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Publisher The Goodheart-Willcox Co., Inc. Tinley Park, Illinois. PowerPoint for. T HE W ORLD OF F ASHION M ERCHANDISING. By Vicki Shaffer-White. Part 1: Basic Fashion and Business Concepts. Chapter 4 Substance of the Fashion Industry. Objectives:.

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  1. PublisherThe Goodheart-Willcox Co., Inc.Tinley Park, Illinois PowerPoint for THE WORLD OFFASHIONMERCHANDISING By Vicki Shaffer-White

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

  3. 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

  4. Textile/Apparel PipelineThe 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

  5. 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

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

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

  8. 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

  9. 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

  10. 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

  11. Auxiliary Groupsupports by providing… • Market researchers • Forecasters • Color and trend information • Consulting • Education for consumers and the industry • Buying services • Trade associations and publications

  12. 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

  13. 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

  14. 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

  15. 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 Match the Textile Category to the Textile Product

  16. 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 Fashion Industry Associations and Publications

  17. 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 Major Trade Associations and Publications

  18. 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 Geographic Locations of Industry Segments

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

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