Women’s Apparel Industry

History of the RTW Industry Until 1870’s - All clothing custom made 1900’s – Sweatshops emerge (mostly in NYC) 1910 – Birth of women’s RTW industry (shirtwaist dresses) 1911 – Triangle Shirtwaist Fire (prompted the start of the ILGWU 1920 – Most clothing mass produced (80% made in NYC by small companies) 1970’s – 1980 – Growth of large fashion companies and off shore production 1975 – ILGWU becomes UNITE

Specialization by Product Women’s apparel producers have always been specialists, producing apparel for a particular lifestyle, size and price. Ex. Active sportswear manufacturers do not usually produce dresses. Designers usually do balance their diversifications with specialization (ex. Vera Wang)

Specialization by Product CATEGORIES OF RTW Outerwear – coats, raincoats and jackets Dresses Sportswear – casual pants, shorts, tops, sweaters, etc. (largest category) Activewear Blouses Suits After Five Bridal Maternity Innerwear – intimate apparel

Specialization by Product SPECIALIZATION BY SIZE Misses – even number sizes 0 to 20 Juniors – odd number sizes 1 – 17 Petites – 0P to 16P Plus Sizes – 12W to 26W; 26 to 52 and XL to 5X

Specialization by Product SPECIALIZATION BY PRICE Factors contributing to the Wholesale Price Point Quality of Material Quality of Workmanship Amount and Type of Labor Structure of the business “Name” and promotion

Specialization by Product SPECIALIZATION BY PRICE Designer Signature – Most expensive; highest price point; name designers; Ralph Lauren (purple label) Bridge –Bridges the prices between designer and better (secondary lines) DKNY, Ralph Contemporary – Designers who are targeted towards a younger market; many of the CA labels; Betsey Johnson; Free People; (becoming a broad market); Juicy; Ed Hardy; Better – Fashionable clothing at affordable prices; Ann Taylor; Nautica; Talbots; Banana Republic; Polo Moderate – Nationally advertised makers; Levi; Guess; Gap; Chaps Budget – Lowest price zone; brands in Kmart; Walmart; Old Navy

Industry Trends Global sourcing – Opening factories in low wage countries Off shore production Manufacturers opening retail stores (ralph Lauren; Coach; Nike; Talbots Increase emphasis on Quick Response Importance of websites, Internet and Social Networking Licensing