Hugo Boss resumes manufacturing operations in Europe
Global fashion powerhouse Hugo Boss is revamping its manufacturing approach amidst "geopolitical conflicts." The brand aims to produce goods in regions where they are sold for smoother distribution. The CEO, Daniel Grieder, envisions a boost in sales with the partnership with soccer legend David Beckham.
Grieder intends to relocate production from Asia to Europe. He explained, "What's sold in America, should be produced in America. What's sold in Europe, in Europe. Shipping goods from one continent to another is no longer efficient," he elaborated to "Welt am Sonntag." The driving force behind this shift is, of course, the "geopolitical conflicts."
"We aim to lessen our reliance in procurement and production, even if it's cost-effective to only produce in Asia," Grieder added. However, no plans have been laid out to construct new factories beyond the current production facilities in Turkey, Italy, and Germany. "The expansion in Europe and America will primarily come through collaborating with suppliers," Grieder stated.
Hugo Boss is ready to acquire another brand, according to Grieder: "We're open to anything that aligns with our financial capabilities: Fashion, shoes, accessories." Furthermore, he is contemplating the launch of new labels, perhaps in collaboration with celebrities. "New brands could spring up from these alliances. We'll be working with David Beckham in the future. Why not have a brand spawn from a partnership like that?"
Hugo Boss recently unveiled its collaboration with Beckham. The first collection is slated to debut in spring/summer 2025, while Beckham himself will feature in the global campaign this year for fall/winter. The partnership spans over several years, extending well beyond 2025.
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Hugo Boss's decision to relocate production from Asia to Europe is not only limited to existing facilities in Turkey, Italy, and Germany, but also includes plans to collaborate with suppliers across Europe and America. The textile industry giant, Hugo Boss AG, aims to lessen its reliance on Asian production, recognizing the inefficiencies of shipping goods between continents due to geopolitical conflicts.
