Women’s and Children’s Apparel Industry - Fashion Industry Notes | HUEC 2045, Study notes of Biology

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Chap 6: Women’s and Children’s Apparel Industry 28/10/2008 17:45:00 ← Development of the American RTW industry:  Men’s RTW came first  Then came women’s RTW  ← Economic Importance  More apparel manufacturing firms than textile firms  Women’s + girl’s = over ½ of total clothing expenditures, employment, and value of factory shipments  Has provided jobs for women, immigrants, minorities, semiskilled and unskilled ← NAICS Grouping for Apparel  315 – Refer to Table 1-1 (pg 8)  3rd 3-1-5 = apparel manufacturing  4th 3-1-5-1/2/9 = knitted, C-S accessories  5th 3-1-5-x-2/3 =men’s and boys C-S, women’s and girl’s C/S (respectively) – Table 6-1 (pg 212) ← History and Growth of Women’s RTW  Custom-made  RTW: standardized sizing o 19th C instructions printed in magazine  Godey’s Lady Book, Peterson’s, & Grahams’ Magazine  Ebenezer Butterick (1863)  Young industry o 20th C: 1920s, new developments  Fashion Plates o European Origin o To depict styles ← Hand to Machine  Elias Howe: inviented sewing machine 1945  Isaac Singer: perfected sewing machine, volume output 1850s  Early Immigrants: A source of manpower – Ellis Island, NY 1920 ← Developments In The 20th century  Improvements in Technology and Retail Distribution: o Cut, sew, mass districubtion, retail advertistments  Increasing Need for RTW: o Changing women’s roles o WWI  1940s American designers: o “Paris Inspired” o Dorothy Shaver: prez of Lord & Taylor  Advertised clothes designed by Americans  Claire McCardel, Norman Norell Publicly owned vs. Privately owned Apparel Firms:  196o’s Going Public o Agile Manufacturing: gov sponsored  QR made-to-order  Body Scanning, similar to couture  Cut, make, sew, ship tomorrow ← Design to Consumer Line Development: Preadoption Stage  Seasonal Lines: collection/group of styles designed for spec. season o Spring, Summer, Transition, Fall 1, Fall 2, Resort/Holiday o High-priced before low-priced  Preadoption: early stages of development o QR o Review what will sell for collection, let it all out then cutback  Desiging the Line o Designers: ideas are created o Sample makers (sewers) o Line development  Developing the Line o Merchandisers: see what will sell, what will be a hit? o Product development o Product development team ← Line Development Postadoption  Production pattern:  Sample Styles  Pattern Grading: grading  Marker Making: marker  Spreading  Cutting: cut ticket October 30, 2008 Inside Shop: garment construction is complete in firm’s own facility ← Outside Shop: garment construction and sometimes cutting, is contracted out to another firm Type of production systems:  Single operator: a single operator does all sewing on a garment  Progressive Bundle System: an operator sews just one part of the garment in an assembly manner  Unit Production System (UPS) ← Types of Production Systems ← Marketing  Sell-through of a line – the extent to which a line moves through the marketing channel to the consumer  Presentation of Lines: Seventh on Sixth o Created 1992: non-profit created by CFDA  Equal op to sell and grasp target market  Reliance on a Sale Force  Advertising and Publicity: National & Trade o Cooperative Advertising: fiber co and manufacturer or manufacturer and retailer share advertising cost  Designer Trunk Show: in house designers travel to certain clients o Good way to advertise name and publicize collection  EX. NYC Fashion Week: not only in NYC, but trying to incorporate it into a global event for others o Free marketing for desginers o Invite: media and special retail buyers only  Ex Invest. banking firms, financial analysts, investors, trend setters o New Form of Media Critics: Bloggers  Use of Fashion to Sell Movies and vise-versa ← Manufacturers’ Relationships with Retailers  Chargebacks: financial penalties imposed upon manufacturers for transgressions  Matrix buying: retailer concentrates his purchasing with a limited group of vendors ← Manufacturers Into Retailing  Manufacturer-owned Retail Stores o Prime shopping areas, large and complete stock at regular price, attractive store environment, customer service o Factory outlets  Manufacturer’s shops within stores o Retailer=real estate >> sales volume for dept o In-store shops ← Nature of The Industry ← DIFFERENT TYPES OF PRODUCERS  Manufacturers: firm performs all manufacturing func in own factory  2. To serve as a wholesale selling facility for producers who have area headquarters  3. To house regional showrooms for apparel firms outside the area  Marketweek ← Future of NY as a Fashion Center  Fashion is spreading, but NY will remain the center ← Children’s Wear  Nature of the Industry o Majority of firms are small, NY, Miami o 3 seasonal lines/yr  Industry Specializations o Price, size, type of merch o Type: age or size group, not merchandise category o Sizing: after size 4, sizing differs according to sex  (Boys 14+ menswear)  Marketing Activities o 3 trade shows/yr in NY, 1 in Miami Menswear 28/10/2008 17:45:00 ← Economic Importance  2500 separate companies  200,000 employment  $20 billion wholesale value ← History and Development  Early beginnings in the 19th C o Development of men’s RTW  Slops: poorly made, low end fabrics  For sailors needing clothes moving port to port o From tailors to manufacturers  Tailoring for wealthy  Brooks Brothers 1818: specialized in tailoring to man o Work clothes for laborers  Cali Gold Rush: Levi Strauss– canvas for tents, workwear: denim  Shirtwaist dresses o Standardization of sizes  Before women w/war  Twentieth-Century Developments o “The Amalgamated” – Now UNITE HERE  Unions developed b/c poor labor conditions o Public Ownership in the 1960s o Private Ownership in the 1980s ← Nature of the Industry  Similarities between the menswear and women’s wear industries o Specialize in clearly definable categories o Present seasonal lines o Feature designer names o Complete collections o Classification merchandising o Produce globally  Differences from women’s wear industry o Dominated by larger firms o Long established brand names o Contracting system less common Types of Firms  Menswear  Menswear and women’s wear (vice versa) ← Geographic Locations: Decentralized  Levi Strauss  Hartmarx  Haggar, Farah  Importance of New York: showrooms  Manufacturer’s Brands  Targeted Customer Approach  Designer Labels and Designer Licensing  Retail Channels of Distribution o Branded Concept Shops (in-store shops)  Dept store strategy to promote lifestyle labels o Merchandiser (Brand Manager) ← Manufacturer-Owned Reatil Stores: Dual Distribution  Dual Distribution System o Describes manufacturers who own and operate retail stores in which they sell their products, the same products that are also sold to independent retailers for resale ← Marketing Activities by Trade Associations  Clothing Manufacturer’s Association CMA  NAMSB/Vibe Style  The Fashion Association TFA: for the entire apparel industry  The “Magic” Trade Show  California International Menswear Market CIMM  Menswear Trade Showings Fashion Explosion in Men’s Accessories  Hairstyling, cologne, jewelry Accessories 28/10/2008 17:45:00 ← Fashion Explosion in Men’s Accessories ← Fashion Accessories  Constantly forecast changes and cycles  Blend, follow or lead, and innovative  Footwear, handbags, gloves, hats, neckwear, eyewear, and jewelry ← Footwear  Primitive people  Hand craft: variations  Shoes, slippers, athletic shoes, and boots  Men, women, children ← Organization and Operation  Began in New England o Ninewest, Timberland o Shifted to Midwest  Nike o Largest shoe producer in US o Does not own manufacturing facilities o Focuses on marketing (wholesaler)  Imports o Dress shoes o Higher price points o Italy ← Production  Last: wooden, plastic, or aluminum forms in shape of a foot, over which the shoes are constructed o More exact measurements  Lasts, material quality, and number and type of operations determine Quality and Price  Giant companies dominate industry ← Women’s Shoes  After WWII  Age and income lines o High Fashion o Other manufacturers (Ninewest, Kenneth Cole)  Medical Health Conditions  Fashion Leadership o Hollywood, Sex and the City ← Men’s Shoes  Dress Shoes o Once most important sales category o Currently, a niche market  Dress/Casual and Casual Shoes o At one point, only acceptable for ages 18-25 o Timberland, Sebago, Rockport, Stride Rite, Red Wing Shoes o Highly competitive: Gucci, Prada, Louis Vuitton, Ferragamo, Manolo Blahnik, Christian Louboutin ← Handbags  Best selling classification in the accessories industry o Designer “it” bags o Fashion coordination concept  Casual, sportswear, more formal  Send messages, personal statements o Professional, student, at home mom, etc ← Organization and Operation  Small industry  Imports from Europe, South America, Far East  Brand names and designer labels o Licensed out: Anne Klein, Donna Karen, Ralph Lauren, Marc Jacobs o Judith Leiber  Not only made of leather to be considered high quality ← Merchandising and Marketing  Advertising through brand name and designer o Manufacturers too small  Trend savvy  Window/store displays  Magazine advertisements  Catalogs  Internet ← Industry Trends  Severe competition with foreign imports o American designers  National Fashion Accessories Association (NFAA) o Promote domestic handbag industry domestically and abroad  Fashion Accessories Shippers Association (FASA) o Support interests of importers as well as manufacturers of handbags and related goods ← Market Weeks and Trade Shows  Must move in faster lane than anyone else  5 fashion weeks in NY o Summer, January o Transitional, March o Fall, May o Holiday, August o Spring, November  Femme Show, NY, January, May, September o Largest trade show  Fashion Jewelry World Expo and Providence Expo Paris Premiere Class (March, October) 28/10/2008 17:45:00 ← Retailing in the Past  1800s o Small country stores o Trading posts o “Little” or Specialty shops o Itinerant Peddlers: traveled from farm to farm offering for sale small conveniences o Late 1800s improving TRW industry  1920s o Department stores o Men’s, women’s, children’s departments ← Retail Operations  Retailing Process: final st ep in the distribution of merchandise  Retailers: sell merchandise in small quantities to the general public o Store retailers  Operate fixed store locations  Play off extensive displays of merchandise  Mass media o Nonstore retailers: internet sales site, mail order catalogue  NAIX: 44,45: general merchandise and nonstore retailers Department Store  50+ employees Specialty Apparel Chains  Prior to 1920 “waist stores”  1920 to 1929 “the chain store era”  To focus on a particular segment of the consumer market and the fashion interests of that market  Feature their own private labels, buying power is so large ← General Merchandise Chains  Wal-Mart  Sears  JCPenny’s  Dillard’s ← Mail-Order Houses: Nonstore  Mail-Order House: a retail operation that sells to consumers through the medium of a catalog as a result of orders placed by mail, telephone, internet o Montgomery Ward 1872 o Sears late 1880s o 1920s: Mail order opened retail chains ← Discount Retail Stores  Discounter: retail establishment that regularly sells its merchandise at lower prices, concentrating mainly on national brands  Off-price retailers  Off-price factory outlets  Warehouse clubs ← Franchising  Franchise agreement o Franchiser (parent company) provides a franchisee (owner- operator or a retail unit) with:  Exclusive use of established name  Assistance in organizing, training, merchandising, and management o In return of a stipend fee ← Designer-name Franchise Boutiques  1970s European RTW ← Domestic Apparel Franchise Boutiques  Late 1970s  Athlete’s Foot ← American Designer Franchise Boutiques  Ralph Lauren, Betsey Johnson ← Shopping Centers and Malls  Shopping Center: preplanned architecturally homogenous grouping of retail stores, plus a parking area that is larger than the area occupied by the stores themselves ← Direct Selling Retailers  One that sells merchandise by contacting customers through o Door-to-door approaches o In-home party plan  Catalogs supplement the relatively limited supply of merchandise samples ← Flea Market Retailers  Independent sellers who rent a booth on a temporary basis ← Catalog Showrooms  1960s, popular in 1970s  Print and distribute catalogs usually featuring well-known national brands ← Warehouse Clubs  Specilize in bulk sales of national brands at deep… ← Private Label  Goods are produced exclusively for one retailer with brand name of retailer or one of retailer’s brand names  Retailers into manufacturers ← General to Specialty Retailing  Increase of competition from specialized apparel chains on their own apparel departments ← Hypermarkets  1960s superstores began in Europe  Gigantic supermarket and discount store with no dividing walls, that sells everything  Low prices, name merchandise, provides service ← TV and Home Shopping ← Factory Outlets  Owned and operated by manufacturers of top brand- and designer- name clothing  Out of date merchandise… ← Category Killers  Retialers that specialize in tremendous assortments of single kind of mercandise  Destroying competitors who sell the same merchandise o Suppliers o Marketing channel firms o Competitors o Publics o Other parts of the company  Macroenvironment : factors in the larger societal setting in which the company functions o Demographic: economic influences o Technological: natural factors o Political: legal environment o Social: cultural environment ← Macroeconomic Factors that Affect Consumption of Fashion Table 4-2  Population grouping o Age o Ethnic origin  Lifestyle  Income ← Analysis of Customers’ Fashion Preferences and Trends  Point-of-sale data (POS)  Data mining o Stockouts : when merchandise a consumer wants is not in stock when consumer wants it (20% to 30% at retail) o Chargebacks : financial penalties retailers demand of vendors for various reasons o Markdowns: reduction from an original retail price ← Quick Response as a Marketing Strategy  Getting right merchandise to market at right time  Push system and pull system o **Relies on Electronic Data Interchange ← The Marketing Concept and Manufacturing Distribution ← Serving Consumers in the Next Millenium  Floor-ready Merchandise o Merchandise packaged and ticketed  Consumer-Ready Merch o Retail stores become the “theatre” o Customized products sent directly from manufacturer to consumer ← Federal Legislation Affecting the Fashion Business  Federal Laws Regulating Competition o Sherman Anti-Trust Act 1890 o Clayton Act 1914 o Federal Trade Commission (FTC) Act 1914 o Robinson-Patman Act 1936 o Celler-Kefauver Act 1950 ← Product Labeling Laws to Protect Consumer  Wool Products Labeling Act: 1939/1984  Fur Products Labeling Act: 1951  Flammable Fabrics Act: 1953  Textile Fiber Products Identification Act 1966/1984  Fair Packaging and Labeling Act: 1966  Care Labeling of Textile Wearing Apparel Act: 1972