Return On Inventory Investment (ROII)
€2695 for FC705S4S6 - €1995 for FC710MC4H4
ROII tells our retailers how much money they are making on each dollar invested in their inventory every year. It is calculated this way:
ROII = MARKUP x INVENTORY TURN
Let us review the two elements of this equation.
Frederique Constant offers a larger MARKUP then most, if not all, of its group competitors. Especially during the past years, our Mark-up % became more advantageous as our competitors repeatedly reduced their margins to retailers.
Contrary to our stocklisted competitors, Frederique Constant is family owned and independent. We do not have to report profit every quarter, we can have a more long-term view, stronger colaboration with partners, let our partners earn a better margin.
Frederique Constant’s INVENTORY TURN is increasing in today’s economic climate. Our Accessible Luxury positioning proved to be a winner during the financial crisis when we grew over 45% in 2010.
As I wrote in a recent press release: “Clients are getting smarter“. Whereas Frederique Constant offers watches with in-house calibers, our competitors offer watches at similar prices with mass produced calibers. Whereas Frederique Constant dials are galvanized and/or have guilloche patterns, our competitors have printed dials with simple printed indexes. Whereas Frederique Constant cases are rounded on sides and hand polished, ergonomic to wear, our competitor cases often have straight sides and rough edges.
With increasing strength of Smart Consumerism, Frederique Constant’s Accessible Luxury watches are increasingly the choice of smart clients.