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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