Fossil CEO Kosta Kartsotis has recently disclosed how its investment in digital has improved online sales and business efficiency.
Fossil recently said its direct e-commerce sales rose in double-digit in the Americas and Asia, while sales decreased moderately in Europe in the fourth quarter of 2018.
Fossil reported 9 percent drop in total revenue to $2.541 billion with a net loss of $3.5 million in 2018. Fossil did not reveal specific details on the revenue from e-commerce channels. It is in the process of expanding its online presence.
Greg McKelvey is the chief strategy and digital officer at Fossil — responsible for its digital transformation programs.
One of the top focus areas for Fossil is to invest in digital marketing and expand its efforts in e-commerce. It focuses on media mix on digital, investing in digital media, social media and paid search.
Fossil said its digital media spend was flat in the fourth quarter of 2018. But Fossil improved the effectiveness and efficiency of its digital media efforts. Fossil has enhanced consumer targeting and social content initiatives to improve engagement while driving product sales through search, affiliates and retargeting efforts.
Its digital marketing programs are focused on driving awareness and purchase intent on a broad Omni channel basis. Fossil’s new and integrated e-commerce and marketing platforms will provide better support to both wholesale and direct channels.
Fossil said it will expand buy online and pickup in store, enable ship from store capabilities, and increase partnerships with wholesale channel partners to optimize online performance on partner’s websites.
Fossil will be making more investment in developing analytics and revenue management capabilities as part of the vision to optimize pricing, product placement and promotions to generate optimal levels of profitable sales across multiple channels, Fossil CEO Kosta Kartsotis said.
Fossil CFO Jeffrey Boyer said the company will achieve its New World Fossil objective of $200 million in run rate savings by the end of 2019. The initiative is already contributing to its profit improvement efforts and includes operational efficiencies, revenue management, product sourcing and design to value elements.
Since 2015, Fossil reduced expense structure by over $200 million while also investing in critical areas such as wearables, e-commerce, digital marketing and analytics.
Fossil will have initiatives to strengthen supply chain this year to improve the speed to market, enhance delivery rates and reduce costs.