30 terms

CADS 2800 Chapter 1 Key Terms

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Private Label Brands
Private brands developed to compete with wholesale brands.
Mature Industries
Industries that produce products characterized by relatively stable sales from year to year and by a high level of competition.
Apparel Supply Chain
The complex network of suppliers and service providers involved directly or indirectly in fulfilling customer demand for apparel.
Basic Product
Product that is produced in high volume and with predictable demand and that is very price sensitive because the consumer can purchase it from a variety of competitors.
Auxiliary Businesses
Service providers such as design bureaus, software providers, sourcing agents, factors (credit agents), patternmaking services, testing labs, consultants, and advertising agencies that play indirect roles in the manufacture of apparel.
Collaborative Supply Chain
An interactive network of manufacturing specialists who join forces operationally to integrate complementary resources to respond to a market opportunity through the creation of a particular product.
Market Saturation
Markets for which there are few new customers to attract; sales depend primarily on replacement purchases.
Sneakerization
A term used to describe the process of transforming an inexpensive commodity product into a cutting-edge specialty product.
Core Competencies
A term used to describe the things that a company does best.
Diversification
A strategy in which a firm expands its product mix to capitalize on brand recognition and increase sales and, thus, enhance efficiencies for greater profit. Like horizontal integration, diversification may be achieved through licensing or by the acquisition of related or unrelated companies.
Fashion Forward Product
Product that is geared to the store's leading edge customers; it may only be distributed online and in prime store locations. Fashion forward products help a product developer test the market for upcoming seasons. Made in relatively small quantities and often more complex in design, these items are the most expensive to produce and carry the highest risk.
Supply Chain Management Function
The functional area that vets potential supply chain partners to make sure they are capable of adhering to the company's code of conduct, negotiates costs for supplies and production, and manages quality. They are integrally involved in making sure that the product is received on schedule, at the quality level specified, and at the best possible price.
Growth Industries
Industries that produce products that have not yet saturated the marketplace. When growth industry products are introduced, the emerging technology they utilize commands a relatively high price, placing them out of reach for some consumers.
Market Penetration
Increasing the market share a brand commands in a given market.
Outlet Stores
Stores that provide a means of controlling the distribution of excess goods.
Private Brands
Product developed and merchandised for exclusive distribution by a particular retailer.
Store Brands
Private brands developed for stores that sell only private brands.
Concession Strategy
A strategy that involves large big box or department stores leasing out designated space to a brand that operates somewhat autonomously
with its own signage and displays. The brand provides its own staff and does its own buying.
Product Development
The strategic, creative, technical, production, and distribution planning of goods. Such goods should have a perceived value for a well-defined consumer group, and must be made to reach market when consumers are ready to buy.
Seasonal Product
Product that differentiates a brand and establishes its fashion aesthetic for the season. These items are usually produced in moderate quantities.
Horizontal Integration
A strategy that prioritizes the acquisition or licensing of companies or brands that make or sell similar products to expand market penetration and reduce competition.
Signature Stores
Stores owned by wholesale product developers in order to build brand image and provide a direct line of communication with their ultimate consumer.
Store Brand Strategy
A strategy that caters to a particular market niche with highly focused product as opposed to mass merchant and department stores that serve a wide range of consumer ages, lifestyles, and price points.
Wholesale Brands
Brands whose products that are designed, produced, and marketed under a proprietary label and distributed to retailers or third parties, who sell them to the final consumer. Mass merchants, department stores, specialty stores, chain stores, and boutiques frequently carry wholesale brands.
Competitive Advantage
The strategy a company uses to differentiate its brand and product, such as lower price (Walmart), superior quality (Wolford), unique product features or aesthetic (Burberry), minimal carbon footprint (Patagonia), unique fit (Wacoal), or speed-to-market (Zara).
Supply Chain Management
A management philosophy that integrates all of the business functions within a flexible supply chain.
Acting Vertical
A strategy that seeks to maximize collaboration and sharing of information throughout the supply chain, including internal collaboration that breaks down the barriers between functions, external collaboration with manufacturers and suppliers, and ongoing collaboration with consumers in order to reap the rewards of a continuous conversation. This is all implemented without necessitating central ownership of the supply chain partners.
Technical Specifications (Tech Pack)
A set of visual and written instructions that evolves throughout the development process and is finalized before a product goes into mass production. They clearly define expectations for the final product and the methods used to achieve it.
Sourcing
The continuous review of the need for goods and services against the purchasing opportunities that meet quantity, quality, price, sustainability, and delivery parameters, in order to leverage purchasing power for the best value.
Vertical Integration
The degree to which a company owns its supply chain partners; a strategy that seeks to consolidate a supply chain by acquiring companies at other stages in the supply chain. A fully vertical manufacturer seeks to control the processes previously handled by specialized firms so that one conglomerate can perform all the steps of production or distribution (or both).