Impact of Macro-environment on Fashion Markets and investigate

Impact of Macro-environment
on Fashion Markets and
investigate industry Micro-
environment.
(Global Fashion Management)
Name: Shivani Mandole
P2546629

Table of Content
1. Aims and Objectives
2. India- An emerging Retail market
3. Macro Environment -PESTEL (India)
4. Micro Environment of India
5. China- An emerging clothing manufacturing base
6. Macro Environment-PESTEL (China)
7. Micro Environment of China
8. Impact of both the countries on fashion retail practice
9. Conclusion/Recommendation
10. Reference List
11. Figure list
12. Appendix

Aims and Objectives
● understand the fashion market condition of India,
● Understand the textile Industry of china.
● chalk out the possibility of India and China to enter in a trade relationship in
regards to textile import and export.

India- An emerging Retail Market
● Fast fashion clothing has become a global phenomenon
● Handloom industry is rising globally
● Clothing industry requires skilled manufactures (Siddiqui O’Malley McColl
and Birtwistle 2013)
● Ranges from haute culture to ordinary fashion
● A developing industry

Macro Environment (PESTEL)- India
POLITICAL-
• Political
instability
• Inclusion of
apparel in the tax
system (BOF,
2020)
• Government
policy of
removing tax.
ECONOMIC-
• Economic crisis
• Fall in GDP
• Rise of middle
class with
significant
money.
SOCIAL-
• Rise of the Gen
X
• Exposure to the
global fashion
brand
consciousness.
TECHNOLOGY-
• Improving
importing system
• Globalization
• Better
communicative
process.(Just-
style 2020)
ENVIRONMENT
-
• Pollution
• Climate
LEGAL-
• International
trade regulation
• Foreign Trade
Act
• Minimum wages
increase.
(Kuldova 2013)

MICRO ENVIRONMENT OF INDIA

China-An emerging clothing manufacturing
base
China’s cheap labor gives it a good manufacturing
scope
China has a great base of R&D that helps it making it
a good and trusted manufacturing hub
The taxation policy though complicated, China does
not have high export tax.
China’s textile industry production accounts for the
43% of global clothing exports.
Future development is focused on at present to boost
domestic industries ((Apparel Sourcing & Textile
Industry News & Analysis | just-style, 2020))

Macro Environment-PESTEL (China)
POLITICAL-
• Tax policy
• Labour law(Chen
2013)
• Political stability
ECONOMIC-
• Economic growth
• Inflation rate
(Chen and shih
2014)
• Exchange rate
SOCIAL-
• Health
consciousness
• Population growth
• Age distribution.
(BOF,2020)
TECHNOLOGICAL-
• R&D development
• Automation
• Technological
advancements
ENVIRONMENTAL-
• Security on
environment
protection
• Reduction of
pollution
LEGAL-
• E-commerce
legislation
• Tax laws
• Environment law

Micro environment of China
STRENGTH
1. Diverse portfolio of products
2. Falls in line in expectation
3. Skilled labor
4. Ability to take mass order
5. International recognition
WEAKNESS
1. Rare presence of
social media
2. Lack of luxury and
classic styles
3. Limited awareness
about brand (Chen
2013)
THREAT
1. High tax
2. Competing industries in other
places
3. Counterfeit products ()
OPPORTUNITY
1. The awareness of
quality
2. Room for growth

Impact of both the countries on fashion
retail practice
India can have a export import relationship with china
because of the cheap price
China will be profitable since clothing retails are
growing in India (The business of Fashion, 2020)
The political turmoil can be a negative factor
Tax policy can also affect the two countries

Conclusion and Recommendations
● There can be however problems regarding the political turmoil between the
two countries.
● exchange of service and trades can be used in order to show interests in the
business.
● India can help out china with resource reliance.
● Since the export market of China is highly concentrated, India at first needs
to have a solid hold in trade relation with China.

Reference List
● Chen, C.H. and Shih, H.T., 2014. The impact of WTO accession on the Chinese garment
industry. Journal of Fashion Marketing and Management: An International Journal.
● Chen, F.P., 2013. Hebei home textile industry cluster optimization research based on SWOT
analysis of entropy fuzzy comprehensive evaluation. In Advanced Materials Research (Vol.
627, pp. 601-604). Trans Tech Publications Ltd.
● Khaire, M., 2011. The Indian fashion industry and traditional Indian crafts. Business History
Review, 85(2), pp.345-366.
● Kuldova, T. ed., 2013. Fashion India: Spectacular Capitalism (p. 167). Akademika
Publishing.
● Siddiqui, N., O’Malley, A., McColl, J.C. and Birtwistle, G., 2013. Retailer and consumer
perceptions of online fashion retailers: Web site design issues. Journal of Fashion
Marketing and Management: An International Journal.
● The business of fashion (20120) retrieved from https://www.businessoffashion.com
● Just-style.com. 2020. Apparel Sourcing & Textile Industry News & Analysis | Just-Style.
[online] Available at: <https://www.just-style.com> [Accessed 10 April 2020].

Figure list
● POSITION OF INDIA AS FASHION RETAILER
● CHINA AS MANUFACTURER
● CHINESE TEXTILE WORKSHOPS
● CHINEESE HANDLOOMS
● AN INDIAN TEXTILE MARKET