Next plc is a clothing, apparel, footwear, and home products British retail chain multinational company. Joseph Hepworth founded the retail chain brand in 1864. The company has established a network of approximately over 700 retail chain stores in various countries worldwide. Today, we’ll discuss the PESTLE analysis of Next plc; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Next plc
Some of the main political factors in the Next plc PESTLE analysis are as follows;
I-Brexit Deal
The Brexit deal has led Britain to get out of the European Union. It means that no free trade for all the British brands across the other European countries. In fact, they need to comply with the trade policies and tariffs of different countries after the Brexit deal. Next plc should become aware of the regulations and policies of different countries while importing and exporting products, goods, and raw materials.
II-Government Regulations
The consumer product safety and product quality government regulations of different countries are variable for the retail chain companies and brands. They comprise product quality, packaging, labeling, material used in the product, transparent supply chain, sourcing, and others. However, the objective is to ensure the product quality and safety of the brand.
III-Trade Policy
The government trade policies with other countries keep changing depending on the type of government that comes into power. For instance, if a country doesn’t have good effective diplomatic relations with the UK’s government, they would increase taxes, tariffs, and regulations for all the British brands to decrease the trade in the particular country.
Economic Factors Affecting Next plc
Some of the main economic factors in the Next plc PESTLE analysis are as follows;
I-Economic Downturn
The global economy is going through a rough patch since the pandemic crisis. It is due to a higher unemployment rate, shutdown of businesses, decreasing sales, and limited purchasing power of consumers. As a result, it is negatively impacting the sale of retail chain brand Next plc and its revenue and profitability.
II-Interest
Interest rate is the key economic indicator and it directly impacts the business operations of Next plc. For instance, when the central bank and the federal government increase the country’s interest, it encourages people to save. It amplifies the business loan cost, and it becomes expensive for the retail chain brand to receive loans from the banks. As a result, it decreases the investment of the company.
III-Inflation
Inflation rate is the other main economic indicator and it also directly influences the sale of Next plc. An increasing inflation rate means that the country is printing more currency notes and it decreases the per unit value of all the currency notes. As a result, products and goods become expensive for many ordinary consumers, and their sale decreases negatively impact the company’s revenue and profitability.
Social Factors Impacting Next plc
Some of the main social factors in the Next plc PESTEL analysis are as follows;
I-Customer Needs and Preferences
The consumer market needs and preferences are changing over time due to various factors. Next PLC needs to conduct thorough market research to comprehend the needs and wishes of the customers; and study the growing market trends, unique designs, and styles. It would lead the retail chain brand to offer products relevant to the interests of customers.
II-Diversity and Inclusion
Next plc needs to make their working environment diverse and inclusive for all types of people from different backgrounds. The consumer market is highly cautious about the business operations and policy of the company and the type of practices they’re engaging in. However, they don’t want to support such brands that don’t match their values and potential.
III-Community Support
Next plc needs to engage in community development and educational programs to become a socially responsible brand. They should focus on improving the skills and expertise of employees and people, healthcare programs, and career opportunities. It allows the retail chain brand to invest back into the community for mutual growth and development.
Technological Factors Affecting Next plc
Some of the main technological factors in the Next plc PESTEL analysis are as follows;
I-Digital Marketing
Next plc runs various types of digital and social media marketing campaigns to approach various segments of the customer market. The retail chain brand employs various media channels; influencer marketing, celebrity endorsement, and brand ambassador programs to attract the attention of the customer market.
II-Digital Assets
Next plc has invested a significant amount of capital resources in the development digital e-commerce platform. It amplified the company’s online sales to a great extent. Most importantly, it allows the company to approach online shoppers and digital users; and offers them a home delivery service.
Legal Factors Impacting Next plc
Some of the main legal factors in the Next plc PESTEL analysis are as follows;
Regulatory Compliance
Next plc should comply with the regulatory requirements of different countries. They comprise product safety, product quality regulations, IPR, patents, labeling and packaging, trade policies, labor laws, import-export regulations, sourcing and production policies, and others. Regulatory compliance would help the company to amplify its customer market reach, network, and sales.
Environmental Factors Affecting Next plc
Some of the main environmental factors in the Next plc PESTEL analysis are as follows;
Sustainability Initiative
Next plc needs to make a strong commitment to environmental sustainability. The retail chain brand should take sustainability initiatives like ethical sourcing, sustainable production and manufacturing methods, renewable sources of energy, and biodegradable packaging to decrease the waste and carbon impact.
Conclusion: Next plc PESTLE Analysis |PESTEL Analysis of Next plc |External Environmental Analysis of Next plc | Strategic Analysis of Next plc
After an in-depth study of the pestle analysis of Next plc; we have realized that Next plc is the world’s leading retail chain brand. If you are learning about the Next plc PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
