GARMENTS PRODUCT DEVOLPEMENT

Product Development
Product development is the first step in the manufacturing process. This involves lots of research and inspiration. For the start-up entrepreneur it will mean a great deal of research and market analysis in order to come up with a product which will be in demand. Manufacturers and even large retailers such as The Gap, J.C.Penney, Sears, and The Limited all spend a great deal of money on product development and formulating new ideas. This could mean a trip to Europe to view the collections and research ideas in European stores and on the streets. It may involve exhibits and professional trend services that predict styles, fabrics and colors for the next season. Design is an on-going process and as soon as one line is complete, the designer will have to begin on the next season's designs, producing four to six collections each year.
As a start-up manufacturer developing a first line, coming up with fresh ideas for the next line can often be problematic. Remember that you will never have as much time to develop a future line as you have had for the first line you produce and market.
Each garment must be individually styled, and although it may be similar to other garments in the line, as well as to garments in the preceding line, it will still need new individual features of its own. These similarities represent the signature look for the individual company, which retailers and customers come to recognize and return for. This is called "Branding " and it is important that a manufacturer can achieve a look that is recognized and as such has a brand image. To perform this miracle of styling, the designer starts with structure, trimming and fabric. The necessity for balanced proportions, good fit and quality for the money paid by the customer is another important aspect of producing a sellable line of clothing.
Within the limitations mentioned the number of "pieces" in a line depends on the size of the company and the price range of the product. For a start-up manufacturer keeping the line small and manageable is important. Finding a product that can fill a need in a market that is saturated with old styles, and with a price ticket that will allow the start-up to provide product and make a profit, will make the difference between success and failure. Some successful companies have begun with one item, which sold in large quantities and made it possible for them to grow slowly. Of course there have been many manufacturers who have been "one trick ponies" that have not been able to develop another successful item and are gone in a few short months of starting their business. Product development is where it starts and finishes
Fashion Trends
There is in the fashion industry a constant flow of information about what the customer is buying. From the manufacturer of the finished garment, information about customer preferences, as expressed in customer purchases, flows in several directions. One example is when information flows back to the retail store, via the manufacturer’s sales representative, who alerts the store to trends they may not have noticed. Sales representatives are constantly analyzing the fashion trends, and a good representative can help a manufacturer with such information. Another flow is to the fabric producers, in the form of the garment manufacturers’ reorders for the most accepted materials, patterns and colors. From the records of an individual store, the retailer can discern sudden or gradual changes in the preferences of the customer and is able to spot new trends. There are, however, professional trend services that provide manufacturers with future trends in design, fabric, and trim that will likely be in the stores in the forthcoming seasons. These trend services can be expensive, but many manufacturers feel they are worth it. Choosing Fabric For a Line
As a designer it is important to find the right fabrics for your first line. This could mean a trip to see fabrics at a textile show. Textile shows will inform you of new trends and colors for the following seasons. Finding your dream fabric on your first line can be a problem for a start up business. Most mills want you to buy minimum yardage, which could be as much as thousand yards. It takes patience to fabricate your line and find the best choice at the right price. Plan on using just a few fabrics at first: no more than three. You cannot afford more, as it will cost too much to produce. Do not give up; use all the resources mentioned in Chapter 5. There are great fabrics available, and with the Internet, finding the right fabrics has become easier.
Usually a designer plans a certain number of garments for each type of fabric and color selected; this is called a story. A certain proportion of the line could be high-end fashion, with some styles designed in more basic styling and fabric, which would complement the more extreme styles. Price as well as the design influences the choice of fabric and trimmings. If the fabric is on the more expensive end of the budget, then a simpler design will be necessary in order to keep the garment within the price range required for the line. A more reasonably priced fabric can be cut in a more elaborate style that will allow the major cost to be in labor.
First Pattern & Sample
Once the sample yardage is acquired, the first pattern must be made. In order to produce a good first pattern, the patternmaker must be able to understand the design that is to be translated into a pattern, and then into a first sample. A flat (technical drawing) of the garment is sketched with finished dimensions and sewing details, topstitching, zipper length, etc. If you are trained in draping, and are able to make your own patterns, this will obviously save you a great deal of money. You will then be more likely to achieve your vision of how you would like your garments to look and be produced, without having the garment remade a number of times before it is to your satisfaction. The next step is to have the first sample sewn. The contractor that you plan to use for your production, (not necessarily a sample maker) can often make samples. This has the added advantage of the contractor being able to cost the garment for production. Contractors like to sew the first sample, as they hope that they will then be able to sew your production orders. Using this method allows the contractors to become aware of any problems involved with sewing a particular style, and enables them to give a fair estimate of the costing. As a rule of thumb, sewing the first sample is usually two to three times the price of sewing a garment in production Product Costing
It goes without saying that the simplest garments cost less to make. As styling details are added; pockets, fancy seaming, linings and trims etc, the cost of the finished garment will increase in labor cost in production. If you have chosen an expensive fabric for one of your designs, it would be wise to keep the details to a minimum. Using expensive fabric and many styling details often makes the finished cost of the garment too high for the market which has been targeted. Costing a garment is a formula; figuring costs of fabric and trimmings with labor plus business overheads and profit is a mathematical equation. Overhead costs are affected by such factors as design research, markdown sales losses, brand advertising, promotions, rent, and everything else that goes along with owning and running a business. This all has to be calculated into the costing of a garment. The cost of piece goods (fabric) is generally about one-third the initial production cost of a garment. Ultimately the final figures may be a subjective call of what the market will bear. If you price your garments higher than comparative garments sold in stores that you have targeted for your product, you will find that your clothes will be left on the rack! For the small company, the mark-up will be higher than for bigger mass-producing companies that have a lower mark-up percentage due to the volume they manufacture. Editing Your Line
Designing for the most part is experimental, and there will be a number of first samples that will not make it into the line. Editing the line or weeding out is a very important stage and it takes someone with experience to pick the potential good sellers. The approved sample for the line will have the right combination of fabric, styling, and trims, and can be sold for the right price with the appropriate profit margin. It takes only a few really good styles for a company to have a successful season. It takes only a few bad styles to close a company or make for an unprofitable season Production Pattern, Marking, and Grading
Once the line is edited and the sales representative has the line, then the first pattern is made into a production pattern. The Production Pattern is a perfected first pattern. This means that the first pattern is corrected for fitting and sewing details and the lay of the fabric is tested for an economical marker. The production pattern is then given to the Grader and Marker Maker to be graded into sizes. These days the computer is mainly used to perform these two steps, although there are still hand graders and markers who do an excellent job.
Grading is taking the first production pattern, which is normally a middle size, like a size 8, and grading it up and down into other sizes. Grading is an important part of production, so the grader must be experienced. Production samples of the graded sizes are sometimes made to test the fit, and specifications are written for each garment and each size. This will ensure that in production the garments are sewn exactly as the approved production samples. Duplicate samples are usually made at this stage. Duplicates of the line are sent to the various sales representatives to show to buyers all over the country. (The larger the company, the more sales reps you have to represent you).
The grader usually makes the marker as part of the service. The marker is made for the complete pattern, using as little fabric as possible and interlocking the pattern pieces together to ensure there is no wasted fabric. It is printed out onto paper that is the same width as the fabric. The marker is made to be used by the cutter who will follow it while cutting out the pattern pieces. It is laid over layers of fabric that has been rolled out onto large cutting tables. The fabric is some times rolled out and layered to thirty layers of fabric or more
Fabric and Trim Ordering
As soon as the line is completed and the duplicates made for the sales reps to show and write orders, an estimate of how much fabric will be needed to produce the line is usually done. This step should be given close consideration, as ordering too much fabric will result in waste, which will take away from the profit. To order too little will result in losing orders, and the profit margin. These days it is best to be conservative and to order on the safe side. If there are more orders and not enough fabric, then you can explain the problem to the retailers, and if you are lucky they may be Building a Cutting Ticket
Once the sales representative starts to write orders, the manufacturer will begin to write cutting tickets. This will give a good idea as to what items in the line are going to be good sellers, and what will not. An estimate of the yardage will then be made and the fabric will then be ordered. As soon as the fabric arrives for production it must be checked for flaws or shading. If this is done as soon as the fabric is received, there maybe time enough to return any damaged goods and receive replacement fabric.willing to wait for a reorder of fabric to fill their Cutting
Having in house cutting demands a higher volume of sales in order to justify the cost of employing a full time cutter. Therefore, start-up businesses usually give the fabric to a cutting service to cut the garments. Often, the cutter and the contractor are under one roof and will be responsible for both cutting and sewing the complete garment. The cutting is done on large, long cutting tables that are the full width of the fabric rolled out on to them. The marker (as explained earlier) is placed on top of the fabric and the piece goods cut for production with band knives that vibrate up and down to cut through the numerous layers of fabric at one time. Larger manufacturers use computers to grade, make the marker, and cut out the pattern from the fabric. The cut garments are then separated and bundled into lots to be sewn together by the sewers. orders. Production of the Garment
Usually a contractor is responsible for taking the cut goods and sewing the garments for production. Larger companies may sometimes have their own in-house sewing operators, and still contract out some of their work. Some larger companies cut in the U.S. and then ship the cut garment to an off shore contractor to sew together. Or, they may have the total production produced abroad, which will enable the manufacturer to produce at a more competitive price point. There are pros and cons for producing offshore. Some manufacturers would rather pay more and have their garments produced domestically where they are able to keep better control over the quality of goods, have a faster turn around in production, and not have the customs and shipping costs to contend with.
Contractors generally work in piece goods, this means the garment is sewn piece by piece. For example: one operator is responsible for sewing a collar, another is responsible for setting the sleeves and another will complete the whole garment by sewing the finished pieces together. Each worker is paid depending on the number of pieces he or she has sewn.
Operators who show exceptional ability are frequently promoted to produce the first sample, (Sample hand), which is responsible for the prototype samples. This position requires a person that has a number of years experience and who can produce a good looking garment. They are generally assured steady employment at a regular weekly salary. A good sample maker is hard to find and well respected.
Betterwear companies have their garments sewn completely by one operator to assure a better quality garment; these operators are paid by the hour and not by each piece produced.
It is a common practice these days for a group of operators to be responsible for one garment, working as a team to sew the complete garment. This induces a sense of pride in the operators as their finished product is recognized as their own work. This is known as the modular method
Quality Control and Distribution
It is important for the manufacturer that the quality of the goods be carefully controlled. In the beginning this will be done by you; it is your responsibility to check with the contractor to ensure that he is following closely the construction methods used in the production sample and that the quality remains constant. This is achieved by going to the contractor’s factory and inspecting for yourself the quality of goods produced. Once the contractor finishes the garments, they are delivered for final quality inspection and shipping, or the contractor himself could be responsible for shipping the garments when completed. These days the industry is using more technology, which makes for better quality in production, increased efficiency and faster movement of goods from factory to store. The use of coding tickets sewn into the garments makes tracking the garments from cutting through to the final sale an efficient method of keeping a record of production. Even cash registers can be coded to send reorder information to suppliers as stocks drop. The garments will be shipped either on a hanger or flat in plastic bags depending on what arrangements were made with the retailer. The garments are grouped depending on the customer and the dates to be shipped. An order always bears two dates: the date after which shipping can begin and the date before which it must be completed to avoid cancellation. Late shipping must be avoided at all costs as the store could cancel its order Buyer Reaction
When the ordered garments arrive at the receiving department of the retail store, they are checked in, examined and delivered to the correct department of the store. The retailer will cost the garments with their own mark-up costs. The norm for most department and specialty stores is to double the manufacturer’s price plus an additional 20 to 30 percent, or what the industry refers to as “2.2.” If a garment costs $100 from the manufacturer, it will be $220 on the retail floor.
An initial order may not be very large. Buyers often check how the stock comes through, which means how the manufacturer produces the finished garments. Buyers will also watch for public reaction to the orders. The numbers that prove popular are reordered in greater quantity, whereas numbers that do not sell satisfactorily go on the mark down rack. How long a garment stays on the floor before it becomes sales merchandise varies with the store and the competition. Retailers soon learn what types of garments sell best, and from which manufacturer they come. The stock is analyzed each day, and records show how many of each size, color, and style are sold. Armed with this information, a buyer will return to a manufacturer for reorders or returns.
Selling to large department stores has become a very risky business and new companies should be aware of canceled orders and charge backs. Basically, this is when the store wants part-payment for any of your garments that have not sold and end up on the mark down rack, or if you should ship late. In reality charge backs are much more complex, and are explained later in this book. Mark down money adds to the manufacturer’s overhead costs and may boost the original retail price of the garment. Manufacturers who want to keep the stores as customers try to cooperate. Unfortunately, it has become such a contentious issue that some manufacturers refuse to sell to certain retailers because of these charge back issues. This is a reason for seeing so many manufacturers opening their own retail stores in recent years.
For start up manufacturers, it is best to avoid the large department stores. They can break a small company in one order. Diversify your orders to a variety of smaller stores Financial Organization
This part of your business must be carried through with much planning and with as much advice as is available. The first step is the business plan. This can be an arduous task, but by carefully following the simple directions laid out in this book, you will complete a business plan in less time than you may think possible. Next, the bookkeeping should be set up, to allow the business to flow smoothly and efficiently. Arrange bank accounts with business checking; make company business cards; and apply for licenses. Use the many free forms of help that are available to new companies, including the forms that have been included with the purchase of this book. It is in your interest to use this readily available help. Remember that without good financial planning you are basically wasting your time and money! It is here that most businesses fail. By not paying attention to this part of the business there is no business. Out of ten businesses that start, one may make it. The first two years are critical. Apparel Retailing
Opening a retail store in order to sell directly to customers is attractive to many designers, lured by the promise increasing sales and building a brand. However, like manufacturing it should be fully investigated before making a final commitment. Many fashion designers, both large and small, have become successful retailers. With the addition of a retail store the business now becomes a vertical operation; from the first sketch to the point of sale, the designer/manufacturer has control. Once you open your store, it may also be a good idea to include other product lines within the store, which would complement your own creations. These other lines could be sold on consignment, which would help cut back on the direct costs of investing in inventory. Having several options will empower you and help you to make the right decisions. Opening a retail establishment demands a significant amount of time to properly oversee every aspect of the fledgling business. As a designer/manufacturer do you have that time available?
Finding the right location and understanding your customers' needs are key elements of owning a retail store. It is helpful to sell what you know! However, if you are not familiar with basic marketing principles or the fashion industry, it will be critical to learn about and investigate the market. Becoming profitable will require continual upgrading on a weekly basis to improve and refresh your retail operation.
All of the information in Fashion for Profit is valuable to you when planning to open a vertically operational retail store. Even if you are not going to manufacture clothing yourself, it is important to understand all aspects of producing a garment, from concept to the consumer. Some of the most important issues that will influence your success as an apparel store owner will be the same as the components necessary in becoming a successful designer/manufacturer; both your discerning good taste and your business expertise.