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 other brands Private label Retailers o National Retail Federal NRF o Ex Nordstrom saks dillard s Vertical integration an apparel PRODUCT What s different today in retail stores o Created under a label and sold at wholesale for distribution to retailers who also carry o Also sold through the brand s own specialty store outlet or online o Ex Kate Spade New York 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 marketing of EXAM 1 STUDY GUIDE CTE3763 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 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 o Target continue to drive compelling product development December product with Neiman s Global trade o International trade 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 NAFTA 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 o Universal product code UPC o o 1 A number system character that identifies the product category There are currently o 2 A five digits number that identifies the manufacturer assigned by the uniform code seven categories 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 EXAM 1 STUDY GUIDE CTE3763 Quick response QR strategy Radio frequency identification RFID 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 o o o Quality is built from conception o Fabrics o Findings o Country of origin o Fit o Finishing Defect prevention rather than detection market driven o Detection after the event tolerates website raises cost loses orders destroys jobs EXAM 1 STUDY GUIDE CTE3763 o Prevention before the event avoids waste Lowers cost gains orders protects o How much you are willing to pay to have quality measured against what they will give p jobs Quality to cost ratio in order to have a lower price 2 dimensions of product quality 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 Label must not Label may List general fiber names in order of percent by weight List manufacturer name registered trademark or registered identification number List country of origin Imply presence of fibers not included List fibers less than 5 unless they serve specific purpose List trademark with generic names Designate fibers as unidentified o Wool Products Labeling Act o Fur Products Labeling Act o Silk Labeling Regulation 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 EXAM 1 STUDY GUIDE CTE3763 o AATCC American Association of Textile Chemists and colorists What is an RN number 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 5 basic symbols Washtub triangle Square Iron Circle Temperatures and other conditions are printed within symbol or below EXAM 1 STUDY GUIDE CTE3763 Knockoff versus counterfeit o 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 Trademark Fiber Yarn Fabric the essential quality indicator 1 cost factor of garments o Fabric EXAM 1 STUDY GUIDE CTE3763 Physical features of fabric Building blocks of fabric o Fiber o Yarn 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 Appearance Comfort Manufactured fibers o Regenerated cellulosic o Synthetics o
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