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Slide 1 - Bell Ringer Your credit card has a balance of $1500 and is assessed an interest fee of 15%. What is your new monthly credit card balance?
Slide 2 - Bell Ringer Answer $1500 * 15% =
Slide 3 - Fashion Tip of the Day Spend Your Budget on Accessories "Cool shoes, interesting jewelry—those can really elevate your look," says stylist Isabel Dupré, who notes that a wardrobe of the right little extras lets you be more relaxed about the rest of your outfits.
Slide 4 - Table of Contents Topic Page # Chapter 1 Vocabulary 4 Chapter 1 Vocabulary 5 Elements of Design Flip Book 6 Chapter 1 Notes. Introducing Fashion 7 Color Schemes 8 Chapter 1 Notes. Introducing Fashion 9 Body Shape Outfits 10 Chapter 1 Notes. Introducing Fashion 11 Fashion Through the Ages Sketches 12 Chapter 1 Notes. History of Fashion 13 Identifying Target Markets 14 Chapter 2 Notes. Marketing Basics 15 Functions of Marketing 16 Chapter 2 Notes. Functions of Marketing 17 Secondary Markets Graphic Organizer 18 Chapter 3 Notes. Fashion Businesses 19
Slide 5 - 18 19 Chapter 3 Notes. Fashion Businesses Secondary Markets Graphic Organizer Notes Notes Notes Notes
Slide 6 - Agenda Bell Ringer – (5 minutes) Introduce Chapter 3.1 – (5 minutes) Lecture and Notes – (25 minutes)
Slide 7 - Learning Targets Explain the three main segments of the fashion industry. Describe the primary forms of business ownership. Identify the key risks faced by fashion businesses.
Slide 8 - Vocabulary Words Primary Market Secondary Market Tertiary Market Retailing Sole Proprietorship Partnership Corporation Risk Risk Management
Slide 9 - Fashion Industry Segments Primary Market  Businesses that grow and produce the raw materials that become a fashion apparel or accessory. Secondary Market  Businesses that transform the raw materials into fashion in the merchandise phase. The link to the retail world. Tertiary Marketing  Stores that sale the fashion merchandise.
Slide 10 - Primary Market These businesses play a key role in the development of fashion. Involves technical research and planning as well as complex production processes. These businesses must be aware of current consumer needs and fashion trends.
Slide 11 - Primary Market - Textiles The textile industry is the largest segment Industry produces the fiber, leather, fur, and any other substance involved in production.
Slide 12 - Fibers Cotton  Cotton Plant Linen  Stem of a Flax plant Wool  Sheep Silk  Silkworm (Caterpillars) cocoons or in a factory Rayon  Fake silk, produced in a factory from cellulose Nylon  Synthetic fiber, made in a factory Polyester  Made by reacting dicarboxylic acid with dihydric alcohol. Leather  Cowhide or animal skin Fur  Animals (Fox, Raccoon, Mink, etc)
Slide 13 - Secondary Market Produce garments by transforming textiles to the finished product, or wearing apparel. Businesses are responsible for designing, producing, and selling the goods to the retailers. Manufacturers, Wholesalers, Contractors, and Product Development Teams
Slide 14 - Secondary Market - Manufacturers Handle all operations such as buying the fabric, designing or buying designs, making garments, and selling and delivering the finished garments. Example: American Apparel
Slide 15 - Secondary Market - Wholesalers Design staffs produce the designs. Purchase the textiles or other raw materials necessary for the designs and then plan the cutting of the materials. Coordinate the selling and delivery processes. *Similar to manufacturers, but no dot make the clothing.
Slide 16 - Secondary Market - Contractors Responsible for many aspects of production – from sewing and sometimes cutting to the delivery goods. May produce designs for merchandise that carries a store’s label. INC for Macy’s
Slide 17 - Secondary Market – Product Development Teams Design, merchandise, and outsource work to contractors.
Slide 18 - Tertiary Market The selling of products to customers Department stores, specialty stores, discount department stores, variety stores, off-price stores, warehouse stores, outlet stores, and non-store retailers.
Slide 19 - Types of Fashion Business Organizations Sole Proprietorship Partnership Corporation
Slide 20 - Sole Proprietorship Business is owned and operated by 1 (one) person. Requires licensing from local authorities, but is not controlled by federal government regulations.
Slide 21 - Sole Proprietorship Risks  The owner takes responsibility for all assets owned, whether used in the business or personally owned. Taxes  The business profit is taxed as personal income tax at a rate less than that imposed on corporations. The owner includes the income and expenses of the business on his or her personal tax return.
Slide 22 - Sole Proprietorship PROS Freedom to operate as the owner feels necessary Sell the business Remains in existence for as long as the owner is willing or able to stay in business CONS Financial management and liability is the responsibility of the owner Huge task for one person
Slide 23 - Partnership A business created through a legal agreement between two or more people who are jointly responsible for the success or failure of the business. The agreement includes arrangements for the contribution of each partner and division of profits and it states the authority of each partner. Each partner contributes money, property, labor, or skill, and expects to share in the profits and losses of the busness.
Slide 24 - Partnership Taxes  Fewer regulations than a corporation and each partner is taxed separately on individual tax returns. Must file an annual information return to report income, expenses, deductions, profits, and losses from its operations. However, it does not pay any income tax.
Slide 25 - Partnership Personal Liability  Each partner is personally liable for debts of the partnership. A partnership ends upon the death or withdrawal of one of the partners, but most partnership agreements make provisions for these types of events.
Slide 26 - Corporations A business that is charted by a state and legally operates apart from the owner of owners. State governments requires that this type of ownership be chartered. A charter is a legal document that grants certain rights and privileges to the company by the state.
Slide 27 - Corporations Stocks and Shareholders  Has the right to issue stock. Corporations are traded on the stock exchange and their ownership is divided into shares of stock that can be owned by a large number of stockholders.
Slide 28 - Corporations Taxes  The profit is taxed to both the corporation and to the shareholders when the profit is distributed as dividends.
Slide 29 - Fashion Risks Risk  the possibility that a loss can occur as the result of a business decision or activity.
Slide 30 - Risk Management There are no methods to completely safeguard a business from risk. Risk Management  a strategy to offset business risks. Risk management is a systematic process of managing an organization’s risk exposure to achieve objectives in a manner consistent with public interest, human safety, environmental factors, and the law.
Slide 31 - Types of Risks Economic Human Natural
Slide 32 - Economic Risks Risks that occur from changes in overall business conditions. When many people are without jobs, they spend less money on fashion goods. The fashion industry has the risk of not selling merchandise.
Slide 33 - Human Risks Risks caused by human mistakes as well as by the unpredictability of customers, employees, or the work environment.
Slide 34 - Sources of Inventory Shortages
Slide 35 - Natural Risks Risks that occur due to natural disasters or changes in the weather.
Slide 36 - Other Categories of Risks Pure Risks  risks when there is a possibility of a loss, but no chance to gain from the event. Speculative risk  risks that occur when gains or losses are possible. Controllable risks  risks that can be prevented or reduced in frequency.
Slide 37 - Other Categories of Risks Uncontrollable risks  events that a fashion business from occurring such as the weather. Insurable risks  pure risks that could exist for a large number of businesses, includes those for which the probability and amount of loss is predictable. Uninsurable risks  risks that occur when the chances of risk cannot be predicted or when the amount of loss cannot be estimated.
Slide 38 - Managing Potential Risk Businesses can handle risk by different methods: Purchasing insurance Implement employee training Product warranties
Slide 39 - Left-Hand Activity Design a chart or graphic organizer describing the four main types of fashion producers: manufacturers, wholesalers, contractors, and product development teams.