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A production methodology aimed at reducing waste without sacrificing productivity. Fashion brands adopt lean manufacturing to cut costs and increase efficiency in garment production.

The series of steps a company takes to turn raw materials into a final product. In the fashion industry, the value chain includes design, production, marketing, and distribution of garments.

The practice of displaying or marketing products from different categories together to stimulate purchase. In fashion retail, it might involve pairing accessories with clothing to suggest a complete look.

Cost advantages reaped by companies when production becomes efficient. Fashion companies achieve economies of scale when they produce clothing in larger batches, reducing the cost per unit.

Brand equity refers to the value a brand adds to a product. In fashion, brands with high equity like Chanel or Gucci can command higher prices and customer loyalty due to their perceived value.

The management of the flow of goods and services from production to consumption. In the fashion industry, it encompasses the coordination of processes from raw material sourcing to the delivery of finished products to retailers or consumers.

A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. In fashion, this reduces the need for inventory for online retailers.

SWOT stands for Strengths, Weaknesses, Opportunities, Threats. A SWOT analysis is used by fashion brands to strategically plan and make informed business decisions based on internal and external factors.

The process of transforming by-products, waste materials, or unwanted products into new materials or products. In fashion, upcycling is used to create sustainable and eco-friendly clothing lines.

This is when a company controls multiple stages of production or distribution within the same industry. A fashion brand that owns its supply chain from material sourcing to retail is vertically integrated.

Fast fashion is a design, manufacturing, and marketing method focused on rapidly producing high volumes of clothing. Fashion brands like Zara and H&M utilize this approach to quickly bring trends from the catwalk to consumers at affordable prices.

Determines at what point a business neither makes a profit nor suffers a loss. In fashion, the break-even point is critical to understand how many units of a garment must be sold at a certain price to cover costs.

B2B is a type of transaction between businesses, such as one involving a manufacturer and wholesaler. In the fashion industry, B2B includes fabric sourcing from suppliers, wholesale buying, and trade shows.

COGS is the direct cost attributable to the production of the products sold by a company. The fashion industry calculates COGS by including material, labor, and overhead costs for garment production.

The process of dividing a market of potential customers into groups, or segments, based on different characteristics. In fashion, it's used to target specific groups with different marketing campaigns for luxury, mid-range, or budget consumers.

The sale of goods in large quantities at a low price, typically to be resold by retailers. In the fashion industry, wholesale transactions are a common way for designers to get their products into retail stores.

Products that are manufactured by one company for sale under another company's brand. In fashion, it's common for retailers to offer private label brands alongside name brands, offering unique products at competitive prices.

These are main strengths or strategic advantages of a business. For a fashion firm, core competencies might include unique design capabilities, high-quality manufacturing, or strong brand recognition.

An inventory strategy that aligns raw-material orders from suppliers directly with production schedules. Fashion companies use JIT to reduce inventory costs and waste due to unsold goods.

The study of individuals and organizations and how they select and use products. Understanding consumer behavior is key in fashion for designing, pricing, and marketing products.

B2C refers to the transactions between businesses and individual consumers. In fashion, this encompasses retail sales where brands sell directly to the end customer through stores or online platforms.

A model where brands sell directly to customers without intermediaries. For fashion companies, DTC allows for higher profit margins and better understanding of customer preferences through direct feedback.

A multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the client is shopping online or in a brick-and-mortar store. Fashion brands use this strategy to integrate various shopping channels.

Retail merchandising is the practice of promoting the sale of goods at retail. Fashion retailers use merchandising to attract customers with visual displays, store layouts, and promotional events.

Gross Margin is the difference between revenue and COGS. It is often expressed as a percentage of revenue. In fashion, a high gross margin indicates that the company is selling products at a price significantly higher than the cost of production.

A SKU is a unique identifier for each distinct product and service that can be purchased. In the fashion industry, SKUs are crucial for tracking items, inventory management, and sales analysis.

Market penetration involves selling existing products to existing markets. Fashion brands often look to increase their market penetration by offering promotions, discounts, or improving product visibility.

Refers to the stages a product goes through from conception through to decline. In fashion, products typically have a short lifecycle due to changing trends and seasons, requiring constant innovation and update.

The total amount of money being transferred into and out of a business. Positive cash flow is crucial in fashion to ensure suppliers are paid, inventory is replenished, and operations continue smoothly.