River Island x Cara Delevingne | Page 10

PESTLE ANALYSIS

Political

There is a general election in June 2017 which will have an impact on the UK and could mean River Island adjusting to their new laws.

There could be changes with VAT.

The minimum wage could increase which would have an effect on River Islands profits.

The impact of Brexit could cause an increase on shipment costs with the pound being lower.

Economic

Customers may have a less disposable income because of the effects of Brexit, they may be more aware of what they spend their money on. The River Island X Cara Delevingne range is at a higher price point than its competitors.

Social

River Island X Cara Delevingne target market follow a lot of fashion websites, bloggers and celebrities. Therefore, they will be expecting fast fashion to be able to buy the latest trends.

Technology has advanced so people shop more online rather than instore.

Technological

River Island and Cara Delevingne have social media such as Twitter, Facebook, Instagram and Snapchat. Their website makes it easy for people to shop online, stay up-to-date with the new trends and share their style online.

Legal

River Island would have to pay their staff right and meet the terms and conditions within the contract. The Employment Act 2008 states that employees should be paid minimum wage and any disputes should be dealt with fairly.

The Customer Protection Act 1987 protects customers from fraud, product liability and unfair business practices.

In order for River Island X Cara Delevingne pop up shop they would need the right documents such as a lease and license.

Environmental

River Island X Cara Delevingne range will support recycling by using recyclable materials.

They will also switch to paper bags to reduce the use of plastic bags.

Customers will be more willing to shop with River Island if they are respecting the environment and being green.