Welcome to the world of case studies that can bring you high grades! Internal components indicate the business's strengths and weaknesses, while the external components indicate the opportunities and threats outside the organization. The PEST analysis is a valuable method or framework for assessing and monitoring market growth or fall, as well as a business's position, potential, and direction. Overall, the evolution of clothing has been one of the biggest in terms of items for humans and will most likely grow even further into the future with new and better technology. A PEST analysis lets you see how your business is affected by current and future political, economic, social and technological factors. Suppose political instability causes protests and political demonstrations in the area where Uniqlos outlets exist. The PEST analysis in some cases is expanded with two additional factors, namely; legal and environmental aspects. Moreover, China increased in labor cost and other factors associated with production could increase the cost of product. From changing the background to adding content, you can customize the diagram in any way you desire. Richard M. Johns (2006). 3. As aptly provided in website of The Honest Company (2016), its goal is to deliver the best family essentials to. The fashion industry is a global industry that involves billions of dollars and work. Their compensation ranges from uncontrollable seizures to infertility, and from difficulty breathing to watching their children grow up with significant mental and physical disabilities. A luxury good such as what Velocity Clothing supply will be lower on the agenda for people who have been made redundant or have much less money available due to the recession.This can be supported in Appendix point 1. Second Assignment Annotated Bibliography and Thesis Statement Course Work: Pestle Analysis .BUSINESS ENVIRONEMENT Course Work: PESTLE ANALYSIS "Vesan" Ltd. was established in 1999[1] with scope of business activity "internal and foreign trade, agency and marketing deals with . A Canadian Approach to the Apparel Global Value Chain, [online] Available at, American Apparel ran into many risk factors such as finances and growth which included the ability to gauge fashion trends to consumer preference while still being able to be highly competitive (American Apparel, 2012). Similarly, Uniqlo operates in different countries. LO: - Planning & the Macro Environment - PESTLE analysis - Competition analysis - Product trend analysis - Customer trend analysis. 3. Coneen by design ltd). Social and cultural changes are major determinants of emerging fashions. PESTLE is and analytical tool used to assess the external environment. The vision of Yani was to provide stylish casual clothing to everyone. We can't deny the fact that the fashion industry plays an important in building up culture, trends, societies, and economies of countries. If a company ensures a healthy environment, it will be in the business for a long time. It is a Swedish multinational clothing company selling fast fashion for all categories of people. Political factors. For example countries joining the EU and members of the EU can trade almost freely and very easily with eachother. They sell athletic equipment, backpacks, sleeping bags, and camping food, among other things, in addition to clothing. Vertical integration within some manufacturing firms enables them to control entire production processes from textile agriculture through finished goods, lowering costs in comparison to producers who must purchase raw materials. This article is about a detailed PESTEL Analysis of the Fashion Industry. Environment factors. After that, we proceeded with the PESTLE analysis and highlighted the Political, Economic, Social, Technological, Legal, and Environmental factors that affect Uniqlo. As garment manufacturing develops in their country, industrialization would occur which would cause their standard of living to increase., During last weeks group discussion, we provided a brief introduction to the book. The company is said to operate in 74 countries as of November 2019. PIL initially operated just two vessels only as a regional break bulk operates. Political factors involve the ways and extent to which a government intervenes in economies or industries. ZARA CASE STUDY SWOT AND PESTLE ANALYSISZARA is a top multinational fashion brand which has taken the world by storm through their bold and innovative busine. However, even in the time of recession, the retail industry had maintained impressive sales. Social norms, regulations, and ideologies play an essential role in the case of some of the industries. In all six sections; political, economic, social, technological, environmental and legal there are issues that the firm would face. Canada is the 2nd world's largest country neighboring to the USA and located in the north of North America. In that case, Uniqlo might have to suffer because of that. A reduction in price however could tarnish the image of a brand like Harvey- given the aspirational target market of SHL., Economic Just like other apparel companies, most of Lululemons products are manufactured in foreign countries, which allows the company to have cost advantages. A PESTLE analysis is used within industry and more academic pieces of work as it forms a much more comprehensive analysis of an area that of a traditional SWOT analysis. Next on our list of SWOT Analysis examples is Zara, one of the biggest clothing companies in the world. Even though a lot of people support government intervention in international trade, countries would benefit a lot more if the government removes protectionism and promotes free trade instead. 2.0 Porters five forces of Levis Strauss Taxes - business taxes and any other taxes that Velocity clothing must pay are mandatory and must be paid, affecting the amount of outgoings they have, variation in this may cause more or less outgoings but any changes could be quite significant. The global apparel value chain, trade and the crisis: challenges and opportunities for developing countries. Over the past two decades there has been a decrease in the quantity of woven apparel fabrics made in the, In the article Cotton Clothing Price Tags to Rise, it speaks about how prices for cotton are continuing to go up, so prices for clothing are also going up. Fashion and Role Models What consumers buy is largely influenced by. . The producers in the new T-shirt value chain do not operate in a free market system. Several economic factors influence a company's past, present, and future, and analysts do nothing but study these factors to make proper financial decisions for a company or an industry. Nevertheless, these could be an opportunity for open and more flexible existing fashion retailers. Political factors: Fashion icons in the White House. NATS 1840 The production of some of these materials may be in areas of instability or conflict. Uniqlo is one of the top-selling clothing brands in the world. In many colleges across the USA, Patagonia has been seen as very desirable by many students. A website will incur costs such as maintenance, and the processing of orders off the back of it, however these costs are only small in comparison to the potential benefits a fully functional Velocity Clothing sales website could have and the market it can reach.The website design and start-up cost will also be an expense to the company initially. PESTEL ANALYSIS Pestel is a strategic analysis tool used by organizations to scan the macro-environment in which they operates, helps to identify external factors that can affect the organization's business activities and performance (Gockeln 2014). If you visit Japan, youll see a Uniqlo store after every corner. It impacts a lot of people, so in order to do that, trade policy must be properly defined, identify what the roles of government currently are, and their involvement in it, and then analyse what should be their role. Technology is helping consumers get the fashion they want, ax restrictions, export restrictions, and inflation costs, What is PESTLE Analysis? Global fast fashion market was supported by an increasing youth population's penchant for essential and affordable fast fashion clothing. Today Uniqlo is recognized among the worlds top 5 clothing brands. Chinas apparel exports to the U.S. were $29.0 billion in 2012, down slightly from 2011s $29.3 billion., Herbert.J. Its smartphones, PCs, tablets, Music players, and TVs are very popular. Paying the staff to sell the clothing in store will also be another outgoing affected by any changes in this.Please see Appendix point 1. Italy is a Republic located in south-central of Europe, with 60.4 million inhabitants, it is the sixth most populous country in Europe. Especially when it comes to business, you require advanced technology. Besides that, government policies significantly impact the operations of every business, and Uniqlo is no exception. Suppliers of Velocity Clothing may also increase their prices if they are also affected by the price of raw materials going up. Entry into a market where the production volume is so high already is not really a threat because the cost of production goes down. PEST analysis is one of the most popular management method in differentiate the external factors that affect the organization. Francis Aguilar (1967) is the first known reference to the origin of the PESTEL analysis. Pestle analysis of Canada. The expansion of the fast fashion market, nonetheless, has gotten hampered by unsuitable working conditions and low living wages (Wang, 2018). PEST Analysis stands for Political, Economic, Social, and Technology - the four central areas to this method. Legal. Apparel and fashion businesses should consider the following factors while trading globally . Outputs from the analysis inform strategic . 8 Pages. In 1984, Tadashi Yani changed the brands name to Uniqlo and started offering womens clothing as well. How about receiving a customized one? Trading Policies any new trading policies formed between countries could make it easier or harder for countries to trade with each other, which could be a potential issue for the accessibility of goods for Velocity Clothing. The pandemic of covid-19 has reduced total sales, annual revenue, and the company's net income. However, the sales of any business mainly depend upon the economic conditions of the country where the brand is operating. (Photo: Public Domain) This PESTEL/PESTLE analysis of Nike Inc. evaluates trends in the company's . Vienna: United Nations Indistrial Development Organization., In the case of SHL it could result in people postponing the purchase of new clothes or buying the cheaper alternative, unless SHL is willing to decrease their price. 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