PESTLE Analysis of UK Fashion and Clothing Industry and T.K.Maxx

Pestle Analysis

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PESTLE Analysis........................................................................................................................3
PORTER'S five forces.................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Fashion and clothing industry is a multi billion dollars global industry deals in making
and selling of clothes. As, human need clothes for different purpose and occasions. There are
several factors which affect the clothing and fashion industry. In this report, PESTLE and
PORTER'S five forces analysis is performed on UK fashion and clothing industry and on
T.K.Maxx company to analyse the effect of several factors.
MAIN BODY
PESTLE Analysis
POLITICAL
Political factors is a biggest factor that create uncertainty in the clothing and fashion industry.
Political stability, geopolitical events and instability due to Brexit, terrorism activities in and
outside the country is giving the sense of uncertainty in this industry in UK. Government can
encourage the companies of UK apparel industry to buy fabrics from the local market of UK if
the taxes and imports from other countries becomes costly. Political persons also influences the
fashion trends in UK (Gander, J., 2017). People expect fashions and trends from actors-
actresses, celebrities and the persons who work for the country.
Political factors affecting T.K.Maxx
T.K.Maxx was established in 1994 & its headquarters is in Framingham, Massachusetts U.S.A. It
is now expanded its business in UK and open so many store. Oil prices, elections, Brexit issue,
terrorism and political shifts is a threat to the business of fashion and clothing industry.
ECONOMICAL
Economical factors like GDP, inflation rate, bank rate affect significantly the growth of fashion
and clothing industry. Volatility and slow down in Chinese market, demonetization in India,
decrease in US and UK economy growth rate decreases the purchasing power of the customers in
UK. Fashion and clothing industry adds to the economy of the country since it is a industry
which gives highest employment.
Economic factors affecting T.K.Maxx
T.K.Maxx shows the ways on its website by which it helps to save the environment through its
business. Company recycle 94% of their store waste and currently working on 6%. So, the
factors like inflation rate, growth has comparatively low effect over company net profit margin.
SOCIAL