Pestle Analysis of the Fashion Retail Industry

The assignment is a PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis of the fashion retail industry. It discusses various factors affecting the industry, including political stability, economic conditions, social trends, technological advancements, legal regulations, and environmental concerns. The document provides a comprehensive overview of the industry's dynamics and potential future developments.

Retail Theory and Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction to retail...............................................................................................................1
Introduction to company.........................................................................................................1
Key relevant changes within the UK fashion retail................................................................2
Relevant changes within micro environment.........................................................................4
Suggesting and discussing strategies as well as tactics that could be used ...........................6
Recommendations..................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10
APPENDIX ...................................................................................................................................12

INTRODUCTION
Retail sector is the fastest growing sector that helps to provide different variety of
services to their potential customers. It includes all kinds of variety of products and services that
are highly required for the consumers. Retail sector is providing the all consumer product and
services that makes the customer satisfied and happy. Study will be based on retail practices
which will be depends on Marks and Spencer. Present study will be discussing about the overall
market of retail and Fashion supermarket trends. Besides, it also explains the key relevant
changes within UK fashion retail. Apart from that, study will also discuss relevant changes and
dynamic environment of market that affect overall industry’s profit.
Introduction to retail
Fashion retail chain is the long term market that expands the business activities and
profitability ratio. Retail sector is offering a wide variety of product range at different prices.
Besides, it also helps to take care of the organizational goals and provides a wide range of small
and large products as per the demand of consumers (Armstrong and et.al., 2015). Along with
that, it is the best and approachable market. The best example of big retail Fashion retail is
Walmart. Tesco is the global competitor in 2014. many other retailers are already maintained the
high competition in the market such as Asda, Aldi, M&S and Tesco.
This sector spread in large number of levels that affect the other competitors and factors
of growth. Level of retail sector in the UK market is highly large and long lasting. In terms of
fashion retail market, M&S is the best example that provides a variety of range of new tendency
clothing fashion outlets. M&S provides all better and attractive services to their customers in the
best possible manner.
Introduction to company
Marks & Spencer is the big multinational company in UK. It is the biggest British
multinational company in fashion industry. M&S is well known for its wide range of products
and growth. M&S is the greatest company which is spread in clothing and home branches market
growth (Brigham and et.al., 2016). It is the long lasting effect on the overall country or market. It
is the best approachable and productive function for the company which helps to fulfill the
needs of the consumers. Retailer has embarked on a radical transformation that company has
provided to their customers. Under the expanded programmers M&S eliminated 25% of the floor
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space devoted to clothing and home wares (Sullivan, Gershuny and Robinson, 2018). M&S is
having 1035 stores in the UK out of which 300 are of clothing. Rest of the store market are
relates to the food conversation. UK fashion market has returned to growth from heavy
discounting and seasonal trends for makes customer happy and satisfied All over, UK is the large
fashion market that has been providing best and lovely market growth. Retailers have been given
efforts by focusing on getting the value right (Fernie and Sparks, 2014). Marks & Spencer is
specialized in many sectors such as clothing, fooding market. M&S always take the best
approachable target goals in order to meet the needs of the customer.
Key relevant changes within the UK fashion retail
Macro environmental factors are the driving cause that directly affect company or
industry in a direct or indirect manner. Besides, it also engages the best approach to identify the
current changes in market. Through research, it has been proved that 2016 was the toughest time
for fashion industry at time of attack of British and volatility in Chinese stock market. This
brings new major changes and long lasting effects on the overall industry. There are providing
the analysis of external market of fashion industry of UK with the help of Pestle analysis model
(Fernie and Sparks, 2014).
PESTLE analysis
Political factors
Political elements can become the major driving components for fashion industry.
Several economics and policy changes have given negative impact on the fashion industry in
2016 and 2017 (PESTLE analysis of the fashion retail industry, 2017). Due to uncertainty,
geographical events, Political factors are always unexpected and challenging for the company
According to Geopolitical reports terrorism, Brexit fashion industry has been changed rapidly.
After the impact of Brexit, many of the UK companies get affected in terms of profit and
challenging goals. Due to Brexit fashion industry affected in many of the terms. Such as
Devaluation of the pound, end of free trade, clothing price hike and drop consumer confidence.
Example: for example PETA boycott against companies who use real animal furs skin
due to use of animal skin material in the purpose of making clothes.
Economic factors
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Economic factors are another major impact full factors that affect fashion retail industry
in both positive and negatively. Economy of the country shows actual buying power of
consumers.(Goworek, McGoldrick and McGoldrick, 2015). Economic factors are highly
influenced by many factors in order to meet needs of organizational goals. Overall, economic
factors affect purchasing power of the consumers. Economic factors also affect the economic
growth of the country that affect the customer purchasing power.
Example: for example people who low income in UK would not invest high amount of
money on fashion retails.
Social factors
Social factors are other component that affect the business growth and difficult task.
Social factor changes affect the fashion products and demands of the consumers or the market.
Number of changes on the sociology cultural level have gives both positive and negative impact
on the company structure. Besides, it also affects the business organization (Kamunge, Njeru and
Tirimba, 2014). In order to mitigate the risk of social factors, company needs to measure long
lasting effects with major styles and goals.
Example : for example due to maintained standard of living and class people tend to buy
fashionable clothes and formal wear accordingly. This gives positive impact on the fashion
retailers.
Technological factors
It is another crucial factor affecting the growth of fashion industry. In current it develops
the fashion scenario in terms of purchasing or selling with the help of new technological
environment. Due to introduction of globalized or information technology advancement,
customers can easily buy products through online sites without investing time, cost and money
cost as well (Leigh and Blakely, 2016). Many of the customers divert towards the online
shopping rather than offline.
Example : More people are attract towards online shopping rather than offline. Besides,
online shopping would provide high range of product variety.
Legal factors
Legal factors are bound with legal regulations and laws. Company should be liable to
follow the proper instructions of government. All along this makes also the better chances and
making good opportunities for the company as well as their customers.
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Example : Asian workers are cheaper besides, many consumers boycotting these brands
permanently.
Environmental factors
Environment cause are other major external factor that give negative and as well as
positive impact on the organization. Further, environmental factors are those who concern or
related with environmental focus of the country or the situation of particular area. Company
always need to make sure about its major objectives and goals. Overall, it also helps to discuss
and take care of carbon footprints.
For example :It also makes the proper and challenging goals which keeps the process
challenging and matter of growth. Shipping products are worsened the problem since it adds and
unfortunately efforts and helps top reduce the impact on the environment are few and far
between.
Relevant changes within micro environment
Relevant changes within micro environment
Various kinds of changes are taken in consideration by the enterprise that will affect its
work efficiency. Any kind of alteration within M&S will cause the firm to put its business
activities (Slade, 2017). Thus, to avoid any kind of business issues and adverse impact of micro
environmental factors over the organization, certain measures are required to be managed and
handled. Modifications in any of the micro environmental factors within organization are:
 Strengths: The major strength of M&S is its availability. Although many retail entities
like Asda, Sainsbury or Morrisons are operating within market, they have not yet reached
the level of market position and advantages enjoyed by organization. The large number of
outlets and wider product portfolio makes it quite difficult to penetrate business share in
retail sector (Macchion and et.al., 2015). Besides this, the operational capacity and
functioning in many countries provide company with a good amount of foreign
investment, revenue and customer base. Besides this, goods or services can be even
ordered online using company's website. This is a crucial factor which differentiates
M&S from its rivals.
 Weaknesses: The most crucial weakness or drawback of organization is lack of proper
pricing and marketing strategy. This factor has created a lot of disturbance in the market
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growth of company, leading it to face stiff competition from its rivals. Unlike Tesco plc,
Asda and Morrisons, M&S has to work upon the product’s pricing and advertising or
promotional activities in order to retain their loyal customer base. Also, this strategy will
support the firm to maintain its revenue generation and market share.
 Opportunities: M&S possesses good market opportunities to set its prices as per the
environmental conditions within an organization. Also, the assessment of micro
environmental factors and incompatibilities of the company, that explains the its rivals
that will helps in developing of an effective business plan. This will help in improving the
overall performance of business enterprises. The effective utilization of these
opportunities for growth factors will lead the firm to have a good competitive advantage
over their rivals. Also, it will help in enhancing their market share and profitability
(Kamunge, Njeru and Tirimba, 2014).
 Threats: The entry of new market competitors like Asda, Sainsbury and Morrisons in the
retail sector have emerged as a major threat factor for M&S. They have been successful
to some extent in diverting the customer base of organization towards themselves.
Effective product pricing, customer support system and increase in adaption of the latest
technologies to promote and sell products will cause M&S to have loss in revenue
generation, market share and brand reliability. M&S has to effectively look after the
mitigation of these risk factors.
Thus, it can be said that the proper evaluation of micro environment factors with
reference to their competitors will lead the business organization to manage their business
operations and activities in an effective manner, helping in growth of company.
On the basis of SWOT analysis of the company, it has been seen that, analysis of competitors,
suppliers and customers.
Competitors: competitors are the major micro factors that affect the business or industry
goals. Fashion retail sector is the most dynamic and fast changing fact. That discover new
advancing innovative product and services for customers. This changes would affect the other
competitors directly or indirectly.
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Customers: consumer is the another factor which affecting the overall, industry such as
Norms, lifestyle, demographic and population changes. This factor affects the clothing industry
in different ways.
Suppliers: suppliers is the biggest threats for the company which affect business in direct
manner. Due to high power of suppliers company have to follow the instructions as well.
Suggesting and discussing strategies as well as tactics that could be used
Macro environment will promote most advanced and fast forward decision making
approach for company to produce better quality of services and products. Macro environment is
the external environment that affects business activities and overall environmental growth in a
productive manner (Shanks and Tilley, 2016). Company needs to adopt the better advancing and
majorly target opportunities in order to take care of the better performance level. M&S is most
popular retailer that helps to bring more profit and effective process making task in order to meet
current needs of customers in an effective manner. Fashion clothing market is dynamic market
trend that affect changes needs and trends of current growth. That also affect the major
challenges and making better effective goals for the company growth. On the other hand, this
also helps to make the better image in the market. M&S requires making the proper changes and
better advancing growth manner (Slade, ed., 2017). For accomplishing the market goals and
objectives, company requires making the proper and effective changes in order to select the best
promotional strategy goals. There are some strategies are given for fashion retail industry that
could company can adopt for their long term profitability.
Fast Fashion
Fast fashion is the another approach that relates to the direct selling in the market.
Strategy enhances the new arrivals new fashion trends according to the market trend and needs
of the customers in the market. Through new or attracting customers will make more influencing
and challenging behavioral task. The new fashion stores will make customers more attractive and
influence them towards company’s products and services. In the current situation, fashion market
has been generally squeezed in some short period. Due to less option in the market customer
switch the company and take new company accordingly it also helps to make the better
appearance from the side of the company structure. Besides, fast fashion relates to the actual
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growth of making good appearance in front of the customer. This helps to correct the company
threats and create new opportunity to grow.(Minton and Kim, 2018).
Creating a core product
This is another strategy or tactic that helps to grab the customer focus or attraction level
towards the company Core commodity is iconic good for company through which customers can
directly be associated with brand. A core product is generally the best possible action and makes
the better service level. Apart from that, it also helps to make the better employment and target
market opportunity. A core product is often first product launched by a brand and it will bring a
lot of benefits. This helps to make the decent and enlarging promotional plan in order to select
better becoming maintenance level. There are providing some features or benefits of core
product value and services provided by the company.
 Focus entirely on one product, and hopefully perfect it (Raum, 2018).
 It also helps to convey the story telling for the brand direct to the consumer.
 Attract number of customers to make the product more popular
On other hand, it also requires making profitable situation for company goals.
Expanding to online channels
E-commerce is a quick and cost effective strategy or tactic that reduces the level of
growth and challenging behavioral manner of fact. This also helps to control the better objective
performance level of work. Moreover, e-commerce is the long term process goals which makes
the better advancement level. Overall, the things are not very much clear and long lasting
performing games. E-commerce is a quick and cost effective strategy that helps to know how to
sell the products in the country and abroad (Sullivan, Gershuny and Robinson, 2018). Scaling
your business growth will make the proper changes and more profitable growth channel. Scaling
you business quicker and less business objectives. Selling online products are will be more
beneficial and challenging for the company. This can be turned into great insights that can be
leveraged to improve your revenues. Overall, this helps to explain the better target market
growth and challenging business behavior.
Going niche
The last of the 4 retail marketing is creating a space for yourself in a niche market
segment. It is another strategy or tactics that helps to keep the product high and long lasting. This
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should be identifying strategies is creating a space for creating the best approachable services.
This helps company to make new position in the market and get good customer satisfaction.
Recommendations
To make the better changes and best effective results and making the best approachable
work goals. M&S needs to adopt new work strategies in order to make sure rthe position in the
competitive market. In order to engage the better services and growth (Thorlakson, Hainmueller
and Lambin, 2018). M&S Company requires the better advancing services. This makes the
proper and effective services and goals. Company also requires managing the proper
implementing growth in order to hold the better objective goals. There are some strategies should
company needs to adopt for meet the challenges and growth.
Leverage social media
In present situation company required to make the proper changes and better task
performing level in terms of making new technology appearance (Cairns and Wright, 2018).
Besides, this is the customer centric approach that helps to connect notworks and customers. This
makes the proper and challenging and better growth level. On the basis of above presentation and
proper implementing growth channel will be more helpful and growth oriented task. Company
can also attract customer by providing the new arrival growth in order to make the good
appearance in front of the market experience. Besides, this M&S can also train their employee
staff to make satisfy customers by quality, speed or with products as well. All over, these things
will also help to discover the new impact and better transforming changes (Cottan-Nir and
Lehman-Wilzig, 2018).
CONCLUSION
From the basis of above discussing sector, it has been discussed about the brief
introduction of retail sector, explained their main function and quality making task to make
effective product efforts. This also explained some new or essential introduction of fashion
stores. Besides, study also been explained about the proper introduction to the company and the
sector under which they perform the task. Likewise, assignment will also contribute the relevant
summary of the UK fashion retail store. Which makes the proper and effective learning goals on
the overall sector, It also engages the better services and growth. It also takes the better target
performance. Study also recommended some strategies for companies development growth.
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REFERENCES
Books and journals
Armstrong, C. B. M. and et.al., 2015. Sustainable product-service systems for clothing: exploring
consumer perceptions of consumption alternatives in Finland. Journal of Cleaner
production, 97, pp.30-39.
Brigham, E. F. and et.al., 2016. Financial Managment: Theory And Practice, Canadian Edition.
Nelson Education.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Goworek, H., McGoldrick, P. J. and McGoldrick, P. J., 2015. Retail marketing management:
Principles and practice. Harlow, UK: Pearson.
Kamunge, M. S., Njeru, A. and Tirimba, O. I., 2014. Factors affecting the performance of small
and micro enterprises in Limuru Town Market of Kiambu County, Kenya. International
Journal of Scientific and Research Publications. 4(12). pp.1-20.
Leigh, N. G. and Blakely, E. J., 2016. Planning local economic development: Theory and
practice. SAGE publications.
Liu, S. and et.al., 2016. The standardization-localization dilemma of brand communications for
luxury fashion retailers' internationalization into China. Journal of Business
Research. 69(1). pp.357-364.
Macchion, L. and et.al., 2015. Production and supply network strategies within the fashion
industry. International Journal of Production Economics. 163. pp.173-188.
Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of
Operations & Production Management. 37(1). pp.105-123.
Shanks, M. and Tilley, C., 2016. Re-constructing archaeology: theory and practice. Routledge.
Slade, P. G. ed., 2017. Electrical contacts: principles and applications. CRC press.
Stewart, D. W. and Shamdasani, P. N., 2014. Focus groups: Theory and practice (Vol. 20). Sage
publications.
Minton, E. A., and Kim, C. H., 2018. The subjective norms of sustainable consumption: A cross-
cultural exploration. Journal of Business Research. 82. pp.400-408.
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Raum, S., 2018. A framework for integrating systematic stakeholder analysis in ecosystem
services research: Stakeholder mapping for forest ecosystem services in the
UK. Ecosystem Services. 29. pp.170-184.
Sullivan, O., Gershuny, J. and Robinson, J. P., 2018. Stalled or Uneven Gender Revolution? A
Long‐Term Processual Framework for Understanding Why Change Is Slow. Journal of
Family Theory & Review.
Thorlakson, T., Hainmueller, J. and Lambin, E.F., 2018. Improving environmental practices in
agricultural supply chains: The role of company-led standards. Global Environmental
Change. 48. pp.32-42.
Cairns, G. and Wright, G., 2018. Why Should the Individual and Organization Practice Scenario
Thinking?. In Scenario Thinking (pp. 1-23). Palgrave Macmillan, Cham.
Cottan-Nir, O. and Lehman-Wilzig, S., 2018. CEO Branding: Between Theory and Practice—
Case Studies of Israeli Corporate Founders. International Journal of Strategic
Communication. pp.1-20.
Online
PESTLE analysis of the fashion retail industry. 2017. [Online]. Available through:
<https://www.cheshnotes.com/2017/09/pestelpestle-analysis-of-the-fashion-retail-
industry/>.
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APPENDIX
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Illustration 1: PESTLE Analysis
Source : PESTLE analysis of the fashion retail industry. 2017