Level 1 – mill level – textiles materials, zippers, thread, trims and buttons are manufactured and sold to apparel firms.
Level 2 – Apparel manufacturing level – apparel firms are responsible for the marketing, merchandising and production of products.
Apparel manufacturers have two types of organizational structures
those that perform all or nearly all of their manufacturing in their own facilities and by their own employees.
those that contract some or all of the manufacturing functions to other firms.
In level 2 apparel retailers also interact with apparel contractors. This means that retailers sometimes hire the contractors to produce apparel that they want to sell in their stores.
Level 3 - Retail level - retailers are also identified by store type in their traditional roles – retail level.
Apparel contractors are sources of many goods and services. Apparel firms that hire contractor services often buy materials, design and sell the products produced. Sewing contractors may use the materials and patterns provided by manufactured or retailers and provide equipment and labor to produce the finished garments according to the manufacturer’s or retailer’s specifications. Many manufacturers and retailers hire specialty contractors to perform processes for which they lack skills or equipment. Special operations such as making belts, pleating, printing, embroidering are contracted as needed for certain styles in a line. During peak of seasonal production period, many manufacturers hire contractors to supplement their production. At the same time in level 3 manufacturers enter the retail business through factory owned business. This makes the manufacturer to have direct contact with the consumer which aid in decision making process during product development.
Level 4 – Consumers – who are the target and purpose of the entire textile and apparel industry. Satisfied consumers make business growth and profitability possible.
Participants