GLOBAL FASHION INDUSTRY AND BUSINESS

Table of Contents
Executive summary ................................................................................................................... 1

Introduction ............................................................................................................................... 1

Analysis ..................................................................................................................................... 1

Market overview .................................................................................................................... 1

1. SWOT analysis .............................................................................................................. 1

2. PESTLE analysis ........................................................................................................... 1

Competitor’s analysis ............................................................................................................ 1

1. Key competitors ............................................................................................................. 1

2. Competitors mapping ..................................................................................................... 1

3. Target market ................................................................................................................. 1

4. Product comparison ....................................................................................................... 1

Consumer analysis ................................................................................................................. 1

1. Market segmentation ...................................................................................................... 1

2. Target market ................................................................................................................. 1

3. Consumer profiling ........................................................................................................ 1

4. Research methodology ................................................................................................... 1

Strategies ................................................................................................................................... 1

1. Product mix........................................................................................................................ 1

2. Marketing mix ................................................................................................................... 1

3. Communication channels .................................................................................................. 1

Launch plan ............................................................................................................................... 1

Recommendation ....................................................................................................................... 1

Conclusion................................................................................................................................. 1

Reference List ........................................................................................................................... 1

Executive summary
Loewe is a well known luxurious fashion brand headquartered in Spain is bringing one of the new
products that are biodegradable leather tote bag to the targeted customers of Spain in Barcelona and
Valencia. A proper analysis of the different competitors that are present in the market can increase the
overall customers in the new market.

Introduction
Organisations bring about different kinds of products and services so that they are able to reach their
targeted customers and generate some profits. This report tries to focus on Loewe with its new product
“biodegradable leather tote bags” so that it can attract more of its targeted customers. Some issues that
need to be addressed are understanding competitors and the market. Market analysis will be involved to
get a better understanding about Loewe.

Analysis
Market overview
1. SWOT analysis

Strengths Weaknesses
● Luxurious product and accessories ● Lesser number of stores
● High skilled labours ● Lesser customization of products
● Higher customer base ● Lesser marketing of product

Opportunities Threats
● Business expansion to emerging ● Managing of international market
market ● Competitor
● Increasing women employees in ● Alternative
workplace
● Going for niche market

Table 1: SWOT analysis of Loewe

(Source: Loewe.com, 2021)
Analysis
Loewe is one of the famous luxurious fashion brands that have different kinds of products and some of its
highly skilled labourers. The customer base is increased in an eventual manner as different kinds of
campaigns are conducted to improve customer recognition (Loewe.com, 2021). Some important
opportunities are present for Loewe where it can expand
its market in the meaning market. Furthermore, the organisation is seen to have some threats such as
competitors and alternatives that might be addressed to get to a better position.
2. PESTLE analysis

Factors Attributes Impact

Political ● Constitutional monarchy Positive and negative

● Higher corruption rate in
government

Economical ● Inflation rate is 1.02% Positive

(Statista.com, 2021)
● GDP rate is 1,461.55 billion
(Ec.europa.eu, 2021)

Social ● Living standard is higher Positive

● Inclination toward technology

Technological ● Use of artificial intelligence Positive

● Use of more social media
platforms

Legal ● Employment and labor law 2021 Positive and negative

(Legislationline.org, 2021)
● Average working hour for a week
is 40 hour

Environmental ● Use of biodegradable product Positive

(Eea.europa.eu, 2021)
● Sustainable product usage

Table 2: PESTLE analysis of Spain

(Source: Statista.com, 2021)
Analysis
Constitutional monarch might just bring about some positive impact on the overall working of Loewe.
Lesser change in the overall rules and regulations is something that can be observed for the case of
constitutional monarchy (Brannon and Evelyn, 2015). The GDP and inflation of Spain is stable enough
and is beneficial for Loewe. The social and technological
factor brings about some better working with the use of technology. Furthermore, positive and negative
impacts can be seen for legal and environmental factors.
Competitor’s analysis
1. Key competitors
Some of the heavyweight competitors that can be observed for Loewe are Balenciaga, Bottega Veneta,
Gucci and Lanvin. The different luxurious brands that are present in the competitive market of Spain tend
to bring forward some innovative and creative products that match the needs of customers (Burns and
Davis, 2011). A large number of products are being put forward by the different competitors and have the
ability to bring innovative and creative products. The overall revenue that is being generated tends to
bring about some relevant changes in the overall production of the company (Appel et al 2020). The
analysis of key competitors is going to be beneficial for bringing better and innovative products by
Loewe.
2. Competitors mapping

Figure 1: Competitors mapping

(Source: Created by author)
It is seen that there is a huge competition in the market as different organisations are being about different
innovative products. An analysis is essential to have a better strategy and understand the strategy of product
diversification or development (Dillon, 2018). For Loewe, two competitors that are seen to give a tough
competition are Balenciaga and Bottega Veneta. High quality products and affordable prices is something
that can bring better customers for an organisation (Gerald et al. 2015). Loewe is to have a higher quality
as well as high price of the products.
3. Target market
The target market is mainly the customers of Spain as this is seen to bring about some better understanding
about the needs of the customers in the competitive market of Spain. Analysing the relevant target market
is essential so that an organisation is able to bring better strategies for expansion (Grose, 2011). Other than
Spain, Loewe is going to target the competitive market of Spain so that a better customer base can be
increased (Rath et al. 2012). The important understanding about the demands of the market helps in
bringing better creative and innovative products (Varley et al. 2018). This analysis of the target market will
bring about better development of the products.
4. Product comparison
The products that are provided by the different competitors are seen to be of higher quality and also higher
in price for organisations like Balenciaga. Products that are higher in quality are seen to be in demand by
the customers (Choi and Tsan-Ming, 2012). The products that are offered by the competitors are seen to
have some customization within it that often attracts the target customers (Collins, 2010). Customization
for the luxurious brand is often preferred by customers as they are able to make their products look
different and innovative (Grose, 2011). This is not done by Loewe, which makes the organisation a bit
different from the other banks that are present in the competitive market of Spain.
Consumer analysis
1. Market segmentation
Market segmentation that is considered for Loewe is made with the help of understanding the market and
considering the higher income level customers. Market segmentation is mainly done by understanding the
needs of targeted customers and relevant strategies are made to attract more customers (Grose, 2021).
Loewe market segmentation is being made by selecting higher income level customers and going for
populated areas with higher customer base (Hancock, 2014).
2. Target market
The target market that is going to be selected for Loewe are Barcelona and Valencia so that better profit
generation can be possible. Selecting a better target market is essential as it helps to increase the overall
profit and sales of the organisation (Harris, 2017). The specified
markets have been selected for Loewe as they are well populated and have a higher income level
customer base.
3. Consumer profiling
For providing better products to the targeted customer a proper analysis is being done by the R&D
department of Loewe so that better innovative products can be provided. Attracting the customer is
mainly done with the help of better marketing of the product and bringing creative products (McIntire
and Jonah Saint, 2014). The customer base of Loewe is going to attract more of the customer with its
biodegradable leather tote bag as it will definitely attract the attention of the customer and bring about
some customer base as per their needs (Fairchild Posner, 2015).
4. Research methodology
Better research is done with the help of PESTLE and SWOT analysis as it provides better knowledge
about the internal and external business environment in the competitive market of Spain. Comparison
and analysis helps to bring forward better understanding about customer and market (Peirson-Smith,
2018). For the biodegradable leather tote bags a strategy is essential so that more customers can be
attracted in the Barcelona and Valencia market. Secondary data is also taken that involves peer reviewed
journals from Google Scholar and authentic websites.

Strategies
1. Product mix
Loewe is seen to bring about different kinds of products for its customers that involve some relevant
luxurious fashion products to the target customers (Muthu, 2019). Wider range of products for targeted
customers brings better attachment of the customers to the organization as innovation and creativity is
present (Noel, 2008). Loewe is providing its biodegradable leather tote bags especially to the women
customers however, there might be some alternatives present in the market.
2. Marketing mix
4Ps of marketing will be considered for marketing of the biodegradable leather tote bags. This will be
helpful in bringing better attention to the customers (Raymond, 2010). The place that is selected is the
Barcelona and Valencia market along with its e-commerce. Price that is set for the product is $100-$150
and the promotion activities will be made on different social media platforms such as Facebook, Twitter
and Instagram.
3. Communication channels
Communication channels that are often used by Loewe are social media platforms so that better
interaction can be made with the target customers. This helps to have a better understanding about the
different real time feedback of the customers and make some relevant changes in the products (Solomon,
2016). In addition to this, word of mouth is also selected for the new competitive market for
biodegradable leather tote bags (Stephens, 2017).

Launch plan
The Launch of the biodegradable leather tote bag will be made at the exhibition and fair in Barcelona and
Valencia so that more customers can get a better recognition about the new product. This will definitely
increase the overall recognition of brand and products within the customers (Fox and McEwan, 2017).

Recommendation
Lesser price of the products can be made so that more customers can be involved. Leer price often attracts
the attention of the customer (Liebel et al. 2018). This is going to be helpful for Loewe and bring more
customers with higher quality biodegradable leather tote bags.

Conclusion
Loewe is making some of the important steps and strategies so that increasing the customer base can be
possible. This will involve some understanding of different analysis such as PESTLE, SWOT,
competitor’s analysis and market analysis is done. A proper marketing mix is going to be helpful for
biodegradable leather tote bags.
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