2007 Fairchild Publications, Inc.

1. 2007 Fairchild Publications, Inc.

2. Fashion Apparel • Taken as a total entity, women’s, men’s, children’s, and teen’s apparel industry is the largest and most recognized part of the fashion business. Although the organization and operation, merchandising and marketing, and trends are similar, we will review each sector separately. Women’s, Men’s, Children’s, and Teens 2007 Fairchild Publications, Inc.

3. Women’s Apparel • Women’s apparel producers have always been specialists, producing apparel for a particular lifestyle, size range, and price range. Example: • Coat manufacturers do not produce dresses, dress manufacturers do not produce sportswear. • Designers, too, balance diversification with specialization. Specialization by Product 2007 Fairchild Publications, Inc.

4. Categories in Women’s Apparel 2007 Fairchild Publications, Inc.

5. Women’s Apparel Activewear Maternity Plus-size Lane Bryant 2007 Fairchild Publications, Inc.

6. Women’s Apparel • Misses: Includes regular even-numbered sizes 2–20, tall sizes 12–20. • Juniors: Includes regular sizes 3–17 and petite sizes 1–15. • Petites: Includes misses even-numbered sizes 2P–16P and junior sizes 1P–15P. • Women’s and Women’s Petite (plus-size): Includes even-numbered sizes 12WP–26WP, straight sizes 26–52, and XL–5X. Size Ranges 2007 Fairchild Publications, Inc.

7. Women’s Apparel • Designer Signatures: The highest price zone i.e., Donna Karen, Oscar de la Renta, Dior. • Bridge: Bridges the price range between designer and better prices i.e., DKNY, CK. • Contemporary: New zone favored by new young designers i.e., Cynthia Rowley, Laundry by Shelli Segal. Major Price Zones 2007 Fairchild Publications, Inc.

8. Women’s Apparel • Better: Medium to high, appeals to middle-class market offering fashionable apparel at affordable prices i.e., Jones NY, Liz Claiborne, Nautica. • Moderate: Nationally advertised makers that appeal to middle-class consumer i.e., Guess, Esprit, Levi Strauss. • Budget: Lowest price zone, known as “promotional” or “mass market” i.e., Kmart’s Jaclyn Smith. Major Price Zones 2007 Fairchild Publications, Inc.

9. Women’s Apparel • Most fashion producers sell directly to retail stores rather than through intermediaries such as wholesalers or jobbers. • Women’s apparel producers aim their sales promotion efforts at both retailers and consumers. These efforts include advertising, publicity, and sales promotion. Merchandising and Marketing 2007 Fairchild Publications, Inc.

10. Advertising and Publicity • Print • Fashion, general interest and newspapers are prime outlets, as are trade magazines for advertising dollars • Broadcast advertising • Radio, lacking the visual element, usually has spot commercials • Television is dominated by large producers (Levi’s, Sears, JCPenney) who can afford the costly campaigns • Cable television is less expensive than network television and lends itself to smaller manufacturers and retailers of women’s wear • Publicity firms • Retained to ensure coverage in editorial pages of magazines and newspapers 2007 Fairchild Publications, Inc.

11. Fashion Shows and Trade Shows • Fashion shows provide opportunities to examine the newest collections • They are the major public relations efforts in women’s wear • Newspapers, magazines, radio, television and Internet fashion editors and reporters tell the fashion stories to their readers • Trade shows like MAGIC in Las Vegas and others in Paris, London, Milan, Tokyo and Hong Kong are held semi-annually 2007 Fairchild Publications, Inc.

12. Trunk Shows and Videotapes • Trunk shows present a designer’s line to a retailer’s customers • The line’s representative, often the designer, mounts an in-house fashion show with sample garments • After the show, the representative meets with customers to discuss styles and review items • Customers, retailers, and manufacturers all benefit • Videos are another tool to promote a designer’s line • They are also used to help familiarize retailer’s sales staff with the product 2007 Fairchild Publications, Inc.

13. Trunk Shows and Videotapes 2007 Fairchild Publications, Inc.

14. Trends • Emergence of manufacturers as retailers • Vertical integration at Ralph Lauren, Benetton and Talbots • Greater emphasis on licensing • J.G. Hook produces nothing in house • Increased offshore production • Imports are a major threat to the domestic clothing industry • Increased emphasis on Quick Response • Shortened response time offsets some benefits of offshore production • Use of computers and the Internet • Besides CAD/CAM, selling and promoting the ability to instantaneously understand the customer needs may be the biggest benefit 2007 Fairchild Publications, Inc.

15. Men’s Apparel • The men’s wear industry traditionally has been divided into firms that make different kinds of clothing • Tailored clothing: Suits, overcoats, topcoats, sports coats, formal wear, and separate trousers • Furnishings: Dress shirts, neckwear, sweaters, headwear, underwear, socks, suspenders, robes, and pajamas • Outerwear: Raincoats, coats, jackets, active sportswear • Work clothing: Work shirts, work pants, overalls, and related items • Other: Uniforms and miscellaneous items • The federal government uses these five classifications. Although it is not an official classification, sportswear (including active sportswear) has become a vital portion of the business and should be considered a men’s wear category. 2007 Fairchild Publications, Inc.

16. Men’s Apparel Designer Names Today Kenneth Cole • Today designer labels are promoted as heavily as well-established brand names used to be • The “name game” is big business in all segments of the men’s wear industry • Designers have helped by becoming highly visible. They lend themselves to the fantasy of the customer who longs for wealth and excitement 2007 Fairchild Publications, Inc.

17. Men’s Apparel Merchandising and Marketing • As with women’s wear producers, men’s wear producers back their lines with: • Fashion shows • Trade shows • Trade associations • Advertising and Publicity • Men’s Trade Associations: • TFA, The Fashion Association, is now part of the American Apparel and Footwear Association (AAFA) • NAMSB, the National Association of Men’s Sportswear Buyers • MAGIC, Men’s Apparel Guild of California • CMA, Clothing Manufacturers Association 2007 Fairchild Publications, Inc.

18. Men’s Apparel Merchandising and Marketing An ad for comfortable appeal from Abercrombie & Fitch, owned by Ruehl. 2007 Fairchild Publications, Inc.

19. Men’s Apparel Industry Trend • Diversification of products by producers • Automation of production processes • Increase in foreign sales • Proliferation of men’s specialty stores 2007 Fairchild Publications, Inc.

20. Children’s, Tween’s, and Teen Apparel • Like adult clothing, children’s, tween’s, and teen’s apparel is divided into categories based on price, size, and type of product • Price: Budget, moderate, better-priced and designer • Size: Seven basic sizes • Type of product: Knits, dresses, sportswear 2007 Fairchild Publications, Inc.

21. Product Specialization • Manufacturers typically specialize by product • A producer only makes girls’ knits, another makes girls’ dresses, another preteen sportswear • Knits remain popular for infants’, boys’ and girls’ tops • Although the same design and production methods are used for adults and children's wear, less fabric is offset by higher labor costs 2007 Fairchild Publications, Inc.

22. Merchandising and Marketing • Character and toy character licenses share the spotlight with a growing number of sports and corporate licenses • The first character license was Buster Brown in 1904 • Barney, Mickey Mouse, Pooh, and Snoopy remain popular for children • Two major studios that produce cartoons, Disney and Warner Brothers, have retail outlets, designed to boost the lives of the movie characters Licensing 2007 Fairchild Publications, Inc.

23. Merchandising and Marketing • Sports licensing is another prosperous area of licensing • Sports figures and teams enjoy instant recognition among children and young adults • Both individuals and teams have capitalized on this, adding clothing, accessories and other items to equipment they sponsor Licensing 2007 Fairchild Publications, Inc.

24. Merchandising and Marketing • The four major sports leagues and many college and university teams routinely license their names for use on clothing • The National Football League promotes campaigns and programs for boys and girls in different age groups • They advertise in Sports Illustrated For Kids and the Superbowl, helping kids to not only play football but purchase millions of dollars of related apparel Licensing 2007 Fairchild Publications, Inc.

25. The Role of Fashionin Children’s Wear • Should be viewed as a business that is fashionable rather than a fashion business • Children’s styles adapt men’s and women’s styles • They are not innovative, nor does new fashion start here • Backpacks are one recent notable exception 2007 Fairchild Publications, Inc.

26. The Role of Fashionin Children’s Wear Kids take to the runway at this ENK event, which showcases apparel and products for infants through teens 2007 Fairchild Publications, Inc.

27. Industry Trends • The new trend has been to have free separate stores devoted to children's wear • GapKids opened in 1986 • BabyGap opened in 1996 after outgrowing its space allocation within GapKids • Benetton 0–12, Laura Ashley’s Mother and Child, and Kids “R” Us Baby Superstore are examples of this trend Specialty Retail Outlets • Store within store, children's areas are popular 2007 Fairchild Publications, Inc.

28. Industry Trends GapKids offers a variety of basics for children Specialty Retail Outlets 2007 Fairchild Publications, Inc.

29. Industry Trends • Catalogs • Major catalog players increased children's offerings • JCPenney and Talbots offer specialized catalogs for children • Delia’s, a catalog for children and woman ages 10–24, skyrocketed to prominence Specialty Retail Outlets 2007 Fairchild Publications, Inc.

30. Industry Trends • The Internet • Almost every retailer and some manufacturers are online with offerings for children • As of 2000, over 27 million children had Internet access • All four major professional sports leagues have sites with pages devoted solely to kids Specialty Retail Outlets 2007 Fairchild Publications, Inc.

31. Industry Trends • Secondhand and consignment stores are a logical outgrowth of parents concerns about the price of new wardrobe basics for children • Since children quickly outgrow clothes, budget minded parents are turning to this alternate outlet Resale of Children’s Wear 2007 Fairchild Publications, Inc.