Mid term Review Textiles Apparel manufacturing Retail Support Services Fashion the prevailing style at a given time Paul Nystrom 1920 s Style the specific design or a look Design a specific version of a style Trend the di rection fashion is moving Fad short lived style or fashion Classic basic enduring style that lasts over a period of time Clothing any covering to the body Apparel constructed garments Dress all ornamentation and body coverings Silhouette physical shape or lines of style Marketing channels MARKETING activities involved in conceiving a product and or service directing the flow of goods from the producer to the consumer including product development pricing promotion and distribution MERCHANDISING buying and selling of goods for the purpose of making a profit The rights RETAILING procuring goods or services from various resources and distributing them through ret Merchandise Time Quantity Place Price 5 RIGHTS OF MERCHANDISING 1 2 3 4 5 People products Environmental Factors ECONOMIC financial matters SOCIO CULTURAL occurrences behavior in society POLITICAL LEGAL governmental influences laws TECHNOLOGICAL electronic scientific advances Business Frameworks of the Textiles Apparel Industry and Global Trade Vertical Integration a company that performs more than 1 function in the chain Ex Manufacturer s who are also retailers ORGANIZATIONS An ORGANIZATION is a systematic arrangement of PEOPLE to ACCOMPLISH some spe cific PURPOSE Organizational Structure describes how a company is set up and directed and aids in monitoring and managing work Organizational Charts Charts depict A B C Organizational hierarchical struc ture Chain of command Mgt line staff Relationship between the parts of a company Paul Mazur 1927 4 function retail chart A 5 Operations Merchandising Accounting Control Publicity Promotion Function Retail Organizational Chart Structure of types of businesses Sole proprietorship one owner Partnerships two or more owners Limited unlimited Types of Corporations Public some shares of stock owned by general public C regular taxed at corp ind levels LLC Private closed owned by individuals not public Multinational more than one country advantages disadvantages Business Expansion Diversification and Growth Mergers blending of companies Consolidations combining with a resulting new company Takeovers one company takes control over another Ex Macy s Marshall Fields Conglomerates diversified different business Exs LVMV LV Moet Hermes etc Global Trade Terminology Imports goods brought into a country from another Exports goods sent from a country to another Offshore vs Domestic Balance of Trade value between a country s imports and exports Favorable vs unfavorable Free Trade doing business without restrictions ADE TERMINOILOGY Duties tariffs tax charges levied on imports protective revenue Quotas regulated quantitiy allocations of imported goods sets limits Embargo bans imports on certain goods categories and countries Governing bodies Global WTO Hemisphere NAFTA By Country MFA Apparel Manufacturing Terminology Inside shop company owned vs Outside Contracted 3 Methods 1 2 3 Production pkge all bgt thru an agent who manages job Cut make trim supplies fabric then made Off shore assembly bgt cut US then assembled Consumer Behavior and Adoption Needs vs Wants Maslow s Hierarchy of Needs Adoption Diffusion spread of an innovation within and across social systems Fashion Innovation a style or design perceived as new 3 Major Fashion Theories Vertical Trickle Down hierarchical oldest Trickle Up bottom up sub cultural from streets Horizontal Trickle Across simultaneous newest 2 Major Influences of Consumer Decision Making INTRAPERSONAL PSYCHOLOGICAL psychographics AIO qualitative INTERPERSONAL SOCIOLOGICAL demographics quantitative Product Adoption Life Cycle The Fashion Product life Cycle Everett Rogers Marketing STAGES INTRODUCTION RISE PEAK PLATEAU MATURATION DECLINE OBSOLESCENSE Cycles of Fashion 1 Recurring style resurfaces 2 Broken or interrupted stop then resurgence 3 Cycles within cycles style remains but elements change Pendulum of Fashion swings from one extreme to the other The Consumer of Today Is smarter more connected than ever Is digital mobile 49 of over 30T people Their household is virtual Listen to their families and friends first Listen to me dialog through social networking Know me personalize the shopping experience Empower me make it easy Smarter consumers want smarter retailers US Consumer Trends Ethnic diversity Income Changing family Changing values Time poor society Birth death ages rates Rise in education levels Rise in working from home Forecasting 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 input for planning and positioning product Trend Forecasting Predicting what the consumer wants and does not want Predicts fashion change IT IS IMPOSSIBLE FOR ANY ONE PERSON TO KEEP UP WITH THIS HUGE AND COM PLEX FASHION BUSINESS 4 Major Types of Primary Forecasters Fiber Fabric Du Pont Cotton Inc Color Trends Color Box Pantone Demographic psychographic Forrester Faith Popcorn Trend forecasting companies Tobe Promostyl WGSN 1 2 3 4 Secondary Forecasters Manufacturers Retailers Consumer Publications Skills for Forecasting 1 Awareness 2 Insight 3 Interpretation 4 Objectivity Steps in Forescasting Researching Reporting Recommending Analyze and interpret trends Prepares seasonal books with pages of editorials illustrations and photos evaluating ma Provides unbiased reports on quickly changing fashion trends and merchandising strate TOBE DONEGER LARGEST FASHION CONSULTANT IN U S jor segments of the markets gies to meet its clients needs PROMOSTYL International Design and Consulting Bureau Headquartered in Services all segments of the industry Emphasis on specific trends brand positioning creating new products packaging mer Paris Milan London New York Tokyo and Hong Kong chandising and redefining and updating collections WWD DNR HFN FAIRCHILD PUBLICATIONS PRODUCES THE BIBLE of the industry WWD The principal player in fashion trade publications COLOR ASSOCIATION OF US Goal is to predict color two years in advance providing color charts swatches newsletters to their clients Professional organization over thousands of members Covers the American Far East and European scenes Known for its exciting and lavish presentations and newsletters fgi org FGI Fashion