Original brand name manufacturing (OBM) is a production that allows placement on domestic and foreign fashion market because it is based on the creation of trademarks and brands, not on the "no name" products. For each garment producer branding is a big challenge, especially for the small and medium ones, that lack the resources and marketing team which large companies have. On the other hand, sensitivity and rapid changes of the market dictate the pace and "seek" to create a brand with which they can survive and thrive in a highly competitive environment .
With the development of markets and increased competition, the increasing number of fashion producers wants to sell their own fashion brand, and to impose themselves on the world market. World fashion scene is full of small and large trademarks and brands, those who hold positions by fostering quality and tradition and those who are yet to expand, diversify business and "charm” new consumers. There are many famous fashion brands that exist and evolve successfully on the world stage, and few people know about them or nobody does. Only 5% of consumers are faithful to a certain brand or product, and 68% change products and brands they buy very frequently.
According to Schultz and Barnes (2), brand is a relationship between consumers and brands. This relationship is not only important for the company it has a special meaning for the consumer as well. It represents what the consumer is and what he believes.
Trademark is one of the main features of the product and serves to distinguish specific products from the other ones, similar in the market. The success of a trademark, as one of the main characteristics of fashion product, depends on the feelings and opinions of specific product consumer. Due to major changes in fashion trends, fashion trademark development exists in all parts of the textile-garment chain.
Producer identifies himself with a trademark as the creator of the product, to avoid other producers to use it in the production of similar products. Thus a producer gains control of the market, has a relaxed price policy, promotional activities are easier, he builds his reputation and can legally protect himself by trademark registration. Not all products can have a trademark, nor it is desirable, and not every producer is in a position to label his product with trademark. From the standpoint of garment producer, a trademark is a promise to provide a consumer with something unique, compared to what other competitive products and trademarks offer. From the standpoint of consumer, a trademark implies keeping a promises and a reliable quality .
Creating a trademark is basically an effort to create a brand image, which implies that a successful combination of a physical product and additional elements (symbols, design) creates an effect which does more than all individual parts and allows consumer an easy identification and integration into his system of values and attitudes. An important part of brand image is its personality (a brand personality), i.e. a set of characteristics that are given similarly to people - pleasant, professional attitude, professionalism and so on.
USA has a very active practice in the development of private brands. Private brands are directly related to the strengthened trade that takes the lead in the market compared to producers. Both a producer and trading are interested in product development and its quality, for its better placement on the market with minimum costs: producer with making a product, and trading with keeping it in its facilities, and they both have a common interest in ensuring high quality and famous brand of the product. In this case it is about going to the common brand of product and a store, where both a producer and distributor will show up as subjects of labeling a product. They have equal rights in decision making and none of them is dependent on each other. Joint actions are undertaken to promote a brand in order to make it wellknown and achieve consumer preferences, thus promoting the image of both business partners.
In fashion industry there is great danger that the brand will become old-fashioned or to be overcome by competition. Branding as a continuous process through which various types of developed brands are applied enables increasing productivity and sales of branded fashion products.
Many brands often fail and the key reasons why brands fail, according to Matt Haiga (3), are:
• Brand amnesia - when it is forgotten what a brand is or what it used to be. For example, when old brand moves into a radically different looks/identity.
• Ego brand - brand (or the people behind it) overestimate the importance of their product and when they think that they can keep an entire market which they will never lose.
• Brand megalomania - consequence of brand ego: a company wants to take over the world, spreading onto all existing categories, but it rarely succeeds.
• Brand deception - extreme cases, where the process of branding is actually a process of concealing the truth about the product.
• Brand fatigue - a drop of creativity and brand saturation, when the companies themselves get tired of their own products.
• Brand paranoia - when there is large competition, and the company sue it out of many reasons and reinvent its brand every six months.
• Brand irrelevance - when the market evolves and the product becomes obsolete.
- Colovic G (2012) Strategic management in the garment industry. Woodhead Publishing India.
- Schultz DE, Barnes BE (1999) Strategic brand communication campaigns. McGraw-Hill.
- Haiga M (2005) Brand Failures: The Truth About the 100 Biggest Branding Mistakes of All Time. Kogan page.