THE WORLD OF FASHION MERCHANDISING PowerPoint for THE WORLD OF FASHION MERCHANDISING By Vicki Shaffer-White Publisher The Goodheart-Willcox Co., Inc. Tinley Park, Illinois

Part 3: Designing and Producing Apparel Chapter 10 Ready-to-Wear Manufacturing

RTW Objectives: Summarize the business aspects of apparel manufacturing Explain inside and outside shops Describe preproduction procedures from costing and editing the line to cutting the garments Discuss the process and methods of apparel production Explain employee concerns of health and safety, as well as equitable pay Describe offshore production

The Business of Apparel Manufacturing Production Transformation of resources (materials) into goods Factors of production Resources– materials Labor– workers Capital– money and equipment Business– ideas and organization

The Apparel Industry Crucial to U.S. economy Productivity Materials, services, wages, taxes, goods Productivity Efficient use of materials and factors of production To be successful Keep costs low, quality high, prices competitive

Competitive Strategies Basic competitive approaches Being the low-cost source for products Operation must be run efficiently Pursuing differentiation Focusing on a narrow market niche First to offer something unique to meet needs

Pursuing Differentiation Ways to differentiate Higher quality Distinctive designs Better performance Convenient location Better service Technological superiority

RTW Production Manufacturers produce lines According to particular types of apparel, price ranges, sizes, and/or geography Lines are produced for separate fashion seasons

Fashion Wearing Seasons Shown to Retailers Spring - November Summer - January Fall I - February Fall II - April Holiday - July Resort/cruise - August NO MARKET IN DECEMBER

Garment Districts Areas in cities where most of the apparel companies are located Usually clustered according to merchandise type and price range New York’s garment district most famous

Inside and Outside Shops Inside shops Firms that do all stages of production from design, fabrication and sewing, to shipping Outside shops Firms that handle everything but the sewing Contract “out” to sewing factories

Contractors Produce goods according to another firm’s specifications Allows for specialization Allows apparel firms greater flexibility Lowers costs Speeds delivery Main drawback is limited quality control

Preproduction Procedures “Merchandising the line” starts with a plan for: Colors, styles, sizes, quality, and price in their primary markets Look at changes in consumer preferences Based on preproduction information, designs are created or refabricated

Selecting Acquiring products and materials for production based on designer’s sketch and the company’s basic pattern or sloper Style numbers are assigned to designs

Costing Costs calculated for producing one item Fabric (garment and lining yardage) Thread (type of stitching) Findings (buttons, snaps, zippers, hooks, bands, tape bindings, etc.) Labor (layout, design, cutting, sewing) Finishing techniques Labeling, packaging, and shipping Overhead

Editing the Line Change, revise, or eliminate part of a line Construction details may be altered to lower costs Approved styles made into samples and shown to top management and key retailers Samplings may be test marketed in retail stores to determine popularity

The Cutting Process Precutting Pattern pieces laid on a marker Grading- making patterns into a range of sizes Pattern pieces laid on a marker CAD used to create markers Electronic cutting Multiple layers of fabric cut at once using knife or water-jet cutters

Apparel Production After cutting, garment parts go through assembly line Traditional tailor system One person does all sewing Progressive bundle system Piecework; one specific task assigned to each person along assembly line Unit production system Computerized routing, tracking, and sewing

Modular Manufacturing Flexible manufacturing Divides workers into teams or module work groups Teams work independently to sort out own work problems; they are responsible for own productivity and improvements Empowers workers

Finishing Garments Hems and fasteners put in Final pressing Labels and hangtags attached Final garment inspection Stored in stockrooms or sent to retailers

Apparel Company Concerns for Employees Health and safety Ergonomics is important Matches human performance to tasks performed and equipment used Proper training Health benefits Equitable wages Compensation plans Group incentives Costs Employees

Offshore Production Manufacturing done outside of the U.S. Benefits: Lower labor costs No overtime pay or fringe benefits Tax exemptions and rebates Disadvantages may include longer lead and response times Technology has helped

Do You Know . . . There are several competitive approaches used in the apparel industry. Can you identify three strategies competitive jean companies might use? What is included when costing a garment? What criteria should be considered before editing a line?