“Creativity Is the Most Important Resource”

Daniel Grieder “Creativity Is the Most Important Resource"

Daniel Grieder took over as CEO of Boss on the 1st of June 2021 – the right man in the right place at the right time. In an interview with Stephan Huber, he explains why his unplanned sabbatical was actually a blessing, what he has learned from Formula 1, and why people should always come first.

Interview: Stephan Huber. Photos: Boss

Life as a “privatier” wasn’t too bad, right?

Daniel Grieder: It was indeed an extraordinary year for me on a personal level. The prospect of losing almost a year, which is how it felt to me initially, was very disconcerting at first. I found it difficult to process and was worried I might lose touch. In fact, this time for myself turned out to be a precious gift.

Ultimately, it was an unplanned sabbatical in a year of upheaval the intensity of which not many generations experience…

That sums it up very well. I had the unique opportunity to address this upheaval very freely and driven by curiosity, unencumbered by the demands of the daily, operational business. What is happening in the world and our industry? How is it affecting me? In retrospect, exploring these questions in depth was a privilege for which I should be very grateful. I was able to develop significantly as a person. Last but not least, I was in a position to prepare for my job at Boss in a way that would not have been possible if the change had happened quickly. I could not have prepared with the same intensity and depth. I have now arrived here in Metzingen at a time that is a starting point for the future – not only for Boss, but, in some respects, for the entire fashion industry. I am looking forward to a future brimming with opportunity. I really could not have wished for a better start.

What are the most important lessons you learned during this time?

Did these months not make us realise how irreplaceable people are, not least in our industry? That is an immensely valuable insight. This stands in no contradiction to the fact that the pandemic has accelerated digitisation and mechanisation in a way that was hardly considered possible. The order is what makes all the difference. The human being comes first.

Is the human touch a success factor?

Absolutely, but not in the manner the inevitably inappropriate term “human capital” implies. It is a matter of values that extend far beyond a simple economic calculation. This not only applies to private life, but also to human beings as the most important building block of a sustainable corporate culture.

Was the crisis itself a success factor to some extent?

That is a highly conflicting question, because one must not overlook the existential, individual fates when answering it. However, a very direct consequence of this caesura was definitely that people engaged more intently with themselves and entrepreneurs more intently with their companies. Everybody learned more about the other, or themselves, in the process. Strengths and weaknesses were uncovered. This has triggered a real innovation boost for many, and thus significantly improved their positioning and opportunities in a post-Corona reality. One thing must be absolutely clear to everyone: things will never return to how they were!

Nor should things return to how they were. It is not as if the fashion industry was perfectly healthy and unreservedly sustainable before this radical disruption. Is that what appeals to you most about this challenge? That it is ultimately a matter of breaking new ground?

I have always sought out and relished challenges. That is in my nature. My new job here, however, entails a number of factors that make it particularly appealing. I am in the right place at the right time. Here, I can have an impact and effect change. I can optimally apply my knowledge, my experience, and my network, but also my enthusiasm for this industry and for fashion in general.

On the one hand, Boss is a structurally sound company with a strong global profile. On the other hand, the brand scarcely succeeds in evoking emotions or even love. That translates into walking on thin ice in a market that defines emotions as a decisive success factor. Where will you start making changes?

The brand awareness is excellent, on a global level. The brand relevance has, in fact, suffered greatly over the last decade. That is the first, and perhaps most important, lever to consider.

Why has brand relevance suffered so much? Boss was a master of evoking emotions for many years: testosterone, sport, speed. Male clichés were exploited aggressively. The approach was controversial at times, but it was successful.

The product is always the crucial factor. If the product is relevant, the brand remains relevant. It is a very simple equation really. The recently launched, extremely successful capsule in collaboration with Russel Athletics exemplifies that. It has enabled us to reach target groups, media outlets, and opinion leaders who had no longer been aware of Boss. Product is king! That has always been my conviction for a very good reason. It may apply to Boss to an even greater extent than to other brands.

This means the future of Boss hinges on the product.

That goes without saying! Brand and product must form a unit to be successful. Just look at what happened to Hugo. The label, once proud leader of the pack, was degraded to a kind of modular system for the “fashionable mid-market segment”. If you recall what this brand triggered and inspired at the time, you realise the enormous potential that is presently not being harnessed. Hugo needs to reclaim that innovative dynamism that it once developed as a visionary label.

How can new momentum be created?

We, as a company, will clearly define what Boss represents. Of course, we will also define what Hugo represents. This definition will act as the foundation for every further step. It is already clear that Boss and Hugo will return to being two completely independent brands – clearly delineated from each other in look and storytelling. Naturally, they will address very different target groups. Hugo will return to its roots, adapted to the world of tomorrow. The label will have a clear attitude, be fast and proactive. Hugo will offer jeans, streetwear, and suits for a new, young generation living in the hybrid worlds of tomorrow, where physical and digital realities are increasingly merging.

“Boss needs to be seen as the definition of the suit once more.”

What will Boss represent in this world?

Boss has a very clear message: “Claim back!” Initially, this message is directed inwards to every individual in the company. We want to regain a leadership role – in design, in innovation, in fields such as social responsibility and sustainability. We no longer accept being stragglers. Boss must lead the way, claim back its status as pioneer!

Can you give us an idea of the future brand architecture?

It is quite simple, really. What we are implementing is a refinement and contemporary application of what has always been a sound basic structure. First and foremost, the message is always Boss or Hugo. We are reinforcing this individuality with a revamped brand design, including a fresh, modern logo. The categories below are characterised with the terms Black, Orange, and Green. The demarcation is more precise than it was in the past. There is an option to add new categories such as Blue or Performance. However, only Boss and Hugo are communicated as actual brands. The DNA of the respective brands is deeply embedded in all categories. This structure will be implemented analogously in our womenswear segment. However, Boss Woman will have a significantly more independent, younger, and more feminine look and feel in the future – from branding to store architecture. There is much work to do, but there is also plenty to gain.

Does Performance signal a return of Boss to the sportswear segment?

We will not develop fields such as golf, tennis, skiing, and riding ourselves, but rather in cooperation with specialised licensing partners. This allows us to deliver world-class levels of design, functionality, and performance.

The image of a cliché of a man in a cliché suit is stubbornly persistent in the minds of consumers.

Breaking this stereotype by redefining the suit is a central element of the “Claim back!” campaign. Boss must be the future ready-to-wear benchmark. It will function differently, look different, and follow different criteria and values. Yet we have to ensure we reclaim the topic with credibility. Boss needs to be seen as the definition of the suit once more.

Although ready-to-wear is destined to continue losing market shares?

That certainly applies to ready-to-wear in the traditional or learned sense. This is about more than change in society, in working environments, of the image of men in general. The primary issue is what the consumer demands from clothing. Comfort and performance are the essential aspects in this respect. The customer is not willing to compromise on either, especially not in the premium and luxury segments. As you can see, I have returned to discussing the product. There must be no standstill. What was great yesterday may no longer be good enough tomorrow. That is why innovative thinking is so crucial as a core corporate value.

Is creativity the critical resource of our industry?

Of that I am utterly convinced. That applies to all industries, not just fashion. And please consider creativity in a truly interdisciplinary sense. The search for solutions and innovations is always a creative process. And this process must not only be facilitated, but actively promoted. I believe that it is one of my most important tasks to ensure that creativity and innovation can develop as freely as possible at Boss. They need to be the driving force behind this company’s future.

So, the numbers are not relevant?

If elements such as brand, product, creativity, distribution, and marketing are aligned, it generally paves the way for a positive financial performance. If, conversely, one always starts with the numbers, the seed of obstruction has already been sown. If you prevent innovation, you prevent the future.

You have always been a first mover when it comes to the big disruption topic of digitisation. Many people are eagerly awaiting your digital strategy for Boss. In this case, I am one of these many…

It is my declared goal to position Boss as a leading international fashion tech company. By that I do not mean basics such as an attractive online store geared towards today’s hybrid consumer or a functioning digital showroom. I am talking about a genuine 360° approach that starts with an appropriate upgrade of all workplaces and extends to the extensive digitisation of the supply chain, or even the complete digitisation of the design process. We should probably go one step further than that, as 3D printing and virtual fashion are no longer science fiction. None of this is merely an end in itself or contemporary posturing. Rather, this is about central issues of future viability in global competition. Let me give just one example. In order to harness the full potential of digital design, we need a digital fabric library as a foundation. This interplay will not only completely transform sourcing, but ultimately change the mechanisms and structures of our industry. It paves the way for a completely different exchange within the chain. It is, so to speak, a permanent live stream that allows us to access the latest data in real time at any time.

Does this mean that data is the most important currency in fashion too now?

The intelligent interlinking and analysis of data has become indispensable. One of my first projects is the launch of a Hugo Boss Data Hub. The underlying idea stems from Formula 1. It was never my intention to simply stick a brand logo on a racing car. I wanted to learn how the world’s technology leaders handle data. Toto Wolf was a fantastic tutor in that respect. The moment you set foot into a Formula 1 plant such as Mercedes’ in Brackley, you realise instantly that our industry has not even scratched the surface of professional data management yet. 1,000 engineers are working on making the excellent even better. Nothing is left to chance. Every detail is important, because every detail can make you a thousandth of a second faster. During the race itself, engineers record absolutely everything that happens on the track, input the data in real time, and optimise settings accordingly – not merely for the ongoing race, but also for the next race and the same race next season. It is incredibly fascinating! The foundation for this is a so-called data lake that is constantly fed with information.

The magic of machine learning…

Yes, exactly! This mechanism of minimising errors and increasing efficiency on the basis of valid data is something I intend to adopt at Boss as well.

“It is my declared goal to position Boss as a leading international fashion tech company.”

What is the ultimate goal?

The goal is increasing efficiency and minimising errors, but not in the form of a cost-cutting programme. It is about getting to a point that allows us to manage the entire supply chain more intelligently. Mastering overstock and overproduction would be a real game changer. Both cause the devaluation that fashion suffers from and are one of the main contributing factors to why our industry has thus far displayed such a catastrophic environmental record. Our goal must be to produce more of the right products and much less of the wrong ones. To achieve this, we need to collect much more data about our customers, our products, and our sales channels. The knowledge lies in the data.

Is there a danger of this stifling creativity? Data-driven customer centricity regularly leads to levelling effects. Will algorithms soon determine what we want to wear… or rather should wear?

That may be the case in some areas, but an emotional product like fashion should not surrender itself completely. In fact, data is a long way from replacing people and their talent, but it provides a fantastic foundation for developing this talent as efficiently as possible. The human being always remains the last and decisive authority. By becoming more efficient, however, we establish the creative freedom that makes all the difference. It is essential to understand that technology, including digitisation, is first and foremost a tool that enables people to progress – maybe even more so in the field of creativity. Of course, the digitisation of design fundamentally changes the creative process and consequently also the designer’s job description. It is a tremendously exciting change though.

Talking about 3D design, can you envisage virtual fashion developing into a standard consumer good in the near future? Do you think people will buy a virtual look for their digital twins in the same way they buy actual fashion for themselves?

This is already reality, especially in the gaming community, whose influence on fashion is still woefully underestimated. Virtual fashion will evolve into an important, exciting market.

Will all these tech- and data-driven developments not ultimately lead us to the Holy Grail of future consumerism, namely the systematic personalisation of the customer journey at all levels?

That is a perfectly logical development in a market that is primarily determined by the consumer. Especially when technology – and now I am talking about data again – really makes such personalisation possible on an individual level. On-demand production and 3D printing are no longer science fiction. The technology already exists! The question is no longer if it will happen, only when and how.

This all suggests a great deal of direct-to-consumer action. What place does retail have in this future?

It will play an invaluable role! Retail – and I mean physical retail in particular – has been written off and declared dead for years. But what has happened? Even online giants such as Amazon and AliBaba are starting to launch actual stores. Physical touchpoints remain indispensable. Human beings need interaction. I believe that the importance of stationary retailers will actually increase within a hybrid retail landscape.

“Technology, including digitisation, is first and foremost a tool that enables people to progress.”

Does this dynamic not also harbour a major opportunity to attract more young people to this industry?

Being an attractive industry and employer for young people, for talented people, is a key factor. If we want to be the best, we need the best employees. My conviction is that we still retain enormous potential in our company. We must tap this potential by not merely dragging everyone along for the ride, but by allowing everyone to help shape the journey. To this end, digitisation in particular offers a multitude of new possibilities. Let me give another concrete example. Customer service is supposed to take place at the point of sale, where the customer is actually confronted with the brand and the product. Digitisation makes that possible and consequently creates a new job description. We want all Boss employees to be committed and proud brand ambassadors. If they really identify with the brand and its values, then that is the most authentic storytelling source imaginable.

Does digitisation have an impact on Metzingen as a location? It has always been seen as somewhat of a disadvantage in the international competition for the best minds.

This discussion has changed completely, not least due to the coronavirus pandemic. The how and where we work is undergoing a complete redefinition. In this context, I perceive the location, especially the campus, as a feature rather than a bug. At the end of the day, it is the culture that makes a company attractive to the best talents.

Have you set yourself a personal goal? Where do you expect Boss to stand in one year, in three years, in five years?

I intend to communicate figures and milestones internally for now. But I’m really happy to be here, and to hopefully make a big impact. We love Fashion! We change Fashion! That is my mission.

Thank you for the interview, Daniel!

He is a first mover in digitisation and tech, a journey that Daniel Grieder believes is far from complete. But: “Data is a long way fromreplacing people and their talent.”