Products and Current Positioning

MACRO ENVIRONMENT USING PEST ANALYSIS

Political

Economical

Social

Technological

1.

2.

3. In 2020, political interference caused by COVID-19 posed significant political risks to emerging countries (AON, 2021). Tod’s Group currently has stores in more than 20 developing countries, including Russia, Turkey, Brazil, Check Republic, Thailand, Malaysia, Philippines, Kuwait, and Qatar. Politically motivated trade restrictions in 2020 didn't let Tod's Group direct stores operate correctly. Significant risks also come from existing different levels of corruption, especially from emerging countries. Image 3

1.According to Statista (2020), Asia is considered the fastest recovering continent in the post-pandemic period, followed by Europe and North America. According to researchers, the luxury goods market is expected to grow by 103 billion. USD by 2025, and CAGR will reach 6.4% (Statista, 2020).

1.

2. A notable increase in luxury purchases between the younger generation of millennials and the Gen Z generation (Statista, 2025). Sustainability demand growth (Danziger, 2021)

1.Growth in shopping through e-commerce or with a personal shopper through social technologies, during the pandemic in the luxury sector (Sulejmanović, 2020).

Table 2. PEST Analysis created by the author

As we can see from the PEST analysis in Table 1, the high risk for Tod's Group comes from the pandemic in 2020. Due to political factors, the group has developed a Control Model and an Anti-corruption Policy in stores worldwide, namely because of possible illegal actions in any country (Tod's Group Financial Report, 2021). Furthermore, during the pandemic restrictions and lockdowns in most countries, the company did not bring all products to market to protect the brand and financial position. Due to e-commerce and personal shopping growth, the company has recently invested in its technological infrastructure and hired people to help make the digital transition more efficient, both with customers and the company (Tod's Group, 2021). Still, according to Statista (2020), while significant investments in online sales are necessary, the importance of the physical store continues to grow, making it essential to maintain balance. Finally, due to the social factors mentioned in Table 1, the company invests heavily in sustainability. The company promotes a good, respectful atmosphere in the workplace and care for the environment (Tod's Group, 2021). Image 4