CTE 3763 Study Guide 1 01 31 2014 Know the differences between Textile Apparel Industry Textile industry group made of fiber yarn spinners fabric and some findings manufacturers converters that dye print and finish cloth and wholesale representatives who sell fabrics and findings to apparel producers Apparel Industry made up of apparel manufacturers and contractors garment wet processors apparel wholesale representatives and direct importers who sell garments to retailers and apparel retailers Wholesale Retail Wholesale price that manufactures charge retailers Retail price retailers charge consumers Retail stores today vs past 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 in charge PRICE VALUE MUCH MORE IMPORTANT THAN PAST Vertical Horizontal integration manufacturing growth strategies V when the SAME firm is responsible for multiple steps in the product or marketing of an apparel product o Significantly impacts a firm s competition advantage in getting the right product to market at the right time and the right price H prioritizes the acquisition or licensing of companies brands that make or sell similar products to expand market penetration and reduce competition Contractors Manufacturers contractors outside shops person or company hired by a manufacturer to do part or all of the work in producing a garment manufacturer the person or company ultimately responsible for all the steps in producing garments and distributing them to retailers Inside shops vs Outside shops Inside shops Fewer communication probs Tighter control over quality processes and procedures Move control over timing making it easier to meet delivery dates Saving time and transportation costs if garments are made domestically Easier to ensure work is done in compliance with human rights and environmental regulations Outside shops No investment in plants and equipments Fewer employee training needs and fewer personnel problems and No need to buy and maintain factories and equipment as business demands grows No need to employ workers between seasons of if he business slows The ability to perform specialty work as needed Branded Vs Private Labels B 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 o online i e kate spade new york PL products developed for exclusive distribution by a retailer using their proprietary brand Macy s INC OR Store brands that offer products exclusively available in their stores TERMS TO KNOW Import to buy goods from another country Export to sell goods to another country Trade deficit situation that occurs wgen a country imports more goods than it exports Embargo prohibition of importing a product Tariff a tax on imported goods Quota an annual limit on the volume of a product that may be imported Know the fundamentals of global trade NAFTA WTO World Trade Organizatio WTO o Replaced General Agreement on Tariffs and Trade GATT and Agreement on Textiles and Clothing ATC o Fundamental of WTO Promotion free trade trade barriers through reduction of tariff Equalization of trade among countries North American Free Trade Agreement NAFTA o Policy creating a single North American market for goods originating in the United States canada and mexico Textile Fiber Products Identification Act TFPIA Federal law requiring that all apparel sold in the Us have a label that identifies fiber content manufacturer and country of origin Export Trading Companies serve as intermediaries between the producers of the goods and the buyer of the goods in other countries QUALITY INDICATORS ASSURANCE Quality is built from conception Consumers do not necessarily base their quality judgment on the inherent quality of a garment but instead on their perception of its quality 2 dimensions of product quality o Physical Features Performance Features Quality to cost ratio how much you are willing o pay to have quality measured against what they will give up in order to have a lower price Prevention vs Detection defect prevention rather than detection market driven Universal Product Code UPC BENEFITS OF BAR CODES Creating uniformity throughout the industry Encoding of product features Speeding up checkout time for retail customers Providing all the necessary info for keeping track of sales and inventory LABELING RN Registered Identification Number RN o Businesses can use this number on product labels instead of the company name o i e The Gap Inc R054023 Regulations on Apparel Labeling Textile fiber product identification act Wool products labeling act Fur products labeling act Silk labeling rule Guide for select leather and imitation leather products Feather and down product International care symbols temps and other conditions are printen within symbol or below 5 basic symbols o washtub triangle square iron circle Voluntary testing methods ASTM AATCC consumer product safety commission CPSC responsible for enforcing Flammable Fabrics Act Products found in violation of the law may be confiscated destroyed All clothing must meet basic flammability requirements as determined by a standard test method Trademark a registered brand name or symbol Copyright exclusive right to reproduce a work of art Trade dress refers to the shape and features of the product itself that are not only distinctive but also identify the manufacturer of the product Knockoff vs Conterfeit K Copy or near copy of a design under a different brand name C fakes or copies of currently popular brands accompanied by the illegal trademark FIBER YARN FABRIC RECOGNITION EFFECTS ON COST QUALITY PERFORMANCE Physical Features of Fabric Fiber yarn fabric structure color and applied design hand Fabric performance the sum of its parts Fabric Performance Durability Appearance Comfort Manufactured vs Natural Fibers M Regenerated cellulosic synthetics miscellaneous N protein fibers Cellulosic fibers fiber size AFFECTS the hand of the fabric Denier a direct system used to designate fiber and yarn size weight in grams of 9000 meters the larger the the larger the fiber Tex system used to designate fiber or yarn size weight in grams of 1000 meters The larger the number the larger the fiber or yarn o For international use only based on metric system Twist type staple filament Staple short fibers measured in inches or
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