Fossil Group, Finding a Bow in Smart Watch
The wearable market is still growing, but it is quite slow. Fitbit's share price, which was the first IPO company to be a wearable specialty manufacturer, fell five times in six years. It's not that Pitbit's hardware sales have declined. However, investors have not found the value of investment at a slower pace than expected.
The reason for this is that the 'wearable market is dead' is based on this, because the expression is focused on smart watches and how SmartWatch has lost the traditional watch market. SmartWatch is the biggest field in wearable, but not all. And the traditional watch market has already stopped growing. And one of the busiest places to find a new way to go is the Fossil Group.
The stock price of Fossil, which stood at $ 29, fell to $ 8 a year. The reason for the sluggish earnings is smart watch. Fossil is one of the fastest-growing watchmakers in the smart watch market, not a new entrant like Apple or Google. He also bought wearable startup Misfit, and he also had the most smart watch brands. However, compared to products such as Fitbit and Xiaomi, the sales were not good due to the high price, and the results were in line with the results.

Misfit Smart Watch Vapor
But the situation at Fossil is not getting worse by turning to smart watch. Due to the strong dollar and weak sales of traditional watches, earnings have been stagnant for more than five years. It is precisely in this case that Fossil started to develop smart watches in order to switch to a worse situation, rather than 'worse on SmartWatch' because Fossil was in full swing in the smart watch in 2014. We do not see any signs of recovering due to the slow growth of smart watch.
According to IDC's report on wearable shipments in the second quarter of 2017, Xiaomi ranked first with 13.4% market share and Apple with second place with 13%. Fossil was fifth, with 4 percent below Fitbit and Garmin. Fossil has been in the top five for the first time in the last quarter, and is the only traditional watchmaker in fifth place. Notable is the growth. Overall wearable shipments rose 10.3% from last year. Xiaomi grew by 13.7%, Apple by 49.7% and Fitbit by 40.9%. However, the growth rate of Fossil was 217.9%.
Of course, given the shipments, Fitbit has shipped 3.4 million units, and the difference is still big, as Fossil has shipped 1 million units shipped last year, 300,000 units. But Fossil has been able to increase its shipments because it has been collaborating with Google and has continued to expand its smart watches with its watch brands such as Michael Kors, Diesel, Emporio Armani, Fossil and Misfit, Because.

Jitesh Ubrani, an IDC mobile analyst, noted that smart watches are not women-friendly, as one of the reasons smart watches are sluggish. Smart watch makers are constantly improving their device style, but all smart watches look similar, especially because they are not attracting female buyers. As for the above mentioned top 4 companies, Xiaomi emphasizes the low price, and the function of the Apple through the interaction with the iPhone, and Fitbit and Garmin focus on the fitness function. On the other hand, Fossil focuses on hybrid smart watches that utilize existing watch brands to provide digital functionality while maintaining the personality and versatility of the design. Only the top five manufacturers will develop hybrid smart watches.
Fossil was originally an intermediate watchmaker, focused primarily on women's consumer segments in men's accessories and accessories. However, smart watches have become more male-oriented than women, the main consumer goods / accessories, and attracting female consumers has emphasized the need for a core function of fitness. In other words, the company has the most unique position among the top five companies, as it is expanding its lineup through fashion brands and attracting yet untapped female consumers.
Naturally, positioning alone is not enough to take up all the demands in the range. However, Smart Watch, which has the potential to create new demand as a fascist who can not profit from traditional watches, is the future and the future.
If there is a problem, it is the growth rate mentioned above. As mentioned earlier, the fascias showed high growth. And Strategy Analytics (SA) estimates that annual smart watch sales will exceed 100 million units in 2022, five years from now. But it is 1.7 times slower than the growth of smartphone. Moreover, due to the nature of the smart watch that is classified as an accessory, it is difficult to generate high prices and profits, and even now, with the high price pointed out by Fossil, discounts are being added, the sales profit is decreasing as much as shipments.
Fossil plans to offset this problem with aggressive line expansion.
More than 300 smart watches will be launched from IFA 2017 through 14 brands by the end of 2017, Fossil said. This is a way to increase the brand line more than three times.
Already, Fossil has grown by aggressive line expansion.
Even if the overall growth is slow, Fossil thinks that if the growth rate can be sustained through the expansion of the line, the business phone and profit can be combined.
For this reason, the biggest partner in Google's wearable platform, Android Wear, is considered a pardon. Google, Samsung, the biggest partner of smartphones, has become less competitive in wearable platforms with Apple as it is neglected in the wearable cooperation.
Apple is the only company that has seen real profits in the smart watch market so far.
However, as Fossil has actively embraced Android wear and has been able to leverage the design capabilities of the Fossil brand, it has begun to gain momentum for increasing smart watches with Android wear.
Of course you can not make a profit like Apple, but it is important that you find a partner that will keep your platform capabilities from pushing Apple.
Likewise, Fossil can focus on expanding and expanding existing lines into SmartWatch based on the capabilities of AndroidWare, so the close cooperation between the two companies is worth noting.
There are still many people who are skeptical of SmartWatch.
However, Fossil has shown unparalleled growth and realized that it can not grow into traditional watchmaking.
Fossil will have to see if it will be able to grow again with a full-fledged business with SmartWatch, but Fossil now finds that the watch market needs a turning point called smart watch.
The reason for this is that the 'wearable market is dead' is based on this, because the expression is focused on smart watches and how SmartWatch has lost the traditional watch market. SmartWatch is the biggest field in wearable, but not all. And the traditional watch market has already stopped growing. And one of the busiest places to find a new way to go is the Fossil Group.
The stock price of Fossil, which stood at $ 29, fell to $ 8 a year. The reason for the sluggish earnings is smart watch. Fossil is one of the fastest-growing watchmakers in the smart watch market, not a new entrant like Apple or Google. He also bought wearable startup Misfit, and he also had the most smart watch brands. However, compared to products such as Fitbit and Xiaomi, the sales were not good due to the high price, and the results were in line with the results.

Misfit Smart Watch Vapor
But the situation at Fossil is not getting worse by turning to smart watch. Due to the strong dollar and weak sales of traditional watches, earnings have been stagnant for more than five years. It is precisely in this case that Fossil started to develop smart watches in order to switch to a worse situation, rather than 'worse on SmartWatch' because Fossil was in full swing in the smart watch in 2014. We do not see any signs of recovering due to the slow growth of smart watch.
According to IDC's report on wearable shipments in the second quarter of 2017, Xiaomi ranked first with 13.4% market share and Apple with second place with 13%. Fossil was fifth, with 4 percent below Fitbit and Garmin. Fossil has been in the top five for the first time in the last quarter, and is the only traditional watchmaker in fifth place. Notable is the growth. Overall wearable shipments rose 10.3% from last year. Xiaomi grew by 13.7%, Apple by 49.7% and Fitbit by 40.9%. However, the growth rate of Fossil was 217.9%.
Of course, given the shipments, Fitbit has shipped 3.4 million units, and the difference is still big, as Fossil has shipped 1 million units shipped last year, 300,000 units. But Fossil has been able to increase its shipments because it has been collaborating with Google and has continued to expand its smart watches with its watch brands such as Michael Kors, Diesel, Emporio Armani, Fossil and Misfit, Because.

Fossil Hybrid Smart Watch
Jitesh Ubrani, an IDC mobile analyst, noted that smart watches are not women-friendly, as one of the reasons smart watches are sluggish. Smart watch makers are constantly improving their device style, but all smart watches look similar, especially because they are not attracting female buyers. As for the above mentioned top 4 companies, Xiaomi emphasizes the low price, and the function of the Apple through the interaction with the iPhone, and Fitbit and Garmin focus on the fitness function. On the other hand, Fossil focuses on hybrid smart watches that utilize existing watch brands to provide digital functionality while maintaining the personality and versatility of the design. Only the top five manufacturers will develop hybrid smart watches.
Fossil was originally an intermediate watchmaker, focused primarily on women's consumer segments in men's accessories and accessories. However, smart watches have become more male-oriented than women, the main consumer goods / accessories, and attracting female consumers has emphasized the need for a core function of fitness. In other words, the company has the most unique position among the top five companies, as it is expanding its lineup through fashion brands and attracting yet untapped female consumers.
Naturally, positioning alone is not enough to take up all the demands in the range. However, Smart Watch, which has the potential to create new demand as a fascist who can not profit from traditional watches, is the future and the future.
If there is a problem, it is the growth rate mentioned above. As mentioned earlier, the fascias showed high growth. And Strategy Analytics (SA) estimates that annual smart watch sales will exceed 100 million units in 2022, five years from now. But it is 1.7 times slower than the growth of smartphone. Moreover, due to the nature of the smart watch that is classified as an accessory, it is difficult to generate high prices and profits, and even now, with the high price pointed out by Fossil, discounts are being added, the sales profit is decreasing as much as shipments.
Fossil Smart Watch
Fossil plans to offset this problem with aggressive line expansion.
More than 300 smart watches will be launched from IFA 2017 through 14 brands by the end of 2017, Fossil said. This is a way to increase the brand line more than three times.
Already, Fossil has grown by aggressive line expansion.
Even if the overall growth is slow, Fossil thinks that if the growth rate can be sustained through the expansion of the line, the business phone and profit can be combined.
For this reason, the biggest partner in Google's wearable platform, Android Wear, is considered a pardon. Google, Samsung, the biggest partner of smartphones, has become less competitive in wearable platforms with Apple as it is neglected in the wearable cooperation.
Apple is the only company that has seen real profits in the smart watch market so far.
However, as Fossil has actively embraced Android wear and has been able to leverage the design capabilities of the Fossil brand, it has begun to gain momentum for increasing smart watches with Android wear.
Of course you can not make a profit like Apple, but it is important that you find a partner that will keep your platform capabilities from pushing Apple.
Likewise, Fossil can focus on expanding and expanding existing lines into SmartWatch based on the capabilities of AndroidWare, so the close cooperation between the two companies is worth noting.
There are still many people who are skeptical of SmartWatch.
However, Fossil has shown unparalleled growth and realized that it can not grow into traditional watchmaking.
Fossil will have to see if it will be able to grow again with a full-fledged business with SmartWatch, but Fossil now finds that the watch market needs a turning point called smart watch.
댓글
댓글 쓰기