World Product – Hugo Boss

Next to Armani, global giant Hugo Boss is

arguably the most recognizable suiting

label in the world. In the forty-five years

since the house began making suits, the

label has been a dominant force in the

market, with six hundred stores worldwide

and a presence in 108 countries. With collections for every demographic, from

urban sport to demi-bespoke, Hugo Boss continues to expand its global reach.

HUGO BOSS – the name denotes success, perfection and a style that transcends

international borders. The Group has been successfully asserting and expanding its

position as a global market leader in the

upscale fashion market for years, despite the

overall weakness of the global economy.

There are many reasons for the

Company’s success. A major component

is the professional senior management

and dedicated workers who possess

extensive knowledge of both markets

and customers. Product competence, a

global sales network and top-notch

logistics are also important factors in

the Company’s successful development.

Uniform presentation of our products

through-out the world and effective

marketing measures support the strong

image of the HUGO BOSS brands and the

Company.

Creativity and Perfection

The process of designing the

collections and developing state-of-

the-art manufacturing techniques

takes place at the Group’s

headquarters in Metzingen. Here,

our creative teams design new models

for each season of the year that are in

step with current fashion trends. First,

patternmakers transform ideas

into prototypes. Sample

collections are prepared as part of

the further creative process; these

are then presented as retail samples in worldwide showrooms. After

the orders have been received, production planning in Metzingen prepares

the models for series production.

The introduction of new, labor-intensive collections such as BOSS Orange

Womenswear presents increasing production challenges, which we are

meeting by developing unique processing techniques. Modern distribution

logistics using automated warehousing and conveying techniques

guarantee optimum goods flow management throughout the process chain.

Our quality control management oversees the entire production process

and ensures that our high quality standards are maintained – from the

selection of suppliers and procurement of raw materials to the delivery of the

finished collection to retail stores.

Innovation

In addition to steadily developing its

collections, HUGO BOSS also continues

to focus on new technologies and

optimized work processes. With this

goal, we initiated the Columbus project, the most comprehensive project in

our corporate history. Columbus aims to significantly increase

efficiency in all business processes and involves reorganizing all

processes, from collection planning and production up to delivery.

This allows us to predefine delivery windows for complete fashion programs

accurate to the week and to service retailers just in time; a

development that is unique in the fashion industry, meets today’s

demands and underpins our market leadership.

Distribution

HUGO BOSS products

are available

worldwide in over

108 countries. Our

own subsidiaries

guarantee professional

knowledge of key local

markets. Our

architects,

merchandising

teams and

marketing services

assist in the uniform

presentation of

HUGO BOSS at over

5,000 points of sale.

Shop concepts are

updated on an ongoing

basis to enable constant innovative and high-quality presentation of our

products. Our new accessory stores, for instance, are reaping the

benefits of our new shop design. The first two such stores, opened in

Frankfurt and Amsterdam in 2005 were immediately successful. This is an

important step in expanding this market segment, which is of great

significance to HUGO BOSS.

Communication

Corporate and brand communication at HUGO BOSS is coordinated

at our headquarters in Metzingen and supported by in-house staff at

the subsidiaries as well as international public relations agencies. In

addition to handling international business and lifestyle press relations,

these professionals design and place magazine print ads and update

our Internet presence, which is growing in importance as a marketing tool.

Sponsorships and Events

HUGO BOSS maintains very successful sponsorship programs. Cultural

sponsorships link the HUGO BOSS brands with the aesthetic appeal;

openness and innovation that are characteristic of the art world,

while our sport sponsorships lend the BOSS core brand the

attributes of success, fascination and dynamism. Major international

fashion events serve to further enhance the HUGO BOSS brands by creating

an additional emotionally charged aspect.

Product Portfolio

The HUGO BOSS brands encompass all key fashion areas, ranging from

classic clothing, evening and leisurewear to functional sportswear

and complementary accessories. Licensed products such as eyewear,

watches, fragrances and cosmetics further enhance our collections.

In the cosmetics segment, the new skincare series for men, BOSS Skin,

enjoyed immediate market success in 2005.

The HUGO BOSS Brand World

HUGO BOSS is represented in the fashion market by the BOSS and HUGO

brands. These brand collections and their fashion lines are aimed at

various target groups, creating a brand

world of extraordinary fashion diversity

at a constantly high level of quality. The

BOSS Black, BOSS Selection, BOSS Orange

and BOSS Green lines as well as the

accompanying accessory collections are all

part of the core BOSS brand.

BOSS Black

The womenswear and menswear collections of the BOSS Black line

offer wide-ranging styles. The comprehensive spectrum encompasses

elegant business ensembles, casual

sports clothing and evening wear

designed for special festive

occasions. The person wearing these

clothes appreciates the flawless look that

expresses his or her personality and the

high standards of quality.

BOSS Selection

The luxurious BOSS Selection

Menswear collection embodies the

premium tier of the BOSS brand

world, implementing the design

competence of the BOSS brand using the best materials and the

finest workmanship. Hand-stitched details and features of traditional

custom tailoring express the line’s exclusive nature and assure its

positioning in the upper market segment.

BOSS Orange

The BOSS Orange collection offers leisure fashion for men and

women who enjoy stylish outfits and an element of surprise. Unusual

materials, vibrant colors and intricate details are aimed at customers who

like experimenting with fashion and also value good workmanship.

BOSS Green

The functional sportswear in the BOSS Green line offers athletic and

fashion-oriented men a collection that promises optimum

performance from both a sports and fashion perspective.

HUGO

The HUGO brand combines creativity and individuality. It offers self-

confident men and women a collection to express their own style.

HUGO is unconventional and avant-garde – a fashion defined not by age

group, but by attitude.

Thus, by proper market research, innovation, creativity and perfection the

company has been successful in marketing its unique world class product in

various countries. By adopting the strategy of manufacturing world

product instead of national or international product, the company

has been able to cut down its production cost ( simplified inventory

control, costly downtime in production not needed, anticipation and

preparation of necessary local adaptation) and has directed these

costs in Innovation, R&D, marketing strategies and improving the

production process, making the company successful worldwide.