Environmental Factors Of A Fast Fashion Apparel Industry

2200 WordsOct 3, 20169 Pages
Environmental scan Zara has to take environmental factors in consideration seriously in order to be successful and to remain competitive in fast fashion apparel industry. Demographic trend is very important consideration for the firm. The population number is different in every countries and Zara has to closely monitor the demographic trend in every market to ensure that the need of its target group is met. One of the significant trends around the world is the aging population. As a result, it is essential that the company produce products fits the needs of the older target group in those aging trend countries. Moreover, it can be seen that average life expectancy is increasing around the globe. With a rapid growth population, Zara could launch new product lines for the kids and newborn to reflect the rising demand. It is also necessary to look at the growing segment of ethnic or race when tapping into new markets. Zara could potentially benefit from the growing segment of the race with high purchasing power. Economic factor is another crucial factor that has a strong impact on Zara because sometimes fast fashion apparel is perceived as non-necessary luxury products. Consumers do not have to buy these products at all times as consumers are price sensitive to these products. For instance, an economic recession might reduce customer’s income. As a result, consumers perceive Zara as luxury products and decide not to buy the products and put money for saving instead. Currency
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