Copyright Goodheart-Willcox Co., Inc. 60 Fashion Marketing &Merchandising
Conversely, if a company takes on activities toward the source of goods,
it is called backward integration. An example of backward integration occurs
when retail companies take on manufacturing functions. They do this by pro-
ducing their own private label merchandise. Private label goods are produced
only for that retailer and have the retailer’s special trademark or brand name.
By doing this, retailers become their own suppliers and can assure themselves
a certain level of quality, timely delivery, and lower price.
Commodity, Fashion,
and Seasonal Goods
There are two main categories of merchandise with which businesses within
the fashion channel of distribution are involved. They are commodity prod-
ucts and fashion products. Commodity products are
staple goods that hardly ever change in design and are
in constant demand. Their sales are quite predictable
and they are continually produced in regular amounts.
Examples of commodity goods in the fashion indus-
try include cotton/polyester blend fabric, and men’s
white business shirts and dark socks. Other commod-
ity items are basic types of underwear and soft-sided
luggage. These items are in continual mass produc-
tion and retailers always have them in stock for fairly
dependable, constant sales.
Likewise, fashion products are always changing.
For instance, last year’s model or style cannot be sold
this year because it is no longer in demand. It is diffi-fi
cult to predict what the demand for, and sales of, fash-
ion 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 profit.fi
There is a great deal of style and timing risk for
companies that deal with fashion merchandise. Wrong
decisions can result in huge financial losses or even
force a company out of business. On the other hand,
right decisions can result in huge profits. Most com- fi
panies 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, Figure 4.5. Examples of
seasonal products for summer are shorts, swimsuits,
and beach towels. Winter goods include wool sweat-
ers, heavy topcoats, and gloves.
Momentum Vision/Shutterstock.com
Figure 4.5 Th is outfi t includes a fashionable knit top
with commodity denim shorts. Why is it also a seasonal
outfi t?
Conversely, if a company takes on activities toward the source of goods,
it is called backward integration. An example of backward integration occurs
when retail companies take on manufacturing functions. They do this by pro-
ducing their own private label merchandise. Private label goods are produced
only for that retailer and have the retailer’s special trademark or brand name.
By doing this, retailers become their own suppliers and can assure themselves
a certain level of quality, timely delivery, and lower price.
Commodity, Fashion,
and Seasonal Goods
There are two main categories of merchandise with which businesses within
the fashion channel of distribution are involved. They are commodity prod-
ucts and fashion products. Commodity products are
staple goods that hardly ever change in design and are
in constant demand. Their sales are quite predictable
and they are continually produced in regular amounts.
Examples of commodity goods in the fashion indus-
try include cotton/polyester blend fabric, and men’s
white business shirts and dark socks. Other commod-
ity items are basic types of underwear and soft-sided
luggage. These items are in continual mass produc-
tion and retailers always have them in stock for fairly
dependable, constant sales.
Likewise, fashion products are always changing.
For instance, last year’s model or style cannot be sold
this year because it is no longer in demand. It is diffi-fi
cult to predict what the demand for, and sales of, fash-
ion 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 profit.fi
There is a great deal of style and timing risk for
companies that deal with fashion merchandise. Wrong
decisions can result in huge financial losses or even
force a company out of business. On the other hand,
right decisions can result in huge profits. Most com- fi
panies 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, Figure 4.5. Examples of
seasonal products for summer are shorts, swimsuits,
and beach towels. Winter goods include wool sweat-
ers, heavy topcoats, and gloves.
Momentum Vision/Shutterstock.com
Figure 4.5 Th is outfi t includes a fashionable knit top
with commodity denim shorts. Why is it also a seasonal
outfi t?