Pestle analysis of Apparel industry

This document provides a comprehensive analysis of the political, economic, socio-cultural, technological, legal, and environmental factors affecting the apparel industry. It discusses the impact of government regulations, economic recession, changing customer demands, technological advancements, legal compliance, and sustainability practices. The document includes references for further reading.

Apparel industry
Pestle analysis of Apparel industry

APPAREL INDUSTRY
 Political factor
It has been seen that United States is considered as the capitalistic and free market
economy. Also, the employee rights have an important role and it affect the business. The
apparel industry is known as the labor intensive that has the effect on the employee’s
laws. There are some laws to consider that are related to minimum wage, over tome and
also the healthy and safety rules such as rules related with OSHA. So, the company has a
major threat from the government rules that are implemented in the market (Frynas and
Mellahi, 2015). Economic factor
The wage and salary employment in this sector is on the declining stage and it will be
expected to decline by 69%. The negative impact has also been seen at the time of
recession as it is examined that in economic down turn the customers often shop for the
brands that are cheaper because they have low disposable income (Gereffi and Lee,
2016). The threat in the sector can be from the economic recession that takes place. Socio cultural factor
The apparel sector has different merchandise related to size and ages. The demand of the
customers in relation to the apparel sector keeps on changing. So, it can be said that there
is a wide scope or the opportunities for the company to enhance its market share in the
competitive business world. Technological factor
The innovative advancement in the technology has enhanced the automated machinery.
This has boosted productivity and the demand in the apparel sector. It has been seen that
there is a wide opportunity for the companies to grow in the market. In relation to this the
apparel sector has the opportunity to bring new designs in the market that will satisfy the
basic needs of the customers (Thompson and McLarney, 2017). Legal factor
Ethics and compliance are essential in this sector for the big brands. It is observed that
apparel industry has to consider the different labor laws that require more compliance.
So, the legal compliance and ethical framework can be threat for the company as they
have to conduct the activities accordingly. The legal compliance if not considered by the
apparel sector can impact the overall growth and demand in the market. It can be the
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APPAREL INDUSTRY
threat as there are many other laws that are concerned with the international trade and it
needs more compliance (Nayak and Padhye, 2015). Environmental factor
In the market there are more than 65% of the customers who are seeking into the
sustainable fashion actively. The report has states that there is sustainability that has
become the influence of the purchasing decisions of the customers. There are various big
brands such as Nike that have considered the sustainability goal. The companies are also
taking care of the carbon footprint and are marketing as the environment friendly brands.
Environment and sustainability practices are considered by using environmental friendly
raw materials, packaging and operations. The Mckinsey reported that fashion brands have
prioritized the overall sustainable practice by bringing transformation in the product
design and manufacturing. This can be the opportunity to enhance market share of the
companies (Ashby, 2016).
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APPAREL INDUSTRY
References
Ashby, A., 2016. From global to local: reshoring for sustainability. Operations Management
Research, 9(3-4), pp.75-88.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Gereffi, G. and Lee, J., 2016. Economic and social upgrading in global value chains and
industrial clusters: Why governance matters. Journal of Business Ethics, 133(1), pp.25-38.
Nayak, R. and Padhye, R., 2015. Introduction: The apparel industry. In Garment manufacturing
technology (pp. 1-17). Woodhead Publishing.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail Market?. Journal of
Commerce and Management Thought, 8(2), p.234.
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