Episode 27 - The Fashion Industry Explained: From Manufacturers to Models

The fashion industry is a complex ecosystem encompassing everything from design and manufacturing to marketing and retail, with a current estimated global value of $35.2 trillion. We explore the structure, evolution, and key players that transform clothing into a worldwide cultural and economic force. 

Encyclopedia Link: LINK

Gabrielle's Social Media Link: LINK

Transcript

Speaker 1 0:00

Hey , divas , and welcome to Magnifique , your favorite fashion industry podcast . I'm your host , gabrielle , and today we talk about the fashion industry extensively . Like , first off , what the heck is it ? What does it encompass ? What are we even

Welcome to Magnifique Fashion Podcast

Speaker 1 0:17

talking about at this point , you know ? So we have a hefty , a hefty episode today , so get snuggly . I say this every episode , but if you're driving , go ahead and pull over . We got a long episode and I need your full attention right here , right now . Obviously , I'm just kidding . If you're driving , you know two hands , ten and two . There's a cop behind you . Speed up , 10 and 2 . There's a cop behind you . Speed up . Really , just live your life as the diva that you are . Also , I'm kind of in a grumpy mood today , so if that comes out , you're welcome . That's all I have to say on that , guys , I also forgot to tell you that my exclusive source for this episode is the Encyclopedia of Clothing and Fashion .

Speaker 1 1:07

I did look up one or two extra little tidbits that I will let you know , because I just found them from random websites and I don't know if we can trust those websites , but I chose to the fashion industry as an umbrella . Term refers to the entire ecosystem that encompasses fashion , from designing to marketing , to the large-scale effects of globalization . The industry itself is further defined by individuals who choose to engage with the various sectors , though , in short , it is the business of making and profiting from clothing and turning apparel into fashion using one's preferences and prejudices . The modern apparel industry has its hands in the production , promotion and marketing of styles , with its main tool being desire , Using what consumers desire to define apparel as being accepted and celebrated throughout history . When consumer desire changes , so must the industry . How else might brands have expanded into fragrance offerings or home goods , in addition to their widespread range of accessories and jewelry ? Consumers drive the business . This also rings true in the evolution and functionality of garments . For example , the crinoline used to be part of the everyday dressing , but as separates became more popular and feasible undergarments , crinoline makers evolved into bra manufacturers . At current , there are four levels to the fashion industry the primary level , which includes textile mills and yarn makers and just the raw clothing material . The secondary level , which encompasses designers , manufacturers and wholesalers . The retail level , which involves all points of sales in stores . And lastly , the auxiliary level . This connects all previous levels through press and advertisement . Today we'll discuss levels two through four .

Speaker 1 2:58

The fashion industry saw its first major and modern boom in the mid to late 19th century with the rise of mass-produced clothing . Designers like Paul Poiret and Charles Frederick Wirth are said to be the founding fathers of modern fashion . Wirth pioneered

Understanding the Fashion Industry Structure

Speaker 1 3:14

the concept of Parisian couture , putting Paris on the map internationally as a fashion powerhouse . The industry then sees a shift to ready-to-wear , mass-produced garments . That sparked the Americanized , large-scale garment factories seen in places like the Lower Manhattan and eventually , the Garment District in New York City , which , if you're interested , my last episode is all about the garment industry's rise and fall . So if you want a little deep dive on that , check it out . The fashion industry today is comprised of luxury conglomerates moving production to cheap labor countries with the exclusive intent of increasing their bottom line , which raises a personal question of mine of if we've lost the art of garment making , but that's a deep dive for another day . If we've lost the art of garment making , but that's a deep dive for another day .

Speaker 1 4:05

I mentioned that globalization is a reason , or a reason that modern fashion is what it is today . While the Western world has practiced large-scale globalization since the 16th century , with colonization , the slave trade and the spice trade , it wasn't until the late 20th century that we uncovered technologies to have end-to-end coverage all over the world , which is kind of exactly what globalization means the connectivity across the globe . This dramatically changed the way society interacts with dressing . In a sense of fashion globalization means clothing sold by

Evolution and Globalization of Fashion

Speaker 1 4:44

retailers who can effectively update inventories , make deals and coordinate worldwide distribution all remotely through computer technology . Globalization in fashion is also a feeling of connectedness and cohesion amongst brands . Worldwide Marketing campaigns encourage fashion consumption and even associate it with pleasure . In tandem , this consumer behavior is monitored and measured . Consumption in our society is necessary for holding up the global capitalist economy and , as we know , capitalism is held up by what Exploitation Our economy , specifically the fashion economy , is dependent on the use of cheap labor in poorer countries .

Speaker 1 5:30

End exploitation Retail corporations like Nike , express and the Gap , just to name a few , outsource their manufacturing through contractors or subcontractors overseas . Again , we discussed this a little bit more in depth in the garment district episode , just the rise of offshore production . But Nike specifically pioneered this outsourcing in search of low-wage employees during the athletic wear boom of the 1980s . Outsourcing to sweatshops in Mexico , china , thailand , romania , really , just to name a few . Wages can be as low as 23 cents per hour , which is so crazy when they're selling their actual merchandise for 80 plus bucks . But don't think the US is completely safe from sweatshops . They do still run Among Us . For example , prison Labor in Los Angeles makes a lot of apparel and there do exist some sweatshops still in the New York City area . While sweatshops continued to deteriorate in their working conditions , the US companies contracting labor refused to take any responsibility for providing a decent working conditions and standards . That was until 1997 , again Nike pioneered , claiming no responsibility for these workspaces because the workers were independent contractors , therefore not Nike's responsibility . This led to the creation of worker unions like Unite and began a campaign for labor standards reform , having independent monitors in these garment factories overseas , provided by the company .

Speaker 1 7:13

Globalization can be summed up as the response to technological advances and an insatiable hunger to be the best capitalist . These two things met and formed Greed's final boss , in my opinion . It's my understanding that without globalization , slow fashion would continue to dominate for a little while longer and sweatshop core merchants such as Shein might have taken longer to come to fruition . Speaking of capitalism , the economics of fashion can be broken down into three sectors Production , distribution and consumption .

The Economics and Retail Categories

Speaker 1 7:53

All three sectors are both deeply intertwined and yet fiercely competitive with each other . Consumer demands keep things spicy , with retailers and manufacturers competing for units sold and at what price point , and varying styles . Manufacturing falls into the first sector of production . Companies historically take out small-term loans to kick-start their garment production and gradually pay them off as retailers purchase goods .

Speaker 1 8:17

Retailing would make up consumption and lead consumers to their purchase stocking stores with items based on the demand of their target demographic Retailing . Let's expand on that a bit . Retailing in general refers to the business of selling goods and services . In the chain of command , retailing is the last channel that connects manufacturers to consumers . Retailing accounts for a significant portion of the global economy . In 2002 , the top 200 retailers accounted for $2.14 trillion in global sales . Today , the estimated retail value is up to $35.2 trillion globally . I did take this number from Biz Planner , so if they're lying , I fear I might be lying , but I'm choosing to trust them . This growth is due in large part to globalization . With a connected world , the exposure of goods and services can find people just as quickly as manufacturers can produce them . Walmart is currently the industry leader in all retail sales .

Speaker 1 9:19

Retailers are characterized by a myriad of indicators range of merchandise , price of merchandise and general assortment levels of customer service . But dominating retailers tend to be multi-channeled , offering more than one specification of merchandise , casting the largest net to have the most consumers ever possible . And while this strategy rings true for most retailers , there are distinct differences in the definitions and general categories of stores . There are at least seven major retail categories . I'll list them off and then we can go in deeper depth . So we have the department store , the specialty store , the category killer , the discount store , the off-price store , the outlet store , the boutiques and e-commerce non-retail channels . Department stores are going to be the largest in size , as it's divided into varying sections by product type ie electronics or by brand ie Ralph Lauren .

Speaker 1 10:23

The department store concept originated in downtown areas of cities , but as suburban flight came along , they came to be located inside malls . Within the department store classification comes two more specificities , whether that Whether that department store is full-line or specialized . A full-line department store will resemble a Sears RIP , with a mix of home appliances and such in addition to apparel and beauty offerings . A specialized department store would be just offering apparel , beauty or jewelry . As the popularity of the mall scene has declined in recent years , so has the success of the department store .

Speaker 1 11:08

As mentioned RIP Sears , specialty stores carry a more narrow line of merchandise . They have a more tailored niche aesthetic and carry specialty goods , quote-unquote , usually focusing on one concept or aesthetic . Examples of this would be GameStop or a maternity clothing store . The stores carry nearly everything you need for those genres , but only carry goods within those specific genres or niches . Specialty stores will typically offer a higher level of customer service , with knowledgeable or expert employees eager to connect with clients . This umbrella would also include general clothing stores , as their specialty would be exclusively providing clothing Category killers .

Speaker 1 11:56

Category killers still kind of confuse me , but how I understand it are stores that carry many different assortment of items and honing in on having lower than most pricing . They have fewer customer service workers available and at lower expert levels than specialty stores . An example that I was given in my encyclopedia would be like a Lowe's or a Home Depot kind of the home improvement stores where you can find kitchen lighting and couches next to the snacks just a few aisles down . I would have thought that Walmart would be under this category , because they offer genuinely everything under the sun , but they are categorized as discount stores . Discount stores offer a large variety of products with their main selling point being their low , low prices . The reason most people frequent discount stores like Walmart or Target is because things are generally cheaper than anywhere else . They are different from category killers because not only do discount stores offer everyday brands , but they also compete by producing their own store brand versions of goods at even lower prices than competitors , ie Great Value , good Gather all that good stuff .

Speaker 1 13:12

Off-price stores are stores with an inconsistent variety of goods and varying brand names . Merchandise is usually acquired , upon opportunity , directly from manufacturers or retails during the off-season , examples being your TJ Maxx , your Ross , your Marshalls , and usually found in like a strip mall concept , and there you can typically find one or multiple clustered together . I , for one , am a Marshalls girl , but I feel like there are some Max and Estes out there . Let me know which side of the rivalry that you're on , even though I tend to believe that they carry the exact same product across all of these three stores .

Speaker 1 13:58

Next one is outlet stores . They're pretty similar to off-price stores in that they carry other retailers' quote-unquote leftovers , though this is usually done at a specific retailer level , with discounted , irregular or overstocked pieces for less . An example of this would be the Gap Factory outlet . The factory portion refers to the store being manufacturer-owned . Outlet stores are typically clustered together in a center or a mall away from other key department stores . I noticed that you either have the main OG store closer to you or you have the outlet version of the store closer to you . Rarely ever , if ever , both Boutiques are the next one , so they are generally smaller shops that feature niche and top-of-the-line merchandise . The term boutique is French for little shop and was first used for small stores run by Parisian couturiers . Let me know how to say that word , because I can sound it out and I can look it up , but I still don't know . Examples of large-scale boutiques include Calvin Klein and Ralph Lauren , providing a luxury shopping experience and luxury levels of customer service , the last one being non-retail , and e-commerce are generally the most mass appealing retailers in the modern era . Non-physical retailers utilize their convenience to appeal to customers , and being able to shop from the comfort of your home may lead to an impulse purchase , or two or seven . This shopping option is available via catalogs , e-retail or tv home retailers .

Speaker 1 15:40

We talked about the consumer side , the capitalist side , of the fashion industry , but let's look behind the curtains and learn about the different professions that can come from the fashion industry . First things first , we need to have an education . The art of fashion continues to be a global phenomenon and there are learning institutes across the world devoted to prepare students for a career in the international fashion industry , with curriculum exclusively focused on

Fashion Education and Careers

Speaker 1 16:10

the industry itself . The trainings offered range from vocational , creative and theoretical . There are institutions worldwide , with the US being home to 250 alone . Worldwide , with the US being home to 250 alone , much of the curriculum is derived from home economics traditions and offering education levels from associates to PhD . Many institutes are linked to professional opportunities , allowing grads to start working as soon as they possibly can . The first institute of its kind in the US is located in New York City , the Trap Hagen School fostering American fashion . There exist institutions all over the world , as mentioned , preparing students for varying careers in the fashion industry , from Sweden , india and , most notably , paris , france .

Speaker 1 17:03

What's the first profession you think of when you hear fashion ? Fashion designer ? Good choice . The career of a fashion designer is someone who creates the look from the particular shape , color , fabric choice and detailing , all stemming from the initial idea crafted by the designer . There are different levels of what it means to be a fashion designer , from top Parisian couturiers to designers working on ready-to-wear or a stylist who makes small modifications to existing pieces . It's a talent to be able to visualize how people want to dress and it plays a huge role in daily life in dressing . Charles Frederick Worth is considered the first modern-day couturier . He opened his Paris house in 1846 at the same time as other profound designers , jean Paquin and Jacques Doucet .

Speaker 1 17:56

Paris was considered the center for international fashion . However , paris's influence was so rudely disrupted by World War II and the Nazi Germany occupation of France . As a result of this hole in the fashion influence market , the US seized the opportunity to gain more recognition . Claire McCardell created the American look , a pioneer of America's love for sportswear and athleisure . Fashion designers throughout the mid-20th century used design rooms in the same manner as European designers utilize an atelier as a studio and as a shop , though , as New York City space became increasingly more expensive , design rooms became too costly to maintain and were downsized for cheaper offshore productions .

Speaker 1 18:48

Designers a role of the designer is to work with tech designers to create what is called a tech pack , which is the version of the design that will be sent to the manufacturer for the first samples and , eventually , full production . Tech designers are responsible for annotating every detail of the garment specs . Designers each season go through the process of identifying future trends for inspiration . Many looking to streetwear . Designers hold much importance in society as they've helped to popularize trends such as mod , punk , grunge and hip-hop . Designers rule the world . So after we have the established design and garment , we need to market it correct . So the next role I have in the fashion industry is fashion illustrator .

Speaker 1 19:37

The role of a fashion illustrator was more prominent in the 19th century . Then it was a form of art and advertising . Designer Paul Paré was often commissioning the work of Paul Uribe , who was known for the jewel-toned palette usage in his work . Fashion illustrators held much importance in their prime , with Vogue exclusively utilizing their work from the first edition in 1892 to mid-century editions in the 1950s . Famous illustrators include Bernard and Veritas , who had a close working relationship with gabrielle chanel , famous nazi renee gruau , who was known for his work with christian dior , and more recently , of course , the mind of mark jacobs has incorporated the work in collaborations with fashion illustrators , with Julie Verhoeven and Takashi Murakami . To speak on more modern day advertisements , practice photography has produced some of the most creative and interesting documents of taste and society over time .

Speaker 1 20:42

The defining features of fashion photography is the intent to convey a fashionable lifestyle , persuading consumers that if they wear certain clothes or use these specific products , then the advertised lifestyle will then be theirs . This shift from documenting clothing to selling a specific lifestyle was most famously exemplified by Calvin Klein's advertisement , in which he sold the logo and the brand's identity rather than just a line of

Fashion Advertising and Media

Speaker 1 21:11

clothing . Fashion photography reflects women's self-image , value , sexuality and interests , and its total success is reliant on the viewer's buy-in to the offered lifestyle . Early fashion photography dates back to the 1850s and 1860s and was primarily a document of Parisian fashion houses . The early 20th century saw a rise in American fashion photography . The European-born Baron Adolph de Maier is credited with changing fashion photography by creating a focus on the mood rather than the exact depiction of clothing . By creating a focus on the mood rather than the exact depiction of clothing , vogue magazine in 1914 termed his work artistic photography . Fashion photography had many iterations throughout the years , but it remains the main mode of fashion advertisement . Some of the more affluent or influential fashion photographers remain Deborah Tuberville , whose work has reflected a sense of psychological dislocation and was the first to use overweight and quote-unquote ugly models which challenged conventional beauty standards of the time .

Speaker 1 22:24

Perhaps the most sought-after career in the fashion industry is fashion models . The role of the fashion model has evolved significantly since the 19th century . It's been transformed from a simple display tool to a central figure in the fashion industry . At the start , models were known as mannequins , serving as living alternatives to wooden or wicker dummies . Our boy Charlesworth , again widely regarded as the founder of haute couture , was the first to use models , employing his wife Marie to do a showcase on his designs in his salon . These early models were considered exceptionally glamorous and were oftentimes full-time employees who sometimes even lived at the fashion houses . They were tasked with modeling gowns in private for customers and professional buyers , often wearing high-necked , long-sleeve black satin sheaths underneath to better highlight the clothing . Over time , the role of the model became more public and commercial . Over time , the role of the model became more public and commercial , with Lady Duff Gordon pioneering the use of mannequin parades in London in the 1890s , where models were trained to strike poses without smiling , and this practice was adopted by Parisian couturiers like Paquin and Poiret , who organized mannequin tours and even created films for their fashion parades in the early 1900s .

Speaker 1 23:52

The 1920s saw the establishment of the first model agency in the United States , such as John Powers Agency in 1923 and Ford Modeling Agency in 1946 . It was during this period that fashion journalists began to report on individual models from the Paris openings , giving the new level to celebrity . However , the paths of the photographic models and the catwalk models remained largely separate until the 1960s . After World War II , the profession gained a new level of respectability and social status . While models were initially required to move kind of lifelessly , sedately , christian Dior's new look in 1947 encouraged more theatrical movements , a trend that would accelerate in the 1960s with the rise of ready-to-wear fashion , where models were required to dance and act and just be a clown on the catwalk . Despite these advances , models of color continue to experience underrepresentation and backlash in the industry .

Speaker 1 25:01

Let's talk about other forms of fashion advertising . Since the turn of the 20th century , fashion advertising has evolved from simple product promotion to a sophisticated tool for shaping cultural values and consumer desires . Initially , advertising relied on color posters , with examples publicizing department stores and sewing machines machines . These early ads did not just sell a product , they also promoted a lifestyle , hinting at the leisure time that the domesticated woman would receive by using these products . It laid the groundwork for modern fashion advertising . The 20th century marked a significant shift toward promoting ready-to-wear fashion . This impact of the modernist aesthetic and the growing role of copywriters transformed fashion advertising . In fact , in the 1920s , commercial artists like Hans Schlegger created advertisements with a sense of rhythm and proportion , using asymmetrical layouts for brands like Weber and Heilbronner .

Speaker 1 26:10

By the mid 1950s , the growing market of teenagers began to influence the sexual imagery and advertisement . This part gets a little crazy , but we must report on it . The woman child became a common motif in the 1960s , with models and playful or provocative poses . Advertisements for brands like Neumann clothing also began to target male consumers by showing models as objects of female desire . The late 1970s saw a new focus on denim , with brands like Calvin Klein using suggestive imagery such as close-ups of Brooke shields in tight jeans , to promote and fetishize the contour-hugging look . Mind you , brooke Shields was like 14 . Or 12 . Just somewhere not above 18 . I know that much Fashion advertising comes in all shapes and sizes and modern fashion advertising is a little kooky . I think it's timely to discuss the Sidney Sweeney of it all . I know it's been having a lot of backlash . I have many thoughts but if I'm honest with you , I haven't looked the most into it . I just know that it makes me feel icky . But let's talk about the people who report on the advertisements , who report on the fashion models , who report on the shows the fashion journalists .

Speaker 1 27:32

Before the mid-20th century , the term fashion journalism was considered an oxymoron as most newspapers played little attention to the business , news or sociological implications of fashion . This began to change when figures like Virginia Pope of the New York Times , who raised the bar by not only reporting on Paris Haute Couture but also introducing live theatrical fashion presentations to the public . This newfound seriousness in covering fashion as a legitimate industry was further cemented in 1943 by publicist Eleanor Lambert , who initiated the concept of Fashion Week . She called it Press Week for editors to attend designer collections in New York City . The landscape of fashion journalism continues to evolve with the emergence of influential critics and new media . Eugenia Shepherd of the New York Herald Tribune was one of the first to make fashion writing entertaining , famously sneaking into a Balenciaga show to get immediate coverage and becoming a celebrity in her own right . By the late 1960s , american editors started covering European ready-to-wear shows , expanding the reach to cities beyond Paris . By the 21st century , the internet has revolutionized fashion journalism , enabling users to see images and read reviews of collections within hours of the runway show , fundamentally changing how the industry consumes and distributes information . We'd be remissed if we didn't talk about our girl Anna Wintour's famous position the fashion editor .

Speaker 1 29:13

The fashion editor emerged as tastemakers in the early 20th century with Edna Woolman Chase of Vogue establishing the role's importance . As editor-in-chief from 1914 to 1952 , chase presided over a period where fashion magazines documented the style of wealthy society women and covered both Parisian haute couture and the emerging American designer . She set the stage for later editors who would shape the industry In the mid-20th century , a new generation of editors such as Carmel Weitz of Harper's Bazaar and Diana Freeland of Vogue . They began to revolutionize the fashion media . Freeland , in particular , was a visionary . She discovered iconic photographers like Richard Avedon and Irving Penn and integrating distinguished writers and artists into every issue .

Speaker 1 30:10

The role of the fashion editor continues to evolve with the rise of ready-to-wear and new media . As Paris Couture's dominance waned and ready-to-wear collections became the new trendsetters , fashion editors' jobs shifted from reporting on these seasonal shows in cities like Paris , milan and London and they began to play a significant role in selecting photographers and models for their publications , with figures like Polly Mellon of Vogue becoming a high-profile star in their own right In the 21st century . Technology has further transformed the role . Today , fashion editors view collections online , use television appearance to communicate with their audience and draw inspiration not only from the streets but also from music videos and red carpets . Our idol , anna Wintour of Vogue , is a prime example of the modern fashion editor wielding immense influence to pronounce and decree what's new and what's hot and what's next for global audiences . What's new and what's hot , and what's next for global audiences ?

Speaker 1 31:09

The modern fashion industry is a complex ecosystem defined by dynamic interplay of various roles and forces . The industry is so deeply intertwined , and the journey from the 19th

Closing Thoughts on the Industry

Speaker 1 31:27

century couture to the digitally driven global market of today highlights an industry that is always in flux . Global market of today highlights an industry that is always in flux . The fashion industry is so vast and complex that I don't even know if this did it justice , but I sure did try . So I hope you enjoyed and I hope you will join us again in two weeks , for I think it's Vivian Westwood . But if you enjoyed this episode , I do hope that you'll leave us a like or subscribe . Really , just tell all your friends about us , please , please , so much , and I will put the link to the encyclopedia that I used down below , as well as my personal links , if you want to keep up with your girl . But yeah , I appreciate you listening and I will see you next time . Thank you , bye-bye .