Luella's macro and micro environment PESTEL analysis

Luella- •

Macro environment: PESTEL

Macroenvironment - Technological, Environmental, Legal

The technological environment is characterized by numerous developments which support organizations in increasing their operational efficiency and reducing costs. These technologies are often expensive and using them requires additional investments, but which generate a beneficial return. Advancements have been made relative to textile manufacturing and sewing, blends of new fibres, but also in terms of selling the products, such as online stores and the creation of the virtual community (Weston-Thomas).

In terms of environment, modifications occurred in the meaning of better protecting the natural habitats. This impacts the fashion industry by generating a focus and demand for clothes, shoes, bags and other accessories not made from animal leather. As a result, the environmental concerns focus on increasing the amount of synthetic leather used. This is rather challenging due to the functional limitation of synthetic fabrics, as well as the consumer's preference for animal leather.

The fashion industry subjects to the same legislation as any other economic agent. They must comply with the legislation imposed in their country, as well as that in other countries where they operate. Also, in terms of international operations, fashion designers must act in accordance with the regulations imposed by the international regulators, such as the World Trade Organization.