CTE 2800 Midterm Study GuideFashion- dependent on people and time, the preventing style at a given timeStyle- the specific design or lookDesign- a specific version styleTrend- the direction fashion is movingFad- short lived style or fashionClassic- enduring style that lasts over a period of time (little black dress, 5 pocket denim jeans)Clothing- any covering to the bodyApparel- constructed garmentsDress- all ornamentation and body coveringsSilhouette- physical shape or lines of styleMarketing- activities involved in conceiving a product and/or service and directing the flow of goods from producer to the consumer, including product development, pricing, promotion and distributionMerchandising- buying and selling of goods for the purpose of making a profitRetailing- producing goods and/or services from various resources and distributing them through retail outletsT & A Industry Flow Chart5 Rights of MerchandisingMerchandiseTimeQuantityPlacePrice T & A Marketing ChainFibersProduct developmentProductionSales & distributionYarnsProduct developmentProductionSales & distributionFabricsProduct developmentWeaving & knittingSales distributionRetailersMerchandisingSalesConsumersVertical integration- a company that performs more than 1 function in the chainWhat are organizations and their structure? Why used?Organization- systematic arrangement of people to accomplish some specific purposeOrganizational structure- describes how a company is set up and detailedIt also aids in the monitoring and managing work Types of businessesSole proprietorship- one ownerAdvantages: easy to initiate, proprietor makes all decisions, profits belong to proprietorDisadvantages: proprietor must be expert in all areas, limited investment funds, unlimited liabilityPartnership- 2 or more owners, limited and unlimited Advantages: increased specialization, better credit standing, increased capitalDisadvantages: possible personality conflicts, equal liability, each partner legally bound by others actionsPublic Corporations- some shares of stock owned by general publicAdvantages: owners’ liability limited to investment, owners can leave business by selling stockDisadvantages: high taxes, high cost of incorporating, more regulations on thebusinessPrivate Corporations- owned by individuals, not publicMultinational Corporations- more than one country Mergers- blending of companiesConsolidations- combining with a result of new companyTakeovers- one company takes control over anotherConglomerates- diversified and different businessDuties/Tariffs- tax charges levied on importsQuotas- regulated quantity allocations of imported goodsEmbargo- bans imports on certain goods, categories and countriesBalance of trade- value between a country’s imports and exportsAdvantages vs disadvantages of imports and exportsLower costs: gives higher value and higher retail markups/profitsProduct uniqueness: offers styling trends and labor-intensive finishesNot made in US: some goods are only available if importedDifferent quality: lower for discounters and higher for upscale goodsSmaller orders: offshore plants accept small quantity jobsDesign reputation: foreign designers offer prestige/snob appealPrivate label goods: exclusively manufactured to store’s specsHelps poor nations: provides jobs for human survivalTechnological termsQR- quick responseUPC- universal product code (bar codes)EDI- Electronic data interchangeCAD- computer aided designCAM- computer aided manufacturing POS- point of saleRFID- radio frequency identification VCIApparel Manufacturing terminology (3 methods) Production Package- all budget thru an agent who manages jobCut, make, and trim- supplies fabric then madeOff shore assembly- budget and cut US then assembledEnvironmental MonitoringEconomic- Financial mattersPolitical/legal- governmental influences and lawsTechnological- electronic and scientific advantagesSocio-cultural- occurrences and behavior in societyMaslow’s Hierarchy of Needs; why people wear clothingPhysical need: protectionPsychological needs: adornment, identificationSocial Needs: Modesty, status Fashion Innovation- a style design perceivedDiffusion- spread of an innovation withinProduct Life Cycle IntroductionRisePeakPlateau/maturationDeclineObsolescence3 Major Fashion Theories Trickle Down- hierarchical, oldestTrickle up- bottom up, sub-cultural, from streets, horizontalTrickle across- simultaneous newestFashion Principles1. Consumers establish fashions by their acceptance or rejection of styles2. Fashions are not based on price3. Fashion is evolutionary, rarely revolutionary4. No amount of sales promotion can change the direction that fashion moves5. All fashion ends in excessCycles of FashionRecurring- style resurfacing Broken or interrupted- stop then resurgences Cycles within cycles- style remains, but elements changeForecasting- predicting/determining what the wants and needs of the consumer will be based on research & analysis of past behavior, current situations and conditions, and goals set.Types of forecastersPrimary:Fiber/fabric- DuPont, Cotton IncColor trends- Color Box, PantoneDemographic(psychographic)- forester, faith popcornTrend forecasting companies- Tobe, Promostyl, WGSNSecondary:Manufactures, retailers and consumer publicationsInformation sources: Market research firms, trade shows, collections, networking, designers, organizations, fashion services, design sources, publications, arts, travel, entertainment/celebrities, fabrics, lifestyle trends, gathering places/venues and streets. Examples of top forecasting companies: Tobe/Doneger, Promostyl, WWD and Fashion Group InternationalSkills to forecast: Awareness, Insight, Interpretation, ObjectivitySteps to forecast: Research, reporting and RecommendingIndustrial Revolution-How did it impact textile production?It made it easier to produce mass amounts of textilesFactory systemFactory system modeled after England’s: first animal, then water, then steam to our eventual use of electricity. Sweatshop conditions often deplorable: hours, children, safety, etc.Textile inventions: Flying Shuttle, Spinning Jenny, Water FrameEli Whitney- cotton gin, revolutionized the use of cotton and began the south’s role in textiles – cotton was kingTriangle shirtwaist factory fireWorkers & reformers protested conditions and treatment in sweatshopsUnions formed; Laws passed to help in 1900 (labor, safety, wages, etc)Department stores 1850-1920’s a store with many departments under one roof