Presentation on theme: "Substance of the Fashion Industry"— Presentation transcript:
1 Substance of the Fashion Industry Fashion MarketingChapter 4
2 Channel of Distribution Def.: the route that products take from the original source, through the production process, and sales to the ultimate user.2 channels:Soft Goods ChainFour Groups Approach
3 Fashion merchandisers should understand the processes, timing, and practices of the individual segments or groups within the overall fashion industry
4 The Soft Goods Chain Also, called textile/apparel pipeline The channel of distribution for apparel and home decorating textiles.3 main Segments:TextileApparelRetail
5 Textiles Fibers: very thin strands that are the beginning of textiles Yarns: continuous strands of textile fibers that are processed into fabricsFabrics: long pieces of clothGreige goods: fabrics in an unfinished state
6 Apparel Produces finished garments and accessories Steps in the Apparel SegmentThe apparel must be designedDesigning is the process of creating new versions of garments, accessories, or other itemsDesign ideas move fashion forward by creating change
7 Apparel Steps in the Apparel Segment After apparel is designed it must be manufacturedAlmost all are mass-produced in factoriesThey are cut out of fabrics in large numbers and sewn along assembly linesApparel sales involves selling the manufactured garments in large quantities to retail stores
8 ApparelResellers – wholesalers who serve to distribute goods between producers and retailers or users
9 Retail SegmentRetailing is the selling of merchandise directly to customersRetailers buy finished goods in large amounts from the apparel segment that precedes them in the pipelineRetailers pay a wholesale price for this quantity buying of finished productsRetailers put these items out “on the floor” of their stores for sale at a retail prices, which is higher than the wholesale purchase price
10 Retail SegmentRetailers pay a wholesale price for this quantity buying of finished productsRetailers put these items out “on the floor” of their stores for sale at a retail prices, which is higher than the wholesale purchase priceThe markup covers cost of heat, lights, taxes, sales help, and other expensesRetailers do single item selling of garments, accessories, and other goods to consumers
11 The Four Groups Approach Separates the fashion industry into 4 main groups of business:Primary group (raw materials: textiles, leathers, furs)Secondary group (manufacturing: garments, accessories)Retail group (final distribution; stores catalogs, internet, TV sales)Auxiliary group (fashion-related; trade associations, publications, and consultants)
12 Vertical IntegrationThe combining of 2 or more steps of the pipelines within one company and under one management.Example: Textile mills produces their own yarn, fabrics and perform the finishing process.
13 Commodity, Fashion, and Seasonal Goods Two main categories of merchandiseCommodity productsStaple goods…hardly ever change in design and are in constant demand…sales are predictableExamples: cotton/polyester blend fabric, and men’s white business shirts and dark socks
14 Commodity, Fashion, and Seasonal Goods Two main categories of merchandiseFashion productsAlways changingLast year’s model or style cannot be sold this year because it is not in demandDifficult to predict what the demand will beWrong decisions result in huge financial lossesSeasonal productsChange in popularity or demand with the seasons of the year
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