Fashion Fundamentals
This is the process of planning, interpreting, and creating change through intellectual creativity.
What is design?
This refers to the percentage of total industry sales captured by a company.
What is market share?
The decision about where and by whom materials and production will occur.
What is sourcing?
This business structure has unlimited liability and one owner.
What is a sole proprietorship?
The illegal copying of a brand’s logo for counterfeit products.
What is trademark infringement?
This management function includes product assortment planning, acquisition, pricing, presentation, and sales.
What is merchandising?
The most common form of competition in the fashion industry.
What is monopolistic competition?
Production done in a different country than where the product will be sold.
What is offshore production?
An association of two or more people who operate a business for profit.
What is a partnership?
New products created by licensing a brand name to other companies.
What are brand extensions?
These are the four core sectors of the fashion value chain: design, merchandising, marketing, and this.
What is manufacturing?
The company-created strategy using logos, advertising, and messaging to shape how the brand is presented.
What is brand identity?
This rule requires textile products in trade agreements to use yarn produced within the trade region.
What is the yarn-forward rule?
An investor in a partnership who contributes money but does not manage the business.
What is a limited partner?
These agreements allow companies to use a brand name in exchange for royalties.
What are licensing agreements?
These processes include fiber processing, yarn spinning, fabric finishing, and garment construction.
What is textile production?
This describes how consumers actually perceive the brand.
What is brand image?
Patagonia’s Footprint Chronicles demonstrate this practice of communicating where and how products are made.
What is supply chain transparency?
A business entity that provides liability protection and flexible taxation.
What is an LLC (limited liability company)?
These agreements allow retailers to expand stores into new territories under the same brand concept.
What are franchise agreements?
This brief statement describes a company’s fundamental purpose for customers and society.
What is a mission statement?
A company’s measurable performance targets such as revenue or growth.
What are business goals?
A strategy where a company owns multiple stages of production or distribution.
What is vertical integration?
When one fashion company purchases another company and takes control of its assets and liabilities.
What is an acquisition?
Mislabeling the fiber content of a fashion product.
What is illegal fiber content mislabeling?