PESTLE Analysis

PESTLE

Political: The first political issue that could impact or affect the brand is Brexit. As D&G are an Italian based brand but operating globally, this could affect their trade with the United Kingdom should the Brexit deal come into effect. Issues such as tax laws, labour laws under the European Union might create problems once the UK begin to operate under different rules and regulations.

Economical: D&G in previous years were accused of tax evasion in 2010 but the case was dropped in 2014 BBC NEWS. (2014). Failing to pay tax to the Italian government could have potentially impacted on the local economy and revenue. Such practices may have encouraged some consumers to resist purchasing their products,  impacting not just on the company profit but revenue in general due to consumers spending less. Some consumers in addition would perceive this company as a big international brand which does not adhere to rules and regulations due to their global presence  again impacting on consumer spending.

Social: D&G are known for their strong brand image and creating unique images to showcase their latest collections. They tend to post images on their Instagram stories especially of celebrities wearing their clothes to influence their target market to shop at their brand. D&G have made insensitive comments about LGBT including making negative comments on IVF causing issues with Elton John who chose to boycott the brand The Guardian. (2015). They have  been accused of being racist because of their recent ad campaign in China. Lim, S. (2018). As well as sexist in some of their other campaigns which present women to be weaker than men. Even reflecting that D&G support gang rape. Duncan, A. (2015). D&G carry on using fur for items of their collections when competitors such as Gucci stopped using fur in 2018 and are well known for testing on animals which again will push away their consumers and encourage them to go to their competitors’ brands. Reid. D. (2017).

Technological: D&G have previously used drones at their fashion shows to add that technology aspect as well as adding a unique way of presenting their products at their fashion shows. This idea of the drone is very original and is not very common with other brands giving them an edge and make their fashion shows to watch online a lot more appealing and interesting; drawing consumers in. (Ma, 2018). More brands are, moving onto improving their websites because of the issues that can occur from social media. This means they need to ensure their websites are easily accessible for their consumers.

Legal: D&G are threatening to take legal action after the show was cancelled after the ad deemed racist was released in China The Fashion Law. (2018). D&G have been in a legal battle with Puma as Puma said their fur sliders were too similar Munich, O. (2018). They have also been accused of plagiarism by Armani for copying their designs of their trousers, this could lead to consumers to be less interested in one of these brands as it comes across as they are selling such similar items Hooper, J. (2009).

7 Environment: D&G have been given the E label which is the lowest score for sustainability. This is because of their labour conditions and because they aren't very environmentally friendly. They don't reveal much on their website about their ethics where as their competitors do which leads consumers to be confused about where they stand with the brand Rank a Brand. (2018). For luxury brands they tend to waste a lot of their products as they don’t like to put items on sale as it lessens the worth of the product meaning they just get rid of them. 

Links linking to my peslte:

https://www.hollywoodreporter.com/news/dolce-gabbana-apologize-ivf-comments-815484

https://slate.com/human-interest/2015/03/dolce-gabbana-anti-gay-statements-money-cant-protect-them-from-homophobia.html

https://www.theguardian.com/music/2015/mar/15/elton-john-boycott-dolce-gabbana-synthetic-ivf-babies-comment

https://www.theguardian.com/fashion/2018/nov/21/dolce-gabbana-cancels-catwalk-show-amid-ad-row-racist

https://www.bbc.co.uk/news/business-29764828

https://www.thedrum.com/news/2018/12/05/dolce-gabbanas-branding-all-time-low-china-after-racist-ad-scandal

https://metro.co.uk/2015/03/18/dolce-gabbana-in-hot-water-again-after-gang-rape-ad-campaign-resurfaces-just-days-after-ivf-furore-5108624/

https://www.dailyo.in/arts/shocking-dolce-and-gabbana-ad-shows-gang-rape/story/1/2623.html

https://www.huffingtonpost.co.uk/2015/03/18/dolce-and-gabbana0gang-rape-advert_n_6893044.html?guccounter=1

http://www.thefashionlaw.com/home/the-dolce-gabbana-tax-evasion-case-in-actually-over

http://www.bbc.co.uk/newsbeat/article/41595134/gucci-will-stop-selling-fur-from-2018-but-not-everyone-is-happy-about-it

https://www.cnbc.com/2017/10/12/gucci-fur-ban-to-be-in-place-by-2018.html

https://www.businessinsider.com/dolce-and-gabbana-uses-drones-to-model-handbags-at-milan-fashion-week-2018-2?r=US&IR=T

http://www.thefashionlaw.com/home/dolce-amp-gabbana-are-threatening-legal-action-over-cancelled-show-racist-row

https://fashionunited.uk/news/business/puma-loses-legal-battle-with-dolce-gabbana-over-fur-sandals/2018071330744

https://www.theguardian.com/lifeandstyle/2009/jan/19/giorgio-armani-accuses-dolce-gabbana

https://www.rankabrand.org/sustainable-luxury-brands/Dolce+&+Gabbana