CTE 3763 Study Guide Exam 1 Overview of the Apparel Industry The Big Picture Know the differences between Textile Apparel Industry o Textile Industry Fiber manufacturer Yarn spinner Fabric manufacturer Converters Dyers Printers Finishers o Apparel Industry Manufacturers Wholesale Retail o Wholesale o Retail Vertical Horizontal Integration Can also be known as a vendor common and supplier o Vertical Integration significantly impacts a firm s competitive advantage in getting the right product to market at the right time and the right price another term for this is inside shops this is a manufacturing growth strategy when the SAME firm is responsible for multiple steps in the production or marketing of an apparel PRODUCT o Horizontal Integration prioritizes the acquisition or licensing of companies or brands that make or sell similar products to expand market penetration and reduce competition you buy out a competitor and integrate them into your company Contractor Manufacturer o Contractor person or company hired by a manufacturer to do part or all of the work in producing a garment provides labor and equipment a contractor can do all or part of the work to produce a garment have no risk for the style also called outside shop o Manufacturer the person or company ultimately responsible for all the steps in producing garments and distributing them to retailers Inside Shops Outside Shops o Outside Shops independent contractor provides labor and equipment a contractor can do all or part of the work to produce a garment have no risk for the style o Inside Shops Vertical integration is another term for inside shop you have more control Zara is an inside shop Branded Private Labels o Branded Apparel created under a label and sold at wholesale for distribution to retailers who also carry other brands also sold through the brand s own specialty store outlet or online Example Kate Spade True Religion o Private Label 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 store Examples GAP White House Black Market Zara Comparison Between Inside Shops and Outside Shops Know Terms Import to buy goods from another country Export to sell goods to another country Trade Deficit situation that occurs when a country imports more goods than it exports Embargo prohibition on importing a product we put embargos on companies in nations that may be doing things against our beliefs put in place to hurt a country s business Tariff a tax on imported goods another word for tariff is DUTY Quota an annual limit on the volume of a product that may be imported Know the Fundamentals of Global Trade NAFTA WTO o WTO World Trade Organization replaced General Agreement on Tariffs and 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 North American Free Trade Agreement policy creating a single North American market for goods originating in the United States Canada and Mexico promotes free trade across these countries by not having those trade barriers or added expenses to doing business with those countries TFPIA Textile Fiber Products Identification Act federal law requiring that all apparel sold in the U S have a label that identifies fiber content manufacturers and country of origin Quality Indicators Assurance Define QUALITY quality is built from conception o Product quality has two dimensions Physical Features what the product actually is Performance Features relates to what the product does could be fit comfort no zipper failure Cost Ratio quality to cost ratio how much you are willing to pay to have quality measured against what they will give up in order to have a lower price Prevention vs Detection defect prevention detection market driven o Detection happens after the event o Prevention happens before the event Tolerates waste Raises cost Loses orders Destroys jobs Avoids waste Lowers cost Gains orders Protests jobs Labeling RN RN stands for Registered Identification Number o Businesses can use this number on product labels in lieu of the company name you get country of origin and company name from this number o Ex The Gap Inc R054023 Voluntary Labels voluntary testing methods include tests from ASTM and AATCC Trademark a registered brand name or symbol Copyright 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 Counterfeit vs Knockoff o Knockoff copy or near copy of a design under a different brand name o Counterfeit fakes or copies of currently popular brands accompanied but the illegal trademark Week 2 Fiber Yarn Fabric Recognition Effects on Cost Quality Performance Physical Features of Fabric Fiber Yarn Fabric Structure Color and Applied Design Hand affected by the fiber size a beautiful hand would mean there s a smaller fiber size smaller fiber gauge the better o Manufactured vs Natural o Manufactured Fibers regenerated cellulosic synthetic o Natural Fibers protein fibers cellulosic fibers Usually a lot more expensive Cotton silk alpaca mohair cashmere Usually an indicator of high end quality o Twist type staple filament o Woven Knit Lace o Woven tend to ravel vary from simple to complex weave Plain Weave more prone to wrinkling Twill Weave resists abrasion very durable most durable weave pattern Satin Weave lustrous o Knitted tend to curl connected loops faster process than wovens but not a cheaper process because they often require finer yarns o Prints Dye Pigments add color to undyed fabrics called griege goods o Dyes the liquid colorants used to color fabrics below listed in order of most expensive to least expensive Fiber Dyeing solution dyeing or dope dyeing Yarn dyed Piece dyed Garment dyeing o Printing the application of designs to the fabric using dyes or pigments the most common method to dye in a localized area to produce a pattern like dots or stripes is to print page 259 o Understand the Four Point System of the ASQC for Grading Fabric o Four Point System most popular grading system in U S o Used to identify flaws in fabric o Assigns penalty points to the fabric based on the number of defects and the size of the defects per yard o Four or fewer points per linear square yard is considered first quality o Four point system is the direct number and size of
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