Social matters
Customer satisfaction
For HUGO BOSS, the desirability of its two brands, BOSS and HUGO, is the most important factor for long-term success. The goal of maximizing customer satisfaction is in line with this fundamental concept. The clear focus on the customer is firmly anchored in the Group’s strategy as one of the four guiding principles. Customer benefit and customer satisfaction are both a benchmark and a target in all key decisions. Group Strategy
At HUGO BOSS, customer satisfaction is systematically measured and evaluated by the central department Group Strategy, which reports directly to the Spokesperson of the Managing Board. The Managing Board is kept regularly informed of the progress and results of the work.
Targets
Particularly in times of intense competition and constantly increasing customer demand, the target of maximizing customer satisfaction contributes to the long-term increase in enterprise value.
Measures
Key levers for increasing customer satisfaction for HUGO BOSS include enhancing the shopping experience, continually optimizing the product offering and constantly improving product and service quality. In 2020, HUGO BOSS invested in further optimizing its online store and expanding it to other markets, as well as in the modernization of selected BOSS stores. In addition, the Company has further strengthened its casualwear offering. The Company has also ramped up its marketing activities by means of partnerships and collaborations, in order to focus even more on the customer. Group Strategy
HUGO BOSS relies on systematic Customer Experience Management (CEM) as an important instrument for measuring customer satisfaction. This system gathers, aggregates and evaluates feedback from customers given on a voluntary basis and makes it available to the relevant decision-makers in real time. The focus is on evaluating the shopping experience through suitable key figures such as the “Net Promoter Score” (NPS) and a five-star rating system. Immediately upon its introduction in 2019, all freestanding retail stores in Europe, as well as the Group’s own online stores there, were connected to the relevant software. In 2020, the Company also connected its own stores in the Americas and major Asian markets along with the global online store hugoboss.com to the CEM. This, for example, allows to observe and compare the subjective perceptions of customers in individual stores or countries in real time. As a result, sales staff can be trained in a more targeted way. At the same time, specific measures can be developed to further optimize the online ordering process. In 2020, the CEM allowed to track the success of individual marketing instruments, as well as customer perceptions regarding, for example, the product range and product quality through topic-specific customer surveys for the first time.
Performance indicators
When evaluating the data obtained, the NPS is the most important key figure, measuring the likelihood of a customer recommending the BOSS or HUGO brands. Also in 2020, HUGO BOSS was able to further increase the NPS. The Company aims at further improving this indicator in the future.
Data protection
The aim of data protection is to guarantee the individual’s right to self-determination in terms of information. Because of the ongoing digitization of the Company’s business model, this topic is also steadily becoming more important for HUGO BOSS. Customer data, in particular data from its own online business and the customer loyalty program, is highly relevant for the future success of HUGO BOSS. Equally important to HUGO BOSS is the proper handling of its employees’, business partners’ and shareholders’ data. Any breach of data protection laws represent an increased compliance risk. The Group aims to counter this risk using a system that complies with data protection laws and through appropriate technical and organizational measures. Risk Report, Material Organizational Risks
The central Data Protection Officer is responsible for data protection monitoring and compliance. The Company has also assigned responsible staff in the international Group companies. In addition, a centrally operated data protection unit was established. The purpose of this unit is to work closely with the Data Protection Officer and the data protection coordinators of key departments of HUGO BOSS AG in order to ensure personal data are processed in a legally compliant way. The work focuses on the continuous assistance for departments in data protection issues, early identification of risks, remediation of weaknesses, and employee education. Any contraventions must be reported to the Data Protection Officer. The Managing Board is kept updated on the progress of work via regular data protection reports.
Targets
HUGO BOSS aims to completely rule out any contraventions of applicable data protection laws as far as possible.
Measures
Group employees are educated about data protection issues by means of general and activity-related training courses and a separate confidentiality obligation. A comprehensive e‑learning program on data protection was also established in 2020. From now on, it is to be completed on a regular basis by all employees with PC access. Its purpose is to further raise awareness about processing personal data, especially in the light of the provisions of the EU Data Protection Basic Regulation. The Company has additionally developed an internal data protection policy as well as other data protection guidelines, to guarantee the comprehensive rights of affected persons, in particular. The guidelines are regularly checked to ensure they are up to date in terms of the applicable data protection provisions, and constantly further developed.
All internal processes and systems for processing personal data are measured on an ongoing basis and further developed to ensure that they comply with the legal data protection guidelines. The improvements are aimed at preventing data misuse and theft. There are extensive data protection provisions for the Company’s online presence and mobile apps, for example. When legal violations have been discovered, the Company has implemented contingency plans to initiate countermeasures.
Performance indicators
In 2020, as in the prior year, the Company knew of no violations in the sense of data protection breaches that had been determined by an official authority or a court.
