CTE 3763 Exam 1 Study Guide Overview of the Apparel Industry Textile Industry Fiber manufacturer Yarn spinners Converters Dyers Printers Finishers Wholesale representatives who sell fabrics and ndings to apparel producers Apparel Industry Apparel manufacturers and contractors Apparel wholesale reps and direct importers who sell garments to retailers Apparel retailers including department and specialty stores boutiques chain stores mass merchandisers discount stores warehouse retailers etc Manufacturer Traditional manufacturing is when there is complete responsibility of production of garment starting with design Refer to sources of raw materials as their vendors or suppliers Contractor Provide labor and equipment to produce merchandise for manufacturers and manufacturing retailers they pro t from their labor Must complete their work satisfactorily and in the time frame agreed upon but they assume no risk for the success or failure of particular styles Range from freelancers who perform design or pattern making work to large companies that provide a wide variety of tasks A contractor that performs all the production operations to produce a style is called a cut make and trim contractor Vertical Integration Signi cantly impacts a rm s competition advantage in getting the right product to market at the right time and the right price When the SAME rm is responsible for multiple steps in the production or marketing of an apparel PRODUCT Fully vertical company controls all the steps in the process Horizontal Integration Prioritizes the acquisition or licensing of companies or brands that make or sell similar products to expand market penetration and reduce competition Acquiring another rm and or competitor at the same stage of the supply chain Inside shops vertical integration consolidate supply chain of manufacturing by acquiring companies at other stages in the supply chain When manufacturers operate their own factories Fewer communication problems Tighter control over quality processes and procedures Move control over timing making it easier to meet delivery dates Saving time and transportation costs if garments are made domestically Easier to ensure work is done in compliance with human rights and environmental regulations Outside shops companies that exclusively use independent contractors No investment in plants and equipments Fewer employee training needs and fewer personnel problems and demands No need to buy and maintain factories and equipment as business grows No need to employ workers between seasons if the business slows The ability to perform specialty work as needed Wholesale Wholesale reps agents of apparel manufacturing companies they sell nished garments to retail buyers The reps sell to retail buyers at trade shows and in showrooms at market centers and make on site visits to buyers to show them new lines Retailers Sell to the ultimate consumers Traditional retailers buy nished apparel products from domestic manufacturers and or direct importers and sell these goods to consumers Manufacturing retailer serves a dual role that of the manufacturer responsible for producing private label brands and that of the traditional retailer selling nished goods to the consumer Branded apparel developed by a manufacturer and sold to many retailers under the trademarked brand name created under a label and sold at wholesale for distribution to retailers who also carry other brands Private label apparel merchandise developed by or for a speci c retailer it is exclusive to a speci c retailer and gives retailers more control over the production and assortment of products they offer to consumers provide exclusivity and customization Import to buy goods from another country Export to sell goods to another country Trade de cit when a country imports more goods than it exports Tariff a tax on imported goods Quota an annual limit on the volume of a product that may be imported Embargo prohibition of importing a product Replaced General Agreement on Tariffs ad Trade GATT and Agreement on Textiles World Trade Organization WTO and Clothing ATC Fundamental of WTO Promotion of free trade through reduction of tariff trade barriers Equalization of trade among countries Quality to cost ratio How much you are willing to pay to have quality measured against what they will give up in order to have a lower price Detection after the event Tolerates waste raises cost loses orders destroys jobs Prevention before the event Avoids waste lowers cost gains orders protects jobs Labeling RN RN stands for Registered Identi cation Number Businesses can use this number on product labels in lieu of the company name Knockoff copy or near copy of a design under a different brand name Counterfeit fakes or copies of currently popular brands accompanied by the illegal trademark Copyright the exclusive right to reproduce a work of art the design must contain original works of authorship that is pictorial graphic or sculptural features that are identi ed separately from the article on which the design appears Fiber Yarn Fabric Fiber the raw materials from which fabrics are made they are the basic building blocks of a fabric Physical features determine performance Two types Natural occur naturally in the environment protein silk wool and other animal sources cellulosic cotton linen and other plant sources more expensive higher end luxurious Manufactured formed through human effort regenerated cellulosic made from plant bers rayon lyocell acetate synthetic made from petroleum products nylon polyester acrylic modacrylic ole n spandex miscellaneous made from minerals glass Fiber size greatly affects the hand of the fabric Denier a direct system the larger the the larger the ber Tex For international use based on metric system Staple short bers measured in inches or centimeters Filament bers measured in yards or meters long and continuous Yarn continuous strands of ber twisted or spun into a continuous strand that is suitable for knitting weaving or otherwise intwining to form a fabric Fancy yarns more interesting used to achieve special effects Fabric structures woven or knitted Wovens weaving is the most common method of creating fabrics and generally yields the strongest and most stable fabric structure with the least stretch 3 simple weave types Plain weave prone to wrinkling Twill weave most durable resists abrasion diagonal Satin weave least durable luxurious Fancy weave dobby weave pique weave jacquard weave Crepe
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