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PESTEL ANALYSIS: TAKEN FROM PREZI

PESTEL ANALYSIS: TAKEN FROM PREZI:
Political:
  • Concentration of power in a few hands: politics and government take a strong place into the business.
  • Protectionism: government protect local markets and companies against unfair competition.
Economical:
  • Well-developed infrastructure: The world-class infrastructure network enables France to offer international investors excellent conditions for doing business.
  • Eurozone debt crisis: real slow-down in European activities and low visibility to foreign investment.
  • French people (especially women) have the biggest budget per year in underwear's in the world. (turnover = 2.6 billion; 100€ per woman)
  • Drop in purchasing power: The complicated economical conjuncture in Europe had a significant bad result on purchasing power in France. (-0.9% in 2012)
Social:
  • Ageing population: Regarding to the Victoria's Secret positioning which is focused more on young people, this data is a negative one for the company.
  • Way of wearing: People take care more about they way of wearing.
  • Young style changes: The parents want to wear their children as adults sooner than before (tribility lifestyle).
  • Identification: French teens want to identify themselves to their idols, so young customers reserved now a strong place to celebrity spots in their decision-making process.
  • French customers are more and more exigent in terms of quality and price. That pushes the brands to be very transparent, competitive and rigorous on that market.
Technological:
  • New materials: the innovation and the Research and Development allow textile companies to find new material to make underwear more comfortable.
  • Innovation creates new machines to produce under clothes more rapidly and with better quality - cost of reduction, increasing productivity and better profitability.
Environmental: 
  • Strong environmental policy framework and initiatives: According to the E.U. directives, France has great environmental and energy concerns including at the heart of business.
  • Corporate Social Responsibility: companies have to implement a CSR strategy which is providing a lot of benefits in terms of image, transparency and profitability too.
  • Recyclable materials: Thanks to the development of new materials and machines, the underwear producers can use recyclable materials.
  • New ecologist customers: More and more customers take care of purchasing products respecting the environment and brands with strong CSR strategy. (nostalgics, militants and new customers).
Legal:
  • Tax credit for company: The government's tax credit is one of the reforms to attract foreign investors. Tax credits include exemptions to new investments from local business tax as well as 50% tax relief on R&D costs.
  • Implementation of labour reforms: The rigidity of the French labour market is often a break to foreign investments due to high social security costs, limited hours of work and levels of wage taxes.

References:
1. https://prezi.com/rx4ha_coaulh/untitled-prezi/

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