P-Political
Politically since Brexit last June, there has been a change in which consumers shop and businesses trade. We saw the ‘pound plummet to its lowest level against the dollar in 31 years’ (1). For many fashion brands this will affect their trade rates, such as shipping and manufacturing outside the UK. In turn prices for consumers will increase to insure companies are still making a turn over, however this may affect the relationship with customers, by raising prices may detract customers and break customer loyalty. As for Rixo all their manufacturing is produced in the UK and is cutting costs by only being an online brand. However, imports for materials may rise and put a strain on profit.
E-Economical
Economically the UK has seen a shift in politics
with Brexit and the Referendum. The country is in uncertainty on how our government is going to work together from the recent outcome of the referendum and how we will negotiate the leave of Brexit. Many large companies and manufacturers who are based in the UK are leaving fears that their trading deals will be more beneficial in Europe and might leave the UK. In result job losses are feared for the worst, effecting the way the average consumer may shop and budget their disposable income. With individuals having less financial income to spend; some retailers may see a drop in sales and profit. In comparison to Rixo they are a higher end brand for luxury, with a target of well earners. The likelihood of being effected is slim with their main demographic being an example of city workers.
S-Society
The way society shops and the change of consumer habits are ever growing online. The rise in popularity to have more choice and shop online is dominating and changing the way the market is evolving. It is becoming more convenient to shop online, using apps and
comparison websites such as google shopping to find the best deal. Companies are becoming digital and meeting the demands of their consumers. However, with individuals having less disposable income, purchases may be less frequent with the popularity of cheaper clothing brands soring such as brands like Boohoo and Pretty little thing.
T-Technological
Technology is a part of everybody’s life especially with the popularity of socials medias such as twitter, Instagram and Facebook. Promotions online and advertising are more effective than ever, especially to reach to the younger generation. For Rixo as they are an online brand, promotions across social media and the internet is their most important part to connecting to their audience. Instagram is their most popular platform the same as Dua Lipa, in which is the celebrity for their latest collaboration, so in turn will promote the latest collection for summer 2017 mostly on those platforms.
L-Legal
Legally for any business keeping within laws and regulations are highly important and insuring workers are getting their full rights and the correct wage. Rixo manufacture within the UK with their factory located in North London. This makes it easier for Rixo to be ethical in comparison to manufacturing abroad where regulations and laws are less strict. More consumers are now more aware of where their products are coming from and if they are ethically supporting those who are involved within production.
E-Environmental
Rixo environmentally have a low carbon foot print due to no production outside of the UK cutting costs and fuel use as there is not a large volume of transportation of goods. Also insuring the company recycles and is efficient in the way they produce their garments, creating the least amount of waste as possible.
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