PESTEL Analysis Brazil
PESTEL analysis for Brazil
Political:
Although the country has had some corruption, but the current situation shows that the current government is doing effective activities making the country politically stable.
Economic:
The crowded population brought international investments to the country. Recent researches show high economic growth rates and booming economy. An economic forecast has been done and showed high potential of economic growth.
Social:
Due to the booming economy, the gap between higher calls and lower class is shrinking, and there is a noticeable trend of growing middle class.
However there exists a significant economic inequality with more than 18% of the population under poverty line, and there’s a huge segment of people who get minimal income.
In addition, Brazilians are up-to-date in the fashion world and are considered modern, as they are aware of big brands and are keen to buy expensive and luxurious products.
Technological:
Brazil is still the leader in technology and R&D in South America.
IT is a sector in which Brazil has been improving and is currently one of the top 50 in the world.
Brazil is currently one of the top ten textile and denim producers in the world. In fact, there are more than thirty thousand companies in the Brazilian that produce textiles.
Environmental:
The fast growth of the market has led to a significant increase of foreign investments. These foreign organizations and companies brought with them not only new financial flow, but also new culture of organisation, sustainability, and corporate social responsibility themes and plans. These types of themes are used as a source of competitive advantage especially thru differentiation, environmental protection and other sustainable strategies. We can find these sustainable strategies clearly applied in the fashion industry especially in terms of quality, design and after sales services.
Legal:
Consumer protection law
Free trade with EU
In terms of Brazil’s fashion industry,
Political:
Although the country has had some corruption, but the current situation shows that the current government is doing effective activities making the country politically stable.
Economic:
The crowded population brought international investments to the country. Recent researches show high economic growth rates and booming economy. An economic forecast has been done and showed high potential of economic growth.
Social:
Due to the booming economy, the gap between higher calls and lower class is shrinking, and there is a noticeable trend of growing middle class.
However there exists a significant economic inequality with more than 18% of the population under poverty line, and there’s a huge segment of people who get minimal income.
In addition, Brazilians are up-to-date in the fashion world and are considered modern, as they are aware of big brands and are keen to buy expensive and luxurious products.
Technological:
Brazil is still the leader in technology and R&D in South America.
IT is a sector in which Brazil has been improving and is currently one of the top 50 in the world.
Brazil is currently one of the top ten textile and denim producers in the world. In fact, there are more than thirty thousand companies in the Brazilian that produce textiles.
Environmental:
The fast growth of the market has led to a significant increase of foreign investments. These foreign organizations and companies brought with them not only new financial flow, but also new culture of organisation, sustainability, and corporate social responsibility themes and plans. These types of themes are used as a source of competitive advantage especially thru differentiation, environmental protection and other sustainable strategies. We can find these sustainable strategies clearly applied in the fashion industry especially in terms of quality, design and after sales services.
Legal:
Consumer protection law
Free trade with EU
In terms of Brazil’s fashion industry,