The detailed PESTEL analysis of the fashion industry across the globe aims to determine and explore political, economic, social, technological, environmental, and legal factors influencing the industry. Clothing and accessories have always been a profitable business for the global economies. Here is the detailed PESTEL analysis of the fashion industry.
PESTEL Fashion Industry – Political Factors
Political factors play a major role in the fashion industry of any country. The incumbent government motivates the companies to buy local fabrics especially when import duties are high. Moreover, the government has to protect the wildlife of the country hence, it prefers to boycott the companies who use animal skins or furs. Political influence is much high on fashion trends. Lady Dianna is considered a fashion icon in the United Kingdom. People idealize Michelle Obama and Melania Trump because of their fashion trends. People expect celebrities to be fashion icons, but they discuss the White House and Buckingham Palace women to use them as muses for fashion trends (Frue, 2018).
PESTEL Fashion Industry – Economic Factors
Economic factors are important to consider in the fashion industry. There are two main ends of consumers; low-income economies with high unemployment levels where fashion is considered a luxury as it is difficult for them to afford. And then there are high-income economies where consumers can easily buy fashionable accessories and products. The fashion trends are seasonal and keep on changing continuously. If any fashion trend is permanent, then consumers have to endure the space and safety cost too. Hence due to rental clothing accessories are way more affordable and cheaper (Shaw, 2020).
PESTEL Fashion Industry- Social Factors
There are various universities and colleges in the United Kingdom which prepare fashion designers. British fashion designers are considered to be one of the best in the world. Likewise, fashion events like London Fashion Week, Curve Fashion Festival, Manchester Fashion Week, and Glamour Beauty Festival London attract hundreds and thousands of people across the globe to catwalks, shopping, and celebrity talks. Many people across the globe are heavy buyers of the latest fashion trends. Fast fashion trends dominate buying habits. As per Wolstenholme (2018), more than 80% of people buy clothes that are never worn by them. It is good for the fashion industry, but it is dangerous for the environment (Rahman, 2021).
PESTEL Fashion Industry – Technological Factors
E-commerce brought multiple opportunities for people. Online shopping encourages people to buy and sell products. Instead of physically visiting the busy shops and looking for clothes, it is easy to surf websites, pick the size, and deliver options. The Internet has also opened the ability to own shops and can sell fashion related accessories. GirlBoss Sophia Amoruso also started buying vintage clothes and sell them for good profits on eBay. Flipping clothes is not simple, but it also takes few hours to set the online shop and homemade, sell custom jewellery or attire (Frue, 2018).
PESTEL Fashion Industry – Environmental Factors
The fashion industry deals in products and materials which are dangerous for the environment in several ways. From manufacturing to delivering, there are numerous processes and materials which are dangerous for the environment. Chemicals are involved in treating cotton to jeans or any other products. Factories emit chemical fumes into the atmosphere. At the delivery stage, vehicles release gases into the environment and cause air pollution. Sea cargo also causes sea pollution damaging marine life. However, many companies and famous brands are now moving towards sustainable products and fabrics. They have started recycling fabrics but still, it is being operated on a low level (Shaw, 2020).
PESTEL Fashion Industry – Legal Factors
The fashion and retail industry adhere to the rules and regulations for the industry. Because of strict costs and rules, many companies have outsourced their operations abroad. While all of this helps in saving the companies’ costs, the fashion industry needs to follow similar regulations and rules like other businesses. For staying legal, companies have to follow the tax restrictions, inflation costs, and export restrictions. They must maintain the rights of workers. Many companies violate this right by utilizing child labour in different countries (Rahman, 2021).
Conclusion
It is not deniable that the fashion industry is playing an important role in building up the trends, culture, economies, and societies of countries. But it is important to acknowledge the cost of destroying and polluting the environment. Companies and customers should sell and buy recycled products.
References
Frue, K. 2018. PESTEL analysis of the Fashion Industry. [Online], Available at: https://pestleanalysis.com/pestle-analysis-of-the-fashion-industry/, [Accessed on: 6th May, 2021].
Rahman, M. 2021. PESTEL analysis of the fashion retail industry in the UK. [Online], Available at: https://howandwhat.net/pestel-analysis-fashion-retail-industry-uk/, [Accessed on: 6th May, 2021].
Shaw, A. 2020. PESTLE analysis of the fashion industry. [Online], Available at: https://www.marketingtutor.net/pestle-analysis-of-the-fashion-industry/, [Accessed on: 6th May, 2021].