Primark Stores Limited is a fast fashion Irish multinational company. Arthur Ryan founded the retail fashion company in 1969. The company has established a network of approximately 450 retail fashion stores in various countries worldwide. Today, we’ll discuss the PESTLE analysis of Primark; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Primark
Some of the main political factors in the Primark PESTLE analysis are as follows;
I-Government Regulations
Primark sources raw materials and supplies from various countries across the globe. That’s where the role of government regulations comes into play; countries and governments keep changing their import and export policies depending on the political power in control. However, the change of government and the country’s regulations negatively impact the business operation of the fast fashion brand Primark.
II-Trade Tension
Along with strict government regulations, countries also change their trade policies with different countries depending on their political relations and foreign policy. For instance, Primark is an Irish fast fashion brand that operates its business in approximately 16 countries across the globe. Spain and Ireland have a conflicted relationship, and it causes significant trade tension between both countries.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. When there is political turmoil, processions, roadblocks, and other conflicts; then it causes delays and disruption of the supply chain and distribution of material and goods. As a result, the retail chain fast fashion brand can’t deliver the products and goods on time.
Economical Factors Affecting Primark
Some of the main economic factors in the Primark PESTLE analysis are as follows;
I-Inflation
A country’s inflation rate is a key economic indicator and it directly impacts the sale of a company’s products and goods. A higher inflation rate means that the government of the country is printing more currency notes, and it decreases the worth and value of per unit currency notes. As a result, the price of products increases, and they become unaffordable for many people; they start switching to the lower price option.
II-Interest Rate
The interest rate of the central bank is the other key economic indicator and it directly impacts the growth of businesses and companies. When the central bank and the federal government increase the interest rate, then it amplifies the business loan cost. Most importantly, it encourages people towards saving and the investors prefer to deposit their money in the bank, rather than investing it in the businesses.
III-Economic Recession
The global economy has been going through an economic recession for the past few years. When people have limited disposable income due to higher unemployment and a tight economy, they won’t spend their income lavishly on fashion products and accessories. Rather they spend their resources carefully on the necessary products and goods.
Social Factors Impacting Primark
Some of the main social factors in the Primark PESTEL analysis are as follows;
I-Consumer Trends and Preferences
The consumer market trends and preferences toward different products keep changing over time. For instance, customers want fast fashion and sustainable products and accessories to keep up with the growing environmental sustainability trends. Customers would stop shopping the luxury fashion products and only prefer casual clothes and apparel. Primark should keep in mind the needs and preferences of the customer market and keep adjusting its products.
II-Cultural Differences
The cultural factor plays a critical role when you are marketing and advertising your business worldwide. For instance, it is acceptable for a fashion brand like Primark to promote its products with women wearing revealing clothes. On the other hand, it is not acceptable to market and advertise undergarments in certain cultures.
III-Shopping Habits
The shopping habits of the customer market keep changing due to various social and cultural factors. For instance, some people prefer shopping online in some countries. On the other hand, people prefer shopping offline while visiting the supermarket in many countries.
Technological Factors Affecting Primark
Some of the main technological factors in the Primark PESTEL analysis are as follows;
I-E-commerce Platform
The online shopping trends have been increasing significantly for the past few years. In order to keep up with the growing customer market trends, Primark has invested a significant amount of capital resources in technological development. It allowed the company to develop an advanced and sophisticated e-commerce platform; it offers a wide variety of fashion products and goods online to customers.
II-Digital Marketing
Primark is familiar with the growing digital and social media marketing trends. The fast fashion brand employs various digital and social media channels and platforms for running marketing, advertisement, and promotional campaigns. However, it helps the company to amplify its global customer market reach, network, sales, revenue, and profitability.
Legal Factors Impacting Primark
Some of the main legal factors in the Primark PESTEL analysis are as follows;
Regulatory Compliance
Primark needs to comply with the policies and regulations of different countries. For instance, it comprises labor laws, import and export policies, taxation policies, trade regulations, and other legal and regulatory requirements. Regulatory requirements would help the company to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Primark
Some of the main environmental factors in the Primark PESTEL analysis are as follows;
Sustainability Initiative
Primark has made a strong commitment to environmental sustainability. In fact, the fast fashion brand has taken various steps like ethical sourcing of products and goods, renewable energy, limited and timely production to avoid the wastage of resources and not environmental exploitation. Environmental sustainability initiatives would help the company to keep up with the growing eco-friendly trends.
Conclusion: Primark PESTLE Analysis |PESTEL Analysis of Primark |External Environmental Analysis of Primark | Strategic Analysis of Primark
After an in-depth study of the pestle analysis of Primark; we have realized that Primark is the world’s leading retail fast fashion brand. If you are learning about the Primark 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.
