Macro Environment Analysis Fashion Industry
MACRO-ENVIRONMENT ANALYSIS:
In order to determine how the dynamics of all the macro factors can impact positively or negatively in my business, it was necessary to look in depth the current situation of the fashion industry in Ecuador and Hong Kong:
INDUSTRY ANALYSIS ECUADOR:
The fashion industry in Ecuador as many other emerging countries in Latin America is still a very young industry, relatively formal and does not represent an important source of income to the country´s economy.
Local-wise, the fashion industry is quite small. The country has very few big size companies that are mostly producing to cover the local demand and many small formal and informal companies and artisans, producing in limited quantities.
As for designers, they
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It is important to mention that there are foreign companies sourcing from Ecuador and exporting those products worldwide, nonetheless still in a very small scale.
Additionally, there are the foreign name brands of all levels that have covered the market setting the trends in the industry.
On the other hand, the handcraft sector in Ecuador is very interesting and has great potential. Its people who are very tradition oriented, had built a solid business line and had achieved a good reputation internationally for good quality, unique techniques and designs.
These products, specially leather goods, hand-woven clothes and accessories are exported to Europe and America, with an impressive demand due to the low manufacturing cost but excellent finishing.
INDUSTRY ANALYSIS HONG KONG:
The fashion Industry in Hong Kong constitutes one of the major sectors for the economy.
The manufacturing installed capacity is not so big in Hong Kong due to costs concerns, hence most of the production itself is carried out in mainland China, however the operations and monitor are based in Hong
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As for local brands and designers, Hong Kong has accomplished big steps with brands that are now being commercialized overseas such as Giordano, JeansWest, etc.
PESTEL ANAYLISIS:
POLITICAL:
As part of the World Trade organization, Hong Kong and Mainland China have been able to reduce the existent trade barriers, that implies low or zero tariffs applied to a big list of imported products.
Hong Kong doesn´t impose any barrier, limitations or restrictions to any imported product, it is open for free trade.
ECONOMICAL:
Hong Kong economy has presented a steady growth during the last years, and 2015 is not the exception as it is expected to have a growth of about 2.4% compared to 2014.
A very important industry for Hong Kong is tourism and this has decreased in 2015 and so have the revenues from tourist purchases in retail, however it is stated that the country’s authorities are carrying out several efforts to boost the
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