for the company's subsequent success. In the 1970s, men's fashion awareness increased, and the BOSS brand with high-quality men's clothing was officially launched, and gradually went international, becoming a world-renowned high-end brand.
Since May 2013, the BOSS brand has been the official fashion supplier for the German national football team and the German national football team under 21, as well as the official partner of the world-renowned football clubs Bayern Munich, Tottenham Hotspur and Real Madrid.
BOSS becomes the official partner of Bayern Munich
In 2017, during the inauguration of the previous CEO Mark Langer, the Group launched a dual-brand strategy to keep the brand up to date, with the previous BOSS orange and green sub-line brands merged under the BOSS core brand.
Why did the BOSS brand choose this point in time to reinvent itself
As for why the BOSS brand chose to rebrand this year, after combing through the general environment and the internal and external situation of the brand, we found that there are three factors that are the most obvious:
——High-end consumer groups have undergone iteration and transfer
Recently, Bain Consulting and the Italian luxury industry association Altagamma released the latest report, the luxury industry is facing a profound change in consumer structure, baby boomer spending power is declining, the number of Gen X consumers is decreasing, while the younger consumer group surges, four years later, 70% of luxury consumers will be under the age of 40, their contribution to the growth of the luxury market will reach 180%.
"We are witnessing a radical change in the consumer base. In 2021, 50% of the luxury market's revenue will come from people who have never purchased luxury goods before 2019. Today, these consumers are increasingly diverse and strongly influenced by their cultural attitudes. This is also making it increasingly difficult for consumers to cater to. This is a challenge for the luxury industry, as the needs are extremely diverse. Federica Levato, one of the study's authors, added.
On the other hand, the trend of "moving east" of the high-end consumer market under globalization continues, and emerging markets represented by China have become growth engines, according to Bain statistics, in 2021, in the personal luxury consumption market, the Americas and Europe are still the head markets, contributing 89 billion and 71 billion euros respectively, and Chinese mainland, Japan, and other parts of Asia have contributed 60 billion, 20 billion and 32 billion euros respectively, becoming a key market that cannot be ignored.
Under the "Big Five Propositions" strategy, Asia Pacific is expected to show a compound annual growth rate of 10%-15% in revenue (CAGR 2019-2025), and the region's revenue share will grow to more than 20% over the next five years. Chinese mainland will continue to play an extremely important role, and in the coming years, the company will also focus on Chinese consumers. In the preliminary results of the group's fourth-quarter financial report, it was pointed out that the sales of the Chinese mainland 2021 increased by 18% compared with 2019.
From this BOSS brand advertising campaign, we can also see that American supermodel Kendall Jenner, American supermodel and social media celebrity Hailey Bieber, South Korean actor and singer Lee Min-ho, American rapper Future, British boxer Anthony Joshua, Italian professional tennis player Matteo Berrettini, the world's top supermodel Joan Smalls, German track and field athlete Alica Schmidt, and social media celebrity Khaby Lame.
Superstars from all over the world gathered in the BOSS Spring/Summer 2022 collection to present a new look at the BOSS brand. It is precisely because they bravely chase their dreams in their respective fields and become the people they want to be, which perfectly interprets the #自我主宰的真正内涵 #BeYourOwnBoss, and also becomes a true portrayal of the globalization process of the BOSS brand.
——The demand for casual wear has surged under the epidemic
Affected by the epidemic, more people have begun to work from home, and the sales demand for business clothing has been declining. Casual wear has become a new growth point for the BOSS brand.
The Group recently released preliminary results for the fourth quarter, following a strong business recovery in the third quarter, the Group accelerated growth in the final months of 2021, with the fourth quarter recording its strongest quarterly sales in history. The earnings report pointed out that the growth was particularly due to the continued strong performance of the two major brands in casual wear, and in the third quarter, casual wear also increased by double digits compared with the same period in 2019.
In 2021, boss brands and Kentucky-based sportswear brand Russell Athletic will create two consecutive seasons of joint collections around basketball and baseball, integrating boss suit craftsmanship and Russell Athletic's unique sportswear aesthetics to present trendy casual clothing for the new generation.
The BOSS x Russell Athletic co-branded series is released
The success of the co-branded series, especially the digital-driven marketing approach, sparked widespread publicity on social media, with the second season of the BOSS x Russell Athletic series garnering 4 billion views on social media in 4 days.
– Leadership changes and new CEOs take office
In June 2021, Daniel Grieder became the new CEO of the Group. Daniel Grieder previously served as European CEO of American fashion retail group PVH Corp and Global CEO of American designer brand Tommy Hilfiger.
Group CEO Daniel Grieder
Under daniel Grieder's guidance and leadership, management in Greater China, Russia and emerging markets has undergone a complete restructuring. Judith Sun is the Managing Director of Greater China and has worked for several international fashion and consumer brands, including Swarovski, Levi's and Adidas.
In addition, Luigi Boiocchi, a former executive of Ralph Lauren, will lead the newly formed Emerging Markets and Russia division, and Christopher Koeber from PVH Group will lead the footwear and accessories business.
Team restructuring and talent introduction are also part of the "Five Propositions" strategy, which mentions that "empowering employees and teams is the key to it." ”
How is the BOSS brand reinvented?
According to the Group's earnings report, the third quarter of 2021 grew strongly, with sales and profits exceeding pre-epidemic levels, and the fourth quarter recorded the strongest quarterly sales in history. Preliminary results for the Group's fiscal year 2021 show that sales at adjusted exchange rates increased by 43% compared to 2020 and only 1% below the level in 2019 (pre-pandemic), and EBIT of €228 million exceeded previous expectations.
As part of the "Five Propositions" strategy, the successful execution of several key brands, products and sales activities has had a positive impact on the Group's operating performance and strengthened the confidence of the brand to advance the rebranding efforts.
Daniel Grieder recently stated that 2021 will be a very successful year for the Group. During the year, we significantly accelerated sales and profit growth, and made the first significant progress in implementing our new "Big Five" growth strategy.
Under the digital revolution, the business model of fashion brands has evolved into another ecosystem, which consists of many touchpoints between consumers and brands, and brands need to change the way they listen, communicate and participate in the market compared to the past. No matter which touchpoint, brands need to highlight specific content and present a consistent brand image.
From the launch of a new logo, the innovative concept of the product side, to the new experience of online and offline delivery, and the new marketing model in the digital age, the BOSS series and the entire brand world are showing a new look.
- In collaboration with legendary ski events, a new logo has been released
From January 21 to 23, the BOSS brand became the official partner of the Legendary Ski Races in Kitzbühel, Austria, which will continue for four years.
As the countdown to the Winter Olympics draws, "skiing" is particularly hot this winter, and the Hahnenkamm Competition is arguably the most grand and high-profile event in the international alpine skiing competition. In Europe alone, more than 300 million people watch it every year.
It is worth mentioning that the new logo of the BOSS brand was released for the first time in the event and throughout the event, from the flag on the track to the banners and dynamic LED walls in the starting and finishing areas, to the hot air balloons and paragliding flying over the top of the mountain, and the exclusive limited edition silver ski jacket.
The brand logo has always been the "first impression" of the brand by consumers. BOSS's new logo features a more vivid bold font that is more modern in appearance and visually striking.
Daniel Grieder said: "We are very pleased to unveil the new logo of the BOSS brand in Kitzbühel and to showcase the brand's new spirit here for the first time. The Hahnencombe Competition is a legendary event and is therefore the perfect place to witness this historic moment. We look forward to creating a unique experience for the players who come here to compete in the coming years and inspiring a global audience for the BOS brand." ”
——Leisure and comfort have become the new concept of the product
Inspired by the sunny California style, unlike the boss brand's previous design concept, the newly released BOSS Spring/Summer 2022 haute apparel collection, casualness and comfort have become key factors.
The relaxed, sporty silhouette is simple black, soft white and camel, and the three colors are intertwined to create the brand's new signature stripes. Stripes translate into wide-spread colour blocks, decorative coats and dresses, or in jackets and lightweight sweater collars and cuffs, while defining design details such as zip pulls and seam straps. The sliver and Latin letter B form a striking all-over monogram print that transforms into a sporty clothing patch.
The iconic design of boss's Spring/Summer 2022 collection opens up a new direction
Products have always been at the heart of the new strategy, and as noted in the "Five Propositions" strategy, in the future, the Group will develop products for the needs of consumers around the clock and in different occasions.
-- In-depth cooperation with new "superstars"
In January 2021, actress Chris Hemsworth became the first Hollywood star to serve as the spokesperson for the boss's global brand, Chris Hemsworth became internationally famous for playing "Thor", with more than 53.25 million followers on Instagram, becoming a role model for countless young people.
BOSS global spokesperson Chris Hemsworth tweeted a black hoodie wearing the latest LOGO of boss on Instagram, kicking off the new brand of #BeYourOwnBOSS
In January, BOSS announced Italian tennis star Matteo Berrettini as boss global brand spokesperson, and he is ranked 7th in the world on the Professional Tennis Federation (ATP) singles list. Chris Hemswort loves surfing, and from "Thor" to Matteo Berrettini, the boss brand's casual process has taken another step forward, and the brand image has been aligned around the world.
Italian tennis star Matteo Berrettini
Similarly, the seven "top" stars in the campaign have a total of more than 386 million followers on Instagram, American supermodel Kendall Jenner has more than 210 million fans, and TikTok creator Khaby Lame has more than 68 million followers.
The appeal of superstars and social media to young people is self-evident, from supermodels Kendall Jenner, Hailey Bieber and Joan Smalls, rapper Future, South Korean singer and actor Lee Min-ho, to British professional boxer Anthony Joshua, Italian tennis champion Matteo Berrettini, German track and field athlete Alica Schmidt, and "grassroots" born. Star blogger Khaby Lame, the BOSS brand also shows the power of inclusiveness and eclecticism.
Star blogger Khaby Lame
Create new online and offline experiences
In 2021, the BOSS brand established new digital business units in Metzingen, where it is headquartered in Germany, and Porto in Portugal, and plans to relaunch the brand website in early 2022, taking a key step towards "becoming the world's leading technology-driven high-end fashion platform" proposed in the "Five Propositions" strategy.
In line with the "Big Five Ideas" strategy, the Group will increase digital sales to more than €1 billion by 2025 and increase digital penetration to between 25% and 30% of total sales.
Joëlle de Montgolfier, executive vice president of the Global Consumer Goods and Retail Division of Bain Consulting, recently said that since 2019, the size of luxury online channels has doubled, and the increase in just one year is the sum of the increments in the past 5 years, although the physical distribution network has gradually returned to normal, but luxury online sales have not declined, or maintained double-digit growth, which also means that this shopping model has completely become the consumption habit of customers.
At the same time, fashion brands are realizing that online channels are more important than ever, and that online channel deployment needs to understand customers and maintain relationships with customers more than sales and business data.
It is worth noting that in the digital age, the value of physical stores to major luxury brands has not decreased but increased. The sense of trust and interaction that brick-and-mortar retail carries, as well as the one-on-one service and face-to-face interaction between store staff and customers, remains important for luxury brands and is key to differentiating them from other brands.
According to the 2020 China Luxury Consumption White Paper released by Hualizhi, stores are the primary window for all luxury consumers to understand the brand, for VIP customers, the priority of stores is higher, 71.5% of respondents said that they have purchased luxury goods from domestic stores, and the number of VIP customers is 86.7%.
For offline experience, the "Five Propositions" strategy also has ambitious plans, including further optimization and updating of the global network of self-operated stores, about 80% of which will be renovated in the next three years, and the overall investment target for the physical retail industry is about 500 million euros by 2025.
Boss Tokyo Ginza flagship store with a new logo
epilogue
The complete replacement of consumer groups, the all-round transformation of brands by digital tools, and the sudden epidemic, reshaping and transformation have become the active or passive choices of more and more brands.
In the past, the role of fashion brands was only to produce high-quality products, and with the advent of the digital revolution, they also played a variety of roles such as distributors, content writers, and digital platform operators, and in this context, rebranding also ushered in new challenges and opportunities.
As an iconic enterprise in the field of global high-end clothing, if boss brand can fully open the young people's market through this remodeling project, successfully double sales, and rank among the top 100 brands in the world, it will provide an excellent reference model for many fashion companies facing the same challenges.