PESTLE Analysis of H&M

This assignment examines the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors influencing H&M's fashion company as it expands into new Asian markets. It analyzes various aspects such as trade regulations, economic growth, cultural differences, technological adoption, legal considerations, and environmental impact. The analysis aims to provide insights into the opportunities and challenges H&M might face in its Asian expansion.

Running Head: International Business
International Business

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Contents
PESTLE For H&M fashion company..............................................................................................2
P- Political factors........................................................................................................................2
E-Economical factors...................................................................................................................2
S-Social factors............................................................................................................................3
T-Technological factors...............................................................................................................3
L-Legal factors.............................................................................................................................3
E-Environmental factors..............................................................................................................4
References........................................................................................................................................5

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PESTLE For H&M fashion company
P- Political factors
The H&M fashion company is well-known company Swedish multinational clothing-retail. The
company is going to open the business in new Asia regions that include Turkey, Taiwan, Hong
Kong, Macau, Singapore and Malaysia (H&M, 2017). Each region of Asia there is separate trade
regulations and laws that need to be followed by the company. For instance, Singapore levies 7%
Goods and Services Tax (GST) and 99% of all imports enter duty-free. Similarly, each country
has different trade regulations that can impact the working and the expansion plans of the
company (Export.gov., 2017). There are certain regulations related to the license that can
become the huddle in the formation of the business.
E-Economical factors
The economic factors include inflation, employment, purchasing power and recession. The
income of the Asia regions are increasing form last few decades and this shows that there is a
rise in the purchasing power of the Asia regions (Barua, 2017). The graph below shows the
increase in the income:-

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The inflation rate of regions of Asia is increasing which bring the rise in the demand of the
customers and this economic helps the company to make a profit out of these countries.
S-Social factors
The social factors are directly related to the customers, the increasing awareness of the
knowledge in the customer is making the company be transparent with the customers. The H&M
fashion company is operating the business in the Middle East and in Asia. This is the reason they
should keep this on account that there are social and cultural differences such as language,
religion, and outfit of the men and women (Yu, and Shi, 2013). Considering, the Asia regions
company need to bring the changes in the products that they are offering to the customers. The
youth of the Asia will definitely like to prefer the fashionable and designers outfits.
T-Technological factors
The technologic is adopted by each and every company in today’s world. The company is
opening the online stores in Asia, so the company should provide the portal more convenient for
the customers with the use of the technology (Samoilenko, 2016). The mobile app use should be

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provided to the customers and apart from this company should try to develop more innovative
strategies with the use of technology that helps the company to compete in the market.
L-Legal factors
The legal factors should be taken care of the company while operating the business in the Asia
regions. The company should trademark and patent on the products that they are going to provide
in the Asia regions so that the company doesn't have to face any disputes. These disputes can
harm the working of the company in the regions (Ho, 2014). The company needs to provide the
wages considering the laws related to the minimum wages act of different countries.
E-Environmental factors
The environmental factors are must to be followed by the company as this is the social
responsibility of the company. The H&M fashion company understands the value of the
environment and the company works accordingly. The aim of the company is to be 100%
circular and renewable by the year 2030 that means that company is looking to manufacture the
new product from the old products (H&M, 2017). In Asia regions, the company wants to make
use of the recycled and the durable material. By doing so the company is fulfilling the
environmental laws of the Asia regions.

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References
Barua, A., 2017, Asia’s retail spending boom: Shoppers go on a frenzy, and why not?, Viewed
on 6th November 2017, https://dupress.deloitte.com/dup-us-en/economy/asia-pacific-economic-
outlook/2017/q2-asia-retail-spending-boom.html
Export.gov., 2017, Trade Regulations, Customs and Standards, Viewed on 6th November 2017,
https://2016.export.gov/singapore/doingbusinessinsingapore/traderegulationscustomsandstandard
s/index.asp
H&M, 2017, About Us, Viewed on 6th November 2017,
https://about.hm.com/en/about-us/markets-and-expansion.html
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
Samoilenko, A., 2016. E-commerce in Russia: Challenges and Opportunities: Russian e-
commerce market for local and foreign enterpreneurs.
Yu, Y. and Shi, Z., 2013. Customer satisfaction in the fashion industry: Case study of HM case
company.