Fashion Industry Profile
Marketing Campaign
Noelle Androuin
Fashion Industry Profile
The Apparel Industry consists of companies that design and sell clothing, footwear and accessories. Product categories include everything from basics, such as underwear, to luxury items, for example, cashmere sweaters and alligator-skin handbags. Traditionally, Apparel companies are wholesalers, selling large quantities of goods to retailers, which markup items and sell them to consumers for a profit. However, it's become more difficult to draw a line between wholesalers and retailers; most Apparel companies now have both types of operations.
Retail Operations There are a number of reasons why Apparel companies establish retail divisions. Having stores dedicated to a single brand gives a company control over a line's image and identity. Dedicated retail stores allow a company to highlight its own merchandise, without worrying about competing labels.
Retail stores are typically more profitable than their wholesale brethren. By selling its own merchandise at retail, an Apparel company can cut out the middle man and increase profits. However, this strategy can be risky. Instead of just designing and producing clothes and filling wholesale orders, companies with retail operations also have to find store locations with good potential, manage inventory and avoid big markdowns. The Internet is another important platform for retailers, especially since consumers are increasingly Web-savvy and have access virtually anywhere. Shoppers want to quickly find what they are looking for on line, and demand fast processing and shipping. Direct sales via the Internet can be a boon to a company. These sales do not entail expensive storefronts and related staffing and, thus, are more profitable than traditional business.
Apparel sales at the retail level tend to be highly seasonal, with the majority of revenue booked during the holiday and back-to-school periods. Market analysts review total year-to-year
Noelle Androuin
Fashion Industry Profile
The Apparel Industry consists of companies that design and sell clothing, footwear and accessories. Product categories include everything from basics, such as underwear, to luxury items, for example, cashmere sweaters and alligator-skin handbags. Traditionally, Apparel companies are wholesalers, selling large quantities of goods to retailers, which markup items and sell them to consumers for a profit. However, it's become more difficult to draw a line between wholesalers and retailers; most Apparel companies now have both types of operations.
Retail Operations There are a number of reasons why Apparel companies establish retail divisions. Having stores dedicated to a single brand gives a company control over a line's image and identity. Dedicated retail stores allow a company to highlight its own merchandise, without worrying about competing labels.
Retail stores are typically more profitable than their wholesale brethren. By selling its own merchandise at retail, an Apparel company can cut out the middle man and increase profits. However, this strategy can be risky. Instead of just designing and producing clothes and filling wholesale orders, companies with retail operations also have to find store locations with good potential, manage inventory and avoid big markdowns. The Internet is another important platform for retailers, especially since consumers are increasingly Web-savvy and have access virtually anywhere. Shoppers want to quickly find what they are looking for on line, and demand fast processing and shipping. Direct sales via the Internet can be a boon to a company. These sales do not entail expensive storefronts and related staffing and, thus, are more profitable than traditional business.
Apparel sales at the retail level tend to be highly seasonal, with the majority of revenue booked during the holiday and back-to-school periods. Market analysts review total year-to-year