In economics , a luxury good (or upmarket good ) is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a more significant proportion of overall spending. Luxury goods are in contrast to necessity goods , where demand increases proportionally less than income. Luxury goods is often used synonymously with superior goods .
108-680: Hugo Boss AG (stylized as HUGO BOSS ) is a luxury fashion company headquartered in Metzingen , Baden-Württemberg , Germany . The company sells clothing , accessories , footwear , and leather goods . Hugo Boss is one of the largest German clothing brands, with global sales of about €4.2 billion in 2023. Its stock is a component of the MDAX . The company's fashion brands are Boss and Hugo . Hugo Boss also sells licensed brand products for children's fashion, eyewear , watches , home textiles, riding apparel, writing utensils and fragrances . The company
216-549: A circular economy . The investment in the start-up Heiq Aeoniq LLC supports the development of its cellulose fiber Heiq Aeoniq, which is intended to replace chemical fibers such as polyester . Heiq Aeoniq LLC primarily sources its materials from discarded algae , sugarcane , straw , hemp , nutshells , cigarette butts , and coffee grounds . At the Hugo Boss Digital Campus, data is processed to make company processes more efficient and to thus improve determination of
324-453: A brand ambassador. In 2024, Boss signed a partnership with David Beckham . Luxury goods The word "luxury" derives from the Latin verb luxor meaning to overextend or strain. From this, the noun luxuria and verb luxurio developed, "indicating immoderate growth, swelling, ... in persons and animals, willful or unruly behavior, disregard for moral restraints, and licensciousness", and
432-423: A business for manufactured goods in 1922. In 1924, he started a factory for the production of workwear along with two partners, Albert and Theodor Bräuchle, as shareholders. The company produced shirts, jackets, work clothing, sportswear, and raincoats. In 1925 and 1926, Hugo Boss, like all Metzingen companies, announced Kurzarbeit for its almost 30 employees. In connection with the global economic crisis following
540-540: A cease and desist letter to Canadian fitness company Boss Athletics Inc. In February 2020, professedly as a protest, comedian Joe Lycett changed his legal name to Hugo Boss. In 2020, Hugo Boss told NBC News it did not use cotton from the Xinjiang area of China to avoid Uyghur forced labor . However, in 2021, the Chinese subsidiary of Hugo Boss stated on its official Sina Weibo account that they had been using cotton from
648-508: A certain income level. Examples would include smoked salmon , caviar , and most other delicacies . On the other hand, superior goods may have a wide quality distribution, such as wine and holidays . However, though the number of such goods consumed may stay constant even with rising wealth, the level of spending will go up to secure a better experience. A higher income inequality leads to higher consumption of luxury goods because of status anxiety. Several manufactured products attain
756-618: A climate-related venture capital fund aimed at promoting sustainability in the fashion industry. The company has introduced structures to ensure compliance. In this context, it works with the Fair Labor Association , has established an ombudsman system, has social audits carried out on working conditions and offers the opportunity to use the Fair Labor Association's comprehensive external and anonymous complaints management system. British comedian and actor Russell Brand
864-528: A determination to put things right and ensure there cannot be a repeat of what went wrong." In August 2019, Hugo Boss sent a cease and desist letter, objecting to the trademark application of Boss Brewing , a small brewery based in Swansea , costing the brewery nearly £10,000 in legal fees and compelling them to change the name of several beer brands. Similarly, in November 2023, it was reported that Hugo Boss had sent
972-584: A fragrance line that same year, adding men's and women's wear diffusion lines in 1997, a full women's collection in 2000, and children's clothing in 2006–2007. The company has since evolved into a major global fashion house. As of December 2023, it operated 1,418 retail stores worldwide. After the end of the First World War , Hugo Ferdinand Boss (1885–1948) took over his parents' clothing retail business in Metzingen, where it still operates, and registered it as
1080-464: A high level of client service, human touch, and brand consistency. Since the early 2010s, many luxury brands have invested in their own boutiques rather than wholesalers like department stores. Three of the world’s biggest luxury conglomerates— LVMH, Kering, and Richemont — significantly increased the share of annual sales captured from their directly operated stores and e-commerce over the past decade. Luxury brands use distinct boutique types to tailor
1188-419: A high price. The scarcity of the good can be natural or artificial; however, the general population (i.e., consumers ) must recognize the good as distinguishably better . Possession of such a good usually signifies " superiority " in resources and is usually accompanied by prestige. A Veblen good is a superior good with a prestige value so high that a price decline might lower demand. Veblen's contribution
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#17328560505171296-402: A history of tradition, superior quality, and a pampered buying experience. Luxury goods have been transformed by a shift from custom-made ( bespoke ) works with exclusive distribution practices by specialized, quality-minded family-run and small businesses to a mass production of specialty branded goods by profit-focused large corporations and marketers. The trend in modern luxury is simply
1404-629: A luxury good to such an extent that sales can go up, rather than down. However, Veblen goods are not synonymous with luxury goods. Although the technical term luxury good is independent of the goods' quality, they are generally considered to be goods at the highest end of the market in terms of quality and price. Many markets have a luxury segment including, for example, luxury versions of automobiles , yachts , wine , bottled water , coffee , tea , foods , watches , clothes , jewelry , cosmetics and high fidelity sound equipment. Luxuries may be services. Hiring full-time or live-in domestic servants
1512-622: A motorized corps of the Sturmabteilung (SA). Hühnlein became the organization's "nucleus". The organization's name was changed to the National Socialist Motor Corps ( Nationalsozialistisches Kraftfahrkorps ; NSKK), and it was officially formed 1 May 1931. It was essentially a paramilitary organization with its own system of paramilitary ranks and the smallest of the NSDAP organizations. Yet despite its relatively small size, when
1620-532: A partner of the child protection organization UNICEF since 2007. In addition, the Group established the Hugo Boss Foundation , whose main source of income is the "Every purchase counts" initiative. Since 2023, 5 cents of every own product (excluding licensed products) have been donated through this initiative. The donations are intended to support local, regional and global impact-oriented projects, particularly in
1728-399: A product or service that is marketed, packaged, and sold by global corporations that are focused "on growth, visibility, brand awareness, advertising, and, above all, profits." Increasingly, luxury logos are now available to all consumers at a premium price across the world, including online. Global consumer companies, such as Procter & Gamble , are also attracted to the industry due to
1836-422: A promissory bill loan with a total value of €175 million was placed for the first time. As at March 2024, the shareholder structure was as follows: As early as the 1980s, Hugo Boss began with product placements and the outfitting of celebrities . Among other things, Hugo Boss outfitted the actors of the popular US law series L.A. Law and was henceforth seen as the outfitter of yuppies . Hugo Boss dressed
1944-727: A second one was known as NSKK Transportgruppe Todt . At Melun , the NSKK had its own driving school for French recruits and those from other European countries. Before the Schutzstaffel (SS) began openly recruiting members into the Waffen-SS , Frenchmen used the NSKK as a "back door" to get into the Waffen-SS to fight on the Eastern Front against the Soviet Union . Some French NSKK men were sent to
2052-692: A significant influence on the Hugo Boss company. Sälzer left the company in February 2008. In mid-2008, Permira appointed Claus-Dietrich Lahrs as CEO of Hugo Boss. Shortly afterward, the company launched an online shop in the UK, followed by other countries. In 2009, the Boss brand was by far the largest segment, consisting of 68% of all sales. The remainder of sales were made up by Boss Orange at 17%, Boss Selection at 3%, Boss Green at 3% and Hugo at 9%. Also in 2009, Hugo Boss
2160-519: A special and memorable "luxury feel" for customers. Examples include LVMH , the largest luxury goods producer in the world with over fifty brands (including Louis Vuitton ) and sales of €42.6 billion in 2017, Kering , which made €15.9 billion in revenue for a net income of €2.3 billion in 2019, and Richemont . The luxury brand concept is now so popular that it is used in almost every retail, manufacturing, and service sector. New marketing concepts such as "mass-luxury" or "hyper luxury" further blur
2268-711: A young target group. The company has additional licensing agreements with Coty , C.W.F. , Movado and Safilo for product collaborations. Hugo Boss is active in the following segments: Products are manufactured in a variety of locations, including the company's own production sites in: Metzingen , Germany ; Morrovalle, Italy ; Radom , Poland ; İzmir , Turkey ; and Cleveland , United States . Hugo Boss has invested in technology for its made-to-measure program, using machines for almost all tailoring traditionally done by hand. In 2020, Hugo Boss created its first vegan men's suit, using all non-animal materials, dyes, and chemicals. The Hugo Boss shares have been included in
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#17328560505172376-452: Is a luxury reflecting income disparities. Some financial services, especially in some brokerage houses, can be considered luxury services by default because persons in lower-income brackets generally do not use them. Luxury goods often have special luxury packaging to differentiate the products from mainstream competitors. Originally, luxury goods were available only to the very wealthy and "aristocratic world of old money" that offered them
2484-437: Is a normal good for which the proportional consumption increase exceeds the proportional income increase . So, if income increases by 50%, then consumption of a superior good will increase by more than 50% (maybe 51%, maybe 70%). In economics terminology, all goods with an income elasticity of demand greater than zero are "normal", but only the subset having income elasticity of demand > 1 are "superior". Some articles in
2592-621: Is credited as one of the first of its kind. In the United States, the development of luxury-oriented department stores not only changed the retail industry, but also ushered the idea of freedom through consumerism , and a new opportunity for middle- and upper-class women. Fashion brands within the luxury goods market tend to be concentrated in exclusive or affluent districts of cities worldwide. These include: National Socialist Motor Corps The National Socialist Motor Corps ( German : Nationalsozialistisches Kraftfahrkorps , NSKK )
2700-464: Is demonstrated by the significance of the Veblen effect, which refers to the phenomenon of people purchasing costly items even when more affordable options that provide similar levels of satisfaction are available. The income elasticity of a superior good is above one by definition because it raises the expenditure share as income rises. A superior good may also be a luxury good that is not purchased below
2808-408: Is especially used for medieval manuscripts to distinguish between practical working books for normal use, and fully illuminated manuscripts , that were often bound in treasure bindings with metalwork and jewels. These are often much larger, with less text on each page and many illustrations, and if liturgical texts were originally usually kept on the altar or sacristy rather any library that
2916-497: Is much less used for objects from the fine arts , with no function beyond being an artwork: paintings, drawings, and sculpture , even though the disparity in cost between an expensive and cheap work may have been as large. Luxury goods have high income elasticity of demand : as people become wealthier, they will buy proportionately more luxury goods. This also means that should there be a decline in income, its demand will drop more than proportionately. The income elasticity of demand
3024-404: Is not constant with respect to income and may change signs at different income levels. That is to say, a luxury good may become a necessity good or even an inferior good at different income levels. Some luxury products have been claimed to be examples of Veblen goods , with a positive price elasticity of demand : for example, making a perfume more expensive can increase its perceived value as
3132-415: Is not necessarily a product or a price point, but a mindset where core values that are expressed by a brand are directly connected to the producer's dedication and alignment to perceptions of quality with its customers' values and aspirations. Thus, it is these target customers, not the product, that make a luxury brand. Brands considered luxury connect with their customers by communicating that they are at
3240-436: Is the gradable antonym of " inferior good ". If the quantity of an item demanded increases with income, but not by enough to increase the share of the budget spent on it, then it is only a normal good and is not a superior good. Consumption of all normal goods increases as income increases. For example, if income increases by 50%, then consumption will increase (maybe by only 1%, maybe by 40%, maybe by 70%). A superior good
3348-810: The Schutzstaffel (SS). He also joined the German Labour Front in 1936, the Reich Air Protection Association in 1939, and the National Socialist People's Welfare in 1941. He was also a member of the Reichskriegerbund and the Reichsbund for physical exercises. After joining these organizations, he received orders for the production of clothing for the Nazi Party and its organizations, which helped Hugo Ferdinand Boss to stabilize
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3456-500: The 1936 Summer Olympics in Berlin , the NSKK assumed responsibility for a variety of transport tasks, proving themselves effective at political propaganda by taking foreign visitors on designated tours. By 1938, NSKK members were undergoing mechanical and operational training for both civilian and military vehicles. Over time, training at NSKK schools became primarily focused on military related tasks. For his NSKK service and due in part to
3564-581: The Bonlanden -Filderstadt site near Stuttgart in the same year. The investments were in digitalization and automation, and robotics applications. In June 2023, Hugo Boss opened the Hugo Boss Digital Campus in Gondomar, Portugal . Since 2017, Hugo Boss has pursued a two-brand strategy, with the core brand Boss (stylized as BOSS) for upscale business and leisure wear and Hugo (stylized as HUGO) for
3672-554: The Boss Orange brand was launched as a separate line for casual wear, followed by Boss Selection (2004) and Boss Green , which emerged from Boss Golf in 2004. 2000 saw the launch of Boss Woman , a product line initially managed by German fashion designer Grit Seymour in Milan , which has since also been presented at Berlin Fashion Week and New York Fashion Week . In 2002, the company
3780-698: The Lower Rhine ; Motorobergruppe Nord (north) that covered Hamburg , Lower Saxony , the Baltic Sea and Schleswig-Holstein ; Motorobergruppe Nordost (northeast) in Danzig , East Prussia , and Wartheland ; Motorobergruppe Ost (east) for Leipzig , Lower and Upper Silesia ; Motorobergruppe Süd (south) which served Bavaria and Hochland; Motorobergruppe Südwest (southwest) for the Rhine- Moselle , and Swabian regions; Motorobergruppe Südost (southeast) covering
3888-401: The MDAX since March 1999. Until June 2012, the share capital was divided into common and preferred stock . On June 15, 2012, after the close of trading, the preference shares were converted into ordinary shares and all shares were converted into registered shares . Since then, the company's share capital has consisted of around 70.4 million no-par value registered ordinary shares. In 2023,
3996-533: The New York stock market crash of 1929 , the company had to reduce its workforce by almost a quarter and file for bankruptcy in 1931. In the same year, Hugo Ferdinand Boss reached an agreement with his creditors, leaving him with six sewing machines to start again. In 1931, Hugo Ferdinand Boss became a member of the Nazi Party , receiving the membership number 508 889, and a sponsoring member ("Förderndes Mitglied") of
4104-587: The Solomon R. Guggenheim Foundation every two years as a cultural sponsor, and supported international contemporary exhibitions . In collaboration with the Staatliche Modeschule Stuttgart , the company has presented the Hugo Boss Fashion Award to fashion students since 1987. In February 2024, a fashion collection designed by supermodel Naomi Campbell was introduced. Hugo Boss has been
4212-627: The Solomon R. Guggenheim Foundation was launched in 1995, resulting in the Hugo Boss Prize . In 1997, Littmann left the company after differences of opinion with the Marzotto Group and Baldessarini was appointed CEO in 1998. Women's fashion ( Hugo Womenswear ) was first introduced in 1998, with the first women's fragrance ( Hugo Woman ) appearing at the same time. Since then, multiple fragrances and skincare ranges have been launched. In January 1999, Hugo Boss launched its first website. Also in 1999,
4320-600: The e-commerce business was expanded. In 2017, Hugo Boss was also included in the Dow Jones Sustainability Index for the first time. In the same year, the sales of Hugo Boss climbed by 7% during the final quarter of the year. In 2020, Mike Ashley's British Frasers Group acquired a stake of around 5% in Hugo Boss. This stake was reduced to 2.63% by February 2023, but Ashley has access to a further 24.69% via financial instruments . In June 2021, Daniel Grieder took over as CEO of Hugo Boss. Under his direction,
4428-546: The microeconomics discipline use the term superior good as an alternative to an inferior good , thus making "superior goods" and "normal goods" synonymous. Where this is done, a product making up an increasing share of spending under income increases is often called an ultra-superior good . Though often verging on the meaningless in modern marketing, "luxury" remains a legitimate and current technical term in art history for objects that are especially highly decorated to very high standards and use expensive materials. The term
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4536-414: The middle class , sometimes called the "aspiring class" in this context. Because luxury has diffused into the masses, defining the word has become more difficult. Whereas luxury often refers to certain types of products, luxury is not restricted to physical goods; services can also be luxury. Likewise, from the consumer perspective, luxury is an experience defined as "hedonic escapism". "Superior goods"
4644-599: The "Lettow shirts" introduced to the SA by Gerhard Roßbach in 1924 rather by chance. The factory was "one of numerous smaller manufacturing companies involved in uniform production". Hugo Boss was not involved in the design of the uniform. 1924 is also the year the company became a Reichszeugmeisterei -licensed supplier of uniforms to the Sturmabteilung (SA), Schutzstaffel (SS), Wehrmacht , Hitler Youth , National Socialist Motor Corps , and other party organizations. By
4752-678: The 1970s with the support of racing driver Jochen Mass , and were further expanded in motorsport through the sponsorship of the McLaren Formula 1 team from 1981 to 2014, one of the longest partnerships in motorsport. This led to several drivers being outfitted with Hugo Boss clothing, including Alain Prost , Ayrton Senna , and Niki Lauda . Boss has been the official clothing partner of the Aston Martin F1 team since July 2022. One year later, Boss also appointed Aston Martin driver Fernando Alonso as
4860-830: The Eastern Front in a group known as NSKK Einsatzgruppe Russland . In September 1944, the Waffen-Grenadier-Brigade der SS "Charlemagne" was formed from the Legion of French Volunteers Against Bolshevism (LVF) and the SS Volunteer Sturmbrigade France . Joining them were French collaborators fleeing the Allied advance in the west, as well as Frenchmen from the German Navy , the NSKK, the Organisation Todt and
4968-723: The Hugo Boss Supplier Code of Conduct. In September 2021, the European Center for Constitutional and Human Rights filed a complaint with German prosecutors accusing Hugo Boss of abetting and profiting from forced labor in Xinjiang. In 2022, researchers from Nordhausen University of Applied Sciences identified cotton from Xinjiang in Hugo Boss shirts. In the field of sports sponsorships, Hugo Boss has been active in motorsport , golf , association football , sailing , tennis , and winter sports . The company's activities began in
5076-596: The Hugo Boss proposal to cut the workers' hourly wage 36% from $ 13 an hour to $ 8.30. After an initial statement by CFO Andreas Stockert saying the company had a responsibility to shareholders and would move suit manufacturing from the US to other facilities in Turkey, Bulgaria and Romania, the company capitulated to the boycott and cancelled the project. Renewed plans to close the plant in April 2015 also failed. In September 2015, Hugo Boss (UK)
5184-531: The NSAK, itself the successor to the SA Motor Squadrons ( Kraftfahrstaffeln ). Hitler made the NSAK an official Nazi organization on 1 April 1930. The NSAK was responsible for coordinating the use of donated motor vehicles belonging to party members, and later expanded to training members in automotive skills. Adolf Hühnlein was appointed Korpsführer (Corps Leader) of the NSAK, which was to serve primarily as
5292-466: The Nazis celebrated Braunschweiger SA-day on 18 October 1931, the NSKK had upwards of 5,000 vehicles at its disposal to move men and materials. The primary aim of the NSKK was to teach its members in motoring skills, or "fitness in motoring skills" ( Motorische Ertüchtigung ), but it also transported NSDAP and SA officials. In the mid-1930s, the NSKK also served as a roadside assistance group, comparable to
5400-559: The SS, and the uniforms delivered to the Nazi party, Hugo Ferdinand Boss was considered both an "activist" and a "supporter and beneficiary of National Socialism". In a 1946 judgment, he was stripped of his voting rights, his capacity to run a business, and fined "a very heavy penalty" of 100,000 ℛ︁ℳ︁ ($ 70,553 U.S.) (£54,008 stg ), which was later decreased to 25,000 ℛ︁ℳ︁ . However, Hugo Ferdinand Boss appealed, and he
5508-626: The Upper and Lower Danube , Sudetenland ; and Motorobergruppe West (west), which was responsible for Hessen , Thuringia , and Westphalia . Moreover, there were also NSKK units assigned to Organization Todt, operating in France, Italy and Russia. Historian Peter Longerich suggests that NSKK members, along with paramilitary police, the Waffen-SS , and the German Army were all culpable in varying degrees for large-scale arrests, torture, and mass executions during
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#17328560505175616-409: The average luxury brand is 5-15% of sales revenue , or about 25% with the inclusion of other communications such as public relations , events, and sponsorships. A rather small group in comparison, the wealthy tend to be extremely influential. Once a brand gets an "endorsement" from members of this group, then the brand can be defined as a true "luxury" brand. An example of different product lines in
5724-638: The brown uniform of Speer's staff. NSKK personnel working for Organization Todt became members of Transportbrigade Todt , which was further divided into individual motor groups in the occupied territories. Major units of the NSKK were formed by 1944, operating throughout Germany. There were two full brigades of the NSKK supporting the Luftwaffe; a Motorobergruppe Alpenland in the Austrian Alps ; Motorobergruppe Mitte (middle) which operated in Berlin, Franconia , and
5832-405: The church or monastery who owned them may have had. Secular luxury manuscripts were commissioned by the very wealthy and differed in the same ways from cheaper books. "Luxury" and "luxury arts" may be used for other applied arts where both utilitarian and luxury versions of the same types of objects were made. This might cover metalwork, ceramics, glass, arms and armor, and various objects. It
5940-429: The clothing and accessories section grew 11.6 percent between 1996 and 2000, to $ 32.8 billion. The largest ten markets for luxury goods account for 83 percent of overall sales and include Brazil, China, France, Germany, Italy, Japan, Russia, Spain, Switzerland and United Kingdom, and United States. In 2012, China surpassed Japan as the world's largest luxury market. China's luxury consumption accounts for over 25% of
6048-420: The company again and his sales increased from 38,260 ℛ︁ℳ︁ ($ 26,993 U.S. dollars in 1932) to over 3,300,000 ℛ︁ℳ︁ in 1941. Though he claimed in a 1934–35 advertisement that he had been a "supplier for National Socialist uniforms since 1924", it is probable that he did not begin to supply them until 1928 at the earliest, but was one of the first to produce brown shirts, copies of
6156-584: The company to his sons Jochen and Uwe, who began international development. In 1970, the first Boss branded suits were produced and in 1972, the Holy brothers opened the first factory outlet in a nearby warehouse, which later became the Outletcity Metzingen . In 1975, the Austrian designer Werner Baldessarini was hired and eventually became head designer. The Boss brand was registered as a trademark in 1977. This
6264-684: The company was bought by a Japanese group. After the Marzotto textile group acquired a 77.5% stake for $ 165,000,000 in 1991, the Hugo , Boss and Baldessarini brands were introduced in 1993. In the same year, the Holy-brothers left the company and Peter Littmann became the new Chairman of the Management Board. In 1995, the company launched its footwear range, the first in a now fully developed leather products range, across all sub-brands. A partnership with
6372-554: The company. Production initially focused on uniforms for the French army and the French Red Cross , then on uniforms for the post office , railroads and police . In 1950, the company received its first order for men's suits , resulting in an expansion to 150 employees by the end of the year. Hugo Boss men's suits first appeared on the market in 1953. By 1960, the company was producing ready-made suits. In 1967, Eugen retired, leaving
6480-563: The coroner had said that the death was an "accident waiting to happen". In June 2015, Hugo Boss (UK) had admitted its breach of both the Health and Safety at Work Act 1974 and Management of Health and Safety at Work regulations 1999. The company's legal representative said: "The consequence of this failing is as awful as one could reasonably imagine. Since the day of the accident Hugo Boss has done all it can, first to acknowledge those failings, to express genuine, heartfelt remorse and also demonstrate
6588-446: The customers' feeling that they have something special; and (3) endorsement by celebrities, which can make a brand or particular products more appealing for consumers and thus more "luxurious" in their minds. Two additional elements of luxury brands include special packaging and personalization. These differentiating elements distance the brands from the mass market and thus provide them with a unique feeling and user experience as well as
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#17328560505176696-440: The definition of what is a luxury product, a luxury brand, or a luxury company. Lately, luxury brands have extended their reach to young consumers through unconventional luxury brand collaborations in which luxury brands partner with non-luxury brands seemingly at the opposite spectrum of design, image, and value. For example, luxury fashion houses partner with streetwear brands and video games. The sale of luxury goods requires
6804-402: The demand for a product rises 2%, then the product is a luxury good. This contrasts with necessity goods , or basic goods , for which demand stays the same or decreases only slightly as income decreases. With increasing accessibility to luxury goods, new product categories have been created within the luxury market, called "accessible luxury" or "mass luxury". These are meant specifically for
6912-574: The demand for products, thereby avoiding the overproduction of clothing. Structures are also being created to better track supply chains. This is in line with the Supply Chain Act , which aims to ensure compliance with environmental and social standards. The company has also announced its intention to become CO2-neutral by 2050. Since December 2023, Hugo Boss has been the first company to invest in Collateral Good Ventures Fashion I,
7020-579: The detested Milice security police. In February 1945, the Waffen-Grenadier-Brigade der SS "Charlemagne" was officially upgraded to a division and became known as the 33rd Waffen Grenadier Division of the SS Charlemagne (1st French) . The NSKK was disbanded in May 1945 and declared a "condemned organization" at the Nuremberg Trials (though not a criminal one ), due in part to the NSKK's origins in
7128-430: The difficulty of making a profit in the mass consumer goods market. The customer base for various luxury goods continue to be more culturally diversified, and this presents more unseen challenges and new opportunities to companies in this industry. There are several trends in luxury: The luxury goods market has been on an upward climb for many years. Apart from the setback caused by the 1997 Asian Financial Crisis ,
7236-1006: The experiences of different client groups. Flagship boutiques are grand, multi-story boutiques in major cities that are merchandised with a wide range of collections and staffed by a large team of sales associates. They also offer supplemental services, like jewelry cleaning, hot stamping, on-site service. Many luxury brands use flagship boutiques to illustrate their unique vision or heritage, often through distinctive architecture that transforms them from storefronts to tourist attractions. Large cities often have secondary boutiques in addition to their flagship boutique. Multiple boutiques allow luxury brands to cater to different types of clients, which can differ even within small geographic areas. Secondary boutiques often offer different merchandise than flagship boutiques, and establish different types of relationships with clients. Luxury boutiques in smaller cities are often secondary boutiques as well. The rising popularity of secondary and tertiary cities around
7344-459: The fields of climate and environmental protection. In 2023, for example, the foundation was involved in the crisis areas affected by earthquakes in Turkey and Syria . In 2016, Hugo Boss became a member of the ZDHC Foundation (Zero Discharge of Hazardous Chemicals), which is committed to avoiding harmful substances in production. Since 2017, Hugo Boss has been working on its own contribution to
7452-474: The following words: "Hugo Boss has not procured any goods originating in the Xinjiang region from direct suppliers." Initially attracting thousands of likes , the edited Weibo post received many comments accusing the brand of hypocrisy . A company spokeswoman stated that the original Weibo post was unauthorized and that the company's position has not changed. According to the company's official statement, all materials are only sourced from suppliers that comply with
7560-467: The former CFO Mark Langer was appointed as the new CEO in mid-May. In the same year, Coty took over the perfume licenses for Hugo Boss from Procter & Gamble . A realignment took place shortly afterwards. As a result, the Boss Orange and Boss Green lines were discontinued, and only the Boss and Hugo brands remained active. Furthermore, the company's own global prices were adjusted, while unprofitable stores were closed, existing ones modernized and
7668-621: The general success of the organization, Hühnlein was promoted NSDAP Reichsleiter in 1938. He remained NSKK Korpsführer until his death in 1942, and was succeeded by Erwin Kraus. Sometime in August 1938, the NSKK began courier services for Organization Todt (OT) during construction of the Siegfried defensive line . Members of the NSKK transported classified documents, important reports and announcements, construction plans, and routine papers to and from
7776-502: The global market. According to the Global Wealth and Lifestyle Report 2020, Hong Kong , Shanghai , Tokyo and Singapore were four of the five most expensive cities for luxury goods in Asia. In 2014, the luxury sector was expected to grow over the following ten years because of 440 million consumers spending a total of 880 billion euros, or $ 1.2 trillion. The advertising expenditure for
7884-442: The growth strategy Claim 5 was introduced, with the objective of improving the consumer journey and product offerings, increasing relevance, and driving growth across all geographical regions. This strategy is intended to ensure the sustainable growth of the company. In the same year, Daniel Grieder set the goal of achieving a revenue of 4 billion euros by 2025. As this revenue target was reached two years earlier, Hugo Boss increased
7992-438: The industry has performed well, particularly in 2000. That year, the world luxury goods market was worth nearly $ 170 billion and grew 7.9 percent. The United States has been the largest regional market for luxury goods. The largest sector in this category was luxury drinks, including premium whisky , champagne , and cognac . The watches and jewelry section showed the strongest performance, growing in value by 23.3 percent, while
8100-432: The leading actors Don Johnson and Philip Michael Thomas in the crime series Miami Vice . Other well-known personalities wore Boss outfits at the time, such as Michael Jackson , who wore a white Boss suit on the album cover of Thriller , or Sylvester Stallone , who wore a Boss sweater as Rocky . From 1996 to 2022, Hugo Boss AG sponsored the Hugo Boss Prize , an annual $ 100,000 stipend in modern arts, awarded by
8208-401: The main purpose of displaying wealth or income of their owners. These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption and commonly include luxury cars , watches , jewelry , designer clothing , yachts , private jets , corporate helicopters as well as large residences, urban mansions , and country houses . The idea of a luxury brand
8316-941: The major purge of the SA during the Night of the Long Knives , the NSKK was separated and promoted into an independent NSDAP organization, with Hühnlein still at its head. From 1935 onward, the NSKK also provided training for Panzer crews and drivers of the Heer ( German Army ). The NSKK had two sub-branches, the Motor-Hitler Youth ( Motor-Hitlerjugend ; Motor-HJ) and Naval NSKK ( Marine-NSKK ). The Motor-HJ branch, formed by Reichsjugendführer ( Hitler Youth Leader) Baldur von Schirach after he became an NSKK member, operated 350 of its own vehicles for educational and training purposes. The Naval NSKK provided training in boat operation and maintenance. During
8424-531: The majority of them women from the Soviet Union and Poland . In addition to these workers, 40 French prisoners of war also worked for the company briefly between October 1940 – April 1941. According to German historian Henning Kober, the company managers were fervent Nazis who were all great admirers of Adolf Hitler . In 1945, Hugo Ferdinand Boss had a photograph in his apartment of him with Hitler, taken at Berghof , Hitler's Obersalzberg retreat. Because of his early Nazi Party membership, his financial support of
8532-555: The modern-day American Automobile Association or the British Automobile Association . Membership in the NSKK did not require any prior automotive knowledge; training in the organization was to make up for any lack of knowledge. However, the NSKK adhered to Nazi racial doctrine and screened its members for Aryan traits. Under the guidance of the police, numerous NSKK men were stationed at traffic junctions and trained in traffic control . On 20 July 1934, weeks after
8640-514: The organization's headquarters. Exemplary service provided to the organization resulted in Hühnlein being given oversight for the transportation needs related to the task. Over 15,000 trucks went into operation, delivering building materials to the 22,000 individual construction sites of the Siegfried Line. Every day, over 5,000 buses were used to transport 200,000 workers to construction sites. At
8748-520: The position of CEO. Under his leadership, Hugo Boss was transformed into a lifestyle group, the women's line was repositioned, and international expansion was driven forward, particularly in the Asian markets. In 2005, Marzotto spun off its fashion brands into the Valentino Fashion Group . In 2007, Valentino was acquired by financial investor Permira for €3.5 billion , which subsequently exerted
8856-444: The region and would continue to do so: "Xinjiang's long-stapled cotton is one of the best in the world. We believe top quality raw materials will definitely show its value. We will continue to purchase and support Xinjiang cotton." The statement was later edited to simply saying they have partners "in various regions of China" with a link to an English-language page on their website, which in turn linked to another statement containing
8964-741: The resort's high season. These boutiques offer merchandise relevant to the resort where they are located, like a cruise collection in a beach resort or skiwear in a mountain resort. Since the development of mass-market "luxury" brands in the 1800s. Extraordinary places will be the factor of development that can be achieved by enabling the conversion of items from the mass-market to the luxury market. Many innovative technologies are being added to mass-market products and then transformed into luxury items to be placed in department stores. Department stores that sell major luxury brands have opened up in most major cities worldwide. Le Bon Marché in Paris , France
9072-460: The revenue target for 2025 to 5 billion euros in June 2023. In 2022, Marco Falcioni was appointed Creative Director. The same year, Hugo Boss invested in the start-up Heiq Aeoniq LLC, which is developing the cellulose fabric Heiq Aeoniq. In 2023, the fiber was first used in the company's textiles. In order to meet increased demands, the Group invested 100 million euros in a new distribution building at
9180-475: The same brand is found in the automotive industry, with "entry-level" cars marketed to younger, less wealthy consumers, and higher-cost models for older and more wealthy consumers. In economics, superior goods or luxury goods make up a larger proportion of consumption as income rises, and therefore are a type of normal goods in consumer theory . Such a good must possess two economic characteristics: it must be scarce , and, along with that, it must have
9288-468: The status of "luxury goods" due to their design, quality, durability, or performance, which are superior to comparable substitutes. Some goods are perceived as luxurious by the public simply because they play the role of status symbols , as such goods tend to signify the purchasing power of those who acquire them. These items, while not necessarily being better (in quality, performance, or appearance) than their less expensive substitutes, are purchased with
9396-714: The successful implementation of the UN Sustainable Development Goals . Furthermore, Hugo Boss was part of the Sustainability 2030 science platform initiated by the German government and joined the Klimabündnis Baden-Württemberg in 2024. Sustainability is also part of the Claim 5 strategy implemented by Grieder. As part of this, the resale website Hugo Boss Pre-Loved was launched in 2022, which pursues
9504-592: The term has had negative connotations for most of its long history. One definition in the OED is a "thing desirable but not necessary". A luxury good can be identified by comparing the demand for the good at one point in time against the demand for the good at a different time, at a different income level. When personal income increases, demand for luxury goods increases even more than income does. Conversely, when personal income decreases, demand for luxury goods drops even more than income does. For example, if income rises 1%, and
9612-505: The third quarter of 1932, the all-black SS uniform was designed by SS members Karl Diebitsch (artist) and Walter Heck (graphic designer). The Hugo Boss company was one of the companies that produced these black uniforms for the SS. By 1938, the firm was focused on producing Wehrmacht uniforms and later also uniforms for the Waffen-SS . During the Second World War , besides its 300 employees, Hugo Boss employed 140 forced laborers,
9720-510: The time, the NSKK was also used by Hitler's chief architect, Albert Speer , who founded a unit known as the Transportbrigade Speer ; it primarily provided support to Organization Todt air base construction and was organized under military considerations, divided into regiments, divisions, companies and platoons. On 27 January 1939, Hitler made the NSKK the sole authority for motor-vehicle related military training. Shortly thereafter, it
9828-498: The top of their class or considered the best in their field. Furthermore, these brands must deliver – in some meaningful way – measurably better performance. What consumers perceive as luxurious brands and products change over the years, but there appear to be three main drivers: (1) a high price, especially when compared to other brands within its segment; (2) limited supply, in that a brand may not need to be expensive, but it arguably should not be easily obtainable and contributing to
9936-482: The war. The French section of the NSKK began shortly after the German occupation of France in 1940, though the section was not officially recognized until July 1942. The main office was in Paris, but recruitment took place across France. By the end of 1942, the section consisted of one company of 200 men; by the end of the war, seven companies had been raised. The men had to sign up for two years of service. The French NSKK
10044-402: The world has pushed luxury brands to open secondary boutiques in smaller cities than those that can support a flagship boutique. Luxury brands use seasonal boutiques to follow their well-heeled clientele as they leave major cities for smaller resort towns in the summer and winter. Common throughout Europe, seasonal boutiques have short-term leases, like a pop-up shop, which are open only during
10152-461: Was a paramilitary organization of the Nazi Party (NSDAP) that officially existed from May 1931 to 1945. The group was a successor organisation to the older National Socialist Automobile Corps ( German : Nationalsozialistisches Automobilkorps , NSAK), which had existed since April 1930. The NSKK served as a training organization, mainly instructing members in the operation and maintenance of high-performance motorcycles and automobiles. The NSKK
10260-550: Was a successor organization to the older National Socialist Automobile Corps (NSAK), which had been formed on 1 April 1930. Legends about the actual emergence of the NSKK go back as far as 1922, when Dietrich Eckart , Völkischer Beobachter publisher and founding member of the German Workers' Party (DAP), allegedly purchased trucks so the SA could perform their missions and transport propaganda materials. Martin Bormann founded
10368-552: Was at the 2013 GQ awards, which were sponsored by Hugo Boss. After receiving an award on stage, Brand proceeded to talk about Hugo Boss's Nazi connection and did a goose step . He was later ejected from the ceremony and later apologized. In March 2010, Hugo Boss was boycotted by actor Danny Glover for the company's plans to close the plant in Brooklyn, Ohio , US after 375 employees of the Workers United Union reportedly rejected
10476-696: Was carved out of the Valentino Fashion Group; from then on, the Hugo Boss stake was held by Permira via its Red & Black Holding. Since a share placement on the stock exchange in November 2011, Permira has held around 66% of the total share capital and 89% of the voting rights in Hugo Boss. In 2010, the company had sales of $ 2,345,850,000 and a net profit of $ 262,183,000, with royalties of 42% of total net profit . Hugo Boss then had at least 6,102 points of sale in 124 countries. Hugo Boss AG directly owned over 364 shops, 537 mono-brand shops, and over 1,000 franchisee-owned shops. In June 2013, designer Jason Wu
10584-459: Was divided into five main groups and 23 subordinate motor groups. NSKK manpower reached nearly half a million men, its leadership operating primarily out of Munich and Berlin. With the outbreak of World War II on 1 September 1939, the National Socialist Motor Corps became a target for army recruitment, since NSKK member knowledge of motorized transport was a coveted skill at a time when the bulk of German ground forces relied on horses . The NSKK
10692-581: Was eventually classified as a "follower", a lesser category, which meant that he was not regarded as an active promoter of National Socialism. In June 2000, Hugo Boss joined the Foundation Initiative of German Business for the Compensation of Forced Laborers and contributed financially to the fund. An initial study commissioned by the company at the end of the 1990s on the situation in the Third Reich
10800-463: Was fined £1.2 million in relation to the death in June 2013 of a child who died four days after suffering fatal head injuries at its store in Bicester , Oxfordshire. The four-year-old boy had been injured when a steel-framed fitting-room mirror weighing 120 kilograms (260 lb) fell on him. Oxford Crown Court had earlier been told that it had "negligently been left free-standing without any fixings" and
10908-576: Was followed by the start of the company's long association with motorsport, sponsoring Formula One teams. In 1984, the first Boss branded fragrance appeared. This helped the company gain the required growth for listing on the Frankfurt Stock Exchange the following year. The brand began a golf sponsorship for Bernhard Langer in 1986 and tennis for the Davis Cup in 1987. In 1989, Boss launched its first licensed sunglasses . Later that year,
11016-516: Was founded in 1924 in Germany by Hugo Ferdinand Boss and originally produced general-purpose clothing. In the early 1930s, Hugo Boss began to produce and supply military uniforms for the Nazi Germany government , resulting in a large boost in sales. After World War II and the founder's death in 1948, Hugo Boss started to turn its focus to men's suits . The company went public in 1988 and introduced
11124-521: Was further used to transport NSDAP and SA members, and also served as a roadside assistance group in the mid-1930s. The outbreak of World War II in Europe led to recruitment among NSKK ranks to serve in the transport corps of various German military branches. A French section of the NSKK was also organised after the German occupation of France began in 1940. The NSKK was the smallest of the Nazi Party organizations. The National Socialist Motor Corps (NSKK)
11232-467: Was hired as artistic director of the Boss womenswear collection. The collaboration ended in 2018. In March 2015, Permira announced plans to sell the remaining shares of 12%. Since the exit of Permira, 91% of the shares have been floating on the Frankfurt Stock Exchange , and the residual 2% have been held by the company. 15% of the shares are owned by the Marzotto family. Lahrs left the Group in 2016 and
11340-586: Was not published by the company. The author, Elisabeth Timm, later published it on the internet herself. Later, the economic historian Roman Köster conducted an independent study, which was also financed by the company and published by C. H. Beck in 2011. In the same year, the company issued a statement of "profound regret to those who suffered harm or hardship at the factory run by Hugo Boss under National Socialist rule". Hugo Ferdinand Boss died in 1948, but his business survived. His son Siegfried Boss and his son-in-law Eugen Holy took over ownership and management of
11448-464: Was originally attached to the Luftwaffe, although members wore the standard NSKK uniforms and used its rank system. Members wore their own arm badge with the colors of the French flag. The first version had "NSKK" in black letters across the top of the shield; the second bore the word "France" in black letters across the top of the shield. The original unit was officially known as NSKK Gruppe Luftwaffe and
11556-456: Was repositioned with a design team at the Metzingen site. The Baldessarini brand was sold to Werner Baldessarini in 2006 and replaced in the Boss range by the Boss Selection collection. Boss Selection was expanded in 2009 to include Boss Selection Tailored Line , but was integrated into the core Boss brand in mid-2012. In 2002, Baldessarini left the company and Bruno Sälzer took over
11664-539: Was used to transport German army troops, supplies and ammunition. By the outbreak of the war, the NSKK had already trained approximately 200,000 men at its 21 training facilities. During field operations on the Eastern Front , NSKK members of the Speer Transport Brigade followed Army Group South , providing infrastructure support and replenishment. Brigade members wore either the Luftwaffe gray-blue uniform or
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