PowerPoint for
THE WORLD OF
FASHION
MERCHANDISING
By
Vicki Shaffer-White
Publisher
The Goodheart-Willcox Co., Inc.
Tinley Park, Illinois
Part 1: Basic Fashion and
Business Concepts
Chapter 4
Substance of the
Fashion Industry
Objectives:
• Describe the two ways of viewing the fashion
industry’s channel of distribution
• Define and recognize vertical integration
• Explain commodity/fashion/seasonal goods
• List other industries that deal with textile
products
• Identify trade associations and industry
publications
• Name the geographic areas for each segment
of the industry
Textile/Apparel Pipeline
The Soft Goods Chain
Natural and manufactured
fiber production
Textile
Segment
Apparel
Segment
Retail
Segment
Yarn production
Fabric manufacturing, finishing
Apparel design
Apparel manufacturing
Apparel sales
Retail quantity buying
Single-item selling to consumer
Textile Segment
• Fibers
– Thin, hair-like strands that
may be short or long; from
natural or manufactured
(chemical) sources
• Yarns
– Formed by twisting or
spinning fibers together
Textile Segment (Cont.)
• Fabric production
– Woven
– Knitted
– Nonwoven
• Unfinished fabric
– Greige goods
• Fabric finishing
– Bleaching, dyeing,
printing, etc.
Apparel Segment
• Produces finished
garments . . . .
– Designed
– Manufactured
– Sold
• Wholesalers or
resellers
Retail Segment
• Selling of merchandise
directly to consumer
• Consumers are at the
end of the soft goods
chain
• Consumers decide which
fashions will succeed
and which will fail
The Four-Groups Approach
Auxiliary
Group
(support
to the
fashion
industry)
Primary
Group (raw
materials)
Textiles
Leathers
Furs
Garments
Secondary
Group
(manufacturing)
Accessories
Retail Group
(distribution)
Stores
Other fabrications
Catalogs, TV
End Users Consumers
The Four-Groups Breakdown
• The primary,
secondary, and retail
groups reflect the
textile, apparel, and
retail segments
respectively
• The auxiliary group
supports the other
three groups
Auxiliary Group
supports by providing…
• Market researchers
• Forecasters
• Color and trend
information
• Consulting
• Education for
consumers and the
industry
• Buying services
• Trade associations and
publications
Vertical Integration
• The combining of two
or more steps of the
pipeline within one
company, under one
management
• Examples:
– Manufacturer opens an
outlet store
– Knitting mill creates the
fiber and makes finished
socks
Commodity, Fashion, and
Seasonal Goods
• Commodity = Staple Goods
– Constant demand, hardly change
style
– Examples: Men’s white dress
shirts, socks, basic underwear
• Fashion = Current Style
– Always changing, timing very
important
• Seasonal = “weather” clothing
– Examples: Swimsuits, shorts,
gloves, coats
Other Textile End-Use
Industries
• 40%
– Household: floor coverings,
domestics (bed/bath),
home furnishings
• 25% and growing
– Industrial textiles:
architecture, agriculture,
filtration, geotextiles,
military, medical, paper,
transportation
• 35% and decreasing
– Apparel fabrics
Match the Textile Category to
the Textile Product
•
•
•
•
•
•
•
•
Floor coverings
Home furnishings
Domestics
Agriculture
Construction
Safety
Geotextiles
Home sewing
industry
1) Firefighter overalls
2) Non-fabric floor
tiles
3) Lamp shades
4) Notions
5) Roofs/domes
6) Hoses
7) Landfill coverings
8) Towels
Fashion Industry
Associations and Publications
• Objectives:
– Better availability of
production resources
– Promote industry’s
goods and services
to public
– Sponsor professional
and social activities
– Offer strategic
market information
and consulting
– Lobby for the industry
– Disseminate new
industry information
through trade shows,
conventions, etc.
– Provide technical
assistance and
trouble-shooting
services
– Provide networking
opportunities
Major Trade Associations and
Publications
• American Fiber
Manufacturers Association
• American Yarn Spinners
Association
•
• American Textile
Manufacturers Institute •
• American Association of
•
Textile Chemists and
Colorists
•
• Council of Fashion
•
Designers
•
• American Apparel and
•
Footwear Association
National Retail Federation
American Society of
Interior Designers (ASID)
Home Sewing Association
Fiber World
Textile World
Modern Textiles
Apparel Merchandising
Geographic Locations of
Industry Segments
• Retailing is located
everywhere; not
– Textile production located
centered in any one
primarily in New England
country
states
• Some national retail
• After 1800s
companies are now
– Mills steadily opened in
international
Southeastern U.S.
• Trade associations
• Today
located near
– Large textile companies mainly
Washington, DC, or
in North Carolina, Georgia, and
South Carolina; much offshore market centers
• 1700s-1800s
Do You Know . . .
• List the steps of the
textile/apparel
pipeline.
• Name the basic
differences between
commodity, fashion,
and seasonal
products.