PESTLE Analysis of Puma. Puma SE is a footwear and sportswear German multinational company. Rudolf Dassler established the sportswear company in 1948. The headquarters of the company is in Herzogenurach, Bavaria, Germany.
Puma’s main products and services are as follows;
- Sports equipment
- Sports Accessories
Key statistical facts and figures about Puma are as follows;
- The annual revenue of the sportswear brand in 2023 was 9.35 billion US dollars
- Out of which, the net income of the company was 0.65 billion US dollars
- Approximately 18071 employees are working for the company to manage its operations
Some of the top competitors of Puma are as follows;
- New Balance
- Under Armour
- Li Ning
- Adidas AG
- ASICS Corporation
- Brooks Sports Inc
- Foot Locker Inc
Today, we’ll discuss the PESTLE analysis of Puma. It is going to focus on the macro factors like political, economic, social, technological, legal, and environmental impacting the sportswear company. Here’s Puma PESTLE analysis as follows;
Political Factors Impacting Puma
Some of the main political factors in the PESTLE analysis of Puma are as follows;
Healthy Political Relations
Puma is the world’s leading sportswear and footwear brand. The reason the sportswear company is successfully operating its business in various countries worldwide; is because the brand has established healthy political ties with various government officials and politicians.
Puma invests a significant amount of capital resources in political lobbying to maintain a positive brand image among government officials. For instance, Puma is the only foreign brand to launch its e-commerce platform in India due to investing in politicians. The permission from the Indian government has allowed the company to sell its products through its online store directly to the customers.
Economical Factors Impacting Puma
Some of the main economic factors in the PESTLE analysis of Puma are as follows;
Outsourcing Cheap Labor
Various economic factors like inflation, taxation, and foreign exchange impact the profitability of the company. In order to take advantage of the cheap labor, Puma outsources most of the production and manufacturing work from China. Production outsourcing helps the company to deliver its products to foreign countries and maintains profitability.
Raw supplies and materials play a key role in the growth and profitability of the sportswear brand. The scarcity of natural resources decreases the raw material and high demands increases their price. As a result, Puma had no other choice but to increase the retail price to cover all the expenses and it decreased their profitability.
The global economy is going through the recession phase due to various international political issues. Higher unemployment rates and inflation decreased the purchasing power of people. When people have limited disposable income, they won’t spend it on branded expensive shoes.
Social Factors Impacting Puma
Some of the main social factors in the Puma PESTLE analysis are as follows;
People have become cautious about their diet and health, and it has led them to engage in outdoor sports and exercise activities. When people go outside and perform exercises, they would need sports shoes, accessories, and apparel. It amplifies the possibility of an increase in the sale of sportswear goods by the company.
The consumer market is brand-conscious and they want high-quality, well-designed, and moderate-priced products. Puma is a renowned sportswear brand and the company has the capability to satisfy all the demands of customers for high-quality products at an economical price range.
In order to remain active in the minds of customers, Puma runs various types of marketing and advertisement campaigns for the promotion of its products and services. The company also hires leading celebrities and public figures as its brand ambassadors for the promotion of its products and services.
Technological Factors Impacting Puma
Some of the main technological factors in the Puma PESTLE analysis are as follows;
Puma invests a significant amount of capital resources in the research and development of sportswear products. It has allowed the company to launch products like IGNITE, Fit Intelligence, and Puma Fi that have tech features. They have the capability to return the energy back to the exercising person to increase their exercising performance.
In order to keep up with the latest technological and digital trends, Puma has established an e-commerce platform and online store to sell sportswear products online. Technological investment has increased the growth and profitability of the company in terms of high sales.
Legal Factors Impacting Puma
Some of the main legal factors in the Puma PESTLE analysis are as follows;
Patent Infringement Lawsuit
Nike filed a patent infringement lawsuit against Puma in 2018. The plaintiff claimed that Puma is employing its cleat, Air, and Flyknit technology without its permission; and further demanded that the company should stop employing its technology. The sportswear brand should comply with the laws and regulations of various countries because they would cost the brand a lot of capital resources.
Environmental Factors Impacting Puma
Some of the main environmental factors in the Puma PESTLE analysis are as follows;
The consumer market has become highly cautious about nature, and they want environmentally friendly and sustainable products. It has put significant pressure on businesses and companies; Puma is complying with laws and developing sustainable products like shoes and apparel. For instance, they launched recyclable shoes and biodegradable material t-shirts.
Conclusion: Puma PESTLE Analysis
After an in-depth study of the PESTLE analysis of Puma; we have realized that Puma is the world’s leading sportswear brand. If you are learning about the business of Puma, then you should keep in mind the abovementioned macro external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.