PowerPoint for

TTHE HE WWORLD OFORLD OF

FFASHIONASHIONMMERCHANDISINGERCHANDISING

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 PipelineThe Soft Goods Chain

Natural and manufactured fiber production

Yarn production

Fabric manufacturing, finishing

Apparel design

Apparel manufacturing

Apparel sales

Retail quantity buyingRetail quantity buying

Single-item selling to consumerSingle-item selling to consumer

Textile Segment

Apparel Segment

Retail Retail SegmentSegment

Textile Segment• Fibers

– 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 Fourr-Groups Approach

Primary Group (raw materials)

Secondary Group (manufacturing)

Retail Group Retail Group (distribution)(distribution)

Textiles

Leathers

Furs

End Users ConsumersEnd Users Consumers

Garments

Accessories

Other fabrications

StoresStores

Catalogs, TVCatalogs, TV

Auxiliary Group (support to the fashion industry)

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 Groupsupports 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

1) Firefighter overalls

2) Non-fabric floor tiles

3) Lamp shades4) Notions5) Roofs/domes6) Hoses7) Landfill coverings8) 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.