Published by MBA Skool Team, Last Updated: March 07, 2021
PESTLE Analysis of Pepe Jeans analyses the brand on its business tactics. Pepe Jeans PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Pepe Jeans, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Pepe Jeans PESTLE Analysis can be explained as follows:
Pepe jeans is one of the leading apparel brands in the world. The government have a set of laws and regulations the differ from one country to another. The political factors take into consideration all such regulations and principles set by the government to control and protect the industry. A country that is politically stable is much safer to invest in as compared to a country with political chaos. This is because there would be lesser changes in terms of regulations and hence the company would be able to operate smoothly for a longer period of time. Sometimes regulatory pricing by the government could also have great impact on the company and changing policies may also bring along change in political scenarios which could thereby impact the company. Political factors are more about the regulations and loss set by the government that come under the legal factors which we would further discuss below.
Image: company website
Below are the economic factors in the PESTLE Analysis of Pepe Jeans:
Any economic factors that could lead to changes in the purchasing power of consumers are an important determinant of the size of the market.
In a country with the rising growth trajectory, people would be more willing to purchase denim as they will have more disposable income. In case of economic crisis people would spend only on essentials and save the rest. The import and export for the industry & Pepe jeans brand also depends on factors like exchange rates, trade restrictions etcetera. A study about the adverse economic conditions that the company could face in future and pre planning accordingly to survive in those conditions will help the company to sustain longer. Other economic factors like exchange rates and trade restrictions could also have a great impact on the sales and thereby the profitability and growth of the company.
Following are the social factors impacting Pepe Jeans PESTLE Analysis:
Social factors like cultures and traditions in a country are an important factor that determines the people’s willingness to buy such products. Cultural differences affect the fashion and hence brands have to adapt their products to such differences. Closer also now being viewed as a perishable commodity and people like to look for fresh clothing very often these days. This states that the life of the product is shortening day by day. In order to maintain proper inventory, there must be an analysis of the preference of the people in that area and requirements. There also might be some extraordinary qualities of the people staying in the society where the companies are operating, that must also be analyzed to fully harness or exploit the opportunity.
The technological factors in the PESTLE Analysis of Pepe Jeans are mentioned below:
Development in online shopping the most important technological factors that is affecting the clothing industry & brands like Pepe jeans. So, releasing of mobile applications or websites for all the platforms is one of the strategies that the company in the clothing industry must follow. social media marketing is another strategy that helps to increase the sense of belongingness to a brand as a customer feels close to a product when it is marketed in a place where the customer feels convenient. the availability of latest technologies that could help in production of better-quality jeans or denim must also be taken care of so as to deliver the customer best quality products.
This could be easily done with an investment in research and development and doing so will help the company attain competitive advantage in the industry.
Following are the legal factors in the Pepe Jeans PESTLE Analysis:
Legal factors are the laws that are in place for the company to operate without harming the competitors or its stakeholders. Antitrust laws, which differ from one nation to another are in place to ensure fair business practices. The Pepe jeans company must be well versed with all the laws to avoid any lawsuits or legal charges against the firm. Employment laws insure good conditions of the employees. If there are any unfair practices taken against the laws whether it is related to wages or related to the working environment conditions employees can question the management based on these laws. The consumer laws are in place so that the company cannot cheat its customers by selling bad quality products. Every government has a set of rules and regulations that support the industrial development of their country. Some other laws like IP protection laws are also in place for the protection of the company’s products. Abiding by the laws helps the firm to protect itself from any legal charges thereby saving a lot of money and time which would have otherwise been spent on court proceedings.
In the Pepe Jeans PESTLE Analysis, the environmental elements affecting its business are as below:
Pepe jeans should try reduce the damage caused by its industries operations to the environment to the maximum possible extent. Measures like saving the paper by not printing bills and instead sending them via an email for a message, using paper bags instead of plastic bags or encouraging the customers to carry their own bags, adapting to renewable sources of energy and reducing the carbon emission could help the company sustain in the long run and also protect the environment in which it is operating.
weather conditions and climate changes could not only affect the demand for products but also have a great impact on the cost and quality of raw materials available. Pepe jeans could also take measures to upcycle their products by allowing certain exchange policies thereby motivating the customers to not throw away their products. They could distribute such products as a part of their corporate social responsibility to the not so fortunate sections of the society or create creative items and sell them again.
To conclude, the above Pepe Jeans PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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