Hugo Boss intends to shift manufacturing from Asia to Europe.
Hugo Boss Corporation plans to bring back some manufacturing from Asia back to Europe. According to Daniel Grieder, CEO of Hugo Boss, "What's sold in America should be produced in America. What's sold in Europe, in Europe. Shipping goods from one continent to another ain't exactly efficient anymore." This decision comes amidst increasing geopolitical tensions.
Grieder further explained, "We aim to lower our reliance on sourcing and production, even if it means higher costs in Asia." They won't be setting up new factories, but will instead increase production in existing facilities in Turkey, Italy, and Germany through suppliers. In essence, they're strengthening their operations in Europe and America, all while minimizing their dependencies.
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Hugo Boss's shift in production will likely lead to an increase in manufacturing in Europe, as the corporation aims to reduce their dependence on Asia. Despite potentially higher costs, this move aligns with CEO Daniel Grieder's belief that products should be produced where they are sold. Even with this change, Hugo Boss won't be establishing new factories in Europe, instead opting to boost production in existing facilities in Germany, Italy, and Turkey through supplier relations.
