cannot be sold this year because it is no longer
in demand. It is diffi cult to predict what the
demand for, and sales of, fashion products will
be at a particular time in the market. Companies
that produce and sell fashion goods are always
scrambling to supply the right fashions at the
right time to make a good profi t.
There is a great deal of style and timing
risk for companies that deal with fashion
merchandise. Wrong decisions can result in huge
fi nancial losses or even force a company out
of business. On the other hand, right decisions
can result in huge profi ts. Most companies have
some good years that carry them through other
years that are not as successful.
Seasonal products change in popularity
or demand with the seasons of the year. They
include both fashion goods and commodity
items, 4-13. Examples of seasonal products for
summer are shorts, swimsuits, and beach towels.
4-11 The name on this retail store is of a
prominent fashion designer, showing that
the company has integrated the segments
of apparel manufacturing and retailing.
DuPont Company
4-12 The white business shirt and dark
socks worn by this man are commodity
products. They are produced and sold
continuously because there is always a
demand for them.
Lee / VF Corporation
4-13 This outfi t includes a fashionable
“crinkle knit top” with commodity denim
shorts. Why is it also a seasonal outfi t?
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