Fashion Design Fashion Business and Marketing 2

Question 1

What is 'private label' merchandise in fashion retail?

Accepted Answer

Products designed and branded exclusively for a specific retailer

Answer

Private label merchandise is designed and manufactured for a specific retailer and sold exclusively under that retailer's own brand, giving retailers higher profit margins than national brands.

Question 2

In fashion wholesale, what does 'FOB' pricing mean?

Accepted Answer

Free On Board — the price of goods at the point of origin before shipping costs

Answer

FOB (Free On Board) in fashion wholesale means the seller's price covers the goods to the shipping origin point; the buyer assumes transportation costs from that point.

Question 3

What is a 'capsule collection' in fashion?

Accepted Answer

A small, focused collection of essential, versatile wardrobe pieces

Answer

A capsule collection is a curated, small set of versatile wardrobe pieces that work together cohesively, typically 10–30 items that can be mixed and matched.

Question 4

What does 'sell-through rate' measure in fashion retail?

Accepted Answer

The percentage of inventory sold versus the initial inventory received

Answer

Sell-through rate is calculated by dividing units sold by units received, expressed as a percentage; a high sell-through rate indicates strong demand for a product.

Question 5

In fashion licensing, a licensor grants rights to use a brand's name or design in exchange for what?

Accepted Answer

Royalty payments typically calculated as a percentage of sales

Answer

In licensing agreements, the licensor (brand owner) grants the licensee the right to use their brand identity in exchange for royalty payments, typically 5–15% of net sales.

Fashion Design Practice Test

Fashion Design Practice Test

Fashion Design Fashion Business and Marketing 2