Impact of COVID on Fashion Industry: Environmental Analysis

Impact of covid on
fashion industry -
environmental analysis
of fashion industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse the impact of the pandemic and explain the major forces that have shaped the
business environment of the fashion industry........................................................................3
critically assess the opportunities and challenges that these forces have presented to the key
players in the fashion industry and explain why and how some firms have been able to adapt
better than others to this changing business environment......................................................4
SWOT analysis:......................................................................................................................4
Competitive forces:................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The global pandemic has affected the fashion industry while many fashion brands are
struggling to survive in this scenario. The customer survey by McKinsey has revealed that there
is a significant drop in the customer intention to purchase. It is different in online versus offline
channels. Present report is based on analysing the various opportunities and challenges that are
associated with this changing external environment. GUCCI is a Italian luxury fashion brand that
is having presence in Italy (Pal and Gander, 2018). They are dealing in various product line that
includes accessories, footwear, handbags, fragrances and home decoration, it was started in the
year 1921. presently the impact of COVID 19 has resulted into a complete transformation of
many industries that is going to posses a impact on the overall functioning of the organisation
and industry as a whole.
MAIN BODY
Analyse the impact of the pandemic and explain the major forces that have shaped the business
environment of the fashion industry
There are many different factors that are part of the macro environment and are posing a impact
on the overall organisation functioning. For this purpose some of the factors which are going to
shape the future of fashion industry after the post COVID period is discussed as below:
Political: Political factors of a country includes the various taxation policies, import and export
laws that are posing a impact on the present policies and functions of the organisation. GUCCI is
dealing with red tapism in countries like China and India that is leading unfavourable
environment for smooth functioning of brands (Lynge-Jorlén,, 2017). They are having no
systematic framework for proprioception of intellectual property rights as investors are not
willing to invest in the expansion aspects of market expansion of GUCCI.
Economic: GUCCI as a luxury fashion brand is playing a crucial rile in economies of France and
Italy. It has been hard hit by the lock-downs as there is now closure of stores across the globe
that is facing uncertainty as there is reduction in the personal disposable income of people
(Niinimäki, 2018). As per view of Spokesperson of GUCCI it is said that the price changes may
narrow the gap between handbags prices in Europe that may be lower than major luxury markets
in china where shoppers have queued at stores emerged from lock-down.