Garment Manufacturing

Technology
Supply Chain of
Textile & Apparel Industry
 General Supply Chain Model

DYNAMICS OF GARMENT SUPPLY CHAIN

Dr. Sunil Giri and Siddharth Shankar Rai, 2013
Apparel Global Value Chain
 Market Segmentation

Industry Pyramid

Source: adapted from Barrre, Delabruyre 316-318

Couture
To be a couturier one must be certified by the Chambre Syndicale de la Haute Couture
and follow these rules:
Design made-to-order for private clients, with one or more fittings.
Have an atelier in Paris that employs at least 15 people full-time.
Each season present a collection comprised of at least 35 looks for both day and
night.

Though the first couturier, Charles Frederick Worth, was a Brit, the following Parisians
and French houses are the only certified couturiers:
Adeline Andr, Anne Valrie Hash, Chanel, Christian Dior, Christian Lacroix, Dominique
Sirop, Franck Sorbier, Givenchy, Jean Paul Gaultier, Maurizio Galante and Stphane
Rolland.
Couture

Jean Paul Gaultier Christian Dior Chanel

Dominique Sirop Stphane Rolland

Luxury RTW
In theory, luxury ready-to-wear differs from other ready-to-wear because it is made
from high quality materials, displays clear voice and creativity, and carries a level of
brand name prestige. Luxury, also referred to as designer, clothing should be made
with high quality production techniques and should employ fair labor practices and
encourage creativity

Louis Vuitton
Herms
Chanel
Fendi
Luxury RTW
Start-Ups
Fashion start-ups are firms which do not have enough market presence to be easily
recognized by the mass market. These are companies which would not pass the
secondary meaning requirement for intellectual property protection. Secondary
meaning requires that products be easily recognizable to consumers through
distinctive branding. These firms can operate out of a small number of namesake
boutiques, or be carried by a small number of stores. These firms may also be
available only online.
Start-Ups

Button Masala Surendri

Anuj Sharma Yogesh Chaudhary
Commercial RTW
Commercial ready-to-wear uses less original design and does not typically market
using fashion shows. This market segment offers an affordable product that is not
quite bottom-of-the-barrel steals, but is more accessible than high fashion ready-to-
wear. Designer diffusion lines may also be considered a part of this segment.
Department store in-house brands and many chain stores qualify as commercial ready-
to-wear, as well.

Abercrombie & Fitch

Lacoste
louis philippe
Arrow
Biba
Commercial RTW
Fast Fashion
Fast fashion is a new business model that is rapidly taking over the industry. Fast
fashion firms focus on creating a large amount of inventory as quickly and cheaply as
possible; products are sold at low prices with swift inventory turnover. Styles are
based on the latest fads and trends, and firms rely on trend anchoring to ensure that
consumers do not mind the outright disposable quality. Instead of offering new
products every three to four months, fast fashion companies offer new products every
two to four weeks.
Esprit
H&M
Renner
United Colors of Benetton
Zara
Fast Fashion
Counterfeit
Counterfeit goods rely not only on design and creative copying, but also on trademark
infringement. Counterfeit products are low-cost replicas of well-known products. In
some cases counterfeit firms are upfront about the illegitimacy of their products. There
are consumers who intentionally seek out convincing counterfeits to have an It Bag
replica at a low cost. Another segment of the counterfeit industry attempts to trick
uneducated consumers into believing their products are legitimate designer goods. The
internet makes counterfeits harder to spot and easier to distribute.
Counterfeit
Crossing Markets
Diversifying ones product offerings into multiple market segments allows designers
to reach as many customers as possible and create better brand recognition and
secondary meaning for their products.
High end fashion designers have attempted to breach the gap between price markets
by essentially knocking off themselves.
These so called diffusion lines offer lower price garments inspired by high fashion
collections. The looks are not exact runway replicas, but they do give the average
consumer a chance to own a designer label.
The diffusion line is a fantastic marketing tool for fashion designers, and as long as
they maintain production and ethics standards there is no reason to challenge the
practice.
Sales Channels
Sales Channels
Online/website 52%
Brick and mortar store 18%
Distributors 11%
Social media 9%
Call center 4%
Catalog 4%
Other 2%