Types of BusinessesTypes of Businesses

Fashion Industry SegmentsFashion Industry Segments

Primary Market: includes the Primary Market: includes the business that grow and produce the business that grow and produce the raw materials that become fashion raw materials that become fashion apparelapparel

Secondary Market: includes Secondary Market: includes businesses that transform the raw businesses that transform the raw materials into fashion in the materials into fashion in the merchandise production phasemerchandise production phase

Tertiary Market: includes retail Tertiary Market: includes retail businessesbusinesses

Primary MarketPrimary Market

Textiles: largest segment of the Textiles: largest segment of the primary marketprimary market

Produces fibers, fabrics, leather, Produces fibers, fabrics, leather, fur, plastic, metal, paper, and fur, plastic, metal, paper, and any other substance involved in any other substance involved in productionproduction

Secondary MarketsSecondary Markets

ManufacturersManufacturers WholesalersWholesalers ContractorsContractors Product Development TeamsProduct Development Teams

Tertiary MarketTertiary Market

RetailersRetailers Off-price, specialty stores, Off-price, specialty stores,

department stores, discount department stores, discount stores, variety stores, outlet stores, variety stores, outlet stores, non-store retailersstores, non-store retailers

Support IndustriesSupport Industries

Advertising Agencies, Advertising Agencies, Accounting and Financial Accounting and Financial services, computer support services, computer support industries, website design industries, website design houseshouses

Types of Fashion Business Types of Fashion Business OrganizationsOrganizations

Sole Proprietorship: one ownerSole Proprietorship: one owner Minimum license, complete owner Minimum license, complete owner

liabilityliability Owner owns all assetsOwner owns all assets Taxed as personal incomeTaxed as personal income Most common form of business in Most common form of business in

small businesssmall business

Types of Fashion Business Types of Fashion Business OrganizationsOrganizations

PartnershipsPartnerships Based upon an agreement Based upon an agreement

between two parties on how between two parties on how organization will be run, organization will be run, profits/loss splitprofits/loss split

Each partner is taxed separately Each partner is taxed separately Each partner liable for debtsEach partner liable for debts Ends at the death of one partnerEnds at the death of one partner

CorporationCorporation

Types of Fashion Business Types of Fashion Business OrganizationsOrganizations

CorporationCorporation Formed with a charter which is a Formed with a charter which is a

legal documentlegal document Stocks and shareholdersStocks and shareholders Taxed as a separate entityTaxed as a separate entity Limited liability for the ownersLimited liability for the owners Corporation exists as a separate Corporation exists as a separate

entityentity

Fashion RisksFashion Risks

Types of risk:Types of risk: Economic riskEconomic risk Human riskHuman risk Natural riskNatural risk Pure riskPure risk

Other RisksOther Risks

Types of risk:Types of risk: Speculative riskSpeculative risk Controllable riskControllable risk Uncontrollable riskUncontrollable risk Insurable riskInsurable risk Uninsurable riskUninsurable risk