Business of Fashion and Retail Exam Final

What is Fashion?

"Socially appropriate for the time an situation"

Brand Differentiation

"image" difference

RTW

- Producing things in large quantities using mass manufacturing that require little to no hand stitching -create lines that are 4-6 times a year -Couture produced a smaller quantities, uses hand sewing and sized to fit

International trade

- bilateral trade agreement ( two countries establishing trade together) -multilateral trade agreement (multiple companies trading together) -US trade policies and agreements: -free trade agreement -trade and investment framework agreement -ex:yarn forward rule of origin (from yarn production all the way forward will now be duty free) -European union trade agreements

Market Analysis

- demographic/population-technology -trade -environment -trade resources

Distribution Center

- move merchandise in and our not a factory 1. fashion brand company's manufacture distribution centers 2. retailers distribution centers

What is design?

- purpose is to plan, interpret and create change -design involves intellectual creativity -User-centered -Design reflects the values of the designers in relation to those exhibited by culture, society and time -systematic

1789-1890: Merchandising of production

- the need for plenty of fabric rose -spinning machine -power loom -cotton gin -sewing machine - the demand fro mass-produced apparel was achieved by an expanding number of middle-class consumers who wanted good quality apparel for reasonable prices

South Asia

-Bangladesh -cheap labor -need new infrastructure and regulations

Off Price retailers

-Big Lots -Factory Outlet: too much excess of a product, or test store, held stable during covid because they were outside -Independent off price - buy leftovers -retailer off price- sell the merchandise such as their own downgraded companies -closeout retailers- buy bankrupt company goods -sample store- pop up shop

Support Industries

-Consumer trade Publication: Vanity fair, vogue, apparel magazine, WWD -Trade Associations: NRF, cottonine

Ready-to-wear Industry

-Difference between RTW and Haute couture -Lines or collections -Contractors and Subcontractors -Corporate Social Responsibility -Technological Advancement

Trends in fashion Retailing

-Digital Transformation and technology -brand and lifestyle experiences -environmental sustainability

Dying and Finishing Fabrics

-Dyeing: coloring materials -Finishing: changing appearance, feel, or performance of materials -Greige Goods- Not dyed or finished treatments -textile Converters

1980-1995: Imports and Quick Reponse

-Eising labor costs in US causes companies to begin seeking cheaper labor particularly SE Asia -Increasing vertical integration among manufacturing and retailers influenced the development of Store Brands -Quick response introduced a pull system of demand based on consumer demand as opposed to the push system when manufacturers pushed products to consumers.

Fast Fashion

-H&M, Zara, Uniglo -Similar to specialty store and condensed time

todays Textile Industry

-Highly Automated -Vertical Integration -Technological developments -Environmental Sustainability

Fashion Brand Price Zones

-Luxury or designer -Bridge -Better -Moderate -Budget or Mass

Discount Retailers

-Marshalls, Old Navy, Dollar Tree, Burlington -sell brand name merchandise at less than traditional retail prices -strategies: Quality discounts, poor customer service, high turnover, lower overhead costs

1950-1980: Diversification of Incorporation

-Mass fashion, casual clothing and sportswear were expanding segments of the fashion industry -textile industry grew a new synthetic fibers were introduced and influenced fashion

Omni-Channel Distribution Strategies: Bricks-and-Clicks

-Mobile Retailing -Virtual Displays, Magic Mirrors, and Smart Fitting Rooms -Cross-merchandising strategies -behavioral targeting and personalized Advertising

E-Commerce

-Not the majority of the sales -growing exponentially

The following are examples of political or geographical criteria in evaluating sourcing regions:

-Political/economic disasters -shipping distance infrastructure -natural disasters

Multichannel and Omnichannel Retailers

-SPA and Direct-to-Consumer -integration of subscription services, rental services, catalogs, and tv/video with brick-and-mortar and ecommerce

Communication among Companies: PLM and SCM

-UPC Bar coding, RFID code -replensihment strategies -implementing product life cycle management and supple chain management

UPC Bar Coding, vendor marketing, EDI and RFID

-UPS is the 12 digit bar code- EDi, computer to computer communications: "cross-docking" coming inbound receiving dock directly to...

1995-2005: Supply Chain Management and Globalization

-World Trade Organization (1995) was established -Technology/Industrial revolution

Yarn Spinning and Fabric Construction

-Yarns: spun shorter staple, filament long continuous -Fabric construction: Weaving and knitting -textile mills

Textile Converters

-aesthetic finishing (crinkling/glazing) -performance finishes (stain resistant, UV resistant, waterproof) -dying or printing fabrics

Specialty Stores

-carry one category of merchandise -focus on merchandise for a well-defined target customer -Carry merchandise of the single fashion brand label -lulu lemon, victory secret, or boutique, or some fast fashion brands

Traditional Supply Calendar

-collections two to six times per a year -forecasting up to two years

Sourcing Options

-combination of contract and company owned facilities -contractors: sourcing fairs, full package, CMT -vertical:company owned

Components of a tech pack:

-construction specifications -size specifications -bill of materials NOT target customer demographic

Market research: Understanding consumer market trends

-consumer research -product research -market research -economic analysis

Manufacturing costs

-cost of fabrics, materials and trims -labor costs -costs associated with support services and infrastructure -cost of transportation and shipping -costs associated with duties or tariffs

Fashion Products require these

-cut -bundle -assembly -finishing

See Now, Buy Now Calendar

-designer collections shown during fashion weeks being immediately promoted on social media and immediately available for purchase -capsule collections

Expedited Supply Chain Calendar

-develop line closer to when consumer will be purchasing product -process is less than a year -forecasting continual -smaller lines. more frequent

A fashion brand company controls the messages of all the following programs

-digital marketing -visual merchandising -sales promotion NOT publicity

Direct Marketing

-digital marketing -influencers ( the most powerful) -social marketing -email marketing -interactive marketing -promotions like coupon -catalog

Sustainability Across the Supply Chain

-economic sustainability -environmental sustainability -social sustainability -cultural sustainability -sustainable design -sustainable manufacturing -sustainable marketing -sustainable distribution and retailing

Non-Store retailers

-electronic/internet retailers, "E-Training". Includes the following: -catalog retailers -television -direct sales retailers -vending machines -purpose/challenges exist -thirty one gifts

Electronic/Internet Retailers

-exclusive E-retailers -catalog retailers that have added websites -department and specialty stores that have added websites -fashion brand company manufacture websites -online fashion mall -online auction/trade websites

Licensing Contract

-exclusivity -time limit (when movie comes out is example) -royalty payment, advances, and guarantees (payment for using products) -quality control -notifications of customs (counterfeit) Advantages: fashion credibility disadvantages:name is on too many products

Fashion Trend research

-external resources for fashion trend resources (lifestyle, sales data, price point) -trade publications -earnshaws: what brands are doing, masks, children's area -WWD -footware news -sports international -internal/external -spend time where your customer is spending time (ex coachella)

Global Textiles

-fiber processing -yarn spinning nad fabric construction -dyeing and finishing fabrics

Single Hand System

-hand made and couture

Communication Color

-hue/color -value (light to dark) -chroma (saturation)

Caribbean basin and Central America

-idea of trade and trade relations (KAFTA + DR is the free trade agreement the US has) -speed can be delivered to the US -international investment (primarily korean) -sophisticated research and denim

1890-1950: Growth of the RTW Industry

-immigrant workers spurred the growth of mass production of apparel often working in poor conditions or "Sweatshops" -Key characteristics: -long hours unclean -unsafe -low pay Trade Unions

Fashion Brand Classifications

-international designer or luxury brands -national/local designer or luxury brands -international name brands -subbrands

Strategic Planning

-investment and positioning within few 2-5 years -customers aligning themselves with their values -political and economic forecasts -competition

East Asia

-japan, Hong Kong, South Korea, Taiwan -textile and apparel -highly rooted wealth around this industry

European Union

-large consumer market, trading with one another freely -fast fashion

Department Stores retailers

-large retailers that divide their functions and merchandise into sections or departments -operate brick-and-mortar large stores -Key strategy: Private label and customer service

China

-largest exporter in all areas down to even fiber production -diverse in what they can produce -sophisticated infrastructure -skilled workers -trade shows

Economic Indicators

-leading orders (stock) -coincidental (GDP, employment) -lagging (interest rates)

Business entities in the fashion industry

-legal and tex implications Examples: -sole proprietorship -corporation -limited liability companies

International Expansion

-licensing agreements -franchise agreements -joint venture (partner with another company)

Fashion Brand Licensing

-licensing patents or technologies ex: lulu -trademark and trade name -celebrity name licensing -exclusive licensing for a retailer -characer and entertainment licensing -nostalgia licensing -art licensing

Preproduction process that is completed after the tech pack has been developed and before the fashion products are actually cut and sewn

-making a production marker -making a sample garment -developing a pattern NOT developing a design brief

What is marketing

-management process that connects product offerings with the values, wants, needs and behaviors of customers -marketing of fashion merchandise connects marketing research with management decisions around merchandising strategies.

Southeast Asia

-manufacturing -cut and sew -Korean financing in high volume mast production

Textile Forecasting

-natural and manmade -the yarn houses predictions with color concept garments -one woven being different from another

Code of Conduct

-not a sweatshop ILO international labor association -good working conditions and wages -good work hours

Manufacturing Fiber process

-nylon introduced in 1939 (increased demand) -global regions: china and India (polyester0 -trade name vs generic nam, currently more than 25 -FTC assigns a new generic name, takes 5 years

Warehouse Retailers

-offer goods at discount prices by reducing operating expenses and combining products at a lower cost. Bulk.

Color Association

-pantone -trendstop -promostyle -perclers paris -cotton inc

What is merchandising?

-product assortment planning -product acquisition -product pricing -sales presentation

Short Range Planning

-product design and development -customer engagement -promotional messaging

Market research Process

-question -known information, secondary data -plan -conduct research (collect primary data) -interprut data -question

Retail/Brand Owners Departments

-research and merchandising -design and product development -marketing and sales -operations -advertising and sales promotion -finance and IT

North America

-rich consumer market -research, marketing, brands, dye houses, textile production

Conducting Market research

-sales data analyses -survey research: -interview/questionnaires -focus groups -store intercept interviews -diaries- style testing -a lot of time they will use outlet stores

Key Considerations

-set up -paper work -asset protection -capital genreration -tax -credit -liability -audits

Fast Fashion Calendar

-short cycle supply chain -design and manufacturing are integrated -few weeks -continuous forecasting

Characteristics of factoring:

-short term play 60-90 days -cash advance based on current invoices -accounts receivable support NOT commercial banking loan

Distribution Territory

-single community -regional national -international

Technology Advances in textiles

-smart textiles (optical fiber, diagnostic performance) -3D printing simulating garments

Color research and resources

-staple colors: colors that continue from season to season (black, blue, navy, white, beige) -fashion colors: appear less frequently, follow cycles in different values (red)

Fashion entrepreneurs

-starting up and new business venture of an entrepreneur with the intent that the business will grow beyond the initial founders. -Risk taking/ initiative -passion

Law related to business practices

-supply chain transparency -fair competition -employment practices -consumer protection -environmental protection

Examples of trend forecasting services

-the doneger group -margit publications -trend union (more specific to fashion cities) -promostyl -worth global style network (WGSN) (look at sales and data analytics) -Fashion snoops -use a blend of these

Political and Geographical Criteria

-trade agreement and government (tarrifs/duties, quotas, country of origin) regulations -shipping distance/expected turnaround time -infrastructure of the country -political and economic conditions -natural disasters

Resources for textile and material trends

-trade associations-trade shows: -premier vision -texworld -ideacomo -pratoexpo -interstroff asai

Africa

-trading relationship (ALGOA) -stimulate growth particularly in textiles and apparel

Fashion Supply Chain Calendars

-traditional Supple chain calendar -Expedited Calendar -Fast fashion calendar -see now buy now

Supply Chain Strategies

-vertical integration: company owns or controls multiple steps of the supply chain. -use of contractors for design and manufacturing -multichannel and omnichannel retail integration -horizontal integration

Australia and New Zealand

-wool

Four Key Parts of of fashion processes

1. Design 2. Merchandising 3. Manufacturing 4. Marketing

Types of Marketing Channel

1. Direct to Consumer- ecommerce 2. Limited-online or in store 3.Extended 4. Multichannel- one or more of different marketing channels

Classification of Distribution Strategies

1. Mass distribution- products available to the masses (hanes, jockey) 2. Selective distribution- limited selection (national luxury brands) 3. Exclusive Distribtion- Limited, to create and "exclusiveness". Luxury brands or Private label.

Factors Affecting Distribution

1. types of marketing channels 2. buying characteristics of the target costumer 3. product type and level of customization or service 4. Brand Classification 5. Distribution territory

Key decisions in sourcing

1. who will design your products 2. how, when and where materials will be purchased 3.how, when and where your merchandise will be produced and distributed?

Partnership

2 or more persons as co-owners of a business for profit. Articles of partnership. Used to determine who will be boss, salary, length of partnership. General partnership means that it will be taxed to each persons personal income. Who is liable for what? Good partnerships are between highly creative and business savey people.

A retailers _________ is the planning framework a retailer uses for determining the financial investments needed to achieve sales goals for the fashion season.

6 month merchandise plan

Sloper:

A based pattern in which other patterns are derived.

Fast fashion

Accelerate the design to deliver cycle by 90% (less than 3 weeks)

Brand Identity

Achieved through company controlled brand name, logo, and language

Domestic Production

Advantages: -ease of business -no tariffs/customs -no currency exchange -transportation swift -customer preference Disadvantages: -few production options -labor costs

Off Shore Production

Advantages: -labor costs -material availability -capabilities -location, potential of close to customer Disadvantages: -trade restrictions -language -legalities specific to sourcing country -transportation -currency exchange

Prototype or sample product

After a pattern is made, a prototype is produced to: -test the design -evaluate the style on the live fit model -test the construction sequence -use a physical sample to perform cost analysis -fit in the line?

Business Law

Body of Law that focuses on: -regulations around business entities such as partnerships and corporations -law associated with operating and managing a business -more into ownership, expansion, employment issues and international.

Sales Promotion Strategies

Buying space and time

Color Forecasting

Color forecasting firms: CAUS/ICALooking more: -predictions colors that have been missing best and worst selling

Desing Reqirements

Color requirements, material requirements, style requirements, manufacturing requirements, costing requirements.

Pattern Grading Processes

Computer programs for patterns grading and marker making have been used since the 1970s. the combined process is called computer grading and marker making

Production Materials, Fabrics, Trims and Findings

Considerations: -quality considerations ( textile testing standards) -color management (commercial match, lab dips) -printed fabric considerations (strike off)

Line

Consists of one large group of several; small groups of apparel and/or accessories, developed around the design brief. A theme may be used to direct color, fabric, design details, or a purpose that links the items together.

Keystone pricing

is to do double the manufacturing costs to estimate the wholesale price and to double the wholesale price to estimate the retail price.

To determine the retail price of a garment, this strategy is used when the cost of manufacturing is doubled to determine the wholesale cost and then doubled to determine the retail cost

keystone pricing

Two most common fabric constructions are

knitting and weaving

Goal of production marker

layout all the pattern pieces for all sizes, resulting in maximizing the efficiency of the fabric

Sales representatives provide retail buyers with ___________ that outline information about the fashion line

line sheets/catalogues

Marketing Span of Reach

local- newspapers, events Regional/national- online, advertisements International- sporting events

Brand Positioning

positioning among competitors based on key characteristics

Copyright

protect creative works such as literature, music, films, shows, artwork, and advertisements. In fashion they protect original textiles, prints, graphic designs but US law DOES NOT protect fashion design.

Trade dress

protection of the product design such as coke bottle or tiffany box

Consumer Research

provides information about consumer characteristics and consumer behavior. Will it sell? -demographic:who , age/gender/marital status -psychographics:Why? buying habits/attitudes/values/motives

Supple Chain transparency results in?

public communication as to where, how and wby whom a product is manufactured

Types of Competition

monopoly- one company, dominates oligopoly- few companies, dominate Oligopsony-small number of buyers, large number of sellers Pure/Perfect competition- lotsof producers and consumers, supply and demand Monopolistic Competition- companies compete on key category

Articles of Corporation

name, structure and time period of organization. number of shares, who owns them, names and signatures by who dictates the company. Assets that are owned by company are listed under this.

Publicity

not controlled by the market/company, could be really good or really bad

Types of research

observational research: -looking to see how consumers are shopping (can be formal or informal) -must have information and never lose sight of this ethnographic research -how customer is behaving outside the retail environment simulation research

Acquisition

one company buys another

Takeover

one company or individual gains control of another company by buying a large portion of its shares

S-Corp

only taxed at individual level

Terms of Sale

open-to-buy 6 month merchandise plan terms of sale contract: -delivery date promotional discounts -payment terms and discounts -quality discounts -floor ready merchandise -mark down allowances

Supple Chain calendar and schedule for the line competition

outline the supply chain calendar along with the master calendar that identifies deadlines for each step of the design for each step of the design, development, manufacturing and distribution of the line.

Other Costs

packaging, hangtages/patches, shipping

Progressive Bundling System

parts for a specified number of garments are bundled together one or two construction steps are performed on each garment in the bundle frequently uses a price-rate system

Intellectual Property

patents, trademarks, service marks, trade dress, copyright

pattern development

paterning methods: drafting- measurements are used to develop the pattern shape draping-fabric is draped on the body form to create the garment style, a pattern is developed for fabric pieces flat pattern-a base is manipulated and changed to create a new pattern.

Grading the production Pattern

pattern grading- crating pattern pieces for each size.garment spec sheet grading rules-amount and location of growth and reduction: different grade rules for various sizes size range and style cost consideration grade processes- computer grading and market making

Flexible Manufacturing Systems

Departure from traditional mass production, faster, smaller, more flexible, coordinated with a team advantage: inventory reduction, reduced WIP, improved quality, paid together

Pure Play

Direct to customer

Bundling

Disassembling the cut stacks and reassembling for production (size, color lot)

Digital transfer of Data: Electronic data Integration

EDI: digital transfer of data from one computer to another without human intervention -business documents (invoice, shipping) -inventory reports -product price categories

The Tech Pack

Each product in the line has its own tech pack the tech pack for each style number consists of the following: technical sketch with details, bill of materials, construction specifications, point of measure and size specifications, supplemental development/labels/folding/packaging

Sales volume

Either in units or in dollars. Measured by sell-through, percentage of items sold, compared to what we had in the line.

Integrating Systems

Enterprise Resource Planning (ERP) Product Life Cycle Management (PLM)

Modular Manufacturing

Every team is responsible for producing entire garments each operator might work two or three machines

Cutting

Fabric laid across its entire width, Marker is on top -hand guided electric knifes -die cut-continued use -laser high speed accuracy -plot maker: accuracy prints and bundling

Finance and IT

Finance is responsible for the overall financial health of companies and work closely with all other ares. IT areas play important roles in overseeing companies computer operations. Holiday time to watch for infrastructure and power outage. Developing software for planning allocation.

Horizontal Integration

Focuses on a single stage within the supply chain but offer a variety of products and services.

Contractual Retailers

Franchise: gives and agreement to exclusive right to distribute within a market area. Also provides assistance with training and management leasing departments: Leased space within larger store (Walmart)

a sourcing option that includes pre-production, design, material sourcing and labor is referred to as:

Full package

Unit production Systems

Garments are fed on overhead conveyors usually one garment at a time to sewing machine operators

Collections

Generally refers to the apparel and accessories presented by luxury/designer fashion brand company through runway shows. Design collections often include la large and wide range of items.

Fiber Processing

Generic families: natural and manufactured

______ is best known for textile and production machinery design and production, important trade shows and brands including adidas, PIMA, and Escada

Germany

Factory Auditing

Goal is to improve working conditions -1st party auditing, internal employees -2nd party auditing, fashion brand -3rd party auditing, independent party Challenges: -challenges for the fashion brand -challenges for the factory Key Areas: -efficiency and capacity -working conditions -working compensations -labor laws -environmental laws -quality assurance -brand security

Replenishment Strategies

Goal: "right style, right size, right color, at the right time" -retailer initiated (uses Stock Out data) -Mfg auto ship (uses Vendor Management Inventory VMI) -percentage Flow (20/80%) Technology Emergence: RFID and Data Mining

See Now Buy Now

Guarantees consumers can purchase the merchandise immediately after the new line/collection is presented to the media

Business Objectives

How the company will achieve the goals that benefit the company, including measurable targets

Social Objective

How the company will its goals that benefit its employees and world or cause.

Sole Proprietorship

Individual is the sole proprietorship and owns the business and its property. Any profit is considered personal income but will be taxed accordingly. You will be liable for debt incurred. You are responsible for all aspects of business.

Mass Customization

Involves the customer in customization of fit, design or personalization, "sell one make one"

Global manufacturing of Fashion Products

Manufacturing industries for fashion products around the world have evolved based on: the countries consumer markets trade agreements fashion brand design and marketing industries increased demands around the factory safety and social responsibility

Costs Include:

Material Cost Cost of trims, components, or findings Cost of labor Other costs: packaging, labels, shipping fees, tariffs

Manufacturing Distribution Centers

Merchandise from various production facilities is brought to a central location for quality assurance, picking, packing and distribution to retail store accounts.

Retailers Distribution Centers

Merchandise is shipped from manufacturers to centralized retail distribution center and then picked, combined, and shipped to individual stores. -picking, packing and distribution, selecting the appropriate assortment of goods to fill order. -technology, warehouse management systems -flow-through, merchandise from receiving to shipping with little/no storage -floor ready

Multichannel and Omnichannel Retail Integration

Multichannel: retailer that sell their fashion merchandise through multiple channels Omnichannel: retail channels are integrated to create a seamless shopping experience for the consumer

US Marketing Centers

NYC: fashion district, and new york fashion week LA: garment manufacturing, denim, sports apparel, direct from to Asia Chicago: largest wholesale trading center Dallas: huge trade mart, JPPenny Atlanta: Americas mart, carters inc, rich department stores

Chain Stores

Owned and operate several retail store units that sell similar lines or merchandise with standard method and function under a centralized organization structure. -centralized buying -centralized distribution -shared brands -standard decor/layout

Verticle Integration

Owns and controls several steps of production within the supply chain -design -manufacturing -marketing -retailing integration Results: greater ability to control costs, quantity

What is manufacturing?

Physical making of fashion products throughout the supply chain including the manufacturing of textiles, garments and accessories

Criteria Used in Sourcing Decisions

Political and Geographical Criteria (External): -trade and government regulation -geographic location infrastructure political and economic conditions -natural disasters Company and Design Criteria (Internal): -sourcing philosophy -labor regulations -fabric -quality -social/environment

Competitive Strategies

Price Quality innovation services Special benefit of the merchandise Combination

Orders and Canceled Orders

Sales representative work with retail buyers in placing orders for merchandising to be produced and delivered to the retailer Orders may be canceled for a variety of reasons -insufficient orders for style/color -fabric not available -production problems -natural disasters/ political crisis

Carryover

Same style, new fabric, new color

Retailing

Selling of goods and services to the ultimate consumer

Groups

Small groups are developed within a line, each with its own theme. for example a group may use 3-5 varying fabric combinations.

Market Weeks

Sponsored by wholesale merchandising marts or trade associations, occur throughout the year and focus on particular product categories promoting lines of textiles, apparel, accessories, and home fashions

Brick-and-Mortar retailers

Success depends on: -location fluid -effective design and management of facilities -effective brand identity -convenience for the customer.

Mission Statement

Successful fashion companies have these well defined, implements throughout their business activities.

Business Goals

What the fashion brand Company expects to accomplish in a particular time period

LLC (Limited Liability Company)

advantages: -tax flexibility -personal liability limitations no annual meetings disadvantages: -state regulation -entry fees

Promotional Mix

advertising, publicity, social media, sales promotion, visual merchandising

Company and Design Criteria

The companies Philosophy: corporate social responsibility Triple bottom line

Basics for manufacturing

The process utilized for manufacturing will vary based on: sourcing philosophy and criteria the product design and pattern pattern price zone and quality geographic location of the factory supply chain calendar manufacturing strategies capabilities of the manufacturing facility

UPC and RFID are used to?

Track products or cartons

Two Tracking Cartons and Products

UPC bar code RFID

Spreading

Unwinding large rolls of fabric unto long, wide cutting boards

Traditional Calendar

Up to 2 year from forecasting and design until the product is available to the consumer

Patents

Utility process patent: -technological advantages -functional design patent.

Trade publication examples

WWD

License agreement

allow other companies to use their trademarks and license them to them.

Yarn Foreward

apparel products traded "duty-free" if the yarn and all manufacturing "forward" occur within countries involved in agreement

Fashion Law

area of law that deals with the day-today business problems of the fashion industry -such as counterfeiting, intellectual property and patents

Design Inspiration and theme of line

based on marketing research and trend forecasting, the design team will integrate design inspirations into the design brief. what is the feel or mood? what trends need to be included?

Mission Statements

brief summary of the company's fundamental purpose for its customers and society

Operations

buying, production and inspection typically following: -preproduction -material management -quality assurance -sourcing/production -distribution/logistics

Trend Forecasting

changes in trends in color, textiles/materials, and fashion styles are evolutionary, predictability, and reflect the time, place and situation

Spec sheet

color matrix, fabric/trims/finding, construction, measurements

Agile Manufacturing

combines a variety of technologies that together form a totally integrated, seamless exchange of information linking retailers and suppliers to the manufacturing facility

Merger

companies come together "blend"

Alignment of design brief

company mission, objectives, brand strategy

Retailer

company which sells merchandise to the consumer

Marketing and Sales

conduct marketing research a for the company as well as regional sales managers and sales. representatives.

Brand Image

consumers mind, based on experience

Full Package

contractors provide design, development and manufacturing resources

Brand Identity

controlled by the fashion company via marketing and advertising

Tarriffs

costs associated with these are part of the manufacturing cost.

Example of a natural fiber used in the fashion apperal industry

cotton

Advertising and Sales Promotion

creating promotional advertising, and social media strategies and tools to sell the merchandise to the retail buyers and consumer

Internal Selling

design team presents seasons lines to in-house merchandise

Design Team

designers, product development, merchandisers . creative director leads the process.

NOT an example of a business goal

developing a social conscious program.

Disadvantages of corporations

expensive, regulation based on state, taxes, paperwork. IPO- public is traded on stock market.

Design research

experimental design research: -what does customer want and developing feature in product data mining and data analysis: -whats the best style/color/size for certain product data science -ex: stitchfix creates customer profile

developing social media for supply chain

fair trade strategies include all of the following except:

A monopoly is when many companies dominate the market and price goods collectively within the market

false

ready to wear companies use hand sewing to complete the garment construction

false

Europena Fashion Brand Market Centers

fashion birthplace of Haute couture in France Germany: textile production and machinery Italy: Luxury, family, luxury textiles UK: Wools/suits, edgy Spain: Fast fashion

Pattern grading

from the finalized prototype pattern, all other sizes listed on the spec sheet are developed and production marker made grading garment pattern is much cheaper than the developing a sample garment of each size. Therefore grading is a cost factor and does not ensure the fit of all other sizes.

Production Marker

full-size cutting layout of all the pattern pieces for all the sizes specified for the style. the efficiency of a markers layout plan is measured in the percentage of the fabric used

Research and Merchandising

generally refers to the process of synthesizing information to make decisions about the characteristics of merchandise manufactures and sold by the company. Includes: -trend and market research -develop strategies to include: merchandise, price, timing, quantity, and location All driven by the target customer.

Evaluating the style and fit samples

has the measurements that the company is looking for in terms of target size of consumer

Fashion Weeks

highlight designer and luxury collections and fashion brands headquartered in the market center a lot of education and seminars Seasonal Insight on lines

Service Mark

identification for a service rather than production

Approvals by the design team

reviewed on: Production, cost, styling, relationship of the rest of the line, fabric and trims the reviewed selected styles are sent to the design or product development team for implementation

New Technologies

robots sew like humans in which they can visibly see construction the fabric is made rigid so the parts can be handled by the robots and the agent is removed after construction bonding technologies

The percentage of items sold at retail compared to the number of items in the line that were manufactured is known as _______?

sell through

International selling

selling through direct to consumer sales selling through sales representatives selling through agents selling through exclusive licensing agreements marketing through licensing agreements marketing through licensees and trademark aquitions

Lean Manufacturing

shortest possible cycle time by eliminating process waste -less time -less space -less human effort -less machinery -less materials -less costs Key benefits: -lower production costs -increased output

Color Forecasting

staple fashion colors communicating colors color forecasting process color forecasting services

The purpose of the design brief:

to assure that all areas of the fashion company have a common design strategy

development of licensed products

to success and licensed product must have a well established visually oriented property

Finishing

trimming thread attached buttons and snaps tacking shoulder pads and linings pressing folding the garment labels/hangtags garment dyed

The fashion design process is highly creative

true

Not an example of direct marketing in fashion:

visual display of merchandise on the company's website

South American fashion Brand Market Centers

Argentina and Brazil have largest industries in south America textiles Soa Palo

Personal Selling

At home parties or brick and mortar store trunk shows where brand representatives talk to customers, every item is displayed

Use of Contractors for Design and/or Manufacturing

Contract Manufacturing (CMT or Cut Make Trim) Full package Contract Manufacturing (FP)

Corporations

Corporations large legal entities that exists regardless of who owns them. Articles of incorporation dictate the rules around it. Number of shares and board of directors make this unique. This is help by stockholders and these are the people who really own the business. The profits are paid to the shareholders in terms of dividens.

Mass Production

Cutting and sewing very large quantities of product

Asian Fashion Brand Market Centers

Japan: Specialty textiles, designer fashion Hong Kong: China-fashion industry, service organization, management and coordination South Korea: Budget and moderate, cut sew, family Taiwan: Fibers and materials

Labor Cost

Largest cost of garment Usually comparing with previously made garment: Minute calculations, cut, sew/construct, finish garment identify product location key to understand that this is an estimate

Sample Line

Line that shows one example of each style

Components of a design brief

Objectives of the line, target customer, design inspiration/theme, design requirements, supply chain calendar/deadlines

Design Brief

Outlines the design and development of a lines offered by a fashion company and assures that all areas of fashion company have a common design strategy for their lines. Unifies.

Production Considerations

Production sequences and manufacturing environments (the production facility, location of production, choice of production process and cycle time) vary greatly, depending on factors such as; -available technology -price zone -geographical location of production

Advantages of a corporation

Protection from liability, lawsuits, IRS audits, ownership

Product Research

Provides information about preferred product design and product characteristics. Key purpose is style testing. Examples: -performance -function -style/fashion

B-Corp

Public Benefit (environmental and social) but are much more rigorous.

pattern Design System (PDS)

digitalized patterns into a system and changed to make new patterns Advantages: Speed, Accuracy, Integration with spec sheets, integration with production disadvantages: cost, training time, technical support, visualization difficulties

C-Corp

distributes profits to shareholders in form of dividend. They are taxed at corporate level. Called double-taxation.

conglomerate

diversified companies with different lines of business example: kering, LVMH

Trademark

logo, ex:nike swish. work phrase, design or symbol that identifies or distinguishes a brand. cannot do generic terms, sometimes use fibers such as spandex.

Line-for-Line copies

looking back at previous lines you have done and heritage element, and brings back some of the same things from decades ago

Manufacturing Strategies

mass production short-cycle mass customization

Production sequencing and Costing

production and cost depend on many factors; -equipment -labor cost -pre production steps, interfacing fusing -procurement of materials

Factoring

production orders require money. companys fincial credit line is important, commercial banks are high risk. Factoring is a short-term plan that allows business owners to receive cash advances based on their current invoices. these typical extend 60-90 days company pays interest. Advantages: -increase working capital -accounts receivable support -faster access to cash, use capital to grown Disadvantages: -enforce credit limits -early agreement departure penalty -disputing charges coordination

Target Customer

profile made down to specifics, design niche. Understanding how this person lives their life, psychoanalyzing

Global patterns of manufacturing fashion products

reasons for the widespread nature of global manufacturing include: quick and easy transfer of information electronically from design through distribution relatively low labor costs specialization in certain types of fabrics and production processes that cannot be found elsewhere relatively fast production and worker productivity highly intensive labor that provides work for many people Compare with other manufacturing industries, apparel manufacturing is fairly inexpensive.

Innovation

relative advantage -is this something new and appealing compatibility -is it more satisfactory than current ownership and fit with other things owned complexity -easy to understand and use trialabiylity -e-commerce platform observability -others in the marketplace buying product

Moving production back to the domestic market is referred to

reshoring

Target Customer

target both retailers and the ultimate consumer depending upon consumer depending upon their distribution channels

Product life cycle management

technologies that are used to track fashion product information and master calendar through the design, development, manufacturing and retail stages Most critical factors include: length of time, international scope, communications

Pattern Grading

the accuracy measurement assigned by the head of the tech design on the original pattern

Who is responsible for developing the design brief

the design team composed of designers, product developers, merchandisers

Costing

the process of determining the cost of manufacturing and the wholesale and/or suggested retail price of fashion product. Cost estimates are included in the design brief and revised as the product moves through the design.

Sourcing

the process used in making decisions around the design, procurement and manufacturing of material and products

Marketing Research

what the target market wants. There are three key types of informations: -descriptive (factual data) -diagnostic (how is customer thinking) -predictive (building longer range business plan)

Third party factory audit

when a fashion company hires an independent organization to conduct factory audits

design and product development

who interprut the trend forecasts and create designs to be manufactured by the company cross merchandising of combining apparel and accessories

External selling

wholesale fashion brands that sell merchandise to multi-brand retailers corporate selling selling through sales representatives: showrooms, market weeks and trade shows Sample lines

3D prototyping

with new developments in the fabric and body simulations, virtual prototypes are becoming more reliable.