Likewise, a number of fashion events e.g. PESTLE Analysis of H&M analyses the brand on its business tactics. It should be mentioned that brands endorsed by celebrities do really well in the UK. PESTEL analysis of the UK This detailed PESTEL analysis of the UK aims to address some of the political, economic, social, technological, environmental, and legal issues affecting the UK today. 212 UPINE PUBLISHERS Open Access L Latest Trends in Textile and Fashion Designing Review Article Analysis of Fashion Industry Business Environment R B Chavan* Political factors: The political factors can be the biggest source of uncertainty for the fashion industry. startxref Shoes, swimwear, accessories, beauty items, fashion products, perfumes, and retail apparel are some of the major products of the company. One key political decision which affects Next in the UK is the rate of tax levied by the government. 0000000016 00000 n 0000010973 00000 n Ross Stores SWOT & PESTLE Analysis Last Updated : Oct, 2020 Ross Stores Inc., in association with its subsidiaries, operates off-retail garments and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brands. In this blog, we have discussed the pestle analysis of the fashion retail industry. 0000001593 00000 n 0000025921 00000 n He is a lecturer in Management and Marketing. Armani, Next, Gap, Gucci, and Zara are expensive compared to Peacocks and Primark. PESTEL analysis is a very useful tool that helps business strategists to understand the impact of the macro-environmental factors on their businesses. Producing aboard helps them reduce the production cost and sell the end products at affordable prices. Retail sales proved resilient in 2020. United Kingdom (UK), officially the United Kingdom of Great Britain and Northern Ireland, is a sovereign state located off the north-western coast of continental Europe. ... PEST and STEER analysis. Amazon, eBay, Debenhams, and Next are doing great online, while,,, and many others are steadily becoming household names. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. • The PESTLE analysis of the Fashion retail and Clothing Industry helps to distinguish the factors that compel and restrain the retail market. Deliveroo PESTEL Analysis 2nd Nov 2020 Introduction: UK Government has been urged by online-food ordering platforms to loosen immigration rules to allow for more curry chefs to meet demands in the restaurant sector. Therefore, campaign groups are urging the government to put pressure on fashion companies to take more responsibility and contribute to environmental sustainability. We can’t deny the fact that the fashion industry plays an important in building up culture, trends, societies, and economies of countries. They are also responsible for sending around 300,000 tons of clothes a year to burning or landfills. Political factors: Fashion icons in the White House The government has the ability to encourage companies to buy fabrics locally, especially if the taxation on imports from other countries increases. Paton, E. (2019) In Britain, Politicians Shy Away From a Crackdown on Fast Fashion, available at: (accessed 24 August 2020), Tobin, L. (2019) How will Brexit impact the UK fashion industry?, available at: (accessed 20 August 2020). H&M PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Due to strict rules and costs, many companies have outsourced some of their operations abroad. The government forms number of laws and regulations to carry on business activities. 26 Feb 2020 PESTLE analysis. The United Kingdom or UK is a country situated on the northwest coast of Europe. Competitiveness Review. There is no doubt that more and more people are shopping online. 0000018781 00000 n 0000001358 00000 n The macro environment is the most general layer of the business environment and consists of broad environmental factors that impact all organizations across all industries so firms use frameworks such as Pestel and Swot to analyse environmental factors. 0000021431 00000 n In 2015, it achieved global sales of $20.8 trillion. All rights reserved BSSL. However, it is worth noting that clothing may sometimes go beyond the idea of ‘fashion’ and be used to express political statements. It’s one of the few industries who managed to scrape through. However, it does not mean that all the retailers sell their products cheap. PESTEL Analysis of the fashion retail industry in the UK. This has the ability to affect both the bottom line of the company in the form of corporation tax but also the ability of customers to spend with next, linked to income tax. Unsurprising, British nationals are in the leading positions of some of the most famous brands in the world. Ireland is an island in the Atlantic which is off the north-western coast of Europe. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. While it is fantastic for fashion companies, it is not good for the environment. The capital and the largest city of Ireland is Dublin, which is located in the east, and Dublin is a metropolitan area which has population of about 4.6 million. In this kind of assessment, you are provided a case study, and based on that you are required to conduct a PESTLE analysis. Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. 0000013295 00000 n 501 0 obj <>stream 0000027127 00000 n Pestle analysis uk fashion industry We're getting married this summer and my husband will be wearing a top hat and walking stick. Clothing has always been a big business for the UK. This detailed PESTEL Analysis of the fashion retail industry in the UK aims to explore how some of the political, economic, social, technological, environmental, and legal factors influence the UK fashion retail industry. Political stability in the UK has impacted on its fashion industry very positively. However, it is worth mentioning that competition is extremely fierce in the online segment of the UK fashion industry. (2014) Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Therefore, if the country’s existing trade relations with the EU disappear, the fashion industry may have to pay £1 billion more in each year, potentially causing a price hike for many clothing items (Tobin, 2019). The UK Consumer Price Index is currently 1.8%, with the Retail Price Index slightly higher at 2.4%. Clothing Retailing in the UK industry trends (2015-2020) Clothing Retailing in the UK industry outlook (2020-2025) poll Average industry growth 2015-2020: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. At present, levels of corporation tax in the UK have been lowered in order to attempt to stimulate economi… Global trade agreements and or restrictions The decision by the UK to leave the EU has left the pound weaker and an uncertainty with future trade restrictions in Europe. LTTFD.MS.ID.000144. ... PEST is a methodology for analysing the external factors that affect the sector a business or firm operates in. just-style is the online resource for the apparel and textile industry. 0000006726 00000 n This is really concerning for the UK, as 80% buyers buy clothes that they never wear. However, even in the time of recession, the retail industry had maintained impressive sales. 0000015083 00000 n Therefore, the industry has called for more financial support from the government. DOI: 10.32474/LTTFD.2018.02.000144. In fact, the fashion industry contributes approximately £32 billion to the country’s economy. This shows that the UK customers have a variety of options depending on their economic circumstances, when it comes to addressing their fashion needs and desires. While it is difficult to establish a fashion brand name in the UK, e-commerce sites such as Amazon and eBay provide anyone with open opportunities to sell anything online. 0000003234 00000 n 0000012918 00000 n The political activities in the country can affect the running position and also the sale and purchase of the retail products in any specific market. Ireland, officially known as the Republic of Ireland, is asovereign state in Europe which occupies almost 5/6th of the island of Ireland. %%EOF Economic growth means that people are going to spend more on shopping. For example, the workers who make the Ivy Park range are only paid £4.30 a day ( While this saves costs for companies, many customers do not like it at all. Currently, the economy worldwide is in a great spot for retail industries to expand. Therefore, recession and similar economic difficulties affect fashion retailers badly. By 2020, the industry may see global sales nearing $30 trillion. Belfast, Edinburgh, Cardiff, and London are her four capitals. 0000005129 00000 n This detailed PESTEL Analysis of the fashion retail industry in the UK aims to explore how some of the political, economic, social, technological, environmental, and legal factors influence the UK fashion retail industry. He holds an MSc in Tourism & Hospitality from the University of Sunderland. The UK fashion retail industry must adhere to the country’s rules and regulations set for the industry. Clothing manufacturing is expensive in the UK. Technological factors affecting the fashion retail industry in the UK. 0000034985 00000 n … Based on the economic scenario worldwide, the retail industry is predicted to have grown to $28 trillion by 2020. Without substantial support from the government, half of the industry may risk of walking into an unsustainable future. There are a wide range of political factors which affect Next at present but also factors which may have an impact upon the company in the future. If you liked any of these articles, please feel free to share with others by clicking on the icons below. This is a pestle analysis evaluating how the various political, economic, social technological, environmental and legal factors affect the fashion industry. However, the recent lockdown and economic challenges have hit it very hard. Legal factors affecting the fashion retail industry in the UK. You may also like reading SWOT analysis of the UK and PESTEL analysis of the UK. He is wondering how to wear these accessories. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. 0000011343 00000 n 0000003083 00000 n Perhaps the most prominent occurred in 2015, when the retail giant lost a patent dispute worth multi-millions of pounds against a UK manufacture for infringing a coveted technology in Bras (Solicitors Journal, 2015). 0000010373 00000 n There has been a gear-shift in the fashion retail industry’s approach to sustainability and this will continue in 2020. Political factors affecting the fashion retail industry in the UK. There are some trends in the retailing and shopping of the products, are dependent on different national debates and the initiatives, which the government takes through its political process. 0000011228 00000 n There are a good number of colleges and universities in the UK that prepare the fashion designers for tomorrow. The business environment affecting the clothing retail industry in the UK is made up of both the macro and micro environment. trailer It also provides a PESTLE analysis example (of the retail sector) as well as a ready-to-use PESTLE analysis template. 0 %PDF-1.7 %âãÏÓ Porter’s five forces analysis of the UK supermarket industry, SWOT analysis of the USA’s Information Technology (IT) industry. The area of the UK consists of four different countries like Wales, Scotland, Northern Ireland and England. This PESTLE analysis of the fashion industry takes a thorough look into the many factors that influence fashion as we know it today. The State of Fashion 2020 CONTRIBUTORS ACHIM BERG Based in Frankfurt, Achim Berg leads McKinsey’s Global Apparel, Fashion & Luxury group and is active in all relevant sectors including clothing, textiles, footwear, athletic wear, beauty, accessories and retailers spanning from the value end to luxury. Most of the fashion giants now have their e-commerce sites. <<9C195AB6A344674487459314E6541B93>]/Prev 52228/XRefStm 1169>> 0000017600 00000 n 0000001637 00000 n From offline to e-commerce shopping, and from e-commerce to social media channels – a digital shop. Analysis of Fashion Industry Business Environment. PESTEL Analysis of the fashion retail industry in the UK . The retail industry was able to hold itself up even during the recession. 0000011987 00000 n Environmental factors affecting the fashion retail industry in the UK. The country includes the island of Great Britain, which is a term sometimes also loosely applied to the whole state, the north-eastern part of the island of Ireland, and many smaller islands. We hope the article ‘PESTEL analysis of the fashion retail industry in the UK’ has been helpful. 0000008521 00000 n Therefore, many retail giants produce their fashion items in countries e.g. xref Overall, 2017 is expected to be a better year for fashion industry. 0000001169 00000 n Zara is a subsidiary company of Inditex, a distribution company. Clothing has always been a big business for the UK. According to the UN (cited in Paton, 2019) the fashion industry is responsible for around 10% of global greenhouse gas emissions. Social factors affecting the fashion retail industry in the UK. 14th Jun 2019. 0000016362 00000 n Bangladesh, India, Sri Lanka, Turkey, and China. Topshop, like many other fast fashion brands have been criticised for the way in which the factory workers are treated. ... DOBBS, M.E. Reducing waste, carbon emissions and plastic use, while improving working conditions in the supply chain, increasing the use of sustainable materials and investing in recycling programmes will be a core business focuses across the industry over the next 12 months. Many people in the UK are heavy buyers of fashion products. Wolstenholme, H. (2018) More than 80 per cent of shoppers are buying clothes they never wear, study shows, (accessed 23 August 2020). Many politicians and political figures impact on the UK’s fashion industry. 0000003120 00000 n PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. No doubt that fast fashion dominates their buying habits. Read article about The traditional textile industry has witnessed various phases of disruption. The UK imports approximately £10 billion worth of clothes and shoes from Europe. The UK shoppers purchase more clothes than any other country in Europe. The politicians and the government have effects through their exercise of power on th… Consumers shopped online in ever larger numbers, an acceleration of a pre-existing trend. What they wear and how they wear influence on the behaviour of many consumers. Conclusion: Pestle Analysis of the Fashion Industry. In fact, fast-fashion retail chain Primark is doing fantastic as it caters for the needs of people who have budget limitations. Packed with the latest global fashion and texile industry news, analysis and comment, just-style gives apparel industry executives the intelligence they need to do their jobs better. However, Brexit uncertainty has been a cause of concerns for many. 2020 proved to be a tough year for the retail sector and while we look forward to a better year, a second wave of the COVID-19 virus has pushed back the prospect of a consumer-led recovery to the second half of the year. Economic factors affecting the fashion retail industry in the UK. Many people have achieved financial freedoms by trading on Amazon and eBay. Zara is a multinational European (Spanish) fashion company. Copyright ©2017 - 2025. PESTLE Analysis of Zara analyses the brand on its business tactics.,,, Competitors of Uber (Competitor analysis of Uber), SWOT Analysis of Carrefour (Carrefour SWOT). She is comprised of the Great Britain Island, north-eastern Island of Ireland and other similar islands. However, it is also true that the fashion industry adapts quickly to any change of circumstance. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. London Fashion Week, the Curve Fashion Festival, Glamour Beauty Festival London, and Manchester Fashion Week attract thousands of people from all over the world for shopping, catwalks, celebrity talks and much more. PESTLE analysis generally focuses on the following factors - Political, Economic, Social, Technology, Legal, and Environmental. According to Wolstenholme (2018) more than 80% buyers buy clothes that they never wear. 0000012619 00000 n This industry consumes more energy than the combined consumption of international aviation and shipping industries. London is the cultural and financialcenter and the world’s largest city where 10… 0000011434 00000 n 0000000892 00000 n Pestle analysis of Zara fashion brand. We estimate that revenues for the global fashion industry (apparel and footwear sectors) will contract by –27 to –30 percent in 2020 year-on-year, although the industry could regain positive growth of 2 to 4 percent in 2021 (compared with the 2019 baseline figure). But it shouldn’t be at the cost of destroying the nature and polluting the environment. UK PEST Analysis: Economic Factors. Zara PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Fashion products are entirely different from food products. 473 29 - In the past two years, H&M has been involved in a number of legal disputes regarding infringement by the clothing retailer. Companies and customers should buy and sell recycled products. The global fashion industry is worth £2tn ($1.5tn) and it brings the UK more than £30bn a year in revenues. Trends in Textile & Fash Design 2(4)-2018. 473 0 obj <> endobj The fashion retail industry in the UK has a global reputation. hŞb```b`` ``e`:ÉÀÏ€ ü,@Q� ÷]îÂÄY^êÀà @!A‰� `f`˜=HK ±XD•�W‡ƒ�aV‰2�tÅ£GÆl„r5[$´Ú®«]Ôñø°8bÓ$÷‹˜.