Another political factor is if the government were to change or adapt regulations for businesses. For example, the Regulatory Policy Committee who provide guidance for business and civil society organisations. If these regulations were to change such as limits on production of magazines (potential pollution from manufacturing) which would decrease the scale of production, therefore decreasing Fashion Wanderer’s subscriptions moreover affecting its revenue.
One political factor that may affect Needle and Thread as a brand is Brexit. If the U.K. were to leave the E.U, they may lose their membership within the Customs Union and Free Trade Area depending on the deal that is made between the U.K. and the E.U. This would impact any business such as Fashion Wanderer and the new designers (of the clothes their selling via Fashion Wanderer are from abroad) as tariffs could be imposed on exports, increasing marginal costs therefore lowering profit
A change in the base interest rate, (monetary policy) set by the Bank of England, would affect the cost of borrowing. If interest rates increased, Fashion Wanderer would be forced to pay more on what they have borrowed (loans to finance capital equipment, start up costs, wages, collaboration funds) generating an opportunity cost. The extra interest paid could have been used for things like expansion, investment in new capital equipment or perhaps increase in training, which would increase the quality of the labour and quality of the work produced on the website of magazine.
Adjustments in the Fiscal policy would have an effect on Fashion Wanderer as a business. For example, an increase in taxation in either the form of direct corporation tax or indirect tax such as VAT would increase the cost of production for Fashion Wanderer Magazine, and they could either soak up the increase in unit costs or they could pass it on to the consumer in the form of higher prices.
The Fashion industry is a very opinionated place. People, brands and businesses are highly influenced by what others do, how they look and what they say. This is why in the fashion industry brands are either successful or they flop. To be successful a brand needs to be trusted, have the support of other brands and to be liked. To be liked by one means that it will be liked by many. As people spread the word, the businesses will also spread too. Society will hugely affect the Fashion Wanderer as a brand because if people don’t like it then it will not be successful, it needs the support of others and for others to realise it is a brand they want and they can use. If it is rejected by society then Fashion Wanderer will not be able to prosper.
PESTLE
Political
Economic
Social