Clothing and Clothing Accessories Industry Terminology

AQL (Acceptable Quality Limit)

A statistical quality-control threshold that defines the maximum number of defects acceptable in a production lot before rejection.

Set the AQL at 2.5 for major defects before we approve shipment.; The factory failed AQL on stitching; we need a 100% re-inspection.; Our AQL sampling plan flagged loose threads across multiple sizes.

Assortment Planning

The process of determining the optimal breadth and depth of styles, colors, and sizes for specific markets, channels, and time periods to meet sales and margin targets.

Our fall assortment planning prioritizes outerwear and knit accessories by region.; Tighten depth on seasonal colors in the store-level assortment.; Digital and wholesale channels need different assortment strategies.

Bill of Materials (BOM)

An itemized list of all materials, components, trims, labels, and packaging required to produce a garment, often including consumption, yields, and suppliers.

Update the BOM with the new zipper size and recycled poly labels.; Trim cost variance came from an outdated BOM.; Fabric consumption in the BOM affects landed cost directly.

Brand Equity

The intangible value and perceived strength of a brand that drives customer preference, loyalty, and pricing power.

Strong brand equity lets us take a 20% price premium.; Licensing depends on the brand’s equity in kidswear.; Investing in sustainability builds long-term brand equity.

CAD (Computer-Aided Design)

Software-based design of garments, prints, and patterns used to visualize, modify, and communicate product details efficiently.

Create the stripe repeat in CAD before we strike off.; We’ll do the pattern adjustments in CAD and update the tech pack.; 3D CAD reduces sample rounds and speed-to-market.

Capsule Collection

A tightly edited, versatile set of styles designed to be worn interchangeably, often released as a limited drop or collaboration.

Drop a travel capsule with five mix-and-match pieces.; The influencer capsule sold out in two hours.; Capsule collections simplify merchandising and inventory risk.

CMT (Cut, Make, Trim)

A manufacturing service model where the factory cuts, sews, and trims garments while the buyer provides fabric, patterns, and sometimes trims.

This is a CMT order; we’re supplying fabric and patterns.; CMT pricing excludes fabric sourcing and freight.; Shift basics to CMT vendors and keep full-package for fashion.

Deadstock

Unsold finished goods or leftover materials that remain after the intended selling season or production cycle, often discounted, repurposed, or recycled.

Clear deadstock tees through outlets and recommerce.; Use deadstock fabric for a limited upcycled run.; Deadstock ties up working capital and storage.

Direct-to-Consumer (DTC)

A sales model in which brands sell directly to consumers through owned channels (e-commerce and stores), capturing margin and customer data.

DTC margins fund our customer acquisition costs.; Our DTC site needs fit guidance to reduce returns.; Balancing DTC and wholesale avoids channel conflict.

EDI (Electronic Data Interchange)

A standardized digital system for exchanging business documents (e.g., purchase orders, advance ship notices, invoices) between partners.

Set up EDI for POs, ASNs, and invoices with the retailer.; An EDI error delayed the ASN and chargebacks followed.; EDI compliance is mandatory for big-box accounts.

Ethical Sourcing

Procuring materials and manufacturing services that meet verified labor, safety, and environmental standards across the supply chain.

Audit suppliers against ethical sourcing standards.; Ethical sourcing policies prohibit unauthorized subcontracting.; Publish an ethical sourcing report annually.

Fit Model

A person with standardized body measurements used to evaluate garment fit, drape, and comfort during development.

Book the fit model for second proto corrections.; Our fit model’s measurements align with our size medium.; Feedback from the fit model led to a deeper armhole.

FOB (Free On Board)

An Incoterm for sea shipment where the seller delivers goods on board the vessel at the named port; risk and cost transfer to the buyer at that point.

The FOB term is Shanghai; buyer pays ocean freight and insurance.; We negotiated FOB pricing down by 5%.; FOB shifts risk to the buyer once goods are on board.

GOTS (Global Organic Textile Standard)

A leading certification for organic fibers that also covers environmental, chemical, and social criteria across textile processing.

Source GOTS-certified cotton for babywear.; Label claims require GOTS scope certificates.; GOTS restricts hazardous chemicals in processing.

Grading

The process of proportionally scaling a base pattern into a full size range using predefined grading rules.

Apply grading rules to scale the base size across XS–XL.; Inconsistent grading caused tight sleeves in smaller sizes.; Update grading after the new fit block is approved.

Hangtag

A branded tag attached to a garment providing product, price, and marketing information, often removed after purchase.

Add QR codes to hangtags for care and fit tips.; Retail requires a price on the hangtag and a UPC.; Sustainably source paper for hangtags.

Heat Transfer

A decoration method where graphics or labels are applied to fabric using heat and pressure via films, inks, or transfers.

Use a low-temp heat transfer for the recycled nylon shell.; Neck labels will be heat transfers to avoid irritation.; Test wash durability of the heat-transfer logo.

Incoterms

International commercial terms published by the ICC that define the responsibilities, risks, and costs between buyer and seller in cross-border shipments.

Quote both CIF Los Angeles and FOB Ho Chi Minh to compare.; Switch to DDP for influencer kits to simplify delivery.; Incorrect Incoterms caused unexpected import costs.

Inventory Turnover

A ratio (COGS divided by average inventory) indicating how many times inventory sells through in a period, reflecting cash efficiency and demand accuracy.

Boost inventory turnover by tightening buys and improving allocation.; Outerwear turnover lags due to a warm winter.; Improve turns with faster replenishment on core basics.

Just-in-Time (JIT)

An inventory and production strategy that minimizes stock by receiving materials and producing goods close to the time they are needed.

JIT reduced WIP but increased exposure to fabric delays.; Adopt JIT cutting for replenishment tees.; JIT requires tight vendor lead times and reliable logistics.

Keystoning

A retail pricing method that sets the selling price at roughly double the wholesale or unit cost, often used as a baseline.

For gifts, keystone plus $5 covers freight and handling.; We can’t keystone luxury pieces the same way.; Keystoning simplified our initial retail pricing.

Knit Gauge

The number of needles per inch on a knitting machine; determines stitch density and fabric hand in knitwear.

Go from 12-gauge to 7-gauge for a chunkier sweater.; The knit gauge affects drape and warmth.; Match gauge to yarn count to avoid fabric distortion.

Landed Cost

The total cost of getting goods to the destination warehouse, including product cost, freight, insurance, duties, taxes, and fees.

Calculate landed cost including duty, brokerage, and drayage.; Higher carton DIM weight raised landed cost.; Switching ports lowered our landed cost per unit.

Line Sheet

A concise sales document for wholesale that lists styles, images, colors, sizes, prices, and delivery dates.

Send the line sheet with wholesale prices and delivery windows.; The buyer wants colorways added to the line sheet.; Include MOQ per style on the line sheet.

Marker Making

Arranging pattern pieces in a layout to optimize fabric usage during cutting, directly affecting yield and cost.

Improve marker efficiency to reduce fabric waste.; We’ll nest pieces tighter in the marker for yield.; Digital marker making cut costs by 2%.

Merchandising

Planning, presenting, and managing the product line, pricing, and visual storytelling to drive sales and margin across channels.

Merchandising aligned color stories across tops and bottoms.; Strong merchandising lifted AUR in accessories.; Work with design to merchandise the holiday capsule.

Minimum Order Quantity (MOQ)

The minimum production quantity a supplier requires per style, color, or size to accept an order, impacting cost and risk.

The factory’s MOQ is 1,000 units per color.; High MOQs create size-risk in fashion colors.; Negotiate lower MOQs for test orders.

Nearshoring

Shifting production to geographically closer countries to reduce lead times, logistics risk, and inventory exposure.

Nearshore denim to Mexico to cut lead time.; Nearshoring improves responsiveness for trend-right tops.; Balance nearshoring with cost advantages in Asia.

Notions

Small sewing supplies and components used in garment construction, such as thread, zippers, buttons, snaps, and labels.

BOM notions include thread, buttons, and snaps.; Notions stockouts delayed finishing.; Source nickel-free notions for compliance.

OEM (Original Equipment Manufacturer)

A manufacturer that produces goods to a buyer’s design and specifications, often for private-label or branded products.

Our OEM partner builds styles to our tech packs.; OEM capacity is tight ahead of peak season.; Audit the OEM for social compliance.

Omnichannel

An integrated retail approach that provides a seamless customer experience across online, mobile, and physical stores, with unified inventory and service.

Enable BOPIS and BORIS to support omnichannel customers.; Omnichannel inventory visibility reduces stockouts.; Align pricing across channels for true omnichannel.

PLM (Product Lifecycle Management)

Software that manages product data, workflows, and approvals from concept through production, including specs, BOMs, costing, and calendars.

Upload the updated BOM and POM to PLM.; PLM tracks approvals and version history.; Integrate PLM with ERP for data accuracy.

Private Label

Products manufactured by a third party and sold under a retailer’s own brand, typically offering higher margins and exclusivity.

Launch a private-label athleisure line for margin lift.; Private label relies on OEM/ODM partners.; Differentiate private label with exclusive fits.

Proto Sample

The first physical sample made from initial specifications, used to validate design intent, construction, and early fit.

The proto sample confirms silhouette and construction.; Move to SMS after proto fit approval.; Proto exposed pocket pull; adjust stitch length.

QA/QC (Quality Assurance/Quality Control)

QA defines processes and standards to prevent defects; QC inspects materials and finished goods to detect defects against set criteria.

QA sets standards; QC checks finished goods.; Implement in-line QC to catch seam slippage early.; QC reports flagged shade variation.

Quick Response (QR) Strategy

A supply-chain approach that uses real-time demand data and shorter cycles to replenish fast, often supported by technology and flexible vendors.

Use POS data to drive QR replenishment on core denim.; QR shortened our design-to-delivery cycle by 30%.; QR codes on care labels link to product info.

Range Planning

Defining the breadth, depth, price architecture, and design themes of a collection before detailed assortment planning.

Range plan 70% core, 30% fashion.; Ensure the range covers entry, mid, and premium price tiers.; Color cadence in the range supports monthly floorsets.

Recommerce

The resale of pre-owned apparel and accessories through peer-to-peer marketplaces, trade-in, or branded resale channels.

Launch a branded recommerce program for returns.; Recommerce extends product life and reduces waste.; Partner with a recommerce platform for authentication.

RFID (Radio-Frequency Identification)

Wireless tagging technology that enables fast, accurate item identification and tracking through the supply chain and in stores.

RFID cycle counts improved inventory accuracy to 98%.; Tag all cartons and units with RFID.; RFID reduces shrink and speeds checkout.

SKU (Stock Keeping Unit)

The unique identifier for a distinct item variant, typically defined by style, color, and size, used for inventory and sales tracking.

Each size-color is a unique SKU.; Rationalize SKUs to reduce complexity.; SKU-level margins drive assortment decisions.

Sourcing

The selection and management of suppliers, materials, and factories across regions to meet cost, quality, speed, and compliance goals.

Diversify sourcing to mitigate country risk.; Sourcing strategy balances cost, speed, and compliance.; Shift sourcing to mills with recycled-content fabrics.

Sustainability

Practices that reduce environmental impact and improve social outcomes across materials, manufacturing, logistics, use, and end-of-life.

Set science-based targets for sustainability.; Switch to dope-dyed yarns for water savings.; Publish supply-chain emissions in the sustainability report.

T&A (Time and Action) Calendar

A detailed timeline of critical tasks, owners, and due dates from design through delivery used to manage lead times and on-time performance.

The T&A shows fit approval due next Tuesday.; We’re slipping on the T&A; escalate lab dips.; Vendors must share weekly T&A updates.

Tech Pack

The comprehensive specification document for a garment, including measurements, BOM, construction, grading, artwork, labels, and tolerances.

Include construction details and tolerances in the tech pack.; Vendors can’t quote without a complete tech pack.; Update the tech pack after fit corrections.

UPC (Universal Product Code)

A standardized retail barcode (typically 12 digits in North America) used for scanning and tracking products at point of sale and in distribution.

Assign UPCs to all SKUs before shipping to retail.; Incorrect UPCs triggered chargebacks.; UPC barcodes must scan at POS and in the DC.

Visual Merchandising

The strategic presentation of products in-store (and on-site) to attract customers, communicate brand, and increase conversion and basket size.

Refresh windows to hero the new capsule.; Color-block mannequins for better visual merchandising.; Use sightlines and lighting to raise conversion.

WIP (Work-in-Process)

Partially completed goods within the production process; monitored to manage capacity, lead time, and bottlenecks.

WIP reports show delays at sewing.; Reduce WIP to free capacity for fast movers.; Track WIP by style and operation for bottlenecks.

X-Factory Date

The date when finished goods are scheduled to depart the factory, used to coordinate logistics, bookings, and payment terms.

Pull in the x-factory date by three days to hit the vessel.; Booking must match the x-factory date.; Payment terms start at x-factory for this vendor.

Yield (Fabric Utilization)

The amount of fabric required per unit, influenced by marker efficiency, fabric width, shrinkage, and pattern layout, directly impacting cost.

Improve yield by optimizing markers.; High shrinkage reduced actual yield.; Yield variance affected garment costing.

ZDHC (Zero Discharge of Hazardous Chemicals)

An industry initiative and set of guidelines to eliminate hazardous chemicals from textile and footwear supply chains, including MRSL and wastewater standards.

Adopt ZDHC MRSL-compliant chemicals at the dye house.; Share ZDHC wastewater test results with brands.; ZDHC conformance supports our sustainability claims.