a digital space demonstrative: brand analysis and …...company share/sales analysis •fossil’s...
TRANSCRIPT
Customer Insights and Market Intelligence
Brand Dynamic Analysis and Category MarketshareOf Watch Market – USA
A Digital Space Demonstrative: Brand Analysis and Category MarketShare
Purpose
The purpose of this presentation, is to serve as a
Demonstrative: Category and Brand Dynamics Analysis, to set
expectations for a monthly report offered in our Customer
Insights & Market Intelligence services package , that A
Digital space offers.
This presentation is about Fossil Watches, and it
interactions in the USA watch market.
Table of Contents # Topic Slides
1 Overall Watch Category Analysis 3-7
2 Watch subcategory analysis by watch type 8-14
3 Watch subcategory analysis by price band 15-24
4 Company Share / Sales analysis 25-28
5 Brand share analysis 29-32
6. Information from external sources 33
7. Fossil watch models 34
8. Strategies for Fossil watch company 35
Overall Watch Category Analysis - Volume
Overall Watch Category Analysis - Value
Overall Watch Category Analysis - Price
Overall Watch Category Analysis- CAGR
Insights - Overall Category● INSIGHT: Customers are purchasing less watches, but of the brands they are continuing to
purchase from, the prices of the watches are higher (Slide 6: Volume will decrease 6.8% from 2012-
2022, while Value will only decrease 5.25%)
○ Why? Customers see a divide in quality of watches and utilitarian need for watches
○ Why? Watches are worn less and less as today’s consumer has the time available to her from
many different locations
● INSIGHT: The price of watches will start to plateau as consumers separate watches from “time-
pieces” and see them as status symbols (Slide 5: The largest drop in price was from ‘14-’16, and
now as price is stabilizing, it looks to remain stagnant in the next five years)
○ Why? Customers see watches as more of a luxury item in today’s culture
○ Why? Possibly because they do not need to rely on watches to give the time now that
smartphones are more prevalent
Watch Subcategory Analysis by Watch Type
Watch Subcategory Analysis by Watch Type
Watch Subcategory Analysis by Watch Type
Watch Subcategory Analysis by Watch Type
Watch Subcategory Analysis by Watch Type
Watch Subcategory Analysis by Watch Type-CAGR
Watch Subcategory Analysis by Watch Type-Insights
- Insight: Mechanical watches have the highest increasing average price point,
historical CAGR of 5.16%. and also have the most significant decline in
volume sold of-4.90%
- Market is becoming more price sensitive and finding options they prefer
at lower costs
- Volume sold YOY considerably less than the mid price and low price
options
- Insight: Quartz Digital watches have the lowest average price point and
lowest decline in historical and future CAGR, -2.28% (12-17) and -2.33% (17-
22)
- Although still declining in YOY volume and value sold, there is still a
presumably a market for digital watches
Watch Subcategory Analysis by Watch Type
Watch Subcategory Analysis by Price Band
Watch Subcategory Analysis by Price Band
Watch Subcategory Analysis by Price Band
Watch Subcategory Analysis by Price Band
Watch Subcategory Analysis by Price Band
Watch Subcategory Analysis by Price Band
Insights by Price Band
● Overall, volume declining yet price increasing amongst all three price
bands
○ Price is the lever to make-up for volume losses
● High price watches taking price at a fast rate than other price bands;
projected to increase price by about 25% over 10 year time frame ○ Even as High price watches take price up, the category does not reflect negatively
to this
○ Indicates there is still potential to continue to increase price without risk of volume
declines
● Low price watches took price at the slowest rate yet declining at the
quickest rate
Watch Subcategory Analysis by Price Band- CAGR
Watch Subcategory Analysis by Price Band-Insights
- Insight: Based on band subcategory data, growth and profitability is a
struggle.
- High band YOY prices continue to rise, which could be signaling a
declining market as unit sales and volume continue to decrease
- Basic and mid band average price points have remained relatively flat
- What new markets are affecting the watch market?
- Are consumers purchasing watches based on bands?
Company Share/Sales Analysis
Company Share/Sales Analysis
•As of 2016 Fossil holds 14% of the
market share.
•From year 2012 to 2016, Fossil
continue to be the top market share
holder.
•Richemont North America is close
competitor who has gained market
share around. 2014 and maintained
it. Also Movado Group gained 1.5%
during same time period.
•Fossil, Richmond, Rolex, Timex and
Movado are the top five companies.
Company Share/Sales Analysis
Company Share/Sales Analysis
•Fossil’s sales corelates to market share from 2012 to 2013, as the market share increases and total sales increases. So Fasil’s sale also shows positive trend.
•In 2014, even though Fossil’s market share lost by 1.4% , due to increase in total market size, Fossil sales still shows positive trend.
•In 2015 and 2016 total market size got reduced gradually, so does the Fossil’s sale .
Brand Share Analysis
Brand Characteristics
Brand Market: Individuals seeking a fashionable or connected watch that adds a touch of luxury to their lifestyle
Dynamics: Distinguishing products in a declining watch segment
Purpose: Decide which brands to invest, maintain, or divest
Brand Portfolio:
Brand Portfolio Matrix
Brand Portfolio Strategy Matrix
Information from External Sources
Mintel: October 2017 report - Watches & Jewelry
Executive Summary - YOY total growth expected
while annual pace of growth to decelerate
- Watches are lumped
into jewelry category
and get placed as a
status item
Source: Mintel: October 2017 report
Fossil Watch Models
Mid point price range ($75-$275)
Mostly analog style
Customization up and coming
Trying to break in to smart watch space
Source: fossilgroup.com
Strategies for Fossil Watch Company
- Overall watches are becoming more of a luxury status item- likely due to the
fact that almost everyone uses their phones for the time
- High band YOY prices continue to rise, which could be signaling a
declining market as unit sales and volume continue to decrease
- Fossil should not focus on high priced mechanical watches- customers are
becoming more price sensitive
- Fossil should remain in the low-mid price band and focus on Quartz Analogue
and Quartz Digital
- As Smartwatch category grows, analyze the entrance of more products
to satisfy those consumers