Chala Jamison
Rosen, E. I. (2002). The Globalization of the U.S. Apparel Industry:
Making Sweatshops. University of California Press.
Please answer to the best of your knowledge the following essay question. Use detail where appropriate. Remember grammar, punctuation & spelling count.
a. In the introductory paragraph, Rosen discusses vertical integration within retailing. What does vertical integration mean and how has it effected retailing since the inception when mom-and-pop- shops were king? (2pts)
Vertical integration in retail is discussed in Rosen by explaining that it is a strategy used by a corporation. The corporation manages the retail locations , distributors, suppliers , inventory. This then helps out companies’ opportunities to increase the performance, because it reduces their cost and they can manage their own production process.
This has affected retailing since the inception when mom and pop shops were king. U.S retail transnationals that have put smaller out of business and even department stores like century 21 (Rosen, 2002, PG. 177 ,Pa 1).
b. Rosen’s discussion continues about the elimination of quotas, reduction of tariffs, and the opening of new markets that increase volume and lower apparel costs. Why then, does apparel clothing retail at expensive prices to the consumer. Defend your answer. (2pts)
Due to vertical integration apparel clothing companies sell their retail at expensive prices. The textile and garment producers try to create cheap clothing to sell more clothes or textile and to earn a higher market share (Rosen, 2002, PG. 177 ,Pa 2). Producers were seeking even lower-wage production sites, as retailers open more stores to sell their ever expanding volumes of lower cost clothing.” (Rosen 2002, pg.177,pa 3) This was an easy way to maintain high consistent profits.
c. Rosen states that in 1977, there were four (4) major holding companies in retailing – (1) Federated Department Stores (2) Allied (3) May and (4) Dayton Hudson. Please find one (1) article that discusses each of the holding companies today. Bring your four (4) articles to class.
Federated Department Stores
Lazarus sold in fathers department store that is located in Ohio . In the department store the buyer was required to be satisfied and the company did well.
1921 Lazarus implemented ideas that the retail research association that the members to keep accounts the same to show income and revenue others can learn from . Bloomingdales has been a Federated group since 1930.
https://www.encyclopedia.com/books/politics-and-business-magazines/federated-depart m ent-stores-inc.
Allied Stores is in control of discount outlets through America . Depending on the specific consumer and geographic area hard and soft products are sold. Allied Store Corporation associated with Federated stores .
https://www.nytimes.com/1987/01/10/business/company-news-the-breakup-of-allied-sto r es.html
May department stores group is the second leading from federated department stores .
David bridals is one the USA leading sellers of wedding dresses and accessories .https://www.nytimes.com/1987/01/10/business/company-news-the-breakup-of-allied-sto r es.html
Dayton Hudson Corporation
The fastest growing retailer in the country and profitable with 600 stores . A few stores are located on fifth ave and other locations with yearly sales of $3 billion .
https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/ bu sinesses-and-occupations/dayton-hudson-corp
d. What has happened to the couture fashion industry? How did private label emerge in the industry? What is the significance of private label to retailers? (2pts)
The couture fashion designers created individualized clothing. The couture designers clientele began to go down and other manufacturers noticed the low volume sales in clothing . The price had to be cut to get margins and revenue .
To get dramatic changes, manufacturers started new types of economic strains on their clothing vendors in order to raise costly inventories and extended their private label product lines this is how private labels emerged .
Private labels were significant to retailers; they blurred the boundaries between different divisions of the fashion industry (Rosen, 2002, PG. 183 ,Pa 3). “Private-label merchandise became important as a way to create greater levels of backward integration.” (Rosen, 2002, pg. 183, pa. 1) Retailers now design the clothing that they sell, a good example is GAP.
e. How did discounting become such an important part of the retailing industry? How has discounting grown since the 1950’s? What do you think is the significance of discounting retailers such as those that are in Tanger and Prime Outlet Shopping Centers in San Marcos, Texas?
Discounting became an important part of the retail industry and transformed clothing retail networks . Discounting has been involved in manufactures to at least try to further liberalize the fashion industry and clothing industry.
Discounting grew in the 1950 offering low prices on items in retail shops in the United States . Discounters allowed retailers to be able to market national branded goods on manufacturer prices. By 1970’s discounting had grown.
Retail stores that are in Tanger and Prime Outlet shopping centers are selling higher price items with great quality for a lower price so many people are going to buy and more money will be made (Rosen, 2002, PG. 185 Para. 1). Originally, discount stores sold low price items, these Outlets sell brand name fashions for discount prices.
CITATION
(n.d.). Retrieved April 25, 2020, from
Barmash, I. (1987, January 10). The Breakup of Allied Stores. Retrieved April 25, 2020, from
https://www.nytimes.com/1987/01/10/business/company-news-the-breakup-of-alli ed-stores.html
Federated Department Stores Inc. (2020, April 23). Retrieved April 25, 2020, from
https://www.encyclopedia.com/books/politics-and-business-magazines/federated-d epartment-stores-inc
Harvey. (1979, June 17). The Daytons of Dayton Hudson. Retrieved April 25, 2020, from https://www.nytimes.com/1979/06/17/archives/the-daytons-of-dayton-hudson-the-f amily-merchants-of-dayton-hudson.html
