Types of Businesses Fashion Industry Segments n n
Types of Businesses
Fashion Industry Segments n n n Primary Market: includes the business that grow and produce the raw materials that become fashion apparel Secondary Market: includes businesses that transform the raw materials into fashion in the merchandise production phase Tertiary Market: includes retail businesses
Primary Market Textiles: largest segment of the primary market n Produces fibers, fabrics, leather, fur, plastic, metal, paper, and any other substance involved in production n
Secondary Markets Manufacturers n Wholesalers n Contractors n Product Development Teams n
Tertiary Market Retailers n Off-price, specialty stores, department stores, discount stores, variety stores, outlet stores, nonstore retailers n
Support Industries n Advertising Agencies, Accounting and Financial services, computer support industries, website design houses
Types of Fashion Business Organizations n Sole Proprietorship: one owner Minimum license, complete owner liability l Owner owns all assets l Taxed as personal income l Most common form of business in small business l
Types of Fashion Business Organizations n Partnerships Based upon an agreement between two parties on how organization will be run, profits/loss split l Each partner is taxed separately l Each partner liable for debts l Ends at the death of one partner l n Corporation
Types of Fashion Business Organizations n Corporation Formed with a charter which is a legal document l Stocks and shareholders l Taxed as a separate entity l Limited liability for the owners l Corporation exists as a separate entity l
Fashion Risks n Types of risk: Economic risk l Human risk l Natural risk l Pure risk l
Other Risks n Types of risk: Speculative risk l Controllable risk l Uncontrollable risk l Insurable risk l Uninsurable risk l
- Slides: 11