Fashion Businesses MKT-FMRE-8 Understand the concepts and processes needed to obtain, develop, maintain, and improve a product mix in response to market opportunities.

Objective What are the three main market segments of the fashion industry?

Fashion Industry Segments 1.Primary market – industry segment that includes businesses that grow and produce the raw materials that become fashion apparel or accessories. 2.Secondary market – the industry segment that includes businesses that transform the raw materials into fashion in the merchandise production phase. –Both markets serve as a link to the retail world.

Fashion Industry Segments 3. Tertiary market – the industry segment that includes retail businesses such as stores. –People who work in the segments must have knowledge of the other segments of the industry. Ex. Creator of fabrics must understand how fabrics will translate into finished garments.

Primary Market A key role in the development of fashion. This phase involves technical research, planning, and complex production processes. Must be aware of current consumer needs and fashion trends. Production schedule is ahead of the other other segments Generate the products used in the production of the final products.

Primary Market - Textiles Textiles – a broad term referring to any material that can be made into fabric by any method. The largest segment of the primary market. Produces fiber, fabric, leather, fur, plastic, metal, paper and any other substance involved in production. Helps other industries such as home furnishings and interior decorating businesses. The foundation in the building process of fashions.

Secondary Market Produce garments by transforming textiles to the finished product, or wearing apparel. Producers – are responsible for designing, producing, and selling the goods to retailers. Main businesses are: manufacturers, wholesalers, contractors, and product development teams.

Manufacturers Handle all operations such as: – buying the fabric, –designing or buying designs, –making garments, –selling and delivering the finished garments.

Wholesalers Similar to manufacturers, but do not make the clothing. Design staff that produces the designs. Purchase textiles or other raw materials necessary for the designs and then plan the cutting of the materials. Coordinate the selling and delivery processes. Many of the top fashion design companies are classified as wholesalers.

Contractors May be responsible for many aspects of production – from sewing and sometimes cutting to the delivery of goods. May produce designs for merchandise that carries a store’s label, or private label.

Product Development Teams Teams that; –Design –Merchandise –Outsource work to contractors in the United States or outside of the country.

Tertiary Market Also known as the retail industry Retailing – the selling of products to customers. Retail operations distribute directly to the consumers who buy and/ or use the products. (link between consumer and manufacturer). Direct their purchasing and marketing efforts to their target customers’ needs and desires.

Tertiary Markets Department stores Variety stores Off-price stores Warehouse stores Outlet stores Non-store retailers

Support Industries Businesses do not always have their own in-house advertising departments, accounting departments May help lower operations costs and allow fashion companies to focus on fashion.

Types of Fashion Business Three types of business organizations: –Sole proprietorship –Partnership –corporation

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