For those of you who are starting a clothing business without any formal training in the industry, it is important that you learn how to create a TECHPACK, which will include a technical flat sketch or a good working drawing with all of the design’s details.  Flats are used extensively within the industry to explain designs in detail.  A technical flat is drawn as if it were laid out flat on a table with all the seams, darts, and construction details.  If you have ever seen a drawing on the backside of a commercial store-bought pattern, you will understand what a flat or working sketch is.  It is what it says it is, a flat two-dimensional drawing without a figure, drawn to scale.  It is used to explain to everyone involved in the construction process, how a garment is designed and constructed with all the relevant details pertaining to the design.

Technical Flats are used for a variety of purposes that go into the specifications and or final Tech Pack.

• Cost sheets
• Pattern cards
• Callouts: Printing, embroidery etc.
• Line sheets
• Specification sheets
• Presentation boards 

 

Tech Packs include all the above information plus sewing and finishing details. Tech Packs are also used as a legal document of how to manufacturer any type of apparel. This legal document will be used as a form of contract to be followed by the source of production.

Tech Packs include all the above, with the style’s precise measurements and a precise front and back sketch, a Technical Flat Sketch, including construction details, grading rules and call-outs, plus a Product Details page, listing all of the materials and component specifications. Generally the technical flat is a black and white line drawing, not stylized, but they can be colored with a rendering of the fabrication or a scan of a print or fabric

Once the sample yardage is acquired, the first pattern is made from the designer’s first sketches. 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 sewn sample.  Once the sample is accepted into the line a 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 requiring the garment to be remade a number of times before it is to your satisfaction.  The next step is to create the first sample.  The contractor that you plan to use for your production, (not necessarily a sample maker) can often also make the first samples.  This has the added advantage of the contractor being able to cost the garment for production.  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.

Sample Techpack

VIA CALIFORNIA APPAREL NEWS

by Andrew Asch, Retail Editor (California Apparel News)

West Hollywood, Calif., is on track to become the first city in America to enforce a ban on new fur sales.

The stylish city is a location where designer boutiques such as Balenciaga, Kitson, Maxfield and 3.1 Phillip Lim sell fashion to celebrities, tourists and affluent locals. But it also has been the vanguard of the animal-rights movement since the city’s incorporation in 1984. Councilmember John D’Amico campaigned on issues such as animal rights before he was elected to the City Council in March 2011.

West Hollywood’s fur ban was approved in November 2011, yet the City Council wanted to find out how the ban would affect the retailers it represents. The council called for an economic-impact survey. If retailers told pollsters that a ban on the sale of new fur clothing would seriously damage their business and the West Hollywood economy, city councilmembers promised they would consider changes in the law. CLICK HERE FOR THE COMPLETE ARTICLE

As the world gets small the apparel and fashion industry becomes much more integrated as a Global platform. Business people who work internationally, or work with people who are internationally based need to know how to interact before they can conduct any business in foreign parts. Proper business communication includes everything from emails to eye contact, and the rules of what is “right” in other countries can be daunting to navigate and understand.

I have been fortunate to have traveled internationally both for personnel and for business reasons. This year alone I have been to Peru, South Africa, Mozambique and the UK three times. If you think good etiquette is reserved for the aristocracy, think again. Poor business etiquette can cause serious offence. And in a working environment, it may mean a loss of business. By etiquette we’re not just talking about which fork to use at dinner. It involves knowing how to behave in social situations and business meetings, dressing appropriately, being sensitive to cultural differences and watching what you put in emails. Maintaining good business etiquette is vital to your career and business. Good business etiquette is about presenting yourself in a way that makes your clients and colleagues take you seriously. It’s about being comfortable around people and making others feel comfortable around you.

International business etiquette manifests in many shapes and sizes. Throughout the world people from different cultures have varying etiquette rules around areas such as personal space, communication, gift giving, food, business meetings and much more. For those wanting to make a good impression and understanding of international business etiquette is crucial.

Business Card Etiquette

When you exchange business cards do you simply pass it over and forget about it? In many countries the business card has certain etiquette rules. For example in the Arab world you would never give or receive a business card with your left hand. In China and Japan you should try and use both hands to give and receive. In addition it is always good etiquette to examine the card and make a positive comment on it. Whereas in the US and UK it may be OK to sling the business card into a pocket, in many countries you should always treat it with much more respect such as storing it in a business card holder.

The Etiquette of Personal Space

How close do you stand to people? Is it impolite to touch somebody? What about gender differences? In the Middle East you may get very touchy-feely with the men, yet one should never touch a woman. A slap on the back may be OK in Mexico but in China it is a serious no-no. Touch someone on the head in Thailand or Indonesia and you would have caused great insult. Without an appreciation of international business etiquette, these things would never be known.

The Etiquette of Gift Giving

Many countries such as China and Japan have many etiquette rules surrounding the exchange of business gifts. International business etiquette allows you an insight into what to buy, how to give a gift, how to receive, whether to open in front of the giver and what gifts not to buy. Great examples of gifts to avoid are anything alcoholic in Muslim countries, anything with four of anything in Japan and clocks in China.

The Etiquette of Communication

Some cultures like to talk loudly (US and Germany), some softly (India and China); some speak directly (Holland and Denmark) others indirectly (UK and Japan); some tolerate interrupting others while speaking (Brazil) others not (Canada); some are very blunt (Greece) and some very flowery (Middle East). All will believe the way they are communicating is fine, but when transferred into an international context this no longer applies. Without the right international business etiquette it is easy to offend.

Someone may very well come across as being rude through a lack of etiquette but this may be because in their culture that behavior is normal. As a result international business etiquette is a key skill for those wanting to be successful when working abroad. Through a great appreciation and understanding of others’ cultures you build stronger and longer lasting business relationships.

I have made the mistake of asking a Chinese business associate how many children he had. This was an insensitive blunder on my part, since I knew that the government limits majority to have only one child.

Having some kind of a basic understanding of International business etiquette will help you build the right bridges to doing business on a Global platform. It will also show respect and a better understanding for all our own strange habits.

If we look at this graph I think it tells it all! China is now responsible for purchasing 48% of ALL branded products. How important will be that we partner with them?

Shopping Shifts East

I was recently cordially invited to attend an invite only event for US companies to present their product for potential investment. There are many new opportunities for US brands to find a Chinese investor. They are looking for US companies who have begun to experience expansion and growth, plus begun the branding process. US companies should have a viable business and financial plan.

The meeting was planned to meet with a business delegation from Shanxi Province of China for business networking to interact and explore opportunities between my business or any within my FBI members network ready for this opportunity. The Chinese companies are leaders and best performers in their industry and sectors. I had opportunity to present and establish contacts and discuss in depth with 12 business owners and/or executives in a Round Table session, where I could exchange information with them in terms of purchasing and sourcing, new product lines, R&D needs, market trends, potential investments, and form partnerships.

 Based in Beijing, this investment company is one of the most important and visionary companies in China to help Chinese enterprises to implement go-global strategy; to identify and develop diversified international footprints for Chinese companies, and help to stimulate local economy of international markets. It is also the contact point for global businesses to access Chinese companies and products, buying power, and investments. In the past ten years, they have created the largest overseas trade and investment platforms for China, through organizing large scale Chinese merchandise fair and trade show overseas, inventing and creating signature “Dragon Mart” in global markets, and organizing international road shows for enterprises and economic development organizations of China.

This is only the beginning and another example of why we need to grow our partnerships and develop relationships with China. They invest in a US company and then maybe they can get a Green Card! Win, Win!

In my next blog I will explain about another very exciting China Connection I am involved in.

Importance of Costing
By Frances Harder
Extract from Costing for Profit

The result of preparing a proper cost sheet provides a company with the essential analytical information for Gross Profit auditing controls. The total of all costs related to the production of the products is called COST OF GOODS SOLD referred to in the industry as COGS. The cumulative information for all styles will be reflected in your Financial Statement. The difference between the Cost of Goods Sold and the Wholesale Price of the products being offered to the retail market is the Gross Profit. The percentage between the Cost of Goods Sold and the Wholesale Price reflected in the cumulative sales each season and each year is your profit Margin.

Thus if the Wholesale price of the Garment is $50.00, the Cost of Goods Sold is $25.00.

The difference of $25.00 is the Gross Profit; the Gross Profit is 50%.  The gross profit of $25.00 must also provide the funds to pay the company’s daily overheads, plus sales representative’s commission. This may sound simple but one missed cost or miscalculation can be devastating to your business.

Today’s Demand for Speed to Market

For the most part mass produced clothing is produced off-shore, but some production is coming back! Made in the USA is in demand.  Lower cost of off-shore workers wages has increased. Retailers are buying closer to selling time. Retailers demand for speed to market and smaller orders are in the long run good for the cash flow of the manufacturer.

Many successful companies have fine-tuned their costing department to realize profitability. Others unfortunately, unwittingly consider it more important to concentrate on design and realize too late that the “Business of Fashion” is a business, and ultimately must be about costing to make a profit.

Fashion Business Inc is featured on Bloomberg Businessweek! Click below to see what they are saying.

Click Here - Fashioning a Textile Business From Scratch -

Selling on Consignment

Since the economic downturn, consignment buying has become one of the newest forms of selling. Consignment selling can be an effective way to get your foot in the door and move toward selling your product through traditional selling on a wholesale basis.  But it will be VERY important to understand the nuances involved in this type of business transaction as it may not be a good fit for apparel and accessory selling due to the fact that clothing can be compared to fresh food. They both age fast and become worthless.

Consignment: Consignment selling is the practice of allowing vendors (retailers) to place your merchandise in their store for sale, with payments to be made after the merchandise is sold. The sale price is usually split 50-50. 

Selling on consignment can be advantageous to both the consignor and consignee depending upon the consignment terms. Some shop owners try to be a little deceptive by slipping in hidden costs like ‘Buyer Fees‘ which are deducted from the sale price prior to splitting the sales proceeds, but for the most part, most shop owners will be local people with a reputation  earned and usually it will be important for them to keep,  and are basically honest people. Selling through a local connection is easier to controlled and the preferred method. Selling on consignment to stores that are outside of your local area will be very hard for you to oversee.

Selling Items online through eBay or Amazon are two other good examples of consignment selling online. Given the degree of success, this form of sales now rivals physical bricks and mortar stores in sales volume. But it’s possible that prices garnered for items sold online are lower than they would be in physical consignment stores because people still like to see what they are buying before purchasing. Unless the items sold online are already branded and the customer can identify with the brand. Knowing the brand the customer could have a preconceived idea as to the fit, quality and finish of the garment they are purchasing.

Used Clothing and Vintage is another example of items that are selling well in today’s market. One interesting FBI member/company that began selling vintage pieces online has now grown an impressive following. “NastyGal.com” now includes selling new products for junior contemporary clothing and is shipping millions per month.

As with most things there are Pros and Cons:

Pros: Consignment sales can be a good way to supplement your overheads and bring in some extra money by selling off old, or aging inventory. However, if you decide to offer consignment, you will need to setup very careful records.

Sales Agreement A contract or written agreement needs to be prepared for each consignor. The agreement should state when the payments are made, who is responsible for loss or damage (normally the consignor), and how long items should be allowed to remain in the store before it becomes old merchandise! Placement and display of consignors’ product can often be an issue, and therefore should be discussed beforehand. In a typical consignment agreement, the consignor furnishes an item for consignment and the store owner displays that item to the public. ‘Aged discounts’ refers to the practice of marking the price of the item down (by percentage or dollar amount) after a given number of days for the purpose of making the item more attractive to potential buyers. The item may be discounted several times over the course of time and if left unsold, will either be returned to the owner, forfeited to the shop, given to charity or marked down to such a low price that someone will surely buy it.

Questions to ask vendor:

Where will the product be placed in the store?

For how long will the items be in the store before mark down or returned?

What happens if the product gets damaged? Who is responsible?

How will payment be paid?

If the product should prove to be a good seller the retailer may offer the option to shift from consignment selling to a wholesale relationship within a set period of time (90 days is fairly common). Consignment selling can help you to create a track record of retail sales that you can then quote to potential new wholesale customers.

When sourcing inventory for their stores, retailers look for items that meet and exceed their customer’s expectations in terms of quality, style, function and price. They want items that provide good potential for profit, and they also want to work with suppliers (that’s you!) who are professional, reliable and will ship on time.  As with all parts of the supply chain it’s important to show that you are someone they would be happy to work with.

Look at more upscale consignment opportunities. Lower end consignment is not typically a good fit for small apparel manufacturers with a higher end price point. It will be a struggle to charge a fair price and make a sale.

Visit the store as a customer before contacting the store owner or manager. It will help you to get a sense of types of items already available in the store, their price points and whether your items would fit well with existing items in the store.

Should you get approached at a Tradeshow to sell to a vendor on consignment and you do have any history with this vendor and their store is a different state then be very courteous about accepting this business. Even stores like Bloomingdales have enjoyed s a bad reputation when it comes to paying on time.

Consignment Selling for Established Manufacturers, Tricks of the Trade

Selling off aging inventory on consignment to bigger department stores such as Niemen’s, Nordstrom and Bloomingdales is often termed in the industry as selling  “On Rollers”. They already have manufactured the goods so putting them in a department store on consignment can be a good gamble and a means to downsize inventory.  Often the manufacturer will then purchase their own goods back from the retail to prove that they can in fact sell through! They figure that advertisement charges to the branded label from these department stores are often a larger dollar amount and also a gamble on investment. So as the goods are already sitting in a warehouse somewhere, consignment selling can be another means to an end. Although you are buying back your own product at full retail price you have proved to the store that your goods can have a good sell through. So you can build a good history. You can now sell your product again possibly with a real order. The money you have spent in buying back your own goods has achieved a purpose that your goods will sell!

Next topic Chargebacks