Chapter 1: Role of PD in the Apparel Supply Chain

Question 1

Product Development

Answer 1

The strategic, creative, technical, production and distribution planning of goods that have a perceived value for a well-defined user group and designed to reach the marketplace when that group is ready to buy.

Question 2

Apparel Supply Chain

Answer 2

The network of fiber, textile and findings (trim, thread, labels) suppliers, apparel product developers, manufacturers, vendors and all the channels of apparel distribution that work together to bring apparel products to the ultimate user.

Question 3

Auxiliary Businesses

Answer 3

Businesses that provide expertise to improve the efficiency of the core apparel chain.

Includes: software providers, trend services, patternmaking services, sourcing agents, consultants, advertising agencies, etc.

Question 4

Core Competencies

Answer 4

The business functions that a company is best equipped to execute.

Question 5

Sourcing

Answer 5

The process of procuring materials for production.

Question 6

Collaborative Supply Chain

Answer 6

Interactive networks of independent manufacturing specialists that join forces operationally to integrate complementary resources to respond to a market opportunity through the creation of a particular product.

Question 7

Supply Chain Management

Answer 7

An evolving management philosophy that integrates the business functions of one firm with the competencies and resources of supply chain partners into a competitive supply system, focused on solutions for synchronizing the flow of products, services and information.

Question 8

Growth Industries

Answer 8

Industries that make products that have not yet saturated the marketplace. Growth products utilize emerging technology that commands a relatively high price, placing these products out of reach for some consumers.

Question 9

Market Saturation

Answer 9

Increasing market share relative to new consumers.

Question 10

Market Penetration

Answer 10

Increasing market share relative to total sales volume of all competing products.

Question 11

Mature Industries

Answer 11

Industries that produce products that are characterized by relatively stable sales from year to year and by a high level of competition.

Question 12

Differential Advantage

Answer 12

A competitive edge that comes from lower price, superior quality, speed to market, unique product features or some other desired quality.

Question 13

Sneakerization

Answer 13

The process of transforming an inexpensive commodity product into a high-tech, cutting edge specialty product.

Question 14

Vertical Integration

Answer 14

A strategy that seeks to consolidate a supply chain by acquiring a company or companies at another stage in the supply chain.

Question 15

Horizontal Integration

Answer 15

A strategy that prioritizes the acquisition of companies that make similar products in order to expand market penetration and reduce competition.

Question 16

Diversification

Answer 16

A growth strategy in which a firm expands its product mix to capitalize on brand recognition, increase sales and thus enhance efficiencies for greater profit.

Question 17

Wholesale Brands

Answer 17

Brands created under a proprietary label and sold at wholesale for distribution to retailers that also carry other wholesale brands.

Question 18

Private Brands

Answer 18

Products developed and merchandised for exclusive distribution by a particular retailer.