Hugo Boss’ largest shareholder reveals big plans for the retailer in China

Monday, 17 August 2015

Boss will expand its presence in China, revealed the fashion firm’s reference shareholder Gaetano Marzotto in an interview with the German paper ‘Welt am Sonntag’.

"Up until now China accounts for less than 10 percent of group sales, this could be ramped up," Marzotto said in an interview on Sunday, advancing the company’s plans to boost their presence in the world’s second-largest economy.

Marzotto’s family hold a 7.95 percent stake in Hugo Boss, making it the company's biggest shareholder.

Hugo Boss's currency adjusted sales in the country increased 1 percent in the six months through June, compared to a 2 percent dip in the prior year period.

Despite Marzotto’s confidence in the Chinese market, Hugo Boss’ financial chief officer Mark Langer doesn´t expect an improvement soon in China, which contributes about 8 percent of group sales.

Hugo Boss recently took over 21 stores in China, previously operated by a partner, to strengthen its brand in the market, recalls the ‘economic Times’.

Actually, the fashion house has been spending heavily on expanding its own store network in the past months, aimed to capitalise there where sales are more profitable than through other retailers' shops.

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