For Exam 1 Custom made vs RTW 04 15 2014 Before 1850 custom made 1910 ready to wear was available for men and women growth caused by o war o industrial Revolution o Consumer Demand o Tailor Expertise o Standardized Sizing civil war o Increased label supply immigrants o Technology like the sewing machine in 1850 o Distribution systems Brooks Brothers 1818 RTW Men Vs Women Women s clothing is more complicated because of curves Men were first RTW Today is a 192 billion a year industry Textiles and Apparel Industry Textile Industry o Fibers yarns fabrics zippers etc o Converters o Textile Wholesale Representatives Apparel Industry o Apparel Manufacturers and Contractors o Wholesales Reps o Retailers like department Stores Traditional Apparel Manufacturer Design Fabric and Findings Purchase Production Sale of finished garment to retailer Also known as inside shops manufacturer owned factory Contractor manufacturers Provide labor and equipment to produce merchandise for Independent business hired to provide production services Example H M and Nike Manufactures entire garments product lines or partial garments Employed by Apparel Manufacturers Retail Manufacturers Government Agencies Cut Make Trim CMT garments Contractor completes all aspects of production to manufacture Starts with uncut raw materials Produces product by cutting sewing and finishing T means trim the thread pack the goods and repair the workmanship defects Specialty Contractor Subcontractor Independent contractor Hired to complete a portion of production Wholesale Representatives Aka manufacturers rep or sales reps Agents of apparel manufacturing companies Sell finished garments to retail buyers Employed by one company or multiple companies Retailers Sell to the ultimate customers Where can you buy apparel today o Department stores o Boutiques specialty stores o On line o Shopping clubs like Sam s club Brand Categories for mass produced items Branded ex Nike Private Brands ex Arizona at JCP Licensed Brand ex Jason Wu at Target Trademarked products sold through retailers other branded products also sold by retailer Branded Private Label Merchandise developed by or for a specific retailer Gap Old Navy Forever 21 Victoria s Secret Zara Licensed Brand Contractual Agreement between two companies Exclusive permission to develop produce and sell products Using another firm s trademarked name logo image Private Label Advantages o Exclusivity o Customization o Improved Profits o Expanded Market Share Disadvantages o Initial promotion and cost o Consumer research required o Knowledge about production and quality standards needed Same firm responsible for multiple steps in the production or Vertical Integration marketing of apparel Consolidation Mergers and acquisitions larger and larger companies Strong marketing power Extensive advertising Economy of scales more profit Global Trade in the apparel industry Hangtags with multiple languages Care labels with universal symbols Global Trading US Perspective Import o Buy from others o May use direct importer or independent agent o Must clear US customs Export o Sell to others o May use export trading company ETC o May need to clear foreign customs o Advantages Expands customer base Different season allows for extended sales Extends life of product Diversification o Disadvantages Unfimiliar business practices Different quality expectations or customs Difficulty getting paid Difficulty getting adequate representation Foreign travel Mass Customization Allows manufacturers or retailers to provide individualized products to consumers Custom fit using a body scanner Custom design ex Nike Offshore Production countries OR Setting up sew only plants in foreign countries Trends in Apparel Manufacturing What is happening with manufacturing today Contracting with foreign producer to make goods in foreign What do we have available to help us with production Computer Integrated Manufacturing Improve speed and accuracy of product development o Designer o Patternmaking o Grading Managing the business of manufacturing o Shopping info o Costing sheets o INTRANET a private network within company Electronic Data Interchange Track raw and finished garments within and between companies Manufacturers can monitor what is happening on the sales floor Supply Chain Management All activities required to coordinate and manage every step to bring product to consumer Reduce inventory Shorten time for raw material to become finished product Better service to consumer Prevent stockouts Radio Frequency Identification Technology Can track merchandise Does not rely on line of sight readability Have memory and store data Bar Codes QR Codes Universal Product Code UPC Read lots of data in a vertical orientation Read lots of data horizontally and vertically QR Quick Response Chapter 2 04 15 2014 Federal Trade Commission FTC and Textile Product Labels FTC practices o Is responsible for preventing unfair or deceptive trade o 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 o Fiber content o Manufacturer or importer o And Fiber Content ID Fiber content must be listed as in order of predominance by weight Exceptions o Trim o Lining unless used for warmth o Small amounts for ornaments o 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 o All wool fiber must be disclosed on labels by name and percentage of weight even if less than 5 percent o New or virgin wool has not been previously processed o Lamb s wool is from an animal less than 5 months old o Recycled wool has been previously processed Fur products labeling act Feather and Down Products Silk Labeling Regulation o Silk weighting Increased weight Improved dye ability of silk Not common today Country of Origin ID Label must include where the garment was processed or manufactured Must be in English Where did the substantial transformation occur Where did the CMT Cut Make Trim Occur Garment Labels Sewn or printed in garments Contain information required by the law Voluntary Information like brand size o Intellectual Property Rights Rights given to protect the products of original creative thought Patents exclusive right to make a product Trademark word brand name symbol used to identify and distinguish one manufacturer s