THE WORLD OF FASHION MERCHANDISING PowerPoint for THE WORLD OF FASHION MERCHANDISING By Vicki Shaffer-White Publisher The Goodheart-Willcox Co., Inc. Tinley Park, Illinois

Part 1: Basic Fashion and Business Concepts Chapter 4 Substance of the Fashion Industry

Objectives: Describe the two ways of viewing the fashion industry’s channel of distribution Define and recognize vertical integration Explain commodity/fashion/seasonal goods List other industries that deal with textile products Identify trade associations and industry publications Name the geographic areas for each segment of the industry

Textile/Apparel Pipeline The Soft Goods Chain Natural and manufactured fiber production Yarn production Textile Segment Fabric manufacturing, finishing Apparel design Apparel Segment Apparel manufacturing Apparel sales Retail Segment Retail quantity buying Single-item selling to consumer

Textile Segment Fibers Yarns Thin, hair-like strands that may be short or long; from natural or manufactured (chemical) sources Yarns Formed by twisting or spinning fibers together

Textile Segment (Cont.) Fabric production Woven Knitted Nonwoven Unfinished fabric Greige goods Fabric finishing Bleaching, dyeing, printing, etc.

Apparel Segment Produces finished garments . . . . Designed Manufactured Sold Wholesalers or resellers

Retail Segment Selling of merchandise directly to consumer Consumers are at the end of the soft goods chain Consumers decide which fashions will succeed and which will fail

The Four-Groups Approach Textiles Primary Group (raw materials) Leathers Auxiliary Group (support to the fashion industry) Furs Garments Secondary Group (manufacturing) Accessories Other fabrications Stores Retail Group (distribution) Catalogs, TV End Users Consumers

The Four-Groups Breakdown The primary, secondary, and retail groups reflect the textile, apparel, and retail segments respectively The auxiliary group supports the other three groups

Auxiliary Group supports by providing… Market researchers Forecasters Color and trend information Consulting Education for consumers and the industry Buying services Trade associations and publications

Vertical Integration The combining of two or more steps of the pipeline within one company, under one management Examples: Manufacturer opens an outlet store Knitting mill creates the fiber and makes finished socks

Commodity, Fashion, and Seasonal Goods Commodity = Staple Goods Constant demand, hardly change style Examples: Men’s white dress shirts, socks, basic underwear Fashion = Current Style Always changing, timing very important Seasonal = “weather” clothing Examples: Swimsuits, shorts, gloves, coats

Other Textile End-Use Industries 40% Household: floor coverings, domestics (bed/bath), home furnishings 25% and growing Industrial textiles: architecture, agriculture, filtration, geotextiles, military, medical, paper, transportation 35% and decreasing Apparel fabrics

Match the Textile Category to the Textile Product Floor coverings Home furnishings Domestics Agriculture Construction Safety Geotextiles Home sewing industry Firefighter overalls Non-fabric floor tiles Lamp shades Notions Roofs/domes Hoses Landfill coverings Towels

Fashion Industry Associations and Publications Objectives: Better availability of production resources Promote industry’s goods and services to public Sponsor professional and social activities Offer strategic market information and consulting Lobby for the industry Disseminate new industry information through trade shows, conventions, etc. Provide technical assistance and trouble-shooting services Provide networking opportunities

Major Trade Associations and Publications American Fiber Manufacturers Association American Yarn Spinners Association American Textile Manufacturers Institute American Association of Textile Chemists and Colorists Council of Fashion Designers American Apparel and Footwear Association National Retail Federation American Society of Interior Designers (ASID) Home Sewing Association Fiber World Textile World Modern Textiles Apparel Merchandising

Geographic Locations of Industry Segments 1700s-1800s Textile production located primarily in New England states After 1800s Mills steadily opened in Southeastern U.S. Today Large textile companies mainly in North Carolina, Georgia, and South Carolina; much offshore Retailing is located everywhere; not centered in any one country Some national retail companies are now international Trade associations located near Washington, DC, or market centers

Do You Know . . . List the steps of the textile/apparel pipeline. Name the basic differences between commodity, fashion, and seasonal products.