Types of Businesses

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Types of Businesses
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Fashion Industry Segments

• Primary Market includes the business that grow
  and produce the raw materials that become fashion
  apparel
• Secondary Market includes businesses that
  transform the raw materials into fashion in the
  merchandise production phase
• Tertiary Market includes retail businesses

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Primary Market

• Textiles largest segment of the primary market
• Produces fibers, fabrics, leather, fur, plastic,
  metal, paper, and any other substance involved in
  production

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Secondary Markets

• Manufacturers
• Wholesalers
• Contractors
• Product Development Teams

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Tertiary Market

• Retailers
• Off-price, specialty stores, department stores,
  discount stores, variety stores, outlet stores,
  nonstore retailers

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Support Industries

• Advertising Agencies, Accounting and Financial
  services, computer support industries, website
  design houses

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Types of Fashion Business Organizations

• Sole Proprietorship one owner
• Minimum license, complete owner liability
• Owner owns all assets
• Taxed as personal income
• Most common form of business in small business

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Types of Fashion Business Organizations

• Partnerships
• Based upon an agreement between two parties on
  how organization will be run, profits/loss split
• Each partner is taxed separately
• Each partner liable for debts
• Ends at the death of one partner
• Corporation

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Types of Fashion Business Organizations

• Corporation
• Formed with a charter which is a legal document
• Stocks and shareholders
• Taxed as a separate entity
• Limited liability for the owners
• Corporation exists as a separate entity

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Fashion Risks

• Types of risk
• Economic risk
• Human risk
• Natural risk
• Pure risk

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Other Risks

• Types of risk
• Speculative risk
• Controllable risk
• Uncontrollable risk
• Insurable risk
• Uninsurable risk