Intro
Expanding The Complimentary Footwear Category By Aligning The Product Roadmap To The Business Roadmap
Hugo Boss is a globally dominant fashion and lifestyle brand, primarily known for their beautifully crafted suits, shirts and ties. While the tailored clothing business was growing, the footwear business was underperforming and was in a state of revenue decline before I joined the company. The footwear category lacked focus and did not have a basics business developed. By working directly with the design team in Europe we were able to align the business roadmap to the product roadmap. First, we developed a complimentary dress shoe business that supported the tailored clothing business that was grounded in replenishment basic styles and grew this to 60% of the business at 48% gross margins. Secondly, we developed and merchandised a fashion-forward sneaker and dress-casual collection that complimented the sportswear business.
scaling a globally dominant brand
Creating A Category Killer
Challenge
Pricing pitfalls in a lifestyle giant.
Lifestyle brands are product categories rolled up into a collection. The goal of any lifestyle brand is to dress their customers head-to-toe but that is rarely the reality of consumer behavior. Fashion consumers want to buy the best products from the best brands, which are often known as “category killers” (e.g. Hugo Boss suits or Calvin Klein underwear). When I dug in, the footwear division’s flaw was glaring: dress shoes at $250 MSRP clashed with the $795 suits’ 4:1 pricing norm among European suit rivals.
Solution
Sales Increase
2X
3-yr CAGR
32.24%
DRESS SHOE RANKING
#4
EBITDA
+16%
It is a pleasure working with a competent and business driven professional, who knows his market and customers needs like he knows his product, which is not always a given. Over the years we have been able to implement ambitious growth plans in a tough market place and shift strategies to meet new demanding goals, always with a positive attitude and building bridges.
I am privileged to have met and to account Jeremiah to my close friend, he is a serious and trustworthy person which I like to work with and spend time together.