Impacting factors on
Boohoo
All different types of factors will effect the boohoo and we will have to adapt accordingly to the factors. The political factor of minimum will have consequences for boohoo if increased in either country (England or China). The current minimum wage is £6.31 and the proposed increase is to £8 by 2020. If there is an increase in minimum wage boohoo will have to control expenses more carefully, hiring will be more selective and retention of stage will be even more important to save costs in training. Manufacturers will also need to increase prices to cover increase in wages and this will have an impact of us. Health and safety needs to be maintain in manufacturing and all other areas of the business. Money will need to spent to ensure the safety of workers so accidents do not occur and to ensure money is not lost through absences. Standards will needed to maintained and training will be needed for workers. We don't want to be the manufacturer who is told to pay thousands after worker loses hand at work. Another factor that is impacting boohoo as a business as becoming environmentally friendly. We are hoping to move towards a more ethical and environmentally friendly brand to help us stand out and protect the environment and most importantly our workers. Consumers are becoming more motivated to shop ethically and make sustainable conscious.Ways in which boohoo can move towards this is lowing emissions by moving more manufacturing to the UK and when delivery to the consumers use eco-friendly vans. Our packaging is going to be recycled and be recycled. Also we are working to improving standards in our factories aboard and in this country.
Boohoo could face many challenges and will have to react. For example if the price of crude oil increases dramatically this will affect business in China and the UK. If the price of oil increases the price of petrol will be expensive making shipping more expensive from China
nd transporting goods around the UK. There will be a huge impact on shipping from China which may mean Boohoo moves more manufacturing to the Uk or pre book fuel in case prices go up so much. This will mean a loss in jobs in china and money going into the economy There will be a smaller impact in the UK as there is only small amounts of transporting of products. If more products are made in the UK the prices of products may need to be more expensive as it is more expensive to produce the products in the Uk. Another challenge that Boohoo could face is if the supply of stable fabric is permanently stopped, this will also have an impact in China and the UK. An another fabric will need to be sourced for both the manufacturing in China and the UK. The costs will rise due to supply and demand. Also time will be lost which will also mean loss in profit. When the new fabric is found it will need to be tested and this will add to the time lost. The testing of fabric could delay production in China and due to this the clothing may miss their slot in production in China which will impact on profits for all involved The new fabric may be more expensive or not as good. Customers may not be happy with t.e quality of the product or customers may not understand the increase in price which may have an negative impact on Boohoo’s profit. Overall both scenarios will impact the business and could effect customer confidence.