Hugo Boss CEO Grieder talks NFTs, avatars and winning on Tiktok

Vogue Business Members can watch the full panel recordings from the keynote session below. Not a Member? See what you missed at the summit here, and then register to join. Data, Tiktok and avatars are high on the agenda for Daniel Grieder in his new role as CEO of Hugo Boss AG. The fashion executive, speaking at the Vogue Business and Google Summit, says he sees huge opportunities at Hugo Boss, which he joined in June after 16 years at Tommy Hilfiger and parent company PVH, as he transforms the company into a Gen Z-relevant brand. “It was so sad to see, because it’s a great brand with incredible brand awareness,” he says of his new brand. “When people talk about Hugo Boss, they see a dusty brand that only does suits. We want to become a 24/7 lifestyle brand for any occasion for men and women. We are not just doing suits, but every product group, including accessories.” And it’s working. During the pandemic, Grieder devoted himself to understanding Tiktok to better understand how to turn Gen Z from consumers into fans, he says. “I realised when you go into Tiktok, you become addicted to the films. It’s amazing how much time is spent there, and amazing to understand which consumers are spending time there.” In October, the brand launched a Tiktok challenge that gave away five Boss x Russell Athletic digital NFT jackets, as well as corresponding physical twin jackets with a QR code for AR try-on. The challenge, which happened during Milan Fashion Week, generated more than three million consumer #Bossmoves videos, garnered more than four billion impressions in as many days, and included participation from 170 global influencers. “The result was overwhelming and went beyond our expectations,” he says. “I have never seen these numbers.” Sales numbers are also looking up. Earlier this month, the company reported third-quarter sales and profit were 5 per cent above pre-pandemic levels. Sales were up 42 percent (to €755 million) compared to the same period last year and 5 percent up from the third quarter of 2019. The next technology on his radar? Avatars, including the ability for a “second Daniel” to attend meetings and get smarter over time. Or to work with top models such as Gigi Hadid by way of their avatars. One idea that still needs more time is his vision for the “store of the future”. Patience, he observes, can be a virtue. “Don’t give up too soon — too many projects were put under the carpet because they didn't see immediate success, but it takes time when you come with a new technology.” Grieder insists that successful brands must continue to innovate and experiment. “The biggest risk is to take no risk,” he says. It’s something he has been championing throughout his career. He made a splash at Hilfiger by bringing in a proprietary digital showroom in 2015, following up in 2019 with an ambitious plan to convert the entire company to 3D digital design. At Hugo Boss AG, he has now launched a major project to treat data as an asset that can be much more effectively utilised. This includes development of a new digital and data “campus” that aims to aid design teams and share learnings about customer preferences. The trick is to use this data effectively rather than be overwhelmed by it. “So many companies are gathering data,” says Grieder. “Everyone says, ‘Oh we study it and analyse it’, but when you ask, ‘What exactly do you do with it and how is it implemented in the company?’, then it’s a big question mark, and that is where most companies fail.” Teams will ideally implement data insights daily, including details such as what is selling, who has bought it, and where, when and how. The aim is to become proficient at rapidly understanding how a division of the business can use the information. Grieder’s broader goal is to double sales by 2025. The strategy includes an expansion of product categories to present a full lifestyle offer, a rethink of distribution and an allout targeting of younger customers. A consistent theme in recent internal projects has been to convince design teams and other creative roles to embrace technology, first by transitioning to digital showrooming and designing, and now through making data-led design and merchandising decisions. Grieder is communicating the message that data gives more security to creative work. “You can be more creative because you know what works and you can put something new onto what you did — you make it even better for next time, so the product will improve and the results will improve, and you are much more efficient,” he says. While Hugo Boss has two core brands, Hugo Boss and Hugo, its product categories now include more smart casual, casual and athleisure items to broaden the assortment, representing a more rounded lifestyle offer. Athleisure, in particular, has been a strong addition to the product lines. Going forward, product categories might increasingly include digital versions of products and NFTs, Grieder says. “This is the new way going forward — people are dressing in this virtual world, and in the metaverse in the future, you can dress in reality and virtual reality. You have to adapt to this world and to new technology. A lot of things are new for us, but you can't say it’s too advanced, or you have no chance,” he says, pointing to the success of the Tiktok NFT challenge. “You clearly have one target and that is the young Gen Z target group.” To become a Vogue Business Member and receive the Technology Edit newsletter, click here. Comments, questions or feedback? Email us at feedback@voguebusiness.com. More on this topic: Fashion month social strategies: What worked 3D design: Transforming fashion’s design process Tommy Hilfiger goes all in on digital design

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