Pest Analysis for Indian Fashion Website Fuel

Technological opportunities and threats

This gave the fashion industry a huge boost as new designers entered the field giving Fuel a higher bargaining position.

The exemption of taxes on designers in 2010 marked the start of a rapid increase in the entry of new designers into the fashion industry putting Fuel at a higher bargaining position and a much larger variety for Fuel and consequently customer’s to choose from.

The changing attitude of society towards women worked as an advantage to Fuel as the growing equality between men and women resulted in an increase in women’s consumption leading to an increase in Fuel’s sales. Also the increase in the educated workforce has worked to Fuel’s advantage as they can hire a larger number of female staff which would make their purely female clientele more comfortable.

The advent of large-scale globalization harbors the growth of trade in cultures, products and ideas, which could eventually benefit Fuel as Indian culture and clothes gain recognition and popularity in foreign nations which could increase sales in Fuel. On the contrary the increase in westernization of India means that more women prefer western styles to Indian couture which can have a degrading effect on the Indian fashion industry.

Upsurge in the use of technology and increased awareness amongst consumers allows Fuel to use its’ website as a promotional tool as a growing number of people have access and actively use the Internet. They can easily use Fuel’s dedicated website to acquire necessary information such as the store’s location, price range, showcased designers and other information they want. Also Fuel’s email address allows customers to clear any doubts or questions they have. They also have access to information on upcoming events and fashion shows at Fuel. The disadvantage is that the presence of Fuel’s competitors online allows customers to compare prices, products and designers of the different store without actually visiting them which may result in either a rise or dip in sales.

Fuel also benefits through video conferencing with potential suppliers as it saves time and money that would have been spent if they met physically. Also sometimes products are shortlisted through pictures sent via email which is a much simpler process.

The Indian economy is undergoing severe inflation and also recession, which is affecting most economies right now which is threatening especially to the fashion industry as design wear is a luxury that people can avoid so Fuel has to further its marketing strategies to maintain an increase or at least steady sales.

The growth of the fashion hub acted as a catalyst for the increase in competitors which threatens the current market position and expansion of Fuel.