The inventory turnover ratio measures how many times a business sells and replaces its stock in a year. You calculate it by dividing cost of goods sold by average inventory at cost. For apparel, a higher inventory turnover ratio usually means fresher product, fewer markdowns, and less cash tied up…
An FOB price is the price of goods delivered on board the ship at the port of export. In apparel, an FOB price usually covers the finished, packed garment plus everything needed to get it onto the vessel: materials, making, factory overhead and profit, inland transport to the port, and…
Wholesale pricing is the price a brand charges retailers, distributors, or other businesses that buy its products to resell them. In apparel, a good wholesale price has to do two jobs at once. First, it must cover the brand’s landed cost with enough margin. Second, it must leave the retailer…
Modal fabric is made from a regenerated cellulose fibre, usually spun from beech or other hardwood pulp, that keeps much more of its strength when wet than ordinary viscose. As a result, modal fabric feels soft and smooth like viscose but holds its shape better in the wash. Consequently, it…
Lyocell fabric starts as wood cellulose, which producers dissolve directly in a recyclable organic solvent and spin into fibre. As a result, it shares the softness and breathability of viscose but is stronger, especially when wet, and shrinks less. For apparel brands, lyocell fabric is now a mainstream option for…
Fabric pilling is the formation of small balls of tangled fibre on the surface of a fabric after wear and washing. For a consumer, it makes a new sweater look old. For an apparel brand, however, fabric pilling is a measurable quality property. Labs test it and rate it from…
Viscose fabric is a regenerated cellulose textile made by dissolving wood pulp and spinning it back into fibre. In practice, it gives apparel brands the drape and softness of silk at a fraction of the price, which is why it dominates dresses, blouses, linings, and summer shirting. For a brand,…
Better Cotton is the world’s largest cotton sustainability programme, run by the Better Cotton Initiative (BCI). It trains and certifies farmers to grow cotton with less water and pesticide use and better working conditions. However, buying Better Cotton has never automatically meant that your garment contains it. For most of…
Colorfastness is a fabric’s ability to keep its colour without fading or bleeding. It covers washing, rubbing, sweat, and light. Labs grade it on a 1–5 grey scale, where 5 means no change, and grade light fastness on a separate 1–8 blue wool scale. For an apparel brand, however, the…
Recycled polyester fabric is polyester made from previously used plastic, usually PET bottles, instead of new oil-based raw material. For an apparel brand, however, the material itself is the easy part. The harder part is proving the recycled content, keeping that proof attached to each style, and making claims that…
