Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 3: Business of fashion - Coggle Diagram
Chapter 3: Business of fashion
Textile / Apparel Pipeline
(i) Textile Segment
natural & manufactured fiber production
fibers
thin, hair like strands that may be short or long
made from natural / manufactured (chemical) sources
yarn production
formed by twisting / spinning fibers together
fabric manufacturing / finishing
fabric production
woven
knitted
nonwoven
unfinished fabric
greige fabric
fabric finishing
bleaching
dyeing
printing
(ii) Apparel Segment
produces finished garment by
designed
manufactured
sold as wholesalers / resellers
(iii) 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
Apparel supply chain
Primary fabric resources
producer of raw material (fibers)
yarn mills
textile mills
Secondary fabric resources
jobbers
textile brokers
retail fabric stores
Converter
businesses that buy greige goods from the textile mills
work closely with apparel manufacturer to determine colour, patterns & finishes
after dyeing the greige fabric, converter sells the fabric to apparel manufacturer
Apparel industry
Manufacturer
apparel produced by manufacturers that has responsibility to design fabric & finding purchasing, production & sale of finished garments to the retailer
makes a number of well known brands, gain profits from difference between the cost of producing & distributing the garments & price usually to retailers
Contractors (including sub-contractors)
provide labour & equipment
complete their work satisfactory & in the time frame
Eg: companies that use independent contractors outside shops have more flexibility like only product cut, make and trim (CMT) contractors
sub-contactors
perform specialty work for other contractors & manufacturers
they perform well & economically because they have purchased the specialized equipment
Wholesale representative
agents of the apparel manufacturer
have showrooms in market centers & visit buyers to show them new lines
profit gain from the commission they earn on the goods they sell to retailers
some companies called "direct importers" - to sell & monitor production especially from other countries
Retailers
sell the ultimate consumer
traditional retailers buy finished apparel products from domestic manufacturers or direct importers and sell the goods to the consumer
gain profit from the difference between the cost of buying garments from manufacturers / importers & the price they sell to the final customer
Promotional strategies
(i) Purposes
inform
persuade
remind
consumers gain information about what / why / when & where they want to buy
encourage addition purchases
(ii) Promotion levels
distribution chain / happens through all levels of production & distribution
trade promotion
textile -> apparel
retail promotion
apparel -> retail
consumer promotion
retail -> consumer
(iii) Promoting fashion
advertising a personal communication with a large group of people, even it is targeted to specific audience.
some promotion are directed toward retailer buyers & other toward consumer.
Types of advertising
Promotional advertising
to sell a product, service or idea like Target, Aeon
Institutional advertising
to sell an image like reputation. Eg: Channel
Product
designed to sell specific merchandise / services
National
companies that sell products nationwide
Regional & local
retailers in same area
Local advertising
ads sponsored by local merchant that provide details abt where to find products & their prices also quantities
Cooperative Advertising
the sharing of advertising & its costs by two or more organizations
Pros
additional product exposure
share ad costs
producer & retail prestige
Cons
may attempt retailers to buy wrong products
competition
lots of record keeping
producers of brand-name goods may help retailers with local advertising & cost
manufacturers may place restrictions on retailers to qualify for co-op money
(iv) Advertising Media Forms
newspaper
Adv
low cost for large coverage
geographic selected
products can be shown
Disadv
wasted circulation-not targeted
short life-papers thrown out
limited or poor color reproduction
magazines
Adv
longer life span msg
excellent quality of color & detail
more targeted readership
Disadv
limited demonstration value
space is expensive
professional preparation needed
billboard
Adv
can select geographic location
minimal cost per viewing
repetitive viewing from audience
Disadv
only short / general msg
some wasted audience coverage
considered offensive by some people
direct mail
Adv
control what is sent
precise selectivity of receivers
Disadv
high cost per receiver
hard to get mailing list
radio
Adv
universally used medium
fairly low cost
Disadv
no visual impact
meassage is fleeting, short life
television
Adv
popular consumer medium
has sight, sound & motion
Disadv
high cost of time & production
longer lead time needed
Video
Adv
attracts attention
has entertainment
can replayed many times
Disadv
no effective advertising
need special expertise to produce
web sites
Adv
interactive
reflect to current trends
worldwide market access
Disadv
audience limited to computer users
people can "click off" if not easy / understable
Terms to know
Publicity
any non-paid message that communicates info abt company's merchandise, services & activities
Public relation
promotional technique that uses any form of communication to create a +ve image for a business
Advertising
a paid message that business sends abt its fashion products / ideas
The four-groups breakdown
auxiliary group (support to the fashion industry) by providing market researcher, forecasters consulting, buying services education for consumers and the industry etc.
primary group (raw material)
textiles
leathers
fur
secondary group (manufacturing)
garments
other fabrications
accessories
retail group (distribution)
stores
catalogs / TV
commodity, fashion & seasonal goods
commodity: staple goods
constant demand, hardly change style
example: men's white dress shirts, socks, basic underwear
fashion: current style
always changing, timing very important
seasonal: "weather clothing"
example; swimsuits, shorts, gloves, coats
other textile end-use industries
40%/: household like floor coverings, home furnishing
25% & growing: architecture, medical, geotextile, transportation, military
35% & decreasing: apparel fabrics
Perceived Difference
a distinguishing feature of a product / business that allows it to stand out of others.
brand names & private labels
the name of brand for customers to remember our product or company
licensing
to protect the brand name from plagiarism or fake brand
vertical integration
combining of two / more steps of the pipeline within one company, under one management
Eg: manufacturer opens an outlet store such as knitting mill creates the fiber and make finished socks