1. Substance of the Fashion Industry
Chapter 4
Substance of the Fashion Industry

2. Fashion Terms Channel of distribution Soft goods chain
Textile/apparel pipeline
Fiber
Yarns
Fabrics
Greige goods
Designing
Resellers
Four-groups approach
Vertical integration
Private label goods
Commodity products
Fashion products
Seasonal products
Industrial textiles
Geotextiles
Composites
Trade associations
Networking
Trade publications
Labor-intensive

3. The Soft Goods Chain The Textile Segment The Apparel Segment
The Retail Segment

4. The Textile Segment Fibers Yarns Fabrics Thin, hair-like strands
Short or long
Originate from
Naturally grown sources
Chemical mixtures
Yarns
Continuous strand
Formed by spinning or twisting
Fabrics
Long pieces of cloth
Greige (gray) Goods

5. The Apparel Segment
Designing
Manufactured
Sales

6. The Retail Segment Selling merchandise directly to consumers
Retailers pay wholesale price for quantity
Retailers do single-item selling to consumers

7. Four-Groups Approach Primary Group Secondary Group Retail Group
Auxiliary Group
Primary Group
Secondary Group
Retail Group
Consumers

8. Primary Group
Raw materials
Textiles
Leather
Fur
Plastics
Metals

9. Secondary Group Manufacturing Makes garments from textiles
Produces sewn garments
Produces fabricated garments

10. Retail Group
Stores
Mail Order
TV Home Shopping
Internet

11. Auxiliary Group Supports first three groups Market Researchers
Forecasters
Colors
Trends
Fashion Publications (advertising)
Buying Services in market centers

12. Vertical Integration
Combining two or more steps of the pipeline within one company and under one management.
Mills produce yarn, make fabric and perform the finish the fabric.
If a company takes on activities toward the source of goods – backward integration
When retail companies take on manufacturing functions.
Producing their own Private Label.
Private Label Goods – produced only for that retailer and have the retailer’s special trademark or brand name.

13. Commodity, Fashion, and Seasonal Goods
Commodity Products
Staple Goods
Hardly ever change
Constant in Demand
Fashion Products
Always changing
No Demand
Difficult to predict demand
Seasonal products
Change with seasons

14. Other Textile End-Use Industries
Household Textile Products
Industrial Textile Products
The Home Sewing Industry

15. Household Textile Products
Floor coverings
Rugs
Carpets
Home furnishings
Window treatments
Furniture
Domestics
Bed
Bath
Kitchen

16. Industrial Textile Products
Industrial textiles – technical rather than fashionable
Specialized textiles
Research and development
Transportation textiles
Automobiles interiors and tires
Geotextiles
Relate to the earth’s surface
Composite textiles
Textiles combines with other materials

17. The Home Sewing Industry
Deals with production
Done for personal reasons
Feeling of achievement
Proper fit
Individually creativity
Save money
Quality of construction
relaxation
Savings are less significant today

18. Fashion Industry Associations and Publications
Trade Associations
Trade Publications
Textiles
Apparel
Retail
Consumers

19. Trade Associations Fashion Group International
American Society of Interior Designers
Home Sewing Association
Nonprofit, voluntary organizations
Try to improve the industry
Business Conditions
Encourage the use of industry’s products
Serve as a source of information
Gain advantageous legislation
Sponsor seminars, etc.
Provide technical assistance
Provide networking

20. Trade Publications
Magazines
Newspapers
Books

21. Geographic Locations of Industry Segments
Industrial Manufactures were near resources in early days
Now they can be any where but mainly in central eastern states
Apparel manufacturing has always been labor- intensive.
Retailing is located everywhere
Highly Specialized textiles create demand.

22. Summing It Up
Fashion Channel of Distribution = Soft goods chain or textile/apparel pipeline
Primary = Raw Materials
Secondary = Manufacturers
Retail = Final Distributors
Trade Associations