intro to Retail
Terms
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- Importance of Fabric
- 1. Cost 2. Quality 3. Aesthetic
- Natural Fibers ex. cotton wool silk linen
- -comes directly from play or animal sources -located all over the world, smaller
- Manufactured fibers 2 types
- 1) Regenerated Cellulosic- chemical process using fibrous substance in plants (rayon acetate) 2) Synthetic- chemical derivatives of petroleum, coal, natural gas (polyester, nylon)
- spinning mills
- buy fibers and spin it into yarn
- Fabric mills
- purchase yarn and weave or knit it into cloth
- finishing plants
- print dye or treat the fabrics
- vertically integrated firm
- company engaging in all processes of production
- Converters
- specialized to style griege goods and arrange to have them finished (sells the finished piece)
- Research
- Fashion starts with color -color services->project colors/ sometimes 2 years out -fabric libraries -textile trade shows
- Product developement
- getting product from design phase onto preproduction then production or manufacturing
- Market Research
- -consumer research -product research -market analysis (competitors) -target customer profile
- Fashion Research
- -Fashion Trend Research (how business is doing compared to last year, styles) -color research -fabric and trim research
- Sourcing
- source fabrics, trims, factory -where to produce products is determined by: balance cost, political stability, time, quota availabiliy, tariffs, social responsibility, sustainability, etc.
- marketing the line
- -show lines at markets -retail buyers place order
- Production/Manufacturing
- -manufacture order -parts may be done various locations -finish, inspect, press, tag, and bag
- Offshore Production - Full Package
- everything but the design is supplied by the contractor
- Value added
- same as full package but with design added
- Cut Make Trim
- domestic producer supplies design and buys fabric an then has it shipped to contractor/cut and sew
- Offshore Assembly
- fabric is made and cut in the us and sent elsewhere for sweing. sent back to us for finishing (duty advantages)
- Trade Deficit
- more imports than exports
- Trade Protectionism
- more protection oriented -US producers, UNITE
- Trade Free Trade
- wants goods to flow freely who- retailers, consumers, importers
- Complex Trade Policy
- purpose= \"manage\" trade
- Trade importance
- very important to every nations economy
- World Trade Organization
- formed to get rid of any trade barriers for our country and for other countries -153 countries
- WTO Importance
- it creates a most \"favored nation\" status -no preferential trade among members -lower trade barriers
- DOHA what objective
- trade negotiation segment of the WTO objective- to lower trade barriers around the world
- Quota -bilateral
- Bilateral pacts established country by country quotas
- US Customs
- responsible for tracing
- Transshipping
- illegal products made in one country are shipped to another country with quota
- Countr-Of-Origin-Rules
- determines where the garments major assembly occurs
- Dumping
- Occurs when foreign producer sells a product below that producer\'s price in home market or lower than cost of production
- subsidizing foreign goverments
- provide financial assitance to benefit the production, manufacturer, and exportation of a good
- NAFTA
- North America Free Trade Agreement -free trade amongst Cananda US and Mexico
- 807
- tariff only on \"value added\" -products are cut then sent to lower wage countries for sewing
- 807A
- Carribean apparel given more liberal quota if fabrics are both made and cut in the US
- CAFTA
- Central America Free Trade Agreement -congress passed Aug 2005 -has eliminated all tariffs on 80% of US manufactured good with remainder phasing out
- CBTPA
- Caribbean Basin Trade Partnership Act -19 countries in the caribbean with duty-free access to the US market for most goods -not free trade like NAFTA
- AGOA
- African Growth and Opportunity Act -preference trade advantages to 48 sub-saharan african countries
- Selling Products in Other Countries -Licensing
- -easier way -least costly for retailer
- Selling Products in Other Countries -Direct Exporting
- selling products in other markets from home base/ one of most common/ less complicated than others -may be limited by other countries
- Selling Products in Other Countries -Joint Ventures
- partnership between domestic and overseas company/ local expertisem outside capital
- Selling Products in Other Countries -Direct Ownership
- 100% investment in foreign operation/ requires much coordination and knowledge
- Changes in Industry with Advent of Manufactured Fibers
- a) giant chemical companies financial and research b) improve quality and flexibilty/variety of characteristics c) new fibers- fit needs d)huge $ into marketing and educating e)emphasis of brand names f)need of natural fibers to compete g)establishment of Natural Fiber Trade Associations to promote their product (Cotton Inc.)
- Design
- -starts with inspiration- trend boards -plan the line -sketch the design-> select fabric and trims -design team reviews line -write garment spec sheet
- Preproduction
- -order piece goods -finalize production pattern and written docs -grade production pattern -production marker- map of where all pattern pieces go -inspect fabric -production speading, cutting, bundling, and dye lot control
- Design Developement and Style Selection
- -Communicate specs and expectations -make first patterns -cut and sew prototype -approve drop or change details -estimate initial cost -present and review line -select styles for final line -determine final cost -order frabric for sales samples -order sales sample
- How has globalization impacted the fashion industry
- -firms found it necessary to restructure -needed to be part of global activity -countries trying to expand economy -us firms had to join to compete
- What has contributed to the Fast Rate of Globalization
- -interconnected global economy -communications systems -product development -lower labor costs -success of japan -ability to start business with little capital or technology
- Article Despite Deep Recession, Fashion Firms Still See A Big Role for Couture -Couture Copes with difficult time
- -its a powerful tool to educate the consumer about our brand -# of potential customers is the same -# of customers ordering is less -opened up the market for couture - Chambre Syndicale Haute Couture -as long a women dream about beautiful clothes they\'ll be inspired by couture
- Article Designers Forging Ahead with Ingenuity
- -First rate service, Customized designs, sharper prices -wider range of prices and more specialized items -some designers dive into social media -some are building their international presence