Detailed PESTEL Analysis of Fashion Industry

The PESTEL Analysis of the Fashion Industry works with six significant external factors and helps professionals determine the influence these factors have on a company or industry.

1. Lead-in

What is PESTEL Analysis? If asked, the fundamental way to tell the meaning of PESTEL Analysis is the study of the six most important external factors that influence a company or an industry. This article is about a detailed PESTEL Analysis of the Fashion Industry. The fashion Industry immensely involves anything that has to do with the trending demand for costumes or accessories and luxury brands.

In this article, we will elaborate on the fashion industry in detail and will update you with the PESTLE analysis using EdrawMax's templates.

2. About Fashion Industry

2.1 Introduction of Fashion Industry

The fashion industry is a global industry that involves billions of dollars and work. This industry mainly sells clothes and accessories, from local or foreign brands, small brands, or luxury brands, depending on the consumer's economic condition and needs.

The PESTEL Analysis of the Fashion Industry will put forth the ups and downs faced by the company, which simply did not depend on internal factors but external factors as well. Experts can make decisions concerning the fashion industry with the help of the PESTEL analysis.

2.2 Overview of Fashion Industry

Company Name: The Fashion Industry
The Industry Name Approximately 300 million people
Annual Revenue US$91.23 billion as of 2021
Operating Income US$1.7 trillion as of 2021

3. Fashion Industry Pestel Analysis

If you are a picture lover, you can click to browse or download this template to learn more about the information you want to know.

Political Factors:

The government of any area, whether local or central, always follows a set of rules and regulations, and abiding by these rules and regulations is the most important thing. But these rules and regulations also take part in influencing a company or industry's behavior and return. The political factors that influence the Fashion Industry are as follows:

  • Importing materials: Governments of many countries do not allow the import of materials to make clothes from other countries due to the high tax rate. Sometimes the government encourages markets to buy local products so that it helps the country. Many people prefer local materials over importing materials or services from other countries. Thus, affecting the fashion industry.
  • Materials used to make clothes: Many NGOs or activists are highly against using animal skin or fur for fashionable trendy attires. The life of an innocent animal is way more important than the momentary satisfaction of being fashionable. Countries banning these materials can pose a challenge to fashion industry operations.
  • Fashion trends: Social media influencers play a significant role in marketing various fashion brands. But it seems, in being fashionable, the first ladies do not lag much. People like Jackie Kennedy, Michelle Obama, and Melanie Trump are a few good examples and essential political factors influencing the industry.

Economic Factors:

The economy plays a pivotal part in any business, small or large. Several economic factors influence a company's past, present, and future, and analysts do nothing but study these factors to make proper financial decisions for a company or an industry. The economic factors that can play the role of an influencer in the fashion industry are as follows:

  • Low-income areas: People have been spending their money nowadays on good clothes. Everyone wants to be trendy in the world of fashion. But a part of our society struggles to have the basic needs in life. Thus, investing in the fashion industry is out of the question. Hence, the fashion industry has only a limited niche.
  • Renting clothes: There is a new trend where to attend any event you can rent clothes. It can be suited for meetings, traditional cultural events, dresses for parties, and even jewelry. It saves customers money and can be a very active part of the entire fashion industry.

Socio-cultural factors:

Society is a big part of any market. Social norms, regulations, and ideologies play an essential role in the case of some of the industries. The fashion industry is one such industry that heavily depends on social trends. Thus, the social and cultural factors that the fashion industry is dependent on are as follows:

  • Music Industry: The music industry has always been one of the most influential factors in the fashion industry. Musicians, having enough fan base to some extent, can change the fashion sense of the audience. Recently, K-pop has been making enough sounds, and the K-idol fashion sense is the rage currently.
  • Event-based management of fashion: Humans are social creatures. They tend to dress according to the nature of the event. Thus, if someone is going for a business meeting, they will look for suits. However, while going to a cultural event, the demand for dresses appropriate for the function will not be the same.

Technological factors:

Today, technology is no more a choice but a need. Especially when it comes to business, you require advanced technology. A small company cannot achieve its height and become successful if they lack it. The fashion industry is all about proper marketing. The best form of marketing comes from the appropriate usage of technology. The technological factors that impact the fashion industry are as follows:

  • Online shopping: In 2022, you cannot find a single household that hasn't ordered any clothing item online. No matter whether you like it or not, you have done it at least once, and this is because online shopping has made everything way smoother than before. You have more options on what you want to wear. The prices are within budget because of the massive competition, and it saves you a lot of time and energy as you do not have to go anywhere and waste time and energy in the process and the best out of all door-to-door delivery. This easy access has made the fashion industry boom in recent years.
  • Television shows: Many television shows help encourage people to fall in love with fashion. Almost everything is on fashion-related shows; what accessories will go with what dress, and which fashion item is the trend. Moreover, people get influenced by models. They play a significant role in boosting the already booming fashion industry and its revenue with the press of a button.

Environmental factors:

Environment-friendly behavior can take a company a long way and make it a successful business. The newer generations are all about saving the planet for future generations to thrive. If a company ensures a healthy environment, it will be in the business for a long time. Thus, the environmental factors influencing the fashion industry are as follows:

  • Excess use of transportation: Several shiftings are involved during product manufacturing. First, materials if imported, then throughout the process of making the desired fashion item, and finally, while shipping. All of these require heavy transportation, emitting harmful gasses into the environment.
  • Quality of products: Though a pair of jeans starts with a cotton base, by the time the manufacturing is complete, you don't know what hazardous chemicals they use and their harmful effects on your health and the environment.

Legal factors:

Legal factors are the laws implemented in society for its betterment. Some laws ensure safety for consumers, companies, manufacturers, and more. A company or industry must be highly aware of these laws so that they do not hamper their brand name or reputation in the market. Therefore, the significant legal factors that can cause some shifts in the fashion industry are as follows:

  • Workers' Rights: Workers invest their time, energy, and hard work to ensure the manufacturing of the best quality goods. Thus, underpaying or not taking proper care of these workers is inhumane. So, the legal rights protect these workers giving them the right to be treated appropriately and with apt respect. Often, Asian workers are underpaid for their hard work, leading to consumers boycotting such fashion companies.
  • Consumer laws: Consumers are the pillars of this industry, and the government has ensured that they are never poorly treated or cheated on by these companies. Consumer safety is the biggest concern for the government due to the increased amount of consumer private information leakage. So, the fashion industry needs to start treating its consumers better and providing them with proper safety.
  • Taxations: To avoid getting sued by the government, a company or an industry should ensure they follow all the rules and regulations based on taxation. They should also pay property taxes to the government. If a fashion brand gets in turmoil with the law enforcers, its reputation and brand value might go downhill.

4. How to Do a PESTEL Analysis in EdrawMax

  • Step - 1: Preparation
  • If you are using the offline version of EdrawMax, open the tool in your system. If you wish to access remote files, head to and log in using your registered email address. If this is your first time using the tool, you can register with your personal or professional email address. Go to 'Marketing' diagrams under Business diagram type and click on 'PEST Analysis.'

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 2: Template Selection
  • EdrawMax has thousands of free templates. Head to the Template section on the left and type 'PESTEL Analysis' to see all the pre-built PESTEL Analysis templates like Netflix PESTEL Analysis, Amazon PESTEL Analysis, IKEA PESTEL Analysis, and more. Check the template that resonates closely with your business model. Click on 'Use Immediately' to import the template's contents to the EdrawMax canvas. You can start customizing the PESTEL analysis diagram as per your requirements. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 3: Add Textual Information
  • PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 4: Customize
  • EdrawMax gives you ample options to customize your PESTEL Analysis diagram. From changing the background to adding content, you can customize the diagram in any way you desire. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 5: Export & Share
  • Once satisfied with your PESTEL Analysis diagram, you can export it into multiple formats, including Microsoft, JPEG, PNG, Visio, HTML, and more. EdrawMax lets you share your PESTEL Analysis diagram on social media platforms, like Facebook, Twitter, Line, etc.

    How to Do a PESTEL Analysis in EdrawMax
edrawmax logoEdrawMax Online
Create 280+ types of diagrams online
Access diagrams anywhere, anytime
Everything in desktop + Templates Community
Team management and collaboration
Personal Cloud and Dropbox Integration
edrawmax logoEdrawMax Desktop
Create 280+ types of diagrams
Support Windows, Mac, Linux
Full access to resources and templates
On-premises software for business
Enterprise-level data security

5. Key Takeaways

The main focal point of this write-up is the PESTEL Analysis of the Fashion Industry. This form of analysis is beneficial in the long run as it helps the company and industry analysts to figure out the influence that the six external factors, namely political, economic, social, technological, environmental, and legal, have on the discussed company or industry. EdrawMax gives you ample options to customize your PESTEL Analysis diagram. From changing the background to adding content, you can customize the diagram in any way you desire. You can also modify the content and take information from this PESTEL Analysis guide. With EdrawMax, you can even add hyperlinks to your PESTEL analysis diagram to provide more information to your readers.

As you saw in this PESTEL Analysis guide, EdrawMax is the perfect tool for creating complicated PESTEL analysis diagrams. With free templates and components, this 2D PESTEL analysis software allows you to add different content to your PESTEL analysis diagrams. Download EdrawMax today and start working on different PESTEL analysis diagrams.


  1. Free PESTEL Analysis | Free PESTEL Analysis. 2022. PESTEL Analysis of Fashion Industry | Free PESTEL Analysis., [online] Available at: (Accessed 31 August 2022).

  2. Frue, K., 2022. PESTLE Analysis Of The Fashion Industry., [online] PESTLE Analysis. Available at: (Accessed 31 August 2022).

Related Articles
EdrawMax online
main page
download EdrawMax EdrawMax online
main page