Women’s Apparel Industry

History of the RTW Industry

• Until 1870’s - All clothing custom made • 1900’s – Sweatshops emerge (mostly in NYC)• 1910 – Birth of women’s RTW industry

(shirtwaist dresses)• 1911 – Triangle Shirtwaist Fire (prompted the

start of the ILGWU• 1920 – Most clothing mass produced (80%

made in NYC by small companies)• 1970’s – 1980 – Growth of large fashion

companies and off shore production• 1975 – ILGWU becomes UNITE

Specialization by Product

• Women’s apparel producers have always been specialists, producing apparel for a particular lifestyle, size and price.

Ex. Active sportswear manufacturers do not usually produce dresses. Designers usually do balance their diversifications with specialization (ex. Vera Wang)

Specialization by Product CATEGORIES OF RTW

• Outerwear – coats, raincoats and jackets• Dresses• Sportswear – casual pants, shorts, tops, sweaters, etc.

(largest category)• Activewear • Blouses • Suits• After Five• Bridal• Maternity• Innerwear – intimate apparel

Specialization by ProductSPECIALIZATION BY SIZE

• Misses – even number sizes 0 to 20

• Juniors – odd number sizes 1 – 17

• Petites – 0P to 16P

• Plus Sizes – 12W to 26W; 26 to 52 and

XL to 5X

Specialization by ProductSPECIALIZATION BY PRICE

Factors contributing to the Wholesale Price Point

• Quality of Material

• Quality of Workmanship

• Amount and Type of Labor

• Structure of the business

• “Name” and promotion

Specialization by ProductSPECIALIZATION BY PRICE

• Designer Signature – Most expensive; highest price point; name designers; Ralph Lauren (purple label)

• Bridge –Bridges the prices between designer and better (secondary lines) DKNY, Ralph

• Contemporary – Designers who are targeted towards a younger market; many of the CA labels; Betsey Johnson; Free People; (becoming a broad market); Juicy; Ed Hardy;

• Better – Fashionable clothing at affordable prices; Ann Taylor; Nautica; Talbots; Banana Republic; Polo

• Moderate – Nationally advertised makers; Levi; Guess; Gap; Chaps• Budget – Lowest price zone; brands in Kmart; Walmart; Old Navy

Industry Trends• Global sourcing – Opening factories in low

wage countries

• Off shore production

• Manufacturers opening retail stores (ralph Lauren; Coach; Nike; Talbots

• Increase emphasis on Quick Response

• Importance of websites, Internet and Social Networking

• Licensing