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Fairchild Books

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... with the product Trunk Shows and Videotapes Trends Emergence of manufacturers as retailers Vertical integration at Ralph Lauren, ... – PowerPoint PPT presentation

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Title: Fairchild Books


1
?2007 Fairchild Publications, Inc.
2
Fashion Apparel
Womens, Mens, Childrens, and Teens
  • Taken as a total entity, womens, mens,
    childrens, and teens apparel industry is the
    largest and most recognized part of the fashion
    business. Although the organization and
    operation, merchandising and marketing, and
    trends are similar, we will review each sector
    separately.

3
Womens Apparel
Specialization by Product
  • Womens apparel producers have always been
    specialists, producing apparel for a particular
    lifestyle, size range, and price range. Example
  • Coat manufacturers do not produce dresses, dress
    manufacturers do not produce sportswear.
  • Designers, too, balance diversification with
    specialization.

4
Categories in Womens Apparel
5
Womens Apparel
  • Activewear

Maternity
Plus-size Lane Bryant
6
Womens Apparel
Size Ranges
  • Misses Includes regular even-numbered sizes
    220, tall sizes 1220.
  • Juniors Includes regular sizes 317 and petite
    sizes 115.
  • Petites Includes misses even-numbered sizes
    2P16P and junior sizes 1P15P.
  • Womens and Womens Petite (plus-size) Includes
    even-numbered sizes 12WP26WP, straight sizes
    2652, and XL5X.

7
Womens Apparel
Major Price Zones
  • Designer Signatures The highest price zone i.e.,
    Donna Karen, Oscar de la Renta, Dior.
  • Bridge Bridges the price range between designer
    and better prices i.e., DKNY, CK.
  • Contemporary New zone favored by new young
    designers i.e., Cynthia Rowley, Laundry by Shelli
    Segal.

8
Womens Apparel
Major Price Zones
  • Better Medium to high, appeals to middle-class
    market offering fashionable apparel at affordable
    prices i.e., Jones NY, Liz Claiborne, Nautica.
  • Moderate Nationally advertised makers that
    appeal to middle-class consumer i.e., Guess,
    Esprit, Levi Strauss.
  • Budget Lowest price zone, known as promotional
    or mass market i.e., Kmarts Jaclyn Smith.

9
Womens Apparel
Merchandising and Marketing
  • Most fashion producers sell directly to retail
    stores rather than through intermediaries such as
    wholesalers or jobbers.
  • Womens apparel producers aim their sales
    promotion efforts at both retailers and
    consumers. These efforts include advertising,
    publicity, and sales promotion.

10
Advertising and Publicity
  • Print
  • Fashion, general interest and newspapers are
    prime outlets, as are trade magazines for
    advertising dollars
  • Broadcast advertising
  • Radio, lacking the visual element, usually has
    spot commercials
  • Television is dominated by large producers
    (Levis, Sears, JCPenney) who can afford the
    costly campaigns
  • Cable television is less expensive than network
    television and lends itself to smaller
    manufacturers and retailers of womens wear
  • Publicity firms
  • Retained to ensure coverage in editorial pages of
    magazines and newspapers

11
Fashion Shows and Trade Shows
  • Fashion shows provide opportunities to examine
    the newest collections
  • They are the major public relations efforts in
    womens wear
  • Newspapers, magazines, radio, television and
    Internet fashion editors and reporters tell the
    fashion stories to their readers
  • Trade shows like MAGIC in Las Vegas and others in
    Paris, London, Milan, Tokyo and Hong Kong are
    held semi-annually

12
Trunk Shows and Videotapes
  • Trunk shows present a designers line to a
    retailers customers
  • The lines representative, often the designer,
    mounts an in-house fashion show with sample
    garments
  • After the show, the representative meets with
    customers to discuss styles and review items
  • Customers, retailers, and manufacturers all
    benefit
  • Videos are another tool to promote a designers
    line
  • They are also used to help familiarize retailers
    sales staff with the product

13
Trunk Shows and Videotapes
14
Trends
  • Emergence of manufacturers as retailers
  • Vertical integration at Ralph Lauren, Benetton
    and Talbots
  • Greater emphasis on licensing
  • J.G. Hook produces nothing in house
  • Increased offshore production
  • Imports are a major threat to the domestic
    clothing industry
  • Increased emphasis on Quick Response
  • Shortened response time offsets some benefits of
    offshore production
  • Use of computers and the Internet
  • Besides CAD/CAM, selling and promoting the
    ability to instantaneously understand the
    customer needs may be the biggest benefit

15
Mens Apparel
  • The mens wear industry traditionally has been
    divided into firms that make different kinds of
    clothing
  1. Tailored clothing Suits, overcoats, topcoats,
    sports coats, formal wear, and separate trousers
  2. Furnishings Dress shirts, neckwear, sweaters,
    headwear, underwear, socks, suspenders, robes,
    and pajamas
  3. Outerwear Raincoats, coats, jackets, active
    sportswear
  4. Work clothing Work shirts, work pants, overalls,
    and related items
  5. Other Uniforms and miscellaneous items
  • The federal government uses these five
    classifications. Although it is not an official
    classification, sportswear (including active
    sportswear) has become a vital portion of the
    business and should be considered a mens wear
    category.

16
Mens Apparel
Designer Names Today
  • Today designer labels are promoted as heavily as
    well-established brand names used to be
  • The name game is big business in all segments
    of the mens wear industry
  • Designers have helped by becoming highly visible.
    They lend themselves to the fantasy of the
    customer who longs for wealth and excitement
  • Kenneth Cole

17
Mens Apparel
Merchandising and Marketing
  • As with womens wear producers, mens wear
    producers back their lines with
  • Fashion shows
  • Trade shows
  • Trade associations
  • Advertising and Publicity
  • Mens Trade Associations
  • TFA, The Fashion Association, is now part of the
    American Apparel and Footwear Association (AAFA)
  • NAMSB, the National Association of Mens
    Sportswear Buyers
  • MAGIC, Mens Apparel Guild of California
  • CMA, Clothing Manufacturers Association

18
Mens Apparel
Merchandising and Marketing
  • An ad for comfortable appeal from Abercrombie
    Fitch, owned by Ruehl.

19
Mens Apparel
Industry Trend
  • Diversification of products by producers
  • Automation of production processes
  • Increase in foreign sales
  • Proliferation of mens specialty stores

20
Childrens, Tweens, and Teen Apparel
  • Like adult clothing, childrens, tweens, and
    teens apparel is divided into categories based
    on price, size, and type of product
  • Price Budget, moderate, better-priced and
    designer
  • Size Seven basic sizes
  • Type of product Knits, dresses, sportswear

21
Product Specialization
  • Manufacturers typically specialize by product
  • A producer only makes girls knits, another makes
    girls dresses, another preteen sportswear
  • Knits remain popular for infants, boys and
    girls tops
  • Although the same design and production methods
    are used for adults and children's wear, less
    fabric is offset by higher labor costs

22
Merchandising and Marketing
Licensing
  • Character and toy character licenses share the
    spotlight with a growing number of sports and
    corporate licenses
  • The first character license was Buster Brown in
    1904
  • Barney, Mickey Mouse, Pooh, and Snoopy remain
    popular for children
  • Two major studios that produce cartoons, Disney
    and Warner Brothers, have retail outlets,
    designed to boost the lives of the movie
    characters

23
Merchandising and Marketing
Licensing
  • Sports licensing is another prosperous area of
    licensing
  • Sports figures and teams enjoy instant
    recognition among children and young adults
  • Both individuals and teams have capitalized on
    this, adding clothing, accessories and other
    items to equipment they sponsor

24
Merchandising and Marketing
Licensing
  • The four major sports leagues and many college
    and university teams routinely license their
    names for use on clothing
  • The National Football League promotes campaigns
    and programs for boys and girls in different age
    groups
  • They advertise in Sports Illustrated For Kids and
    the Superbowl, helping kids to not only play
    football but purchase millions of dollars of
    related apparel

25
The Role of Fashion in Childrens Wear
  • Should be viewed as a business that is
    fashionable rather than a fashion business
  • Childrens styles adapt mens and womens styles
  • They are not innovative, nor does new fashion
    start here
  • Backpacks are one recent notable exception

26
The Role of Fashion in Childrens Wear
  • Kids take to the runway at this ENK event, which
    showcases apparel and products for infants
    through teens

27
Industry Trends
Specialty Retail Outlets
  • Store within store, children's areas are popular
  • The new trend has been to have free separate
    stores devoted to children's wear
  • GapKids opened in 1986
  • BabyGap opened in 1996 after outgrowing its space
    allocation within GapKids
  • Benetton 012, Laura Ashleys Mother and Child,
    and Kids R Us Baby Superstore are examples of
    this trend

28
Industry Trends
Specialty Retail Outlets
  • GapKids offers a variety of basics for children

29
Industry Trends
Specialty Retail Outlets
  • Catalogs
  • Major catalog players increased children's
    offerings
  • JCPenney and Talbots offer specialized catalogs
    for children
  • Delias, a catalog for children and woman ages
    1024, skyrocketed to prominence

30
Industry Trends
Specialty Retail Outlets
  • The Internet
  • Almost every retailer and some manufacturers are
    online with offerings for children
  • As of 2000, over 27 million children had Internet
    access
  • All four major professional sports leagues have
    sites with pages devoted solely to kids

31
Industry Trends
Resale of Childrens Wear
  • Secondhand and consignment stores are a logical
    outgrowth of parents concerns about the price of
    new wardrobe basics for children
  • Since children quickly outgrow clothes, budget
    minded parents are turning to this alternate
    outlet
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