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Chief Financial Officer Yves Mueller said Tuesday that Hugo Boss wants to raise brand awareness in China despite lower consumer demand influencing its Q3 results. Slowed development has caused the German fashion giant to postpone its 2025 income and profit ambitions and aim to be more visible in the Asia-Pacific area, which today represents 5% of its overall sales.
The economic downturn of China has presented difficulties for luxury brands since job uncertainty and problems in the property market affect customer spending. Unlike rivals cutting back in China, Hugo Boss will keep emphasizing bigger stores and its sports-inspired Boss Green range, which Mueller said fits China's "sports-oriented" market. In increasing brand equity, Hugo Boss is also making investments in social media, most especially on TikHub. Mueller pointed out that the corporation is still wary about the hazy picture of Chinese customer attitude.
This article first appeared on GuruFocus.