Overview of the Apparel Industry Ch 1 Custom made vs RTW Prior to 1850 custom made By 1910 RTW available for men women What contributed to the growth of RTW Industrial Revolution Civil War Consumer demand Tailor expertise simplified tailoring Technology sewing machine 1850 Magazines Newspapers Distribution System Brooks Bros 1818 Standard sizing Civil War Increased Labor Supply immigrants from Europe WWD Men had access to RTW first because women s clothing was more complicated to fit 192 BILLION annual apparel purchases in U S Men 52 819 289 Women 107 608 253 Children 32 297 594 p 7 TEXTILE INDUSTRY Fiber yarn fabric findings zippers buttons interfacings Converters Textile Wholesale Reps APPAREL INDUSTRY Manufactures Contractors Apparel Wholesale Reps Apparel Retailers Traditional Apparel Manufacturer Fabric and Findings purchase Design Production Contractor Sale and Finished Garment to Retailer a k a inside shops manufacturer owned factory Provide labor and equipment to produce merchandise for manufacturers H M does not own factories or stores Nike does not own factories Independent business hired to provide production services Manufactures entire garments product lines or partial garments Employed by Apparel manufactures Government agencies Retail manufacturers Cut Make Trim CMT Contractor completes all aspects of production to manufacture garments Produces product by cutting sewing and finishing Starts with uncut raw materials Develop the style Purchase the fabric CMT Ship out the goods CMT The T means Trim the threads pack the goods and repair the workmanship defects Specialty Contractor Subcontractor Independent contractor Hired to complete a portion of production Has special skills and equipment Examples Belt making Covering buttons Printing Pleating Quilting Tom Sons International Pleating Button Covering Services Specialty Contractor in the UK Wholesale Representatives manufacturers rep or sales reps Agents of apparel manufacturing companies Employed by one company or multiple companies Sell finished garments to retail buyers Retailers Sell to the ultimate consumer Where can you buy apparel today Department stores Boutiques specialty stores On line Shopping clubs Sam s Brand categories for mass produced products BRANDED e g Nike PRIVATE BRANDS e g Arizona at jcp LICENSED BRANDS e g Jason Wu Target Branded sold by retailer Trademarked products sold through retailers other branded products also St John Knits Nike Liz Claiborne Private Label Licensed Brand Private Label ADVANTAGES Exclusivity Customization Improved profits Expanded market share Vertical Integration Merchandise developed by or for a specific retailer GAP EXPRESS OLD NAVY FOREVER 21 VICTORIA SECRET ZARA Contractual agreement between 2 companies Exclusive permission to develop produce and sell products Using another firm s trademarked name logo image Mossimo at Target Liz Lange at Target Prabal Gurung at J Crew DISADVANTAGES Initial promotion cost Consumer research required Knowledge about production quality standards needed Same firm responsible for multiple steps in the production or marketing of apparel e g fiber knitting or weaving fabric Consolidation Strong marketing power Mergers and acquisitions larger and larger companies Extensive advertising Big promotional budgets Economy of scales more profit Federated Department Global Trade in Apparel Industry Hangtags multiple languages Care labels universal symbols Global Trading U S perspective Import Buy from others May use direct importer or independent agent Must clear U S customs Export Sell to others May use export trading company ETC May need to clear foreign customs EXPORT Advantages Expands customer base more sale more profit Different seasons allows for extended sales e g Australia Argentina Extends life of product Diversification Disadvantages Unfamiliar business practices Different quality expectations or customs Difficulty getting paid Difficulty getting adequate representation Foreign travel Allows manufacturers or retailers to provide individualized products to Mass Customization consumers Offshore Production Custom fit 1900s using body scanner Custom design e g Nike Contracting with foreign producer to make goods in foreign countries OR Setting up sew only plants in foreign countries Trends in Apparel Manufacturing What s happening with manufacturing today What do we have available to help us with production Smart fibers technology Computer Integrated Manufacturing Improve peed and accuracy of product development Designer Patternmaking Grading Managing the business of manufacturing Shipping info Costing sheets INTRANET private network within company Electronic Data Interchange Track raw material and finished garments within and between companies Manufacturers can monitor what is happening on sales floor All activities required to coordinate and manage every step to bring product Supply Chain Management to consumer Reduce inventory Better service to consumer Prevent stockouts Shorten time for raw material to become finished product Radio Frequency Identification Technology Can track merchandise Do not rely on line of sight readability Have memory and store data Universal Product Code UPC Reads lots of data in a vertical orientation Reads lots of data horizontally and vertically QR quick response Bar Codes QR Codes CH 2 Federal Trade Commission FTC and textile product labels FTC Responsible for preventing unfair or deceptive trade practices Help consumers make informed decisions about purchase use and care of textile products Regulations on Apparel Labeling Textile Fiber Products ID Act TFPIA Requires that labels include Manufacturer or importer Country of origin Fiber content Fiber Content ID Fiber content must be listed as in order of predominance by weight Lining unless used for warmth Small amts of ornamentation Exceptions Trim Thread used to sew garment together Must list fiber by Generic name chemical composition Can list by Trademark name registered brand name Wool Products Labeling Act WPLA All wool fiber must be disclosed on labels by name and percentage of weight even if less than 5 percent New wool or virgin wool not previously processed Recycled wool previously processed Lamb s wool animal less than 7 mos Old Fur Products Labeling Act Feather and Down Products Silk Labeling Regulation Wool Products Labeling Act Fiber Content ID Silk weighting Increased weight of silk Improved dyeability of silk Not a common practice today Country of