Victoria’s Secret is a retail chain clothing, lingerie, and beauty American company. Gaye Raymond and Roy Raymond founded the apparel company in 1977. The company has established a network of approximately 775 retail chain stores across the US and Canada. Today, we’ll discuss the PESTLE analysis of Victoria’s Secret; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Victoria’s Secret
Some of the main political factors in the Victoria’s Secret PESTLE analysis are as follows;
I-Trade Policies
Victoria’s Secret is operating its business in the North American customer market across the US and Canada. The government keeps changing the terms and conditions of the NAFTA (North American Free Trade Alliance) agreement. Victoria’s Secret should become familiar with the changing terms and conditions of the agreement, and their impact on the company’s retail operations.
II-Government Regulations
Along with trade policies, government regulations are very strict and tight for apparel and clothes manufacturing brands. They focus on the production and manufacturing operations, labor laws, ethical sourcing of raw materials and cotton, and various others. The objective of strict government regulations is to ensure the right practices of the apparel brand.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. Victoria’s Secret procures materials and raw supplies from various countries. Many developing and under-developed countries have an unstable political environment, roadblocks and processions are the order of the day. It negatively impacts the raw material supplies to the production and manufacturing factories, ultimately impacting the finished goods.
Economical Factors Affecting Victoria’s Secret
Some of the main economic factors in the Victoria’s Secret PESTLE analysis are as follows;
I-Luxury Items Market Demand
The market demand for the luxury products has been increasing significantly in recent years. The customer market has become conscious of premium and luxury brands because it gives them the impression of top-notch quality. That’s why people want to spend money on luxury and premium quality brands, it presents a growth opportunity for Victoria’s Secret.
II-Inflation Rate
The country’s inflation rate is the key economic indicator and it directly impacts the business operations of Victoria’s Secret. When the central bank and the federal government start printing more money, then it decreases the per unit value of all the currency notes. As a result, things become expensive for ordinary people and they would have to pay more money to buy things.
III-Expensive Raw Material
The production and manufacturing costs have increased significantly in recent years. It is due to high raw material costs due to increased oil prices, amendments in the labor laws, and other variable costs and expenses. It has become highly difficult for the apparel brand to maintain its sales, retail price, revenue, and profitability in the competitive business environment.
Social Factors Impacting Victoria’s Secret
Some of the main social factors in the Victoria’s Secret PESTEL analysis are as follows;
I-Changing Fashion Trends
The fashion trends of the customer market keep changing over time due to various factors. It presents a great opportunity and challenge to the apparel brand Victoria’s Secret to keep changing its fashion designs and styles relevant to the customer market trends. A small mismatch in the fashion trends would cause losses to the company.
II-Inclusive and Body Positivity
The customer market has shifted its interests towards body positivity and inclusiveness. It focuses on welcoming all types of body shapes and sizes without any discrimination or biased attitude. Victoria’s Secret should maintain a collection of all types and sizes of lingerie and apparel for men and women to keep up with the growing customer market trends.
III-Influencers Marketing
Victoria’s Secret should consider collaborating with various social media influencers and celebrities. They have a huge fan following and a large customer market network and their brand endorsement would give significant brand exposure to the new segments of the market.
Technological Factors Affecting Victoria’s Secret
Some of the main technological factors in the Victoria’s Secret PESTEL analysis are as follows;
I-Advanced Manufacturing Methods
Victoria’s Secret should invest capital resources to install the latest and advanced technological equipment and machinery. The implementation of advanced tech equipment and machinery in the production and manufacturing processes would help the company to efficiently perform its operations. It allows the company to improve the production yield, reduce the wastage of resources, and achieve efficiency.
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II-E-commerce Platform
Victoria’s Secret has invested resources in the development of its e-commerce platform to target online shoppers and tech users. Online shopping trends have been increasing significantly in recent years, and it allowed the company to amplify its customer market reach by targeting online users.
III-Data Analytics
Victoria’s Secret is implementing the latest data analytical technology to process and analyze the massive customer data. The apparel and lingerie band has a very large customer market network, managing the personal data of every customer data is a great challenge to the company. However, data analytical tools would help the company to analyze its shopping trends and predict their demands in the upcoming seasons.
Legal Factors Impacting Victoria’s Secret
Some of the main legal factors in the Victoria’s Secret PESTEL analysis are as follows;
Regulatory Compliance
Victoria’s Secret should comply with the regulations of different countries. They comprise ethical sourcing of raw materials, production and manufacturing methods, labor laws, import and export laws, government trade policies, patents, IPR, and others. Regulatory compliance would help the apparel brand to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Victoria’s Secret
Some of the main environmental factors in the Victoria’s Secret PESTEL analysis are as follows;
Environmental Sustainability Initiative
Victoria’s Secret should make a strong commitment to environmental sustainability. They comprise employing renewable sources of energy, biodegradable packaging, ethical sourcing of raw materials, and others. Environmental sustainability initiatives would help the company to keep up with the growing customer market trends.
Conclusion: Victoria’s Secret PESTLE Analysis |PESTEL Analysis of Victoria’s Secret |External Environmental Analysis of Victoria’s Secret | Strategic Analysis of Victoria’s Secret
After an in-depth study of the pestle analysis of Victoria’s Secret; we have realized that Victoria’s Secret is the world’s leading apparel and lingerie brand. If you are learning about the Victoria’s Secret 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.
