fossil: analysis of the company strategy

Fashion Design Strategy Fashion Design Strategy

Paulina Perepelkin

In a Tin

by Paulina Perepelkin

Clothing


Growing, and Growing


About the Company

• Founded in 1984

• Total Sales 2011 are over 2.5 Billion

• Market value of 6 Billion

• 4 Segments:North America WholesaleEurope WholesaleAsia Pacific WholesaleDirect to Consumer


Leadership

• Started by 2 brothers, who still own 30% of the publicly traded company

• Mr. Kosta N Kartsotis is the Chairman of the Board of Fossil, and has been the CEO since 2000. Has served as the President and COO from December 1991 to October 2000. Joined the company in 1988 after founded by brother.


Distribution Channels

• Department Stores

• Specialty Retail locations

• Specialty watch and jewelry stores

• Owned retail and factory outlet stores

• Mass Market Stores

• Owned and Affiliate Internet sites

• FOSSIL catalogue


Department Stores


International Presence

• Over 120 Countries worldwide

• 22 Company Owned Foreign Sales Subsidiaries

• 60 Independent Distributors


Wholesale


Direct Sales

• Fossil, Inc. brand merchandise, including watches, leather goods, shoes, sunglasses, soft accessories, clothing.

• 450 Stores:

• 250 full price accessory stores -145 outside of North America

• 138 outlet locations -50 outside of North America

• 33 clothing stores - 2 outside of North America

• 15 multi-brand stores -12 outside of North America

• 14 SKAGEN brand stores, 8 outside of North America


Production & Supply Chain

• Own (watch) production sights in Asia, Switzerland

• Global presence

• Design, manufacture, collaborate, supply

• Well-developed company, close to 30 years experience in fashion business

• Established reputation & presence in minds of customers


Style: Long Live Vintage

• Modern Vintage: fusing the best of the past with the best of today“Fossil, Inc. understands the appeal in thrift store shopping. After all, vintage clothing and accessories are hip—the new style is to be old-styled.” (Press Release 2009)“The longer you have it, the better it becomes” (Catalogue 2011) by Paulina Perepelkin

Values

• Accessible Cool

• Vintage Authentic Style

• All-American

• Artsy, slightly quirky, ‘muted’ fun

• Understated reliability

• Classic designs, innovative deliveryby Paulina Perepelkin

Sustaining Growth


Pulling it All Together


Customer?


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Store

• Vintage Concept

• Comfortable

• Warm, Cozy

• Well-lit

• Pleasant by Paulina Perepelkin

Website


Blog


Facebook


Tumblr


Pintrest


Twitter


YouTube


Engaging• 2006 - Design Contest to develop artwork for the tin

• 2006: Official NFL watches

• Coffee Book

• Collaborations With Sony Ericsson

• 2008: Exhibit at American Museum of Advertising & Design

• 2009: Photo Contest

• 2009: Custom Gibson Guitar

• 2011: Global Licensing Agreement with Karl Lagerfeld

• 2011-2012 “Fossil Finds” Faux vintage collaborations


Conclusion

• A vintage style company with an innovative side

• Positioned well to respond to ‘fast fashion’

• Challenges ahead - leadership changeby Paulina Perepelkin

Sources & References

• http://investing.businessweek.com/research/stocks/people/person.asp?personId=317041&ticker=FOSL

• http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=FOSL.O

• http://www.fossil.com/attachments/en_US/pressreleases/2008/062708.pdf

• http://www.montrealgazette.com/business/Shaffer+Watchmakers+stocks+investors+radar+screens/7817872/story.html

• http://www.fossilglobal.com

• http://www.utsandiego.com/uniontrib/20050108/news_1b8fossil.html


fossil: analysis of the company strategy

Entertainment & Humor

clothing stores

skagen brand stores

vintage clothing

price accessory stores

live vintage modern

direct sales fossil

design contest

traded company