Holister Fashion Apparel

The Apparel Industry consists of companies that design and sell clothing, footwear and accessories. Product categories include everything from basics, such as underwear, to luxury items, for example, cashmere sweaters and alligator-skin handbags. Traditionally, apparel companies were wholesalers, selling large quantities of goods to retailers, which then marked-up items and sold them to consumers at a profit. However, it's become more difficult to draw a line between wholesalers and retailers; most apparel companies now have both types of operations.Wholesale BusinessWholesale business is what separates companies in Value Line’s Apparel Industry from those in our Retail (Special Lines) category. Apparel companies design and produce/source items that they sell to retailers, including department stores, specialty shops and discounters. Often, a company owns licenses to manufacture goods under particular brand names, and will market and advertise these lines. One license can cover many products. In some instances, an apparel company may only have the rights to produce specific items under a brand, such as ties and shirts, while excluding other product lines, for instance pants or sleepwear. Production is often outsourced to developing countries, where labor costs are inexpensive, relative to those of the United States and Europe. The wholesale market is seasonal. Retailers stock up on merchandise before shoppers hit the stores during the peak back-to-school and holiday periods.Brand names, in particular familiar offerings with a good reputation for quality, style or value, are popular among shoppers. A clothing company possessing a broad line-up of well-known brands has a competitive advantage over its peers. This is not always the case, however. In tough economic times, consumers might turn to similar private-label goods to save money. Private-label goods are found in department stores and discount chains. Though they are less expensive than branded items, such