EXAM 1 STUDY GUIDE CTE3763 Overview of the Apparel Industry the big picture History of the Apparel Industry o Pret A Porter o Textile industry o Fiver manufacturer o Yarn spinners o Fabric manufacturer o Converters Dyers Printers Finishers Apparel industry Manufacturers Branded apparel o Created under a label and sold at wholesale for distribution to retailers who also carry other brands o Also sold through the brand s own specialty store outlet or online o Ex Kate Spade New York EXAM 1 STUDY GUIDE CTE3763 Private label o Products developed for exclusive distribution by a retailer using their proprietary brand Macy s INC o store brands that offer products exclusively available in their stores o When the SAME firm is responsible for multiple steps in the production or Retailers o National Retail Federal NRF o Ex Nordstrom saks dillard s Vertical integration marketing of an apparel PRODUCT What s different today in retail stores o Lifestyle is driving apparel decisions o Apparel must be compelling o Provide what they want not what they need o good taste is expected a good deal is desired o Price is the ultimate vehicle of change Price value equation much more important vs past Cool stores o Costco o Target o IKEA o Urban Outfitters o Whole Foods o Apple o common thread Lifestyle focused EXAM 1 STUDY GUIDE CTE3763 Clear point of view Category dominant Modern relevant business model speed to market Retailers in Transition o Macy s consolidation to one NY headquarter location o J C Penney status of their New Aggressive Strategy o K Mart big question Must create reason to exist o Walmart Significant assortment improvements with Neiman s Global trade o International trade o Target continue to drive compelling product development December product The exchange of goods between nations and all the issues associated with that exchange To buy goods from another country To sell goods to another country o Export trading companies ETCs o Import o Export o Tariff o Quota Serve as intermediaries between the producers of the goods and the buyer of the goods in the other countries A tax on imported goods EXAM 1 STUDY GUIDE CTE3763 An annual limit on the volume of a product that may be imported o Embargo Prohibition of importing a product International trade policy o World trade organization WTO Replaced general agreement on tariffs ad trade GATT and agreement on textiles and clothing ATC Fundamental of WTO Promotion of free trade through reduction of tariff trade barriers Equalization of trade among countries NAFTA o o Universal product code UPC o 1 A number system character that identifies the product category There are currently seven categories EXAM 1 STUDY GUIDE CTE3763 o 2 A five digits number that identifies the manufacturer assigned by the uniform code council Inc o 3 A five digits product code number that is assigned and controlled by the manufacturing company The number is unique for each of the manufacturer s products including each size style color etc o 4 A check digit Benefits of bar codes o Creating uniformity throughout the industry o Encoding of product features o Speeding up checkout time for retail customers o Providing all the necessary information for keeping track of sales and inventory Quick response QR strategy Radio frequency identification RFID o o Composes of The transponder which is located on the object to be identified The detector or reader which depending upon design and the technology used may be a read or write read device EXAM 1 STUDY GUIDE CTE3763 Quality is built from conception o Fabrics o Findings o Fit o Finishing o Country of origin o o Defect prevention rather than detection market driven o Detection after the event tolerates website raises cost loses orders destroys o Prevention before the event avoids waste Lowers cost gains orders protects jobs jobs Quality to cost ratio o How much you are willing to pay to have quality measured against what they will give p in order to have a lower price 2 dimensions of product quality EXAM 1 STUDY GUIDE CTE3763 o Physical features o Performance features Regulations on apparel industry business practice o Occupational Safety and Health Administration Regulations o Department of Labor Regulations o Equal Employment Opportunity commission Regulations o Department of Justice Regulations o Environmental Protection Agency Regulations o Ethics Regulations on Apparel Labeling o Textile Fiber Products Identification Act Label must List general fiber names in order of percent by weight List manufacturer name registered trademark or registered identification number List country of origin Label must not Imply presence of fibers not included List fibers less than 5 unless they serve specific purpose Label may List trademark with generic names Designate fibers as unidentified o Wool Products Labeling Act o Fur Products Labeling Act o Silk Labeling Regulation EXAM 1 STUDY GUIDE CTE3763 o Care Labeling rule o Guide for select Leather Imitation Leather Products o Feather and Down Product Consumer product safety commission o CPSC responsible for enforcing Flammable Fabrics Act o Products found in violation of the law may be confiscated and destroyed o All clothing must meet basic flammability requirements as determined by a standard test method Voluntary testing methods o ASTM international What is an RN number o AATCC American Association of Textile Chemists and colorists o RN stands for Registered Identification Number o Businesses can use this number on product labels in lieu of the company name o Ex Levi Strauss Co W000423 The Gap Inc R054023 Care labeling rule o Must state reasonable instructions about regular care o Must be permanently legible and permanently attached o International care symbols EXAM 1 STUDY GUIDE CTE3763 5 basic symbols Washtub triangle Square Iron Circle Temperatures and other conditions are printed within symbol or below Trademark EXAM 1 STUDY GUIDE CTE3763 o Knockoff versus counterfeit o Knockoff o Counterfeit Copy or near copy of a design under a different brand name Fakes or copies of currently popular brands accompanied by the illegal trademark Fiber Yarn Fabric the essential quality indicator 1 cost factor of garments Physical features of fabric Building blocks of fabric o Fabric o Fiber o Yarn EXAM 1 STUDY GUIDE CTE3763 o Fabric structure o Color and applied design o Fabric performance the sum of its parts o Fabric quality is assessed at all stages of production o Fabric performance Durability
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