APPENDIX
APPENDIX Appendix Q - PESTLE Analysis
Appendix P - Acne Studios SWOT Analysis
P
INTERNAL FACTORS Strengths
innovative brand - Associated with the Scandi Cool aesthetic - Doesn’t conform to the conventional forms of advertising - Utilises their recognisable and interesting retail space - Operates 60 retail stores in 24 cities, 14 countries on 4 continents - Operate concessions in top department stores like Harrods, Selfridges, Bergdorf etc - Well known amongst creative society which defines their target audience - The use of a multidisciplinary approach
- Limited social media presence - No app for iPhone/iPad so is losing out on e-commerce growth - Limited advertising in any other magazine but their own - Merchandise may be considered to be too quirky for the average person therefore are limiting their target audience
O pportunities Threats - Improve online content/social media in order to - The growing popularity of social media being interact with their target market more effectively - Create an app - Brand expansion eg: more physical stores - Expand their advertising and marketing strategies - The majority of Acne Studios designs are categorised as luxury ready-to-wear, yet customers require different types of clothing for different occasions. To address this, Acne may consider expanding their workwear and athleisure product lines.
used as the main strategy of promotion for their competitors - Changing consumer buying habits as fast fashion is reshaping the fashion industry with customers buying more for cheaper prices rather than necessarily investing in quality. - By operating many physical stores, Acne Studios encounters high business tax rates. This means they have higher operating costs than online retailers. - Whilst competitors are expanding into different markets eg: athleisure, Acne Studios is not.
EXTERNAL FACTORS
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NEGATIVES
POSITIVES
- Well established reputation as a different and
Weaknesses
E
(political)
(economic)
Brexit is one of the main political issues facing fashion. The UK fashion sector is “built on duty free access to the EU” therefore it is now facing “the risk of export tariffs into its biggest trading partner from 2021” (Arnett G, 2020). This is an issue as “80% of UK clothing exports are currently sent to the EU” (Arnett G, 2020). The UK may now also face issues with their supply chain as well as workers. This is because “more than 10,000 European staff work in the British fashion industry” (Tobin L, 2019).
The global recession of 2008 caused "increasing unemployment and higher interest rates" (Easey M, 2002, p39). This lead to reductions in levels of disposible income that a consumer had therefore they had to be wary of frugal spending on items like clothing. This meant that the number of UK fashion retailers going “into administration ... rose by 21%” (Posner H, 2015, p69).
Fashion brands have to consider the different political regulations in the different markets that they operate due to labour laws. The suitability of the advertising has to be considered for different markets. This would include the choice of photographs and wording as if wrongly used some markets may take offence and this would damage the brand image.
S
(social)
T
(technological)
Demographic changes like the aging populations of Western countries may result “in a threat for solely teenage-orientated apparel firms because of the competition for their shrinking segment becomes more intense” (Chavan R, 2018, p217).
Advancements in technology have further enhanced customer experiences in the fashion industry. Topshop “have led the way, combining virtual reality and Instagram-friendly photo opportunities to drive footfall” (Hawken L and Sailsbury F, 2017) .
Increasing customer awareness of the implications of fast fashion has caused “changes in customer behaviour and attitudes towards fashion companies are increasing the demand” for sustainability (Chavan R, 2018, p217).
Computer-aided design (CAD) enables designers to create and experiment with products on screen. This reduces the money wasted “sampling products in the early stages of development (Posner H, 2015, p69).
L
(legal)
E
(environmental)
Have to abide by copyright law. Copyright law ensures that the original design cannot be copied or replicated.
Increasing consumer awareness of the environmental impact of fashion is driving new markets in sustainable and ethically produced goods.
In 1995 the “introduction of the minimum wage undoubtedly affected manufacturers” (Easey M, 2002, p27). This generated an increasing gap between UK manufacturers and those abroad. Therefore, to save money many UK companies began to outsource manufacturing to abroad.
Carbon footprint targets set at summits like the 2009 Copenhagen Climate Change Conference saw 115 governments commit to mitigate climate change (UNCC, 2009).
Brands also need to consider the weather and seasons in the different hemispheres as this will impact If a company trades whattypes of products There is increasing The emergence of the globally, issues may are purchased. For disparity between internet and social arise as each “country example, Australia has socio-economic groups. media has “facilitated has its own set of rules their summer whilst This inequality gap and accelerated the and regulations” that it is winter in the UK. means products have to infomation flow of have to be abided by This would mean Britremain affordable and new trends” (Chavan (Chavan R, 2018, p216). ish brands would have available for a range R, 2018, p217). These to consider offering of different incomes. technolgical advance- The labelling of seasonal product lines ments has enabled garments has to be that would cater Globalisation has the UK to become the correct for the market for these different The “global spread meant TNCs are “leading country in in which they are being timed seasons so not of coronavirus is entering new internaEurope in terms of sold. An example of to eliminate target continuously impacting tional markets. This online penetration” this is all children’s markets. Additionally, upon the fashion means the company with e-commerce sales clothes, “including the impact of global industry” (Ilchi L, has to consider if the reaching a walue of threads and trimmings, warming means summer 2020). The three week products they are “£688.4 billion in have to apply with the is getting warmer lockdown in the UK offering are deemed 2018” (Sabanoglu T, British Standard BS and arriving sooner. has seen retailers have socially acceptable 2019). 5722” (Easey M, 2002, Therefore, brands may to close and furlough for specific cultures. p27). have to bring foward their employees. This is Additionally, increas- Technology impacts their summer and spring having global impacts ing multiculturalism upon supply chains Proper code of collections. as the supply chain has means a company has to and manufacturing, conduct should be been interupted. accomodate for fiffer- providing mass market enforced to ensure the ent consumer needs. brands with “infamous- correct legal treatly short catwalk-toment of everyone in the high-street-lead times” supply chain. (Strategic Direction, 2005). In fashion, both imports and exports are greatly affected by the strenght of the British sterling. In the “1990s sterling was particuarly strong making imported clothing cheaper and hampering clothing exports by increasing their costs in foreign markets” (Easey M, 2002, p40).
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