PESTEL Analysis of New Look

My team and I chose to re-brand New Look. Of course New Look is a well-known brand in the United Kingdom with many costumers. We still felt that something is missing. I started looking through the annual reports of New Look of the past 4 years and I saw this graph:

I noticed that over the past 4 years the gross profit margin has declined quite much and the reason is because in 2010 New Look decided to raise its prices by 8%, as it states in the financial times. I believe that the products of New Look are overpriced and if they continue like this they will never be better where they were some years ago or even better than this. Apart from this, New Look is based in the UK and although it has many shops outside of the UK, I don't feel like they are as strong as brands like ZARA. They are not as internationally known as they should be.

I made a visual PESTEL Analysis of New Look. 

Political.

Due to the Crimean Crisis and the political instability, New Look is pulling out of Russia and Ukraine. However it is expanding in China and Poland and it is opening concession outlets in Germany.

Economical.

As I mentioned before, New Look increased its prices which resulted in a declined gross profit margin. However, its E-Commerce services helped New Look improve.

Social.

New Look uses social media like Facebook and Instagram, but it is not active enough. Apart from this, New Look established the 'New Look Foundation' in 2009 and since then they have raised over £850.000 through fundraising events like fashion jumble sales and marathons.

Technological.

New Look's website has an average of 2.7 million visits each week and in 2014 more costumers than even before used the Click and Collect and Order in Store services. They have 7 3rd Party E-Commerce partners, including ASOS.

Environmental.

New Look has signed up the Sustainable Clothing Action Plan (SCAP) 2020 Commitment, pledging to measure and reduce their environmental footprint. In 2013, New Look held an energy efficiency workshop in Bangladesh with representatives from 52 factories covering topics such as the business case for energy efficiency. 

Legal.

Respecting their employees, New Look has banned any sandblasting process because it can cause cancer or other diseases. New Look trained in 2013 supervisors and management at 129 factories on topics like improving working environments, health and safety, and communication between workers and management.