Product Development and Innovation

At HUGO BOSS, we put strong efforts on developing collections and products that meet the highest customer demands in terms of design and quality, as well as innovation and sustainability. These principles are firmly embedded in our strategic claim “Product is Key,” which puts consumers and our products at the center of all our activities. As part of our “CLAIM 5” strategy, we are committed to further optimize the price-value proposition to guarantee highest quality, a superior degree of innovation and sustainability, and features that enable our brands to clearly distinguish themselves from the competition. The potential of digitalization is to be fully leveraged throughout the entire product development process. Inspiring capsule collections and high-impact collaborations with renowned brands and personalities are also intended to spur the relevance of BOSS and HUGO while driving excitement among both brands. Group Strategy, “Product is Key”

The design and product development process at HUGO BOSS involves the transformation of a creative idea into a commercial product. The work is carried out at our three development centers in Metzingen (Germany), Coldrerio (Switzerland), and Morrovalle (Italy). While the majority of our collections are developed at the Group headquarters in Metzingen, the Coldrerio site is mainly responsible for the development of the product categories shirts, knitwear, shoes and accessories, as well as bodywear and hosiery. In Morrovalle, we develop high-quality shoes and leather accessories.

Product development process

In line with our strategic claim “Lead in Digital,” we have significantly expanded the digitalization of our product development process in recent years, largely replacing the conventional process. It enables us to operate more flexibly across the entire value chain and consequently adapt more effectively and quickly to changing consumer trends and customer demand. At the same time, we are convinced that the ongoing digitalization of product development will also contribute positively to our sustainability ambitions, as it allows for predicting trends more accurately, better anticipating customer preferences, and further reducing the need for physical samples, thus minimizing waste and reducing CO₂ emissions. Overall, we have set ourselves the goal of developing more than 90% of our products digitally by 2025. In fiscal year 2024, the proportion of digitally developed products amounted to around 65% (2023: around 65%).

The product development process starts with the creative idea that is transformed into specific designs and collections. In this context, we take into account sell-through rates of previous collections, feedback from wholesale partners and customers, as well as AI-driven insights, thereby also putting a strong emphasis on further reducing the complexity of both brands’ collections. The conventional product development process sees our design teams’ creative ideas tailored in the pattern-design phase, followed by technical product development turning models into prototypes and testing their suitability for the industrial production process. This step is followed by the manufacture of sample collections. The digital product development process, on the other hand, allows all these steps to be realized digitally, from drafting first sketches to selecting materials using 3D styles. In addition, virtual try-ons are realized with avatars, strongly focusing on performance, fit, as well human-realism. In this context, the evolution of immersive 3D simulations with innovative software solutions led to a further expansion of digital development to additional product groups in recent years. Basic and core products, such as never-out-of-stock items, are designed to remain part of our collections for multiple seasons, as they are not tied to seasonal or fashion-driven trends. Once production has been completed, the collections are ready to be sold via our physical and digital distribution channels. In this context, digitally developed styles are also of high importance – for example, when selling our collections to wholesale partners via digital showrooms or offering “virtual try-ons” to our customers at hugoboss.com. Group Strategy, “Sustainable Throughout”

Key areas of product innovation

As part of our “CLAIM 5” strategy, we are committed to unlocking the full potential of BOSS and HUGO by perfectly dressing our customers 24/7 and for every occasion. Driving casualization along our collections and further optimizing wearing comfort through the increased use of innovative materials are of particular importance and thus a key area of product innovation. With BOSS, we continue to drive innovation particularly within our athleisurewear offering as part of BOSS Green. In 2024, we launched selected functional capsule collections, for example with tennis player Matteo Berrettini, runner Alica Schmidt, and our dedicated BOSS Ski capsule. At the same time, our BOSS Performance product range further elevates our BOSS Black assortment, combining traditional formalwear outfits with innovative sportswear elements, thereby perfectly matching the needs of our customers. It ranges from super-stretchable and machine-washable styles to lightweight, wrinkle-free, and water-repellent products that make travelling even more comfortable. In 2024, we further implemented performance functionalities into our broader product range, growing its share to around one third of revenues generated as part of our BOSS formalwear assortment. On top of that, we expanded our product portfolio by introducing the new brand line HUGO Blue in early 2024. With a strong focus on denimwear, HUGO Blue is dedicated to leveraging the full potential of the HUGO brand, with jersey, knitwear, outerwear pieces, and accessories completing the offering. Group Strategy, “Product is Key”

We are fully committed to living up to growing customer expectations in terms of sustainability. To this end, we increasingly rely on innovative, sustainable materials and manufacturing techniques when developing our collections. As part of our long-term strategic partnership with Swiss innovator HeiQ, we are focusing on the joint development and production of AeoniQ, a sustainable, circular, and recyclable cellulose yarn, with the aim of replacing environmentally harmful polyester and polyamide. In this context, as part of our “The Change” initiative, in 2024 we successfully launched the first BOSS sneakers made of AeoniQ. Going forward, leveraging these initiatives is set to support our goal of enabling 80% of BOSS and HUGO apparel products to become circular by 2030, which is firmly anchored in our sustainability strategy. Group Strategy, “Sustainability Throughout”

The four main collections of BOSS and HUGO are designed to offer customers both a broad range of core products as well as a variety of seasonal and particularly fashion-conscious styles. Besides these main collections, we team up with other well-known brands and personalities to create inspiring capsule collections and high-impact collaborations. In doing so, we want to constantly increase the relevance of BOSS and HUGO and excite consumers all over the globe. In 2024, BOSS entered into a strategic, multiyear design collaboration with David Beckham. Kicking off with the Spring/Summer 2025 collection, the partnership includes capsule and seasonal collections designed and curated by David Beckham, embodying both formal and casual menswear signature styles as part of our 24/7 premium lifestyle positioning. In addition, BOSS collaborated with strong partners including Porsche and the American football league NFL, while HUGO teamed up with Formula One’s Racing Bulls in 2024. Exceptional collaborations like these will continue to play a key role in attracting new and younger consumers and fully unlocking the potential of both brands. Group Strategy, “Product is Key”

Key R&D figures

The research and product development (R&D) departments of HUGO BOSS are staffed primarily by fashion and 3D designers, tailors, shoe and clothing technicians, and engineers. As of December 31, 2024, the number of employees in this area totaled 731 (2023: 751).

At EUR 90 million, our R&D expenses in 2024 remained broadly on the prior-year level (2023: EUR 89 million). At 75%, personnel expenses accounted for the vast majority of R&D expenses last fiscal year (2023: 71%), with the remainder being primarily composed of other department expenses. In 2024, R&D costs were again mostly recognized as expenses at the time they were incurred. In addition, production-related development expenses are included in the cost of conversion of inventories. No development expenses were recognized as internally generated intangible assets due to the predominantly short product life cycles.