My gsd Juno, 2 yr old spayed, has exactly the same and I've been looking for a solution for a couple of months. Her hair loss is slightly more than in Bob McBobs photo and is also close to her mouth and even on top and bottom lips, skin is red. Eyebrow area also scabbed from scratching. Hard to see the full extent except in direct sunlight. Vet gave her antibiotics as he thought the skin was slightly infected. Juno is raw fed since 12th October and both vets we have seen are inclined to blame the raw feed, allergic to raw meat, not getting vital supplements that exist in regular commercial feed, etc. Her eyes were very red and gunky until the antibiotics. Just this week I was given the name of a holistic remedies person who I am m going to send hair sample to in the hope they can find the cause.