Presented by GROUP 2
ANALYSIS ON LUXURY DESIGNER GOODS
Kristine Asuncion #2
Andrea Paz #21
Celyne Sy #26
Mia Tang #31
Ellyse Uy #33
Amanda Yuyucheng #38
11-Justice
January 9, 2024
PESTLE ANALYSIS
Page 02
Multinational luxury brands
have to choose to operate in
politically stable countries.
People also spend less
money when wars or riots
are going on, affecting any
chance of brands making a
profit in that country.
Page 03
PESTLE ANALYSIS
With luxury brands, you have to consider the
buying power of the consumer so companies
tend to open in countries with high GDP per
capita.
They also have to adjust to certain things like
recession and a high inflation rate because that
affects the purchasing power of consumers
which can lead to a loss instead of profit.
Page 04
PESTLE ANALYSIS
Consumers may change their preferences regarding design or product
material, due to media influence. (ex. Scrunches became famous because
of the show “mean girls”)
Culture affects the sales of luxury brands. An example being Islamic
culture, anything related to pork, such as the meat or skin, is considered
unclean. (ex. “Muslim seeks refund for shoes lined with pig skin”)
Page 05
PESTLE ANALYSIS
Luxury brands have started to utilize social media to promote their
products and increase their audience impact by selling online, where
consumers can conveniently shop from the comfort of their home.
Brands have to also upgrade their machinery and equipment during
the production of their products to improve customer satisfaction
and to stay ahead of their competitors.
Page 06
PESTLE ANALYSIS
Luxury brands have to abide by the
labor rules enforced or else their
brand would be penalized or legally
punished.
Luxury brands may prefer to
operate in countries with strict
laws on counterfeit products.
Page 07
PESTLE ANALYSIS
Example 1
Example 2
The production of
luxury goods through
killing animals for the
use of leather harms
the environment as it
leads to imbalance in
ecosystems.
Customers who
purchase luxury goods
will gain insight on the
effects and impacts of
purchasing items that
contribute to animal
cruelty and harm.
Page 08
PESTLE ANALYSIS
Locations of Luxury brands influence every aspect in the PESTLE
analysis, due to differences in law, audience, advances, and
environment. Hence, selection and adjustment in regards to trading
areas are critical for the operational process and the profitability of a
business.
As the aspects of the PESTLE analysis are related to one another,
issues in one side must be quickly resolved to avoid the downfall of
another. In this situation, it was mentioned that the material of
luxury brands contribute to animal cruelty (environmental aspect).
This may cause a change in consumer’s preferences to purchase
eco-friendly items, affecting the demographic aspect or the social
aspect of the luxury brand.
Page 09
PESTLE ANALYSIS
Oppurtunity
Threat
The company can take advantage of
microtrends to advertise their
products further and gain traction.
Tension if a brand
violates/misinterprets a trend
then gets cancelled.
THANK YOU