Promotion

Appendix P - Acne Studios SWOT Analysis

INTERNAL FACTORS

Strengths

- Well established reputation as a different and 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

Weaknesses

- 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

Opportunities

- Improve online content/social media in order to 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.

Threats

- The growing popularity of social media being 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.

NEGATIVES

EXTERNAL FACTORS

Appendix Q - PESTLE Analysis

P

(political)

E

(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).

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. 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).

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).

The “global spread of coronavirus is continuously impacting upon the fashion industry” (Ilchi L, 2020). The three week lockdown in the UK has seen retailers have to close and furlough their employees. This is having global impacts as the supply chain has been interupted.

S

(social)

T

(technological)

L

(legal)

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).

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).

There is increasing disparity between socio-economic groups. This inequality gap means products have to remain affordable and available for a range of different incomes.

Globalisation has meant TNCs are entering new international markets. This means the company has to consider if the products they are offering are deemed socially acceptable for specific cultures. Additionally, increasing multiculturalism means a company has to accomodate for fifferent consumer needs. 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) .

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).

The emergence of the internet and social media has “facilitated and accelerated the infomation flow of new trends” (Chavan R, 2018, p217). These technolgical advancements has enabled the UK to become the “leading country in Europe in terms of online penetration” with e-commerce sales reaching a walue of “£688.4 billion in 2018” (Sabanoglu T, 2019).

Technology impacts upon supply chains and manufacturing, providing mass market brands with “infamously short catwalk-tohigh-street-lead times” (Strategic Direction, 2005). Have to abide by copyright law. Copyright law ensures that the original design cannot be copied or replicated.

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.

If a company trades globally, issues may arise as each “country has its own set of rules and regulations” that have to be abided by (Chavan R, 2018, p216).

The labelling of garments has to be correct for the market in which they are being sold. An example of this is all children’s clothes, “including threads and trimmings, have to apply with the British Standard BS 5722” (Easey M, 2002, p27).

Proper code of conduct should be enforced to ensure the correct legal treatment of everyone in the supply chain. Increasing consumer awareness of the environmental impact of fashion is driving new markets in sustainable and ethically produced goods.

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 whattypes of products are purchased. For example, Australia has their summer whilst it is winter in the UK. This would mean British brands would have to consider offering seasonal product lines that would cater for these different timed seasons so not to eliminate target markets. Additionally, the impact of global warming means summer is getting warmer and arriving sooner. Therefore, brands may have to bring foward their summer and spring collections.

E

(environmental)