PESTLE
POLITICAL, ECONOMICAL, SOCIAL, TECHNOLOGICAL, LEGAL, ENVIRONMENTAL
SECTION ONE
LK LONDON
POLITICAL
Due to brexit, shipping costs for materials, fabrics and stock will increase so this will have to be taken into consideration when pricing product. Depending what party comes into power in the general election it could mean an increase in tax.
ECONOMICAL
In April 2018 there was an increase in minimum wage. This means people are earning more meaning some people may have more disposable income. Cost of living is constantly increasing but if wages don’t rise with these costs, it will change the way people will spend.
SOCIAL
It has been proven that people are spending more money on services/activities than on actual product.
TECHNOLOGICAL
Cyber-attacks are becoming very common meaning it can be risky for a company to be completely online. This is why LK London is mainly in-store based. Brands are becoming more innovative with technology which can be a risk is business do not keep up but an opportunity for those who are up to date with it and use if efficiently.
LEGAL
Buyers rights have been updated, this means business must make sure they meet all the new rules and regulations. Laws are put in place for things such as tax and minimum wage so all business must meet these laws.
ENVIROMENTAL
A company’s carbon footprint must be taken into consideration as consumers are continuously thinking more about the effects products they are buying are having on the environment. Ethical trade also needs to be taken into consideration as it is extremely important and can be off putting to consumers if not.