Your question:

• According to Covid-19's impact on the fashion industry:

-Prepare a detailed Porter's Five Forces and PESTEL analysis

PESTLE Analysis Fashion Industry Answers and Explanation

1. Bargaining Power of Suppliers:

• Increased initially: Lockdowns disrupted production and sourcing, giving suppliers more leverage to negotiate prices and terms.

• Increased initially: Consumers cautious with spending, leading to discounts and promotions, empowering buyers.

• Shifted towards online: E-commerce platforms gained leverage, dictating terms for brands selling on their sites.

• Direct-to-consumer: Cutting out middlemen and leveraging online channels empowered new, digitally-native brands.

• Sustainability focus: New brands built on ethical and sustainable practices could attract customers disillusioned with traditional players.

• Value proposition: Brands focusing on functionality, comfort, and emotional connection could counter the threat of substitutes.

Example: Lululemon's athleisure wear benefited from the rise of home workouts and comfort-seeking trends.

Example: Luxury brands like LVMH and Kering engaged in fierce competition for online market share and celebrity endorsements.

PESTEL Analysis:

Example: Nike faced scrutiny over its sourcing practices in China, impacting its brand image in certain markets.

Economic:

Social:

• Changing consumer values: Increased focus on ethical production, social responsibility, and diversity within the industry.

• E-commerce and digital marketing: Crucial for brand reach, engagement, and sales in the online-driven landscape.

• Artificial intelligence and personalization: Personalization tools and AI-powered recommendation engines can enhance the customer experience.

• Circular economy: Brands explore models for clothing rental, resale, and upcycling to reduce waste.

• Regulation on pollution and waste: Increased pressure to reduce the environmental footprint of the fashion industry.