Chapter 2

Substance of the Fashion IndustryChapter 4Fashion TermsChannel of distributionSoft goods chainTextile/apparel pipelineFiberYarnsFabricsGreige goodsDesigningResellersFour-groups approachVertical integrationPrivate label goodsCommodity productsFashion productsSeasonal productsIndustrial textilesGeotextilesCompositesTrade associationsNetworkingTrade publicationsLabor-intensiveThe Soft Goods ChainThe Textile SegmentThe Apparel SegmentThe Retail Segment

The Textile SegmentFibersThin, hair-like strandsShort or longOriginate fromNaturally grown sourcesChemical mixturesYarnsContinuous strandFormed by spinning or twistingFabricsLong pieces of clothGreige (gray) Goods

The Apparel SegmentDesigningManufacturedSales

The Retail SegmentSelling merchandise directly to consumersRetailers pay wholesale price for quantityRetailers do single-item selling to consumers

Four-Groups ApproachPrimary GroupSecondary GroupRetail GroupAuxiliary GroupPrimary GroupSecondary GroupRetail GroupConsumersPrimary GroupRaw materialsTextilesLeatherFurPlasticsMetals

Secondary GroupManufacturingMakes garments from textilesProduces sewn garmentsProduces fabricated garments

Retail GroupStoresMail OrderTV Home ShoppingInternet

Auxiliary GroupSupports first three groupsMarket ResearchersForecastersColorsTrendsFashion Publications (advertising)Buying Services in market centersVertical IntegrationCombining two or more steps of the pipeline within one company and under one management.Mills produce yarn, make fabric and perform the finish the fabric.If a company takes on activities toward the source of goods backward integrationWhen retail companies take on manufacturing functions.Producing their own Private Label.Private Label Goods produced only for that retailer and have the retailers special trademark or brand name.

Commodity, Fashion, and Seasonal GoodsCommodity ProductsStaple GoodsHardly ever changeConstant in DemandFashion ProductsAlways changingNo DemandDifficult to predict demandSeasonal productsChange with seasons

Other Textile End-Use IndustriesHousehold Textile ProductsIndustrial Textile ProductsThe Home Sewing IndustryHousehold Textile ProductsFloor coveringsRugsCarpetsHome furnishingsWindow treatmentsFurnitureDomesticsBedBathKitchen

Industrial Textile ProductsIndustrial textiles technical rather than fashionableSpecialized textilesResearch and developmentTransportation textilesAutomobiles interiors and tiresGeotextilesRelate to the earths surfaceComposite textilesTextiles combines with other materials

The Home Sewing IndustryDeals with productionDone for personal reasonsFeeling of achievementProper fitIndividually creativitySave moneyQuality of constructionrelaxationSavings are less significant todayFashion Industry Associations and PublicationsTrade AssociationsTrade PublicationsTextilesApparelRetailConsumersTrade AssociationsNonprofit, voluntary organizationsTry to improve the industryBusiness ConditionsEncourage the use of industrys productsServe as a source of informationGain advantageous legislation Sponsor seminars, etc.Provide technical assistanceProvide networkingFashion Group InternationalAmerican Society of Interior DesignersHome Sewing AssociationTrade PublicationsMagazinesNewspapersBooks

Geographic Locations of Industry SegmentsIndustrial Manufactures were near resources in early daysNow they can be any where but mainly in central eastern statesApparel manufacturing has always been labor-intensive.Retailing is located everywhereHighly Specialized textiles create demand.Summing It UpFashion Channel of Distribution = Soft goods chain or textile/apparel pipelinePrimary = Raw MaterialsSecondary = ManufacturersRetail = Final DistributorsTrade Associations