Fossil: Analysis of the Company Strategy

Fashion Design Strategy Fashion Design Strategy

Paulina Perepelkin

In a Tin

by Paulina Perepelkin

Clothing

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Growing, and Growing

by Paulina Perepelkin

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

by Paulina Perepelkin

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.

by Paulina Perepelkin

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

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Department Stores

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International Presence

• Over 120 Countries worldwide

• 22 Company Owned Foreign Sales Subsidiaries

• 60 Independent Distributors

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by Paulina Perepelkin

Wholesale

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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

by Paulina Perepelkin

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

by Paulina Perepelkin

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

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Pulling it All Together

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Customer?

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Store

• Vintage Concept

• Comfortable

• Warm, Cozy

• Well-lit

• Pleasant by Paulina Perepelkin

Website

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Blog

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Facebook

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Tumblr

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Pintrest

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Twitter

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YouTube

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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

by Paulina Perepelkin

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

by Paulina Perepelkin