1. 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

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

3. 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

4. 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

5. 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

6. 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

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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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

23. 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?