Exam 4 Flashcards
Where goods are produced & sold to buyers - At wholesale prices during market weeks
Markets
New York - Largest - Most important
Los Angeles
Miami
Dallas
Major Domestic Market Centers
- The original link between the New York fashion scene & the provinces
- Evolved from lonely traveling salesmen
- Showing only one line to groups of salesmen
- Showing multiple, noncompeting lines
Sales Representatives
- Ultimately, this developed into regional market centers
- Consist of exhibition spaces that house wholesale markets
- The Chicago Merchandise Mart - Oldest of the marts
- There is a mart in most major cities
Marts
- Publicity - Fashion shows, parties
- Information Services - Buyer’s Directory - Publications
- Educational Services - Seminars, conferences
Services of Market Centers & Marts
- Periodic events in regional market centers
- They are smaller than market weeks
Trade Shows
- A market week - Minus permanent facilities
- Women, children & accessories - Held in Las Vegas
MAGIC Trade Show - Men’s Apparel Group In California
- The nation’s fashion capital
- Offers the largest selection of manufacturers’ showrooms
- The fashion publishing, buying & retailing center
- The cultural center of U. S. - The best place for designers to draw inspiration from all forms of art
New York City - Many Advantages
- Originated in 1993 in NYC
- A platform for American designers - Become leading players in the global fashion business
Seventh on Sixth
- Seventh on Sixth
- Los Angeles Shows
- Miami Shows
IMG - Today’s Producer
- Fashion Fringe (London)
- Lakmé India Fashion Week
- Thai Supermodel Search
- Pakistan Fashion Week
IMG Fashion & 7th on Sixth
Internationally - Produces, manages & represents
International Fashion Shows
- Their own unique flavor & fashion
- The Los Angeles Market - Easy-living, casual lifestyle, colorful
The Dallas Market
- The Los Angeles Market - Easy-living, casual lifestyle, colorful
- Southwestern looks - Handcrafted styles
The Miami Market - Latino & Caribbean flavor, colorful - Best known for children’s wear
Regional Market Centers- Each Market Center
Louis XIV - During the reign - 1643-1715 - France first emerged as a fashion showcase
Lyons - Textile production
Alencon - Lace works
Established to meet needs of Versailles royalty at court
France
- France originated haute couture
- Charles Frederick Worth - Opened the first couturier
1858
- Established in 1868
- Sets standards & dates for haute couture shows
- Most valuable contribution
- It represents its members in arbitration disputes & seeking regulation of wages & working hours
Chambre Syndicale de la Couture Parisienne
- By itself loses money - creates profitability
- Franchising
- Licensing arrangements
- Prêt-à-porter lines
Haute Couture
- Ready-to-wear portion of the market
Money making section of the fashion industry- Giving designers access to large markets
- Standardized sizing & mass manufacturing created profitability
Prêt-à-Porter
Designs
Held in major European fashion capitals
- London - Paris - Milan
Semiannual “Pret” Shows
France’s most serious rival in the fashion industry
Italians have made massive inroads - After the 1990’s & into the 21st century
Italian designers renowned for - Superb knitwear, accessories & textiles
Italy
- Use innovative & beautiful textiles to launch themselves in the luxury markets
- Giorgio Armani. Valentino - Developed tremendous influence
- Gucci, Prada
- Greatly influences today’s luxury market
Designers
Savile Row - Best known for handcrafted suits
Great Britain
Today’s most important designers
Britain
- John Galliano for Dior
- Alexander McQueen for Givenchy
- Stella McCartney set up with her own line
- Vivienne Westwood - Setting design trends for over 20 years
- Philip Treacy - Today’s most recognized hat designer
- Julien Macdonald - A stellar reputation
LVMH Moët Hennessy
Formerly nonexistent on the fashion tour - Hugo Boss, Mondi, Escada, Jil Sander
Germany
Leather Apparel - Specifically in men’s wear
Igedo
- Düsseldorf
- Women’s ready-to-wear
- Largest European fashion fair
- Around 2,150 exhibitors from 40 countries
- Markam - Present their collection during the fair
Sweden
- Kenzo Takada
- Kansai Yamamoto
- Hanae Mori
- Issey Miyake - With daring & provocative designs
1970’s - The First Wave of Japanese designers
- Rei Kawakubo
- Matsuhiro Matsuda
- Yohji Yamamoto - Leading the way
1980s - The Second Wave
- Hippie beads & T-shirts
- 1970’s punk
1990’s - Designers focused on retro pop cultural influences
- Shinichiro Arakawa - Create technically ingenious designs
2000’s - New designers
One of the largest exporters - Both raw materials & finished products
2000 - The U.S. gave China normal trader status - Which gave China entry into the WTO
China
- Becoming one of the United States’ largest trading partners in a short period
- Even more attractive offshore location for domestic manufacturers
Mexico benefited greatly from NAFTA
- The world is becoming one huge market
- The world’s nations are becoming economically interdependent in ways they have never been before
Global Sourcing
Very much a part of the global economy
A term to describe the process of shopping & buying imported goods
The Fashion Industry
Political scientists call this process
- The nations of the world become more interlinked with one another
Globalization
Describes the process of shopping for & purchasing imported goods
U.S. buyers rely on the help & experience of specialists
Global Sourcing
When a firm in a country buys foreign goods
Imports
- The use of foreign workers in one or more countries to complete the steps of manufacturing the goods that bear the producer’s label
Offshore Production
- Foreign fashion markets
- Store-owned foreign buying offices
- Commissionaires or independent agents
- Import Fairs held in the United States
- By imports
Foreign made goods can be purchased at & by the following
- Observe new trends first-hand
- Buy goods suited to their customers
- The international markets offer a variety of goods
- But not all are suited to the American market
Foreign Fashion Markets
- Buyers support & advise store buyers
- Surveying the market for new trends
- Supervising purchases
- Following up on delivery
- An extension of the store
- Often authorized to make purchases
Store-Owned Foreign Buying Offices
- Located in key buying cities
- Tend to be smaller than store-owned offices
- Represent both retailers & manufacturers
- Provide many of the same services as store-owned foreign buying offices
Commissionaires or Independent Agents
- Held in the United States
Regularly held in the U. S.
2 Important Functions - Give foreign manufacturers & designers chance to observe American culture
- Increase size & depth of import market
Import Fairs
American buyers purchase from American-owned importing firms
Import firms shop in the international markets
- To purchase their own “lines”
- To put together & display to retailers
By Imports
Growth of direct importing done by retailers
Offshore sources - Price advantage, exclusivity & workmanship
Importing by Manufacturers
- Store or retailer design the product to be manufactured
- Provide standards & guidelines - J. C. Penney’s & The Gap
Specification Buying - Apparel for Wal-Mart being manufactured in India
Specification
- Retailers make their own assortment to set them apart from the competition
Private-Label Lines
- Manufacturer designing for the retailer
- Both domestic & off-shore production - Used to complete private label goods
Private-Label Buying
- The difference between the value of exports & the value of imports
Balance of Trade
- When the value of goods and the value of imports exceed the value of its exports
Trade Deficit
- When a country’s exports exceed its imports
Trade Surplus
- Name given to an economic & political doctrine that seeks to exclude or limit foreign goods
Protectionism
- Opposite doctrine
- Supports the free exchange of goods among nations
- Believe restrictions on trade will threaten nation’s ability to grow & compete in global arena
- Supporters – retailers and most consumers
Free Trade
- 1st import restrictions on goods brought to U.S.
- Feared it would not be able to compete with world’s industrial powers - 50 % tariff
1789 - U.S
- 2 countries reach a separate agreement
- These laws have developed out of need
Bilateral Agreement
- General Agreement on Tariffs & Trade
- 1947 – U.S. & 23 other nations
- Role in reducing trade barriers & unifying trading practices
GATT
- 1995 – Continues to adjust member agreements
- Some specific to textiles & apparel industries
WTO - World Trade Organization
- 1973 – U.S. & 53 other nations
- 1st multinational agreement specifically regulating the flow of textile products
- Established ground rules for bilateral agreements & unilateral actions designed to restrict the free flow of textile products
MFA - Multi-Fiber Arrangement
