Your question:

Choose a market space for fashion organization is present and conduct an External Analysis (i.e., identify trends related to PESTEL and Porter’s Five Forces).

PESTLE Analysis Fashion Industry Answers and Explanation

The Sustainable Athleisure Market: Navigating the Shifting Landscape

• Government regulations: Growing awareness of fast fashion's environmental impact could lead to stricter regulations on production, waste disposal, and labeling. This could benefit brands committed to sustainable practices.

• Trade tensions: Uncertain trade relations between major players like the US and China could disrupt supply chains and sourcing for sustainable materials, impacting production costs and availability.

• Rise of experience economy: Spending on experiences like travel and dining might compete with fashion purchases. Brands need to offer unique experiences like personalized shopping or community engagement to retain customer loyalty.

Social:

• E-commerce boom: Online shopping is the preferred choice for many consumers. Brands need robust online presences with user-friendly interfaces, personalized recommendations, and seamless checkout processes.

• Artificial intelligence and personalization: AI can be used for targeted marketing, product recommendations, and virtual fitting rooms, enhancing the customer experience.

• Regulation on pollution and waste: Governments are cracking down on textile waste and microplastic pollution. Brands need to implement sustainable practices like upcycling and closed-loop systems to comply with regulations and appeal to eco-conscious consumers.

Legal:

1. Bargaining Power of Suppliers:

• High: Sustainable materials and ethical sourcing are premiumized, giving suppliers with strong sustainability credentials more leverage to negotiate prices.

• E-commerce platforms: Platforms like Amazon and Farfetch hold significant power, dictating terms for brands selling on their sites. Brands need strong direct-to-consumer strategies to counter this reliance.

• Brand loyalty: Strong brand identity and ethical commitment can create loyal customer bases, reducing price sensitivity and competition.