 | Nadine Heubel: “The existing stores are growing because of the accessories” |
GERMANY. As Hugo Boss celebrated the opening of its 150th travel retail store on 29 July, dynamic Head of Travel Retail Nadine Heubel took time out of her busy schedule to update The Moodie Report on the brand’s amazing year.
The interview took place in Barcelona, where the company held an exciting outer space-themed fashion show for the Boss Orange Spring/Summer 2008 casualwear collection.
Major milestones for the German fashion brand over the past year have included the opening of the first Hugo Boss cruise ship shop and the brand’s debut in a Caribbean airport. Full details – including facts, figures and forecasts – below.
TRAVEL RETAIL HIGHLIGHTS 2006/07
May 2006: At Frankfurt Terminal One airside, the biggest Hugo Boss airport store re-opens covering 249sq m.
September 2006: Nuance UK establishes the first Boss Womenswear store in England, at London Heathrow T1. The 51sq m boutique carries Boss Womenswear Black and Orange.
October 2006: Nuance-Watson shop staff at Hong Kong International Airport are given a trip to Disneyland as the prize for winning the Hugo Boss Travel Retail Shop of the Year Award.
October 2006: The first fashion show ever held by a major fashion house on the occasion of the TFWA World Exhibition took place in Cannes.
October 2006: In Latin America, two store openings: a 15sq m shop at Santiago de Chile Airport with Dufry/Brasif and a 26sq m boutique at Lima Airport.
November 2006: The company renovates its Boss shop at Dubai Airport, extending it from 18sq m to 41sq m. Sales figures have doubled since the works were completed, reported Heubel.
February 2007: The first freestanding Boss store opens at an airport in Russia, at Moscow Domodedovo. The Dufry-operated outlet covers 21sq m and carries the Boss Black Menswear range.
April 2007: Hugo Boss renovates and extends its Boss store at Munich Airport T1 landside. The 310sq m shop is believed to be the biggest monobrand premium fashion boutique in the travel retail industry, according to the company.
April 2007: The first Boss shop opens on a cruiseship – the AIDAdiva. The 85sq m outlet carries the Boss Black and Boss Orange range for men and women. The ship is operated by the cruise company AIDA which targets the 30-50 age group in German-speaking countries. AIDA ships feature gyms, spas and have a casual atmosphere, said Heubel. The AIDAdiva cruises round the Mediterranean in summer and the Middle East in winter. Next year, Hugo Boss will set up an 85sq m shop on the AIDAbella, which is being launched in April 2008.
April 2007: A 15sq m shop opens at Barbados Airport carrying the Boss Black and Orange menswear range. This is the brand’s first Caribbean airport store.
May 2007: A dinner was held at the Sofitel Hotel in Athens to congratulate the Hellenic Duty Free team on winning the worldwide sales staff incentive award in 2006. Before the dinner the staff were invited for spa treatments.
May 2007: The newly developed World of Hugo Boss concept begins trading at Abu Dhabi Airport. The new concept combines fast-moving accessories (bodywear, small leathergoods) with licensed products such as sunglasses, fragrances and watches.
May 2007: The launch of the first freestanding self-service accessories merchandising unit at Berlin Tegel Airport, in co-operation with Gebr Heinemann. The unit displays a wide range of accessories such as ties, bags, briefcases and belts. The concept will be rolled out to other stores, said Heubel.
May/June 2007: A further breakthrough was achieved in North America with several openings:
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The Hugo Boss landside shop at Munich Airport T1 measures 310sq m and is believed to be the biggest monobrand premium fashion boutique in the travel retail industry, according to the company |
Inflight business
The total turnover achieved by Hugo Boss with airlines jumped by +29% in the first half of 2007, compared to the same period in 2006. In 2007, important new airlines will join the brand’s portfolio: Japan Airlines, Korean Air, Singapore Airlines, Air Berlin, Condor and LTU.
FORECAST FOR 2007-2008
The travel retail strategy for the coming year will include a clear focus on the accessories business. “The existing stores are growing because of the accessories,” asserted Heubel. In addition, the company will boost its sales staff training and initiatives, she said, and will focus on promotions and visual merchandising.
Regionally, Hugo Boss will turn its attention particularly to the Americas. In Asia, markets opening up for the brand include South Korea, Hong Kong, Thailand (Bangkok) and Singapore.
Product-wise, Heubel reported that airport retailers are asking for more casual lines, so she expects sales to come from both leisure and business apparel. Boss Orange, the casualwear collection, already makes up 22.8% of the product mix in travel retail.
Fastest-growing categories in travel retail are, in first place, shoes and leathergoods, followed by jeans. Belts are selling well onboard airlines, Heubel noted.
Other plans include:
– Constantly upgrading the existing shop portfolio
– Focusing on marketing planning (e.g. for fragrances)
– Further expansion of Boss Womenswear
– Optimisation of assortment in existing stores
– Launch of the first jewellery collection in April 2008.
HUGO BOSS GROUP FACT FILE 2006
Turnover 2006: €1.496 billion
Profit: €179.9 million; €128.7 million after tax
Turnover by brand: Boss €1.348 billion (€1.186 billion menswear, €162.2 million womenswear); Hugo: €136.2 million; Others: €11.4 million
Total number of shops: 1,051 (210 directly operated stores)
HUGO BOSS TRAVEL RETAIL FACT FILE
Turnover 2006: €43.4 million (+32.1% versus 2005)
Number of POS*: 141 (30 T/F, 80 T/S, 31 T/C) in 52 countries
POS in Europe*: 100
POS in Asia*: 16
POS in Africa/Middle East*: 10
POS in Americas*: 15
Total surface: 5,945sq m
Average shop size: 42.2sq m
Airlines*: 14
Cruise ships*: 3
* at 30 June 2007
MORE STORIES ON HUGO BOSS
Hugo Boss celebrates 150th travel retail store – 31/07/07
Boss opens biggest travel retail store – 08/05/07
