Mid-term Review Textiles,Apparel (manufacturing), Retail, Support Services•Fashion- the prevailing style at a given time Paul Nystrom 1920‘s•Style – the specific design or a look Design – a specific version of a style Trend – the di-rection fashion is moving•Fad – short lived style or fashion•Classic (basic) –enduring style that lasts over a period of time.•Clothing – any covering to the body.•Apparel – constructed garments•Dress – all ornamentation and body coverings Silhouette – physical shape or lines of styleMarketing channels:MARKETING-activities involved in conceiving a product and/or service & directing the flow of goods from the producer to the consumer, including product development, pricing, promotion and distribution.MERCHANDISING-buying and selling of goods for the purpose of making a profit. (The rights)RETAILING-procuring goods &/or services from various resources and distributing them through ret5 RIGHTS OF MERCHANDISING:1. Merchandise 2. Time 3. Quantity 4. Place5. Price*People & productsEnvironmental Factors:ECONOMIC- financial matters SOCIO-CULTURAL-occurrences & behavior in society POLITICAL/LEGAL-governmental influences & laws TECHNOLOGICAL- electronic & scientific advancesBusiness Frameworks: of the Textiles & Apparel Industry and Global TradeVertical Integration – a company that performs more than 1 function in the chain.(Ex Manufacturer’s who are also retailers.)ORGANIZATIONSAn ORGANIZATION – is a systematic arrangement of PEOPLE to ACCOMPLISH some spe-cific PURPOSEC• Organizational Structure – describes how a company is set up and directed and aids in monitoring and managing work.•Organizational ChartsCharts depict...A. Organizational & hierarchical struc-tureB. Chain of command (Mgt, line & staff)C. Relationship between the parts of a company.Paul Mazur 1927 4 function retail chart A5Function Retail Organizational Chart:Operations Publicity/PromotionMerchandising Accounting/ControlStructure of types of businesses• Sole proprietorship – one owner• Partnerships – two or more owners Limited, unlimitedTypes of CorporationsPublic – some shares of stock owned by general publicC/regular – taxed at corp & ind levels, LLCPrivate (closed) – owned by individuals, not publicMultinational – more than one country• advantages & disadvantagesBusiness Expansion, Diversification, and Growth• Mergers- blending of companies• Consolidations – combining with a resulting new company• Takeovers – one company takes control over another. (Ex.Macy’s & Marshall Fields)• Conglomerates – diversified & different business Exs LVMV (LV, Moet,Hermes,etc)Global Trade Terminology • Imports –goods brought into a country from another.• Exports- goods sent from a country to another• Offshore vs Domestic• Balance of Trade – value between a country’s imports and exports– Favorable vs unfavorable • Free Trade –doing business without restrictionsTRADE TERMINOILOGY• Duties/tariffs –tax charges levied on imports (protective revenue)• Quotas – regulated quantitiy allocations of imported goods (sets limits)• Embargo – bans imports on certain goods, categories and countries.• Governing bodiesGlobal -WTOHemisphere – NAFTABy Country - MFA Apparel Manufacturing Terminology Inside shop (company owned) vs Outside/Contracted3 Methods:1. Production pkge =all bgt thru an agent who manages job2. Cut, make & trim = supplies fabric then made3. Off shore assembly = bgt & cut US, then assembledConsumer Behavior and Adoption; Needs vs WantsMaslow’s Hierarchy of Needs:AdoptionDiffusion: spread of an innovation within and across social systemsFashion Innovation : a style or design perceived as new3 Major Fashion TheoriesVertical :Trickle Down – hierarchical, oldestTrickle Up – bottom up, sub-cultural, from streets Horizontal:Trickle Across- simultaneous, newest2 Major Influences of Consumer Decision Making:• INTRAPERSONAL –PSYCHOLOGICALpsychographics (AIO)qualitative• INTERPERSONAL-SOCIOLOGICALdemographicsquantitativeProduct Adoption Life CycleThe ( Fashion) Product life Cycle, Everett Rogers – MarketingSTAGESINTRODUCTIONRISEPEAK/PLATEAU/MATURATIONDECLINEOBSOLESCENSE Cycles of Fashion1. Recurring- style resurfaces2. Broken or interrupted – stop, then resurgence3. Cycles within cycles – style remains, but elements changePendulum of Fashion – swings from one extreme to the otherThe Consumer of TodayIs smarter & more connected than everIs digital/mobile- (49% of over 30T people) Their household is “virtual”Listen to their families and friends firstC Listen to me- dialog through social networkingKnow me- personalize the shopping experienceEmpower me – make it easy=*** Smarter consumers want smarter retailers***US Consumer Trends• Ethnic diversity• Income• Changing family• Changing values• Time poor society• Birth/death ages/rates• Rise in education levels• Rise in working from homeForecasting- predicting/determining what the wants and needs of the consumer will be based onresearch & analysis of past behavior, current situations and conditions, and goals set.*** input for planning and positioning productTrend Forecasting- Predicting what the consumer wants and does not want.Predicts fashion changeIT IS IMPOSSIBLE FOR ANY ONE PERSON TO KEEP UP WITH THIS HUGE AND COM-PLEX FASHION BUSINESS4 Major Types of Primary Forecasters:1. Fiber, Fabric- Du Pont, Cotton Inc2. Color Trends- Color Box, Pantone3. Demographic/psychographic – Forrester, Faith Popcorn4. Trend forecasting companies – Tobe, Promostyl, WGSNSecondary Forecasters:ManufacturersRetailersConsumer PublicationsSkills for Forecasting:1. Awareness2. Insight3. Interpretation4. ObjectivityTOBE’/DONEGERLARGEST FASHION CONSULTANT IN U.S.•Analyze and interpret trends•Prepares seasonal books with pages of editorials, illustrations, and photos evaluating ma-jor segments of the markets.•Provides unbiased reports on quickly changing fashion trends and merchandising strate-gies to meet its clients needs.PROMOSTYL•International Design and Consulting Bureau•Headquartered in ....Steps in Forescasting:ResearchingReportingRecommendingParis, Milan, London, New York, Tokyo, and Hong Kong•Services all segments of the industry•Emphasis on specific trends, brand positioning, creating new products, packaging, mer-chandising and redefining and updating