Retail Mix

Fossil's Retail Mix

Pricing

In a time of casual, everyday $2,000 handbags, $1,000 fashion watches and $500 sunglasses, Fossil remains a moderate-priced fashion brand for those unwilling or unable to fork over big bucks. Fossil’s target customers will be those of students or stylish working adults who can afford to pay from $28 to $800. In times of recession, consumers are still willingly to purchase low-ticket priced items for gifts or even a little self-indulgence of a higher-priced item. Fossil's customer is younger than a Coach shopper and more value savvy. Fossil shoppers try to duplicate the higher-end designer lines, and Fossil is addressing her needs." It's a formula that especially works well in this economic environment, Fossil watches cost $150, and handbags can be had for under $250, with sunglasses priced under $90. The most expensive item in the store is a $800 handbag from Fossil's Fifty-Four upscale line launched 3 years ago.

Retail Atmosphere



















Fossil's style draws its inspiration from vintage creative culture and mid-century modern design.
The atmosphere is described as comfortable and inviting, with an ambience reflective of Fossil’s authentic and friendly personality.
The music in the shop’s background was playing evergreen music from The Beatles to Indie or upcoming singers or groups like Snow Patrol, Hoobastank or fun music from Sheryl Crow.
All these choices of music are just like their fashion style/ design – Evergreen, Upcoming and Fun.
It is definitely a unique shopping experience compared to many competitors’ shops like Guess and Aldo.

Fossil Locations in Singapore


















Singapore’s famous shopping strip is Orchard Road where large numbers of customers and tourists visit every day each year. Fossil shops are in Ion Orchard, Heeren and Somerset 313, which is the latest addition to the orchard road strip. (Fossil is also located in one of Singapore’s largest shopping haven and also holds many offices in this area which is called Suntec City Mall and e-biz hub@Suntec City. Another newly opened shop was at Marina Bay Sands.) Fossil presences are at these places where human traffic is high. Another non-traditional retail location of Fossil Group is in airports where Fossil is able to show their brands’ concept to the world. All these good locations help to develop Fossil brand and increase brand awareness where all shoppers from around the world or locally enjoy their shopping at the same places.

CRM

Acquiring customers is a difficult task in retail business and retaining them is a challenging one too. Considering all the cost involved in advertising, promotions, networking and sales force. The bulk of these expenses are targeted at converting prospects into customers. But also, it is not necessary that many customers are profitable ones. But when customers are retained, the expenditures are mentioned in the latter, become smaller. Therefore is easier to sell additional products or services with up-selling and cross-selling once credibility of brand is built.










































Action

Fossil Singapore has intelligent POS system which enables Fossil to track the demographic of their customers and their purchases. It is also able to analyse sales performances like Average Unit per Transaction (AUT) and Average Sales per Unit. The program could feed the office on their stock inventory like stock sold per week which allows the office/logistics to replenish stocks fortnightly. Sadly, Fossil Singapore is unable to neither develop nor implement any customer loyalty program to retain existing customers or entice new consumers, which most shops in Singapore are attracting customers with many different loyalty programs. Perhaps Fossil Singapore directly enhances its product/service value proposition or broaden the availability of products and services. Competitors are sure to counter their moves on other brands’ or Fossil’s programs by giving better rewards or offer a price cut rather than rewards. For the past years, Fossil Singapore has not increased much of its pricing and has remained at moderate-price range for good quality merchandises.

Selling Environment: playful expression of vintage 50’s retro materials, details and imagery,” including bright colors, graphics, props and visual displays.

The store’s material palette consisted of maple wood stained in cherry or honey and clear coated, high-gloss chrome metal trim and accents.The store’s updated material palette consists of maple wood with a dark rich Jacobean stain, white oak, marbella cork panels, grass cloth, midnight Caff-stained concrete, ledge stone and custom mid-century modern-inspired wall coverings.

Fossil Shop is divided into Ladies’, Men’s, SLG,Accessories.

For instance in Fossil Ion, the moment you stepped in on your left,is Ladies’ wall displaying small to medium handbags to smaller accessories. On the right, Men’s leather goods like duffle bag, travelling pouches or leather jounels were there for your touch, feel and try-outs. Accessories like leather belts, sunglasses or scarves were nicely displayed along-side with merchandises like bags to complete the look. Wood shelves on walls to contain Fossil famous tin-watch boxes are nicely displayed at cashier-counter. This wall display of watch boxes made it easier for staff to get customers to choose their favourite watch-box (different watch boxes’ designs according to seasons!) when they made their payment for watch purchase. There are a few free standing shelves with wheels that contain SLG – small leather goods like clutches,wallets or coin purses for both men’s and ladies. These shelves are easily shifted/added/removed to/from desired spots to attract consumers to pick up SLG. So are the tables that had half mannequins to display bags and other accessories.

Mirror at the side of the wall for customers’ try-out look. Movable Shelf for SLG and belt rack for both Ladies and Mens.

There are also small trays on the tables or cashier-point, where customers could pick up gifts of small cute/pretty accessories like key fob or jewellery like rings,which priced between $18 - $48. These small accessories sell like hot-cakes especially during festive seasons or when just when you want to top-up purchases to get a GWP(gift with purchase).

Format
Fossil Singapore sells products through a diversified distribution network that includes department stores, specialty retail locations like travel retail, specialty watch shops like watch station in Somerset 313 or MBS as well as e-commerce/e-tailing, www.fossilsingapore.com.sg.