Copyright Goodheart-Willcox Co., Inc. Chapter 4 Substance of the Fashion Industry 59
and planning a total promotional campaign. The agen-
cies often prepare and place ads in broadcast and print
media, and develop selling aids and packaging.
Auxiliary businesses also include buying services
in market centers that help retailers get the right mer-
chandise for their stores. Additionally, models and
modeling agencies show the new fashions in fun,
exciting ways, Figure 4.4. Trade associations, and their
publications, are also included.
All groups in the four-groups approach depend on
each other and want to satisfy the final consumers.
The primary group depends on the secondary group
to sell their products on down through the chain. The
secondary group depends on the primary group to pro-
vide the materials for them to make their products.
Both the primary and secondary groups rely on retail-
ers to sell the merchandise to end users. All groups
gain information, expertise, assistance, and promotion
from the auxiliary group.
Vertical Integration
Vertical integration is the combining of two or more
steps of the pipeline within one company and under
one management. For instance, today many large tex-
tile mills produce their own yarn, make fabric, and
perform the fi nishing processes which result in a
finished fabric. They combine three steps of the tex-
tile segment of the pipeline rather than doing just
one step. Some knitting mills start with raw fiber or
yarn and knit fi nished socks or sweaters, producing
a fi nished product ready to sell to consumers. They
combine some of the textile segment with the entire
manufacturing segment of the chain.
Another example of vertical integration would be
an apparel manufacturer that opens one or more fac-
tory outlet stores. By doing this, the manufacturer also
becomes a retailer. The manufacturer has integrated forward toward the end
of the soft-goods chain. Two whole segments (manufacturing and retail) are
combined. By doing this, manufacturers can assure a timely supply of goods
into their own stores and can charge lower prices since they have eliminated
a middle-person. They also compete, however, with the retailers who are their
own customers and who usually buy that manufacturer’s goods to sell to con-
sumers. This may cause bad feelings. Retailers sometimes refuse to buy goods
from manufacturers who open their own factory outlet stores or sell directly
to consumers electronically.
Nata Sha/Shutterstock.com
Figure 4.4 Th is fashion model does not produce fashion
goods, but is important in the auxiliary group. The picture
was taken by a fashion photographer, while members of the
fashion press take notes. All of these people are part of the
auxiliary group.
and planning a total promotional campaign. The agen-
cies often prepare and place ads in broadcast and print
media, and develop selling aids and packaging.
Auxiliary businesses also include buying services
in market centers that help retailers get the right mer-
chandise for their stores. Additionally, models and
modeling agencies show the new fashions in fun,
exciting ways, Figure 4.4. Trade associations, and their
publications, are also included.
All groups in the four-groups approach depend on
each other and want to satisfy the final consumers.
The primary group depends on the secondary group
to sell their products on down through the chain. The
secondary group depends on the primary group to pro-
vide the materials for them to make their products.
Both the primary and secondary groups rely on retail-
ers to sell the merchandise to end users. All groups
gain information, expertise, assistance, and promotion
from the auxiliary group.
Vertical Integration
Vertical integration is the combining of two or more
steps of the pipeline within one company and under
one management. For instance, today many large tex-
tile mills produce their own yarn, make fabric, and
perform the fi nishing processes which result in a
finished fabric. They combine three steps of the tex-
tile segment of the pipeline rather than doing just
one step. Some knitting mills start with raw fiber or
yarn and knit fi nished socks or sweaters, producing
a fi nished product ready to sell to consumers. They
combine some of the textile segment with the entire
manufacturing segment of the chain.
Another example of vertical integration would be
an apparel manufacturer that opens one or more fac-
tory outlet stores. By doing this, the manufacturer also
becomes a retailer. The manufacturer has integrated forward toward the end
of the soft-goods chain. Two whole segments (manufacturing and retail) are
combined. By doing this, manufacturers can assure a timely supply of goods
into their own stores and can charge lower prices since they have eliminated
a middle-person. They also compete, however, with the retailers who are their
own customers and who usually buy that manufacturer’s goods to sell to con-
sumers. This may cause bad feelings. Retailers sometimes refuse to buy goods
from manufacturers who open their own factory outlet stores or sell directly
to consumers electronically.
Nata Sha/Shutterstock.com
Figure 4.4 Th is fashion model does not produce fashion
goods, but is important in the auxiliary group. The picture
was taken by a fashion photographer, while members of the
fashion press take notes. All of these people are part of the
auxiliary group.