PEST Analysis Political France banning the burning of designer waste products has left brands questioning what to do with surplus stock to preserve brand value.
Shopping for pre-owned items is also on the rise. The secondhand market is expected to hit $64 billion by 2024 (Morgan, Blake. 2020).
“We are aware that some businesses are facing challenges with specific aspects of our new trading relationship with the EU. To this end, we are operating export helplines, running webinars with policy experts and offering businesses support via our network of 300 international trade advisers. This is on top of the millions we have invested to expand the customs intermediaries
In the UK, there are a total of 3,943 stores specialising in selling second-hand goods and it is an industry employing approximately 36,000 people. During 2019, sales in these stores saw a 17.6 percent rise in value, a notably large increase on the past two years (Statista, 2020).
sector.” - Government Spokesperson (BBC, 2021).
The fashion industry contributes more to UK GDP than fishing, music, film and motor industries combined (BBC, 2021).
The fashion sector in the United Kingdom (UK), built on duty-free access to the EU, is facing the risk of export tariffs into its biggest trading partner from 2021 onward (Arnett, George. 2020). Complex VAT charges and handling fees now in place have led shoppers in Europe to stop ordering or to reject deliveries (The Guardian, 2020). UK manufacturers and designers say they have suffered delays and additional costs on shipping materials, samples or components to and from Europe (The Guardian, 2020). 12
Economic
The UK clothing industry is the third largest in Europe and a study found British consumers spend an average of £980.50 a year on new clothes (Circular Online, 2020).
