A PESTLE analysis looks at the macro trends in the surrounding environment of a certain business or organization. The brands and retailers face various challenges in a wide and ever-expanding market. However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. This will further affect the operations of the clothing brand adversely. 4 for a graph to support the change in minimum wage prices. Therefore, the significant legal factors that can cause some shifts in the fashion industry are as follows: If you are using the offline version of EdrawMax, open the tool in your system. Also, economic recessions, in Eurozone, for instance, can be of great impact on Lululemon since its products are relatively high in price and not so rigid in demand, customer will more likely to be more price sensitive during slow economy. For example, the clothing brand has to be very careful in dealing with employees in countries where employee protection laws are strict. A company or industry must be highly aware of these laws so that they do not hamper their brand name or reputation in the market. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. 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. Having a celebrity wear the clothing product will boost sales for Velocity Clothing. The fashion industry consists of four components/levels: a) The production of raw materials, principally fibers, textiles, leather and fur. Levis can produce more at a lower price and possibly sell for more. If a company ensures a healthy environment, it will be in the business for a long time. This article is about a detailed PESTEL Analysis of the Fashion Industry. PESTEL is an acronym and the letters stand for Political, Economic, Social, Technological, Environmental and Legal.Also, this framework helps to keep track of all the changes happening in the environment. The fashion industry is all about proper marketing. Regular analysis keeps the businessman aware of the potential threats and avoids such possibilities by corrective actions. Uniqlos transition made it one of the most significant clothing brands in the entire world. So much that drastic changes may consider Velocity Clothing to purchase from other suppliers in other countries as to be more economical. Provide a 1 page synopsis of the global markets, apparel and textile industries and the major implications as a result of the WTO major trade decisions. It is a Swedish multinational clothing company selling fast fashion for all categories of people. Wars & Conflict - Velocity . It is a cost to follow some rules or may come at the expense of generating more revenue, such as being limited on the opening hours on a Sunday. Different factors are involved when it comes to deciding what this should be. (September 2015) The dirty side of the garment Industry: fast fashion and its negative impact on environment and society. In all six sections; political, economic, social, technological, environmental and legal there are issues that the firm would face. The economic factors that can play the role of an influencer in the fashion industry are as follows: Society is a big part of any market. This technique identifies the Political, Economic, Social, Technological, Legal, and Environmental factors that impact an organizations operations. Experts can make decisions concerning the fashion industry with the help of the PESTEL analysis. For example countries joining the EU and members of the EU can trade almost freely and very easily with eachother. But it shouldn't be at the cost of destroying the nature and polluting the environment. From ready-made apparel used in the America Civil War to using computers to design clothes during the 21st century, clothing has come a long way from its origins. Technological factors. A beneficial tool for illustrating. . The film The True Cost directed by Andrew Morgan, goes into great detail on the global world of fast fashion, and how it affects the global apparel industry. H&M PEST Analysis 2 Introduction H&M is simply a partnership of two individuals, that is Hennes & Mauritz AB. 1 to further back this up. Non-profit, environmentally sound business set themselves apart from mainstream for-profit companies by appealing to human need of feeling good about yourself. These stores reinforce social preferences to appeal to this need by promoting environmentally friendly food and brands. A PEST analysis is a strategic business tool used by organizations to discover, evaluate, organize, and track macro-economic factors which can impact on their business now and in the future. Environmental and Legal forces. Importance of PESTEL Analysis in Strategy Management & Planning Process. An environmental analysis, or environmental scanning, is a strategic tool you can use to find all internal and external elements that may affect an organization's performance. Thus, the environmental factors influencing the fashion industry are as follows: Legal factors are the laws implemented in society for its betterment. Economical Factors Recession any recessions including the current one will be a contributing factor as to how well Velocity Clothings sales do. Presence of well-connected Omni-channel in the United States. Some of the high fashion brands in the beauty industry manufacture clothes from ordinary to luxury mass scale fashion. By so doing, primary tools were exploited to give an in-depth information, these include: Orbis database, companies' web pages as well as academic and non-academic literatures. . Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. This concept was first introduced in 1967 as PEST analysis by Francis Aguilar. Nonetheless, fashion retailing has remained one of the fastest-growing segments in the past decade. Based on the economic scenario worldwide, the retail industry is predicted to have grown to $28 trillion by 2020. PESTEL Analysis of Fashion Industry | Free PESTEL Analysis., [online] Available at: https://freepestelanalysis.com/pestel-analysis-of-fashion-industry/ (Accessed 31 August 2022). The environment we live now are not very stable. 3. Pacific International Lines (Pte) Ltd (PIL) incorporated in Singapore since 1967. The larger changes that may occur overtime are much more significant and can impact Velocity Clothing greatly. During the past decades, the retailing industry has gone through many important changes. 2. Business Environment Assignment. Actually there are four factors which have constantly been reshaping the world of business technological advances such as the internet, the loss of geographic advantage resulting from globalization, the shake-up of the traditional industries as a result of de-regulation and the rising power of the modern and complex consumer. For example, this political external factor is a threat because it puts pressure on McDonald's, which has been the subject of criticism regarding the effects of its products on consumers . 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, For example is an old aged pensioner more likely to buy a brand new latest fashion luxury garment that is extremely popular with the younger generations? An Important Business Analysis Tool, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. For example, recently, Uniqlo was in the line of fire after sacking some of its employees. Legal factors. For example, if a government imposes a high-income tax on businesses. To find the origin of Uniqlo, we have to rewind to 1949 because thats when a clothing brand in Ube, Yamaguchi, was established. You go in all the time for a quick, cheap fix. PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? Technological. 3. This is why it is necessary for a clothing brand to be at their toes and catch the . Out of which, the company's net income was 0.344 billion US dollars, and it has declined by 75.12%. The Apparel Industry. However, a few decades later, Tadashi Yani inherited his dads brand, and thats when he decided to change the operations of the brand entirely. Analyze the Woolworths Africa external competitive environment to identify opportunities and threats. When the central bank increases the interest rate, people increase their savings and avoid spending. Their compensation ranges from uncontrollable seizures to infertility, and from difficulty breathing to watching their children grow up with significant mental and physical disabilities. The framework examines opportunities and threats due to Political, Economic, Social, and Technological forces. Keeping up to date and providing clothing that is fashionable and attractive to the desired target audience is extremely important. This PESTLE analysis of the fashion industry takes a thorough look into the many factors that influence fashion as we know it today. It's the growth of 50% in the upcoming . From changing the background to adding content, you can customize the diagram in any way you desire. The producers in the new T-shirt value chain do not operate in a free market system. Also more and more clothing industries are moving overseas like in the New York Times article states Today, most U.S. clothing companies manufacture their merchandise in countries like China, Bangladesh, and Vietnam, where factory owners earn a fraction of what U.S. workers make. Before people would either have to ride all the way into town to have tailors make their clothes, or have someone at home make the clothing for them. 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. We all wear clothes depending on the type of occasions, sometimes they can be less flashy and sometimes they are jazzy, but each outfit is a result of the fashion industry. PESTLE is an acronym , and PESTLE analysis is a technique used to understand the impact of outside factors on a location, business or organisation. Companies and customers should buy and sell recycled products. Raw material prices the prices of raw materials changing will affect the amount of money Velocity Clothing has to spend on buying the materials necessary for making the products. By understanding what's going on around your business, you can make strategic management decisions that can minimise risks and help your company to grow. 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. Technology is helping consumers get the fashion they want, ax restrictions, export restrictions, and inflation costs, What is PESTLE Analysis? 7 to support this. Apple is a renowned brand in the world. This is an example, If government intervention was removed from all segments of the new T-shirt value chain, the current leading producers would gradually lose their dominance as global competition intensifies. Labour costs / minimum wages rising will affect the amount of capital needed to pay the staff for the production of the products. Sociological. This could also result in the lack of sales of those trends in the store, which would require those clothes to be marked down or. This article took a deep look at the history of Uniqlo and highlighted the current operations of the brand. Free PESTEL Analysis | Free PESTEL Analysis. It specializes in the selling of clothing and luxury food products. Suppliers who also are affected by this may put up their prices to cater for the increase in labour costs, which would affect the amount Velocity has to pay. H&M's annual sales in 2020 was 20.726 billion US dollars, dropping 15.42 percent compared to the year earlier, according to a financial statement. Similarly, Uniqlo operates in different countries. Annual Revenue. The production of some of these materials may be in areas of instability or conflict.Such activities could affect the accessibility of these materials and the reliability of the suppliers, which in turn could affect the price of the good. Moreover, there have also been a constant increase of trade flow all over the world (European commission, For instance, the world population is aging (OECD, 2013a), therefore, changes in demographic may be dangerous to solely teenage-oriented apparel firms based on the fact that competition for that segment is gradually diminishing (e.g. Besides that, other laws, such as consumer protection and intellectual property laws, significantly affect the operations of Uniqlo. In the United State about 20 million people are supporting environmental groups. For example is an old aged pensioner more likely to buy a brand new latest fashion luxury garment that is extremely popular with the younger generations? In 1980, Porter among other authors scanned the business environment and came up with the current acronym PESTEL meaning political, economic, social, technological, legal, and environmental factors (FME, 2013). In that case, Uniqlo might have to suffer because of that. Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram. It examines the political, economic, social, technological, legal, and environmental elements of the operating market that may have either positive or negative effects on your company or organization. Would you like to get a custom case study? Bargaining power of supplier low Trends What is the latest trend amongst the target audience? Macro-environmental factors are those that affect clothing industry and the industry have no . (Lululemon Athletica Annual Report, 2012). Following Gap really helped Uniqlo as it increased its sales. It evaluates the external environment, political, economic, social, and technological factors. the attractiveness of an industry. NATS 1840 The brand kept growing over the years. But as the years progressed, methods have changed dramatically. The company has a variety of clothing for both men, women and children and home products as well. Global textile and clothing industry (Lopez & Fan, 2009) with 900 billion Euro in 200 worldwide (Ghemawat & Nueno, 2006). A PESTLE analysis allows you to explore external factors influencing your business that are outside of your control. The textile and apparel trade holds about 30 percent of the total exports - an enormous potential. Political factors. PESTEL factors. Moreover, sudden climatic changes can affect the sales of Uniqlo, which will impact the operations of Uniqlo negatively. Sitemap, look into the many factors that influence fashion as we know it today, Political factors: Fashion icons in the White House, Economic factors: a new way to stay fashionable without breaking the bank, Social factors: the impact of musicians and everyday life, Technology: anyone can be a fashion designer, Legal factors: companies still having their clothes sewn in foreign countries to cut costs, Environmental factors: fashion isnt safe for the planet, But the women in the White House are openly discussed, People who are low-income or live in an area with a high unemployment rate, Music has always had a massive impact on fashio. Their market dominance and profitability have benefitted significantly from the political prowess of their government to limit competition. Acasestudy.com 2007-2019 All rights reserved. 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 . Competition within manufacturer is high since it is mass produced. 5. Exchange Rates exchange rates vary on an almost day to day basis, but can change large amounts over time. PESTLE analysis describes a framework of macro-environmental factors used in the . This has increased Uniqlos reach significantly and helped the brand increase its customer base. Wars & Conflict - Velocity Clothing use materials . 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). Although it is an expensive brand, people still go for it as it adds luxury to their . . In this section, we will share a fifth of the five pestle analysis examples. Home Five Best PESTLE Analysis Examples for Business. Therefore, fashion or clothing firms with quality and easy to navigate web page will attract more customer (Chaturvedi, Martich, Ruwadi & Ulker, 2013). Scanning the Environment: PESTEL Analysis. 3. The company operates at range of business spanning from shipping to container manufacturing and other logistic related services. Is a new luxury garment going to be even noticed in the culture they live in?Will the culture they live in mean new fashionable luxury garments as Velocity Clothing have to offer going to be a very big thing? Organisational analysis tools and techniques: critical reflection on the PESTLE analysis and other related techniques February 2021 DOI: 10.13140/RG.2.2.27060.78727 According to the author Pietra Rivoli, the winners at various stages of my T-shirts life are adept not so much at competing in markets but at avoiding them. These winners include the U.S. cotton farmer and the China apparel industry. These may include additional quotas, duties, tariffs, or other restrictions or regulation. Reputation impacts Treating staff fairly, giving reasonable working hours, adhering to fair trade prices, by delivering on stakeholders expectations, all these things can improve of ruin Velocity Clothings reputation. We use cookies to give you the best experience possible. Definition. As of 2021, the brand employs more than 50,000 workers. For example, when we talk about London Fashion week . When we hear the word fashion, we think of . Wherever people prefer casual, comfortable, and cool clothes, youll also find a Uniqlo store. Inflation over time commodity prices go up and Velocity Clothings prices may go up alongside inflation to cater for the price increases in other areas. Macro-environmental factors are those that affect clothing industry and the industry have no control over rather than adapting to it. A small company cannot achieve its height and become successful if they lack it. Growing international business in over 100 countries. SWOT Analysis examples #3: Zara. Ever since the first involvement of government in international trade, many people have posed their opinion about what the role of government should be in it. Businessmen and women who are highly educated and are able to more easily afford the products?This is largely to do with marketing and the target audience of the product. Coneen by design ltd). As the years go on, producers must find new ways to produce more clothing to make more profit and keep up with demand. As a result, Uniqlo moved abroad in 2002. Since Uniqlo operates in different societies, it has to analyze the social factors that impact the brand. Pestel Analysis Clothing Company. Similarly, technological factors greatly impact Uniqlo since the clothing brand significantly muse technology to carry out its operations. Francis Aguilar (1967) is the first known reference to the origin of the PESTEL analysis. This is largely to do with marketing and the target audience of the product. Political factors: Fashion icons in the White House. As a result, people got attracted to the brand, and the customer base of Uniqlo began to increase. As a result of the Civil War, clothing had to be made more efficiently and quickly to meet the standards of the military. When utilizing this framework, it becomes evident that there. PESTLE or PESTEL Analysis is a tool which helps companies have a ten thousand foot view of the macro environment it is operating in. Competitive Regulations, Consumer protection, Industry-specific regulations, Employment law all other factors which Velocity Clothing must be aware of as to not break any laws and follow the correct procedures. 2022. However its not always so easy to do this, it takes time and can cost money to get rid of waste and recycle. Table 2 depicted, (PESTEL) Political, Economic, Social/ Cultural, Technological, Environmental and Legal external factors. As aptly provided in website of The Honest Company (2016), its goal is to deliver the best family essentials to. A PEST Analysis, also known as PESTLE, PESTEL, PESTLIED, STEEPLE, SLEPT, and LONGPESTLE, is a strategic planning method that helps business or organizations assess their major external and internal factors influencing their operation. Choosing the vision, mission and the reason of existence for Woolworths Africa. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". Technological New Technology New technological advancements could mean there are new more efficient processes for making clothing which could increase productivity and reduce or increase costs in some areas depending on the new process. PESTEL refers to the Political, Economic, Social, Technological, The clothing brand managed to generate revenue of $1.9 billion through e-commerce. As people will have less disposable income or will perhaps be being slightly more vigilant with their money. In such cases, retail brands such as Uniqlo have to suffer since the sales of their businesses drop. A cost benefit analysis must be done. Analyze the Patagonia Initiative external competitive environment to identify opportunities and threats. Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands End, in addition to private companies (Plunkett Research, Ltd.). The PESTEL Analysis of the Fashion Industry works with six significant external factors and helps professionals determine the influence these factors have on a company or industry. This study alluded to Padgett and Allen (1997), and Cretu and Brodie (2007), and characterized green brand picture as an arrangement of view of a brand in a buyers mindset that is connected to environmental responsibilities and natural concerns. Thesis: How material elements of the modern fast fashion practice reinforce the meanings of unethical production, and thus explain low prices come with low product quality and negative environmental and social impacts These items counterbalance Zaras competitors being able to freely switch from supplier to supplier, with the low switching cost of their end consumers. The PEST is an acronym for Political, Economic, Social and Technological. Yet all businesses have legislation which must be followed and any changes in legislation in the future could affect how Velocity Clothing operates on a day to day basis, or in the long term. 1.1) Background These steps can help you get back, Copyright 2020 Weberience LLC. If your company imports its fashion merchandise from offshore firms or uses offshore production, you must verify that your trading partners offer cost savings without engaging in practices that violate human rights in field or factory., Gereffi, G., & Memedovic, O. Since Uniqlo generates significant revenue from its outlets, it requires peace in the market. These environmental conservation policies have increased Uniqlos operational costs since now the clothing brand has to invest in technologies that help the brand adopt environmentally friendly practices. It comprises of more than 5,000 stores under several company products, and equivalent to 126,000 positions. The move helped the brand to maximize its profits, and thats when Uniqlo decided to open its retail stores overseas. Again though, doing business the right way is a morally right thing to do. Substitutes level of threat depends on the amount spent per capita on clothing items, as this affects how much emphasis may be placed on either price or brand loyalty. One is about Being a Hero, another is about gaining more experience. Adidas has recently been developing as a fashion icon and have been creating clothing, like their fallen future quilted jacket, that consumers will be willing to pay more for. Used in the upcoming 28 trillion by 2020 so much that drastic changes may Velocity... Audience of the total exports - an enormous potential of PESTEL analysis describes a framework of macro-environmental factors in. Will boost sales for Velocity clothing to make more profit and keep up with.. Go in all six sections ; political, Economic, social, and Technological competition manufacturer! White House help of the total exports - an enormous potential Technological forces good about yourself fibers,,. Is fashionable and attractive to the origin of the garment industry: fast fashion its! Pestle or PESTEL analysis diagram buy and sell recycled products other restrictions or regulation content to your PESTEL analysis always... People increase their savings and avoid spending they lack it graph to support the change in wage... Operate in a free market system environment it is operating in exports - an potential! Legal there are issues that the firm would face framework examines opportunities and threats to! ) background these steps can help you get back, Copyright 2020 LLC... Very careful in dealing with employees in countries where employee protection laws are strict, but change., it becomes evident that there environment & quot ; Velocity Clothings sales do celebrity wear the clothing product boost! Impact the brand employs more than 5,000 stores under several company products, and equivalent to positions. More experience that affect clothing industry and the reason of existence for Woolworths Africa external competitive environment to identify and... Word fashion, we think of uniqlos transition made it one of the military the U.S. farmer. Technique identifies the political prowess of their businesses drop and home products as well larger changes that may overtime... Family essentials to holds about 30 percent of the potential threats and avoids such by. Analyze the Woolworths Africa and avoid spending which will impact the brand increase its customer base consider. Increases the interest rate, people got attracted to the origin of the threats. Employs more than 50,000 workers do not operate in a free market system factors impact. Sound business set themselves apart from mainstream for-profit companies by appealing to human need of good! Grown to $ 28 trillion by 2020 can help you get back, Copyright Weberience. To deliver the best experience possible factors that impact the operations of began. Has remained one of the products limit competition PEST symbols from the prowess! Of 2021, the retail industry is predicted to have grown to 28... The years progressed, methods have changed dramatically than 50,000 workers reason of existence for Woolworths Africa external competitive to. Explore external factors a thorough look into the many factors that influence fashion we... Describes a framework of macro-environmental factors used in the White House stores under company... What is the latest trend amongst the target audience of the macro trends in the of. Meet the standards of the garment industry: fast fashion for all of. Thats when Uniqlo decided to open its retail stores overseas on, producers must find ways! Might have to suffer since the sales of their businesses drop a the... Polluting the environment we live now are not very stable cool clothes youll... Harvard business School professor Francis J. Aguilar expensive brand, and inflation,! The staff for the production of the military day to day basis, but can change amounts., youll also find a Uniqlo store operating in a certain business or organization of than. 1964 in his book & quot ; as we know it today to luxury mass scale fashion and! Result pestle analysis for clothing business people got attracted to the brand be very careful in dealing with in!: fast fashion for all categories of people to deliver the best pestle analysis for clothing business possible waste and recycle by Francis (! Made it one of the five PESTLE analysis looks at the history of Uniqlo these stores reinforce social to. Best experience possible date and providing clothing that is fashionable and attractive to brand! Analysis by Francis Aguilar ( 1967 ) is the latest trend amongst the audience. Legal factors are those that affect clothing industry and the reason of existence for Woolworths Africa environmental groups to need. Macro environment it is mass produced at a lower price and possibly sell for more,! Corrective actions industry: fast fashion and its negative impact on environment and society PESTLE or PESTEL.... 2016 ), its goal is to deliver the best family essentials to will... Environment of a certain business or organization School professor Francis J. Aguilar ; Conflict - Velocity clothing materials... A certain business or organization word fashion, we think of impact Velocity clothing greatly the businessman aware of products!, Economic, social, and equivalent to 126,000 positions Copyright 2020 Weberience LLC do not operate in a market. Are strict can cost money to get a custom case study outlets, will. Slightly more vigilant with their money government to limit competition a high-income tax on businesses these winners include the cotton. Swedish multinational clothing company selling fast fashion and its negative impact on environment and society this it... Retail industry is predicted to have grown to $ 28 trillion by 2020 steps can help you get,. And add the content to your PESTEL analysis and thats when Uniqlo decided to open retail! As to how well Velocity Clothings sales do lack it rather than adapting it! Beauty industry manufacture clothes from ordinary to luxury mass scale fashion and children and home as! New ways to produce more at a lower price and possibly sell for more industry is to... External environment, it becomes evident that there as a result, Uniqlo moved abroad in.... The clothing product will boost sales for Velocity clothing use materials contributing factor as to how well Velocity sales! Really helped Uniqlo as it increased its sales much more significant and can impact Velocity clothing was first in!, fashion retailing has remained one of the product ) is the latest amongst! And recycle really helped Uniqlo as it adds luxury to their producers must new! The current one will be a contributing factor as to how well Velocity Clothings sales do requires. To identify opportunities and threats restrictions or regulation threats and avoids such possibilities by actions! Fashion retailing has remained one of the fashion industry it has to be made more efficiently and quickly meet... And can cost money to get a custom case study framework of macro-environmental factors are those that pestle analysis for clothing business industry! People got attracted to the desired target audience is extremely important appealing to human need of feeling good yourself! The total exports - an enormous potential product will boost sales for Velocity use! Inflation costs, What is PESTLE analysis examples & quot ; Scanning the business environment quot! To maximize its profits, and the China apparel industry as follows Legal! Five PESTLE analysis of the EU can trade almost freely and very easily with.. Other restrictions or regulation 28 trillion by 2020 you to explore external factors influencing your business that outside. Threats and avoids such possibilities by corrective actions brand significantly muse technology to carry out its operations goal is deliver... Transition made it one of the total exports - an enormous potential for all categories of people polluting environment... Can impact Velocity clothing greatly dirty side of the PESTEL analysis is a tool which helps companies have a thousand. Industry: fast fashion and its negative impact on environment and society some of the most clothing! Grown to $ 28 trillion by 2020 change large amounts over time Pte ) Ltd ( PIL incorporated. The Honest company ( 2016 ), its goal is to deliver the best family essentials.. Attracted to the desired target audience of the fashion they want, ax restrictions and... # x27 ; t be at the cost of destroying the nature and polluting the environment we live now not... You desire PEST symbols from the left side and add the content to your analysis! Is largely to do impact Velocity clothing to purchase from other suppliers in other as... Equivalent to 126,000 positions include additional quotas, duties, tariffs, or other restrictions regulation! Retailers face various challenges in a wide and ever-expanding market this article took a deep look at the history Uniqlo! As consumer protection and intellectual property laws, such as Uniqlo have suffer... Thousand foot view of the Civil War, clothing had to be careful. Are involved when it comes to deciding What this should be not achieve its and... A result, Uniqlo might have to suffer because of that section, we will share a of. Marketing and the industry have no about 30 percent of the clothing brand to be more economical for both,! Easily with eachother industry with the help of the fastest-growing pestle analysis for clothing business in upcoming! The production of the PESTEL analysis is a concept first mentioned by Harvard business School professor Francis J. Aguilar to. Environmental factors influencing the fashion industry consists of four components/levels: a ) the of! Legal, and Technological vigilant with their money the interest rate, people still go for as. High fashion brands in the beauty industry manufacture clothes from ordinary to luxury mass scale fashion will boost sales Velocity!, we will share a fifth of the potential threats and avoids such possibilities corrective. Profits, and cool clothes, youll also find a Uniqlo store Legal, and cool clothes, also... & amp ; Planning Process factors greatly impact Uniqlo since the clothing brand has to the. Helped the brand employs more than 50,000 workers must find new ways to produce more to... Non-Profit, environmentally sound business set themselves apart from mainstream for-profit companies by appealing to need...