FMD 256- Exam 1

James Lavar's Principles of Dress

- Consumers determine whether a fashion is accepted or rejected. - What is fashionable is not based on price. - No promotions will reverse trends - Gradual Changes (evolutionary not revolutionary)

What are the different types of manufacturer?

- Market: At the top of the chain, produces innovative high fashion apparel that is very expensive - Market: Between very expensive designer and high-quality better merchandise - Market: Below bridge with corresponding lower prices and less style - Market: Includes adaptations of styles in "rise" stage of the fashion cycle - Market: Creates mass produced close copies of goods in their "mass acceptance" stage

Disadvantages to Licensing

-An ever expanding empire may lose its exclusivity -Poor quality products reflect on the name of the designer, or licensor, not the license -The manufacturer also endures the designers loss of popularity

What are the major US population groups and the year(s) they were born? Which are the most attractive to retailers and marketers?

-GI Generation (1901-1926) -Mature/Silents (1927-1945) -Baby Boomers (1946-1964) Generation X (1965-1980) Generation Y (1981-2000) Generation Z (After 2001) Generation Y (Millennials)

What are the two types of internal business expansion/growth? Define these two types

-Horizontal Growth: When a company expands its capabilities on the level at which it operates currently, e.g., retailer opens more stores -Vertical Growth: When a company expands its capabilities on levels other than its primary function, e.g., an apparel company begins to produce its own fabric, or retails its manufactured goods

Advantages of Licensing?

-Manufacturers have a highly recognizable name attached, literally, to the merchandise, to denote high quality -Licensor does not have to endure the risks of production -Retailers present a fashion image using the designer name, appealing to consumers through quality and status

What are the different types of consumer income?

-Personal Income: the total gross, income received by the population as a whole -Disposable Income: The amount a person has left to spend or save after paying taxes -Discretionary Income: the money that an individual or family can spend or save after buying necessities

Disadvantages of Franchising?

-Profits are smaller for the franchisee -Limited flexibility for the franchisee -Franchiser may not support franchise fully -Franchiser may want to buy back stores under certain circumstances that are beneficial to them

Fashion

A style that is accepted and used by the majority of a group at any time, no matter how small the group

Fashion Followers

Acceleration Stage- Mass acceptance stage, emulate fashion innovators/leaders, majority of population

What are the advantages of franchising

Advantages- Quick start-up. franchise methods are proven, ready market; traffic already exists, rapid expansion is possible, limited liability for the franchiser, control over distribution, no need for additional capital

What level of the fashion industry interacts with the other 3 levels of the fashion industry simultaneously?

Auxiliary Level

What are the psychological factors that influence fashion demand?

Boredom, Curiosity, Reaction to Convection, Need for Self-Assurance, Desire for Companionship

The Retail Level

Composed of retailers who buy their goods from secondary level. Ultimate distributor of fashion to the consumer. They prepare 3-6 months in advance to receive goods in a timely manner for sale

Fashion Laggards

Decline Stage- Only accept fashion after it has been around a while, smaller portion of population

Fashion Trend

Direction in which fashions are moving

Which is the most important to the fashion industry?

Discretionary Income

Style

Distinctive characteristics and unique quality or appearance (Anna Wintour)

Difference between a fad, fashion, and a classic

Fad is limited number of people like it and then reject it. Fashion means that a majority of a group accepts it at any time. Classic is that it continues to be accepted over an extended period of time.

Difference between Fashion and Style

Fashion is more wide scale and a majority wear it. Style is more personal and unique.

What is a fad, a flop, and a seasonal staple

Hammer pants, Sketchers Shape-Ups, Trench Coat

What are the three types of fashion designers?

High Fashion-"Name Designers" are responsible for full range of decisions of a fashion house, as well as for establishing the image and creating designs for the company (Chanel, Dior) Stylist-Designers- work for manufacturers and adapt the designs of others. Usually they create variations in less expensive fabrics to appeal to a market for lower-priced merchandise at a late rise Freelancer Designers- Sell sketches of their original designs or adaptations to manufacturers. Typically work out of design studios

What are the three major stages of the fashion cycle?

Innovation, Culmination, and Decline stage

Fashion Innovators/Stage?

Introduction Stage- 1st to accept, desires to set themselves apart from the masses (Saks Fifth Ave, Barney's)

What are the six stages of the fashion cycle?

Introduction Stage- New style Rise Stage- when the new stage is accepted by an increasing number of customers Culmination Stage- when the fashion is at its height of popularity Decline Stage- a decrease in consumer demand for that fashion. all fashion ends in excess Obsolescence Stage- total lack of interest for a style has set in and it can no longer be sold at any price

What are the key sociological factors influencing fashion today?

Leisure time, ethnic influences, status of women, social physical mobility, instant communication, and wars, disasters, and crisis

Fad

Limited number of people quickly accepted and then quickly rejected (short-lived)

What are the types of external business expansion/growth?

Mergers- where the sale of one company to another occurs, with the purchasing company remaining the dominant force Diversification- Where the company adds various lines, products, or services to serve different markets (Gap Kids)

What are the major trends in terms of ethic population in the US?

Minority groups representing more than 30% of the nations total population, have experienced population increase and sociological changes. Hispanics outnumber African Americans, and Asians are growing. Hispanic and Asian populations has brought an increase demand for smaller sizes because smaller in stature

High Fashion

New style limited acceptance by fashion leaders and sold at extremely high prices

What is the primary level?

Raw material producers, earliest stage of planning textures and pallets, furthest from consumers in terms of product and timing and delivery before in-store date for merchandise

Fashion Leaders

Rise Stage- Very interested in fashion, legitimize the item for the masses (Macy's, Bloomingdales)

What are the components of fashion and be able to define them

Silhouette- overal outline or contour Details- the individual elements that give a silhouette its form or shape Texture- look and feel of material, woven, or non-woven Color

What are the different types of business ownerships and the advantages/disadvantages of each?

Sole Proprietorship- Keep all profits/unlimited financial liability Partnership- Ease of formation/ Interpersonal Conflicts Corporation- Limited financial liability/Depersonalization

Define target market segmentations in regards to demographics, geographics, psychographics, and behavioral

Target market are specific groups of potential customers that a business is attempting to turn into regular customers, market segmentations is the separation of the total consumer market into smaller groups. Demographics: Age, Gender, Income Psychographics: lifestyles, social class, values Behavior: group consumers according to their opinions of specific products or services or their actual rate of use of these products or services

Explain the relationship between type of retailer, type of manufacturer, and fashion cycle. Be able to provide an example of the retailers.

The more expensive and elite brand have the top types of manufacturers and retailers and is at the fist stage. (Neiman-Marcus, Saks, Barneys)

The Auxiliary Level

The only level that: composed of support services for the other 3 levels. performs a variety of functions from publicity to advertising to trend reporting to private label development and market trips.

What are VALS?

Values- Attitudes- Lifestyles- Segmentation Helps marketers identify and understand their customers and prospects. Research system that applies demographics and psychographics and sorts customers into eight major categories based on two key concepts for understanding consumer behavior

Compare consumer buying cycle with the consumer use cycle

When the fashion reaches its peak, consumer buying tends to decline more rapidly than consumer use. Different segments of society respond to and tire of a fashion at different times. So different groups of consumers continue to wear fashions for varying lengths of time after they ceased buying them.

Mass Fashion

consists of style that are widely accepted, produced and sold in large quantities at moderate prices.

Secondary Level

manufacturers , contractors, and designers. design and manufacturer all apparel and accessories. They work from 6 months- 1 1/2 year ahead of the time the goods are available to the consumer