The Famous Fashion Brand--Fossil And Wholesale Business

It is known to us Fossil, known for its watches and other fashion accessories designs watches, jewelry, handbags, belts and clothing and it has seen double-digit percentage sales increases for over two years.

But there is a bad situation that Fossil's shares had fallen more than 40 percent since the company last reported results in May. Maybe in a worldwide view, it is common that the Fossil’s shares fallen because of the coming crisis. Actually the crisis has a worse effect on European market than Asia market. So it said Fossil expects its strong wholesale business which includes wholesale watches in the Asia-Pacific and improving performance in Europe to drive earnings this year, sending its stock up by as much as a third. Fossil's shares were up 33 percent at $92.57 in afternoon trading on the Nasdaq. The strong results and upbeat outlook from the "affordable luxury" brand, which boosted its market value to $5.7 billion, come as many retailers of pricier offerings are experiencing a slowdown in crisis-hit Europe and formerly hot emerging markets such as China.

From the above content, we can see wholesale business can bring more for a company. Watches are just accessories instead of necessities. So nobody will spend more on them in crisis. And now wholesale watches will be more popular for retailers. For the companies, there are less individual customers. They need sale and profit to support themselves. So the wholesale business may be the most suitable selling mode. Fossil said it remained positive about its wholesale business in Asia, which grew 29 percent in the quarter, saying it was seeing strong demand for its luxury brands in the region. The company's wholesale business, which accounts for about three-quarters of it its sales, sells accessories such as wholesale watches, wholesale handbags and so on.

Compared with retail business, wholesale business will bring less profits to a company. For some special items such as luxury watches in some special situation, wholesale business will be much better than retail. "Long term, we see strong opportunities for market share gains throughout Europe as we look to expand our existing (company-owned stores base) and to take advantage of the strong appeal of the Skagen brand in the region," Chief Executive Kosta Kartsotis said on a conference call with analysts.