3.6 SWOT Analysis

When launching into NZ, Stella must play to their strengths, understand their weaknesses, capitalize on the opportunities and manage the threats.

STRENGTHS - Dedication to Sustainability and Innovation (Figure 2) - Strong financial position – 50% partnership with LVMH - Market positioning (Luxury, Sustainable) (Figure 4) - Strong, long lasting supplier relationship (McCartney, 2020) - Collaborations and partnerships with well regarded brands and organisations e.g. The Ellen MacArthur Foundation WEAKNESSES - High price point due to ethical standards, limiting consumer reach – can be hard to distinguish between mid – high fashion with broad price range (Edited, 2020) - Stella admits to not being 100% sustainable or perfect (McCartney, 2020) - Stella has been associated with brands that are not regarded sustainable which may diminish their brand image e.g., Adidas

OPPORTUNITIES -

Kiwis increasingly connected through e-commerce (Appendix 6)- increase by 14.6% in 2021 despite declining incomes and nega\ve consumer sen\ment (IBISWorld, 2020)

Exploring new markets

Sourcing local materials to improve and innovate products (Jin & Cedrola, 2017)

Collabora\on with sustainable founda\ons e.g. Mindful Fashion New Zealand (MFNZ) who aim to build a full-circle tex\le industry (Sylvester, 2020) (Sec\on __

POES).

Accelera\on in sustainability in NZ - Aim to be the first country to be truly sustainable (Clark 2006)

Household disposable income annual growth rate (%) 2.6% higher than UK (OECD, 2020) THREATS

Decrease in consumer demand due to the fall in disposable income and confidence as a result of Covid-19

As sustainability becomes a more important global trend, Stella USP may become less unique

Steep increase in prices of raw materials which may then be passed onto consumers –threat of falling demand due to higher prices and increased competition from low-priced retailers (Ezhova, 2018)

Business model could be replicated by existing and new competitors

Fall in tourism since borders closed due to Coivd-19, tourism feeds high end retail in NZ (decline in luxury sales by 23% in Q1 of 2020). Threat of low demand as tourism falls and local consumer attempt to protect local designer (Global Data, 2020).