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| apparel industry before 1850 |
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| clothing hand produced- custom made for individuals |
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| late 1800's apparel industry |
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industrial revolution*
demand for rtw
increased middle class and need for military uniforms(civil war)-standard sizes established
Technology, labor supply, and distribution systems |
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manufacturers, contractors (freelancers, cmt, outside shops) subcontractors, wholesalers, retailers, customers
*complex manufacturing and distribution systems, global trade, advanced tech |
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| clothing that is mass produced, also ready-made or off-the-rack |
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| fiber, yarn fabric and findings producers. dying printing and finishing. reps |
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| apparel manufacturers, wet processors, wholesalers, retailers |
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| private labels vs branded apparel |
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Developed for specific retailer
vs
developed by manufacturer and sold to many retailers under brand name |
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| Complex manufacturing and distribution systems |
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| https://carmen.osu.edu/d2l/orgTools/ouHome/ouHome.asp?d2l_stateGroups=page~grid~gridpagenum~mycoursesstategroup&d2l_stateScopes=OrgUnitSession~GridPageNum~Search~PageNum%5EOrgUnitUser~LCS~MyCoursesStateGroup%5EUser~Grid~PageSize~HtmlEditor~HPG&d2l_statePageId=308579&d2l_state_page=selectedRoleId12932~620&d2l_state_grid=mcg12932~0~~Asc~~0&d2l_state_gridpagenum=mcg12932_pgN~0&d2l_state_mycoursesstategroup=mcg12932_tree~&ou=4036847 |
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| responsibility for design, fabric/findings, production & sale to retailer VENDOR OR SUPPLIER |
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provide labor and equipment. no risk to success of style
freelancers (design and patternmaking)
cmt (cut make and trim)
Outside shops (independent contractors) |
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| performs specialty work for other contractors and manufacturers |
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Term
| wholesale representatives |
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| agents of apparel manufacturing companies that sell garments to retailer |
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| sell to ultimate consumer |
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| buy finished apparel from domestic manufacturers or direct importers and sell to consumer |
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| both manufacturer and retailer of goods |
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buy goods from other countries
sell goods to other countries |
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| Export trading companies: simplify exporting by serving as intermediaries between producers of goods and the buyers of goods in different countries |
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| help with securing entry for imported goods |
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| us imports more textile and apparel products than it exports |
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| us apparel manufacturers contract w/ foreign producers to make goods, or establish own sew-only plant in foreign country |
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allows for us manufacturers to complete some production here, ship to another country for other parts of production, and ship back- tariffs only paid on value added to garment
Harmonized Tariff Schedule of the United States
Harmonized System |
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| duty or tax placed on imported apparel |
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| limit the quantity of items that may be imported |
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| developed nations considered a threat to domestic apparel industry |
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| poor developing countries |
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| world trade organization: deals with the rules of trade between nations at global level |
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| textiles monitoring body: oversees the administration of WTO policy concerning textiles and apparel |
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| North American Free Trade Agreement: created a single north american market for goods originating in the us, canada, and mexico |
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| when a country ships goods to another country with a more favorable tariff or quota postion than their own, and then ship the goods to the us from there |
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| when manufacturers sell goods for a lower price than their cost of production in order to gain a foothold in a new market |
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| favors unrestriceted imports in the interest of the free flow of goods between nations |
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| focusses on the need for trade practices that provide a level playing field for all the global competitors |
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| comprehensive business strategy consisting of computer linkages and inter-industry partnerships based on trust and cooperation that substantially speed up the production and delivery of goods while at the same time enhancing quality |
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| what is an advantage of quick respons |
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Definition
compresses textile and apparel pipeline (channel of distribution)
speeds process through pipeline w/ advanced technology and efficient management practices |
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(quick response- channel of distribution through which garment passes)
1. fiber/fabric producers
2. apparel manufacturers and wet processors
3. retailers |
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| american apparel manufactrers assosication |
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when manufacturers operate their own factories.
manufacturers with inhouse production have adavtage of fewer communication problems, tighter control over quality and timing |
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national retail federation
the worlds largest retail trade association |
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| deveoped by a manufacturer and sold to manu retailers nder the trademarked brand name |
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| developed by or for a specifc retailer |
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| (in branded merchandise) used to acquire branded merchandise. competing retail buyers often select merchandise from the same manufacturers lines merc |
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| sell and monitor production exclusively from other countires |
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(private label) retailer hires a manufacturer to put a store label on merchandise the manufacturer already produces
whenevery the request goods made to meet their requirements and standards rather than choosing from manufacturers lines |
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| occurs when the same firm is responsible for multiple steps in the production or marketing of an apparel product (ex. making the fiber and kniting the fabric, making fabric and garment, etc) |
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occurs when companies become larger through mergers and acquisitions
creates additional pressure to produce goods faster and diligently control costs |
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| guaranteed access levels (ch 98) added quota allowances that help ensure entry of the finised goods into us market |
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general agreement on tariffs and trade
1947 began promoting free world trade |
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multifiber arrangement
under GATT
sought an orderly growth in the openess of world trade, allowing countries to encourage industrial growth in the developing nations and minimize disruption of domestic apparel industries |
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Committee for Implementation of Textile Agreements.
negotiates tariffs and quotas |
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1. General rate (most favored nation status)
2. full or statutory tariffs (10 times general rate- not favor trade)
3. exemptions (developing countries) Generalized System of Preferences |
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1. Ad Valorem rate (% of imported value merch)
2. Specific rate (specified amount/unit of weight)
3. compound rate (compination) |
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| an endorsement by the USCS (US Customs Service) granting entry and proving that they conform to quota limits for their classifcation and country of origin |
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| Agreement on textiles and Clothing (superseded MFA- continued to promote rules on international trade- ATC allows provisions to aid in gradual phase-out of quotas and tariffs |
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| Textile Monitoring Body (replaces textiles surveillance body of MFA) oversees administration of WTO policy concerning textiles and apparel |
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| method of trade rule circumvention that involves sending goods to a country with a more favorable tariff or quota position |
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| avoiding trade regulations |
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| method of trade rule circumvention that occurs when manufacturers sell goods for a lower price than their cost of production in order to gain a foothold in a new market, giving them an unfair advantage over competing producers in that market |
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| using tariffs, quotas, and other means to restrict importers |
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(drive was us txt industries looking for a way to gain a competitve advantage over foeign suppliers
- comprehensive business strategy consisting of computer linkages and interindustry partnerships based on trust and cooperation that substantially speed up prodction and delivery of goods and enhance quaility |
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| in process, in inventory, just in time |
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| -having work done on it -transit, in factory waiting to be processed or in warehouse waiting to be sold -signifying that there is no wasted time between steps of production (right quantity and quality "just in time") |
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| Automatic replensishment/ vendor-managed retail inventory |
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| by sahring point of sale data, manufacturers are able to replenish retail stock in timely accurate way. |
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computer integrated manufacturing
all computerized facets of the business are electronically linked for efficient management |
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