Chapter 4

Substance of the Fashion Industry Chapter 4 Chapter 4 Substance of the Fashion Industry

Chapter 4 Learning Outcomes Describe the two ways of viewing the fashion industry’s channel of distribution. Define and recognize vertical integration. Summarize commodity, fashion, and seasonal goods as related to the fashion industry. continued

Chapter 4 Learning Outcomes Distinguish among other industries that deal with textile products. Identify the trade associations and industry publications for the fashion industry. Infer the geographic areas for each segment of the industry.

Channel of Distribution Chapter 4 Channel of Distribution Fashion goods evolve through many steps before they become finished items A channel of distribution is the route that products take from the original source through all stages to the end user The two ways of viewing this channel is soft goods chain four groups approach

Chapter 4 Industry Facts The soft goods chain is a distribution channel for apparel and home decorating textiles It is also called the textile/apparel pipeline The chain starts with the textile segment moves through the apparel segment goes to the retail segment finishes with end users

The Soft Goods Chain Companies operate at each level of the chain Chapter 4 The Soft Goods Chain Companies operate at each level of the chain Each segment buys products from the previous one and sells to the next one Mary G. Wolfe continued

The Soft Goods Chain For companies at the beginning and middle of the pipeline, their customers are not end-use consumers are the businesses positioned at the next step of the overall chain

Chapter 4 The Textile Segment The textile segment of the soft goods chain starts with fiber production Fibers are very thin, hair-like strands that can be quite short or very long They originate either from naturally grown sources or chemical mixtures Yarns are continuous strands of textile fibers in a form suitable for processing into fabrics continued

Chapter 4 The Textile Segment Yarns are formed by spinning or twisting fibers together at yarn mills Textile mills weave, knit, or otherwise join yarns into fabrics, or long pieces of cloth called greige goods wzlv/Shutterstock.com continued

The Textile Segment The last production step is fabric finishing, which includes bleaching dyeing printing, and more Finishing changes how the fabric looks, feels, and/or performs

Chapter 4 The Apparel Segment The apparel segment produces finished garments and accessories Designing is the process of creating new versions of garments or accessories New design ideas move fashion forward After the fashions are designed, they are manufactured Most are mass-produced in factories continued

Chapter 4 The Apparel Segment Apparel sales involves selling the completed garments in large quantities to retail stores Most garments are sold at wholesale prices and shipped directly from manufacturers to retailers Inexpensive accessories and small, nonfashion products go through wholesalers, often referred to as resellers

Chapter 4 The Retail Segment Retailing is the selling of merchandise directly to consumers through a store or other method Retailers pay a wholesale price for finished products and offer them at their stores for a higher retail price The markup covers their expenses and includes some profit for the retailer

The Four-Groups Approach Chapter 4 The Four-Groups Approach The four-groups approach is a different way of showing the same flow of goods The four-groups approach separates the overall fashion industry into four main groups of businesses continued

The Four-Groups Approach The four main groups of businesses include the primary group secondary group retail group auxiliary group Mary G. Wolfe

Chapter 4 Primary Group This group provides the raw materials from which fashion products are made textiles leathers and furs some plastics and metals These items are sold primarily to apparel and accessory producers also to fabric stores and some specialists

Secondary Group The secondary group is the manufacturing segment Chapter 4 Secondary Group The secondary group is the manufacturing segment It makes finished garments from the textiles and other materials bought from the primary suppliers This group produces sewn or fabricated products, such as garments, accessories, and other items

Retail Group The retail group consists of Chapter 4 Retail Group The retail group consists of stores mail order catalogs TV home shopping channels Internet retail sites other retail enterprises They sell the finished goods directly to consumers

Chapter 4 Auxiliary Group The auxiliary group supports, or helps, the primary, secondary, and retail groups The businesses within this group work with all the other groups simultaneously continued

Auxiliary Group Auxiliary businesses include market researchers and forecasters that help analyze and interpret future fashion directions fashion publications that provide ads and information Radu Bercan/Shutterstock.com continued

Auxiliary Group Other auxiliary businesses include Chapter 4 Auxiliary Group Other auxiliary businesses include publicity and advertising agencies that research the market and plan promotional campaigns buying services in market centers that help retailers get the right merchandise for their stores models and modeling agencies that show new fashions in fun, exciting ways trade associations and their publications

Chapter 4 Vertical Integration Vertical integration is the combining of two or more steps of the pipeline within one company and under one management Textile mills may produce yarn, make fabric, and perform the finishing processes for a fabric An apparel manufacturer may open one or more factory outlet stores These examples show forward integration continued

Chapter 4 Vertical Integration If a company takes on activities toward the source of goods, it is called backward integration Retail companies may perform manufacturing functions to produce private label merchandise Private label goods are goods produced only for one retailer and have the retailer’s brand

Chapter 4 Industry Facts Commodity products are goods that rarely change in design and are in constant demand Example: men’s white business shirts Fashion products, on the other hand, are products that are always changing Seasonal products are products that change in demand with the seasons of the year Examples: swimsuits, coats

Other Textile End-Use Industries Chapter 4 Other Textile End-Use Industries Other textile markets include household products industrial textile products the home sewing industry All About Space/Shutterstock.com continued

Other Textile End-Use Industries In the end-use textile market, apparel fabrics comprise about 34% are decreasing in relation to the total market

Household Textile Products Chapter 4 Household Textile Products The household textile products industry manufactures fabrics for floor coverings—rugs and carpets home furnishings—window treatments and furniture coverings domestics—bed, bath, and kitchen textiles Household textiles follow fashion trends that are broader and slower moving than apparel trends continued

Household Textile Products Chapter 4 Household Textile Products Many furniture items are custom-covered in fabrics selected by the customer An in-store computer design system helps consumers see different fabrics on various furniture frames Retailers must allow a month or more for production and delivery of custom-ordered items to customers

Chapter 4 Fashion Insights Performance, an important consideration for household textiles, involves strength and durability, colorfastness, and stain resistance Many household items are expensive, so sales depend on the health of the economy Designer names are important in all categories of household textiles

Technical Textile Products Chapter 4 Technical Textile Products Technical textiles are for industrial uses rather than for fashion Their specialized uses require continuous research and development Examples: textiles for protection from heat, fire, subzero temperatures, pressure changes, forceful impacts, and radiation cowardlion/Shutterstock.com continued

Technical Textile Products Chapter 4 Technical Textile Products Many are used in safety and medical fields The #1 market for industrial textiles is the transportation category (car interiors, etc.) The #2 market is geotextiles, which relate to the earth’s surface (liners, coverings, etc.) Composites are textiles combined with other materials Examples: commercial hoses, belting, car fenders, boat hulls, and truck tanks

The Home Sewing Industry Chapter 4 The Home Sewing Industry The home sewing industry deals with the production and selling of nonindustrial sewing machines retail fabrics, notions, patterns, and publications Less home sewing of apparel is done now than in the past, but hobby sewing has increased particularly quilt making

Chapter 4 Trade Associations Trade associations are nonprofit, voluntary organizations of businesses with common interests Each association deals specifically with a certain industry or segment of an industry All trade associations aim to promote their industry, its products, and the interests of their members continued

Chapter 4 Trade Associations When networking, members exchange ideas, information, or services—all of which helps to make their businesses stronger Some key trade associations are Fashion Group International (FGI), the leading authority on the business of fashion and design American Society of Interior Designers (ASID), a strong association of home fashions professionals

Chapter 4 Trade Publications Trade publications are magazines, newspapers, and books that deal specifically with a certain industry or industry segment Some key publications are Women’s Wear Daily (WWD), a newspaper that reports fashion trends and other news of the apparel trade STORES magazine, which many store managers read

Industry Facts Apparel production is throughout the U.S. Chapter 4 Industry Facts Apparel production is throughout the U.S. New York City is the center of U.S. apparel companies Garment and accessory designing and production companies exist in most states. California ranks second in the apparel industry, mainly known for sportswear Apparel retailing occurs throughout the U.S.

Geographic Locations of Industry Segments Chapter 4 Geographic Locations of Industry Segments Textile production was centered in the New England states in the 1700s and 1800s is concentrated in the Carolinas and Georgia today now occurs primarily “offshore” Hank Shiffman/Shutterstock.com continued

Geographic Locations of Industry Segments Chapter 4 Geographic Locations of Industry Segments Apparel production involves many U.S. firms, each making a particular range of products It is labor-intensive, requiring many workers Household textile products are made in the Carolinas and Georgia as well as in California and New York continued

Geographic Locations of Industry Segments Specialized technical textiles are produced in many parts of the United States Textile/apparel trade associations are located near Washington, DC, or near their particular market center

Chapter 4 In Summary The fashion channel of distribution includes the textile, apparel, and retail segments, plus an auxiliary group Apparel is just one end-use of textiles Textile end-use industries also include household textile, technical textile, and home sewing goods continued

Chapter 4 In Summary Trade associations include businesses that have common interests, such as those in the textile or fashion industry Many firms that produce textiles and/or apparel are located in the United States Retailing is located everywhere—from small towns, to suburban malls, to large cities