Fossil Company Profile
Essay title: Fossil Company Profile
TYPE OF RETAIL CHANNEL
Fossil sells its products in retail locations in the United States through a diversified distribution network that includes department stores and specialty retail locations. Department stores include Neiman Marcus, Saks Fifth Avenue, Bloomingdales, Nordstrom, Federated/Macy’s, May Department Stores, and Dillard’s, as well as stores such as JC Penney, Kohls, and Sears. In addition, Fossil sells private label products through mass market stores such as Wal-Mart, Target, and Kmart.
REASONS FOR CHOOSING THE CHANNEL
The reason for the choosing the specialty store as a retail channel was, the variety of products offered by Fossil Inc. at a specialty store is not offered through any of its other channels. Fossil sells its products to department stores and specialty retail stores in over 90 countries worldwide through 13 company-owned foreign sales subsidiaries and through a network of approximately 52 independent distributors. The company’s products are distributed in the Asia Pacific region, Europe, Central and South America, Canada, the Caribbean, Mexico, and the Middle East. Products are offered in 23 international company-owned retail stores, which include 19 accessory retail stores in international markets and four multi-brand watch stores in Switzerland. Additionally, products are sold through independently owned Fossil retail stores and kiosks in international markets.
Fossil designs, develops, markets, and distributes contemporary, high-quality fashion watches and accessories. The company developed the FOSSIL brand name to convey a distinctive fashion, quality, and value message and a brand image reminiscent of an earlier era that suggests a time of fun, fashion, and humor.
“Fossil was the first American brand to bring value and style to the watch category transforming the concept of timekeeping from the merely functional to chic and stylish must-haves for the wrist. Influenced by and incorporating a fifties Americana design into the brand image in an attempt to target value driven consumers, Fossils concept paid off and the company quickly emerged as the leader of a growing industry.”1
In 1995, the company commenced operations of FOSSIL outlet stores at selected major outlet malls throughout the United States. The company operated 44 outlet stores at the end of fiscal year 2001. These stores, which operate under the FOSSIL name, enable the company to liquidate excess inventory and increase brand awareness. The companys products in such stores are generally sold at discounts from 25% to 75% off the suggested retail price.
Fossils renowned designers constantly study emerging lifestyle and fashion trends to bring consumers the most innovative and unique products worldwide while ensuring consistency with the companys existing product offerings and the themes and images that it associates