CTE 3763 Exam 1 Review 02 03 2013 Ready to Wear Apparel RTW aka ready made or off the rack is mass produced and has many merchandise categories Pr t porter French terminology Clothing was hand produced before the 1850 s Two main factors in the 1800 s contributed to the eventual acceptance of ready made apparel by the general public o There was demand for it o Custom tailors responded to the demand for producing off the rack garments in their spare time Civil was soldiers needed uniforms FAST Textile Industry Composed of A fiber yarn fabric and some findings B converters that dye print and finish cloth C wholesale representatives who may sell fabrics and findings to apparel producers o Fiber Manufacturers o Yarn Spinners o Fabric Manufacturers Converters Dyers Printers Finishes Apparel Industry is made up of A apparel manufacturers and contractors B garment wet processors C apparel wholesale reps and direct importers who sell fabrics to retailers D apparel retailers including ALL types of retail stores department stores specialty boutique outlets off price etc Both industries together produce about 60 billion annually and has over 5 000 textile firms and 24 000 apparel companies Manufacturer handles design fabrics and findings purchasing production and sale of finished garments to the retailer AKA VENDORS OR SUPPLIERS to manufacturers Inside shop when manufacturers operate their own factories Benefits of Inside shop Fewer communication problems Tighter control over quality processes and procedure More control over timing making it easy to meet dates Time and transportation saving of costs Easier to ensure work is done in compliance w regulations Contractors primarily provide labor and equipment they profit from their labor They assume no risk for the success or failure of particular styles They must complete their work satisfactorily and in the time frame unlike manufacturers agreed upon A contractor that does all operations is a CMT cut make and trim Sourcing finding a contractor Outside shop or companies that use independent contractors have more flexibility because they have A no investment plants and equipment which makes it cheaper B fewer employee training needs and fewer personal problems and demands C no need to buy specialty work as needed D perform specialty work as needed Direct Importers companies that sell and monitor production exclusively from other countries NRF National Retail Federation the worlds largest trade association Wholesale Representatives or sales reps are agents of the apparel manufacturing companies they sell the finished garments to retailers Apparel producers hire their own sales reps or contract independent sales agents Wholesale representatives sell to retail buyers to show them new lines Retailers sell to the ultimate consumer Traditional retailers buy finished apparel products from domestic manufacturers and or direct importers and sell these goods to the consumer Many retailers today are manufacturing retailers for all or at least part of the goods they sell EX The Gap JCP Sears o Manufacturing retailers serve a dual role That of the manufacturer responsible for producing private label brands and that of the traditional retailer selling the finished goods to the consumer Private Label apparel is developed by or for a specific retailer and gives retailers more control as opposed to branded apparel which is developed by a manufacturer and sold to many retailers under the trademarked brand name not only carried in one location Ex of Private Label Store brands that offer products exclusively available in their stores such as Macy s INC GAP Zara White house black Market etc Ex of branded apparel Kate Spade sold through the Brands own specialty store outlet or online and SAKS Neiman Marcus etc Per sample buying traditional buying where buyers select from manufacturers lines Private label merchandise gives retailers MORE CONTROL over the production of products they offer to consumers and allows for unique assortments Specification buying used by retailers whenever they request goods to meet requirements and standards rather than choosing from manufacturers lines Levels not important Gold Level designers Bridge level bridge between better sportswear and designer still high quality Contemporary BCBG 7seven jeans Lucky ETC Contemporary collection Trina Tibby ETC Better Traditional Ralph Lauren Better Update Kors by Michael Kors Vertical Integration When the SAME firm is responsible for multiple steps in the production or marketing of an apparel product Horizontal Integration Much more common and simpler than vertical integration Horizontal integration also known as lateral integration simply means a strategy to increase your market share by taking over a similar company Exporting Trade Companies ETC Serve as intermediaries between producers of goods and buyers of the goods in other countries Import to buy goods from another country Export to sell goods to another country 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 Trade Deficit when a country imports more than it exports It has been growing we have had slow export growth and fast growth of imports World Trade Organization WTO Fundamentals Promotion of free trade through reduction of tariff trade barriers Equalization of trade among countries North American Free Trade Agreement NAFTA They created a single North American market for goods originating in the United States Canada and Mexico Textile Fiber Products Identification Act TFPIA Became effective in 1960 Commonly called Fiber ID Regs in the industry It requires A Fiber content B Manufacturer or importer and C Country of origin Knockoff vs Counterfeit Copy or near copy of a design under a different brand name knockoff Fakes or copies of currently popular brands accompanied by the illegal trademark counterfeit Registered Identification Number RN A manufacturers retailers or importer s registered identification number is the number you see following the letters RN on garment labels Trademark is any brand name word or symbol such as graphic logo used to identify and distinguish one manufacturer s products from another s Trademarks registered with the U S Patent and Trademark Office and include the symbol The symbol is sometimes used if the trademark is unregistered or state registered Trade dress refers to the shape and features of the product itself that
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