Fossil Group SWOT Analysis – SWOT Analysis of Fossil Group: Fossil Group was founded in 1984 by Tom Kartsotis in Richardson, Texas. It is an American watch and lifestyle business that is rooted in classic, authentic, and vintage designs. The brand is well-known for its leather accessories and watches.
The brand also produces licensed accessories for famous brands such as Skechers and Emporio Armani. Karl Lagerfeld, Marc Jacobs, formerly Marc Jacobs. DKNY, Diesel. Chaps. Burberry. Armani Exchange.
Fossil Group, Inc. is a design, marketing, and distribution company that specializes in consumer fashion accessories. The Company offers a line of men’s and women’s fashion traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses.
1985 The Company introduces the first Fossil® brand watches. In 1986, the Kartsotis brothers launched Fossil watches on the American market. By 1987, Fossil, Inc., as the company was now called, was collecting $2 million in sales a year after having established a solid reputation among Texas retailers.
Fossil Group fun facts: In 1997,Fossil, Inc. signs a licensing agreement to produce and distribute watches worldwide under the EMPORIO ARMANI brand name.
About Fossil Group – SWOT analysis of Fossil Group
Company: Fossil Group, Inc.
CEO: Kosta N. Kartsotis
Founder: Tom Kartsotis
Year founded: 1984, Richardson, Texas, United States
Headquarters: Richardson, Texas, United States
Annual Revenue: US$1.6 billion
Profit | Net income: US$233 million
Number of employees: 7,500
Products & Services: Fossil watches | Wallets | Bags | Accessories | Jewelry | Handbags
Fossil Group Competitors
Competitors: Tophatter | Seiko | Misfit | QVC | Fitbit | Francesca’s | SOKO | Gucci | Ralph Lauren | Tissot | Rado
SWOT analysis of Fossil Group – Fossil Group SWOT analysis
SWOT Analysis Of Fossil Group is brand-based. SWOT Analysis of Fossil Group evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Fossil Group’s SWOT Analysis. Below is the detailed SWOT Analysis of Fossil Group.
Let’s talk about Fossil Group’s SWOT assessment.
Strengths of Fossil Group – Fossil Group SWOT analysis
Strong Global Presence
The brand is strong in the global marketplace, with a presence in 3 regions around 150 countries, and more than 500 company-owned stores.
By focusing more on smartwatches, the brand hopes to reverse a declining trend in traditional watches sales. The company’s future success could hinge on expanding and continually improving its wearable options through more licensed brands, and further developing fast-growing areas like the Asia Pacific.
Fossil’s greatest strength is its classic and vintage collection. This can be seen in all of its collections, including watches, handbags, and jewelry. The brand believes that simple lines and high-quality materials will never go out of fashion.
The brand is not just something you want to buy for yourself, but it can also be a gift that brightens someone’s day.
Portfolio of Strong Brands
Fossil Group Inc. has made huge investments over the years in building a strong brand portfolio. This fact is highlighted by the SWOT analysis from Fossil Group Inc. The group’s brand portfolio is comprised of brands it owns as well as partnerships with amazing teams around the globe.
As a brand, they believe in the potential of their partners to help them expand their reach. Share its passion for design, innovation, and doing good.
Excellent Performance in New Markets
Over the years, the brand has developed expertise in entering new markets. The expansion has allowed the company to create a new revenue stream, diversify the economic cycle risk and build a new revenue stream.
Fossil Group continues to see positive results from business transformation, as evidenced by the strong momentum in connected watches. As the Armani and Fossil brands expanded, the brand saw solid growth in wearables. Meanwhile, Asia delivered solid growth.
Fossil Group, Ltd. and Citizen Watch Company, Ltd. have announced a global strategic technology licensing alliance to increase the reach and scale of hybrid smartwatches.
CITIZEN’s global watch movement expertise is combined with Fossil Group’s hybrid smartwatch technology. This partnership will leverage CITIZEN’s worldwide-respected watch movement expertise. The agreement will allow the collaboration of groups to bring future innovations to smartwatches.
Weaknesses of Fossil Group – SWOT Analysis Of Fossil Group
Investment in new technology
New technologies require more investments. Fossil Group plans to expand to new areas and invest more in technology to integrate all processes. The company’s investments in technology are not up to the vision.
Fossil has also teamed up with Google, and Intel, to develop wearable technology while also increasing its sales channels online and mobile.
Limited success beyond the core business
Despite being a leading brand in its field, the company has had to overcome challenges when it comes to expanding into other product segments.
Recent shares of Fossil Group Inc. plunged 23%, its lowest level since March 2009. This was primarily due to the company’s leather business and the fact that it failed to offset growth in wearables. Fossil also reported a decline in sales of watches (9%), leathers (21%), and jewelry (12%)
Changing Consumer need
These consumers are either young millennials looking for bargains on a fitness tracker, or older, more wealthy individuals with large disposable earnings. If they could afford the luxury, they would choose brands such as Rolex.
Fossil does not fit into either of these categories.
Opportunities of Fossil Group – Fossil Group SWOT analysis
Omni Channel/online channel.
The online platform has been a major investment by the brand over the last few years. This has created a new sales channel for this group. This opportunity can be leveraged by brands in the future by better understanding customers and prospects and meeting their needs with big data analytics.
The e-commerce business is growing, despite it only accounting for a small percentage of its retail sales. Fossil’s comparable-store sales fell 7% due to mall and shopping complex traffic.
New environmental policies
New opportunities will be created by the new Environmental policies. Fossil Group, Inc. has a tremendous opportunity to capitalize on its advantages in new technology and increase its market share within the new products category.
You should be looking for ways to repurpose, recycle, find new sustainable materials, and re-think your manufacturing processes. This includes managing the product’s life cycle and giving it a second use where it has the greatest impact.
Streamlining packaging and retail displays, and eliminating excess during production. These are just a few of the many ways you can reduce waste and be more efficient.
Threats of Fossil Group – SWOT analysis of Fossil Group
Low skilled workforce
Fossil Group Inc. is facing a shortage of skilled workers in a particular global market. This threatens the steady growth in profits. Fossil has ended a store merchandising service. Because of the reduction in store openings, it also reduced its real estate department.
Tech layoffs can also be a substitute. It is a way to do the same work but for less money.
Although pivoting to wearables may be the best option, there is more competition than ever in a market-driven more by vendor push than consumer demand. Fossil must find a way to be different in order to win the market.
Guess, Coach, and Swatch are the main competitors. Fossil must be more innovative in order to keep ahead of its competitors.
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Overview Template of Fossil Group SWOT analysis
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