In Fashion chapter 4

Chapter 4: The business of fashion

Business of fashion contribute to U.S. and world economy

  • Materials and services purchased
  • Wages and taxes
  • Good and services produced

Fashion business one of largest employers in U.S.

  • Young people entering fashion business growing each year

Scope of fashion business

Four levels of fash. Business:

  1. Primary
  2. Growers and producers of materials
  3. Secondary
  4. Industries that produce semi-finished or finished goods (manufacturers)
  5. Retail
  6. By good from secondary and supply directly to consumers
  7. Auxiliary
  8. Support services keep customers aware of merchandise produced

Diversity and COmpetition

Competition + price

  • Head-to-head competition keeps prices down

Competition + quality

  • Selling higher quality goods allows retailers to maintain higher standards and provide more options to consumers

Competition + innovations

  • Changes in taste and new technology being innovation

Government Regulation of Business

2 categories of federal legislation

  1. Laws that regulate competition
  2. Labeling laws to protect consumers

3 common forms of business ownership:

  • Sole proprietorship
  • Partnership
  • Corporation

Business growth + expansion

Internal growth

  • Horizontal and vertical growth

Mergers and acquisitions

  • Lead to diversification

Franchise

  • Advantages and disadvantages

Licensing

  • Firms pay royalties to licenser to produce + sell merchandise under licenser’s name

Designers role

Types of designers:

  • High-fashion or “name” designers
  • Stylist designers
  • Freelance designer

Sources of design can come from everywhere and everything

Manufacturer’s role

Types:

  • Designers or firms that produce high fashion, original, and expensive apparel
  • Bridge market
  • Better market
  • Moderate-priced market
  • Budget market

Fashion influence

  • Line: assortment of new designers with a designated period for delivery to retailer

Retailers role

Types:

  • Fashion leaders
  • Traditional retailers
  • Mass merchants

Influence

  • Retailers persuade manufacturers to produce styles that answer an upcoming need/demand

Retailers have to stay a step ahead of their target customers