PESTLE Analysis of Dolce and Gabbana (D&G)
Dolce and Gabbana is a brand that represents classy and innovative lifestyle products. This PESTLE analysis of Dolce and Gabbana will highlight its business tactics and examine several external factors such as political, economic, social, technological, legal, and environmental. These factors impact the business of Dolce and Gabbana directly. Dolce and Gabbana can utilize this tool to improve its business operations and easily understand market dynamics. Keep reading to get the detailed PESTLE analysis of Dolce and Gabbana.
Political Factors – PESTLE Analysis of Dolce and Gabbana
D&G is a well-known Italy-based lifestyle and retail brand that is mainly known for its fashion products. As a global company, the company has to pay taxes in its operating countries. So, any increase in taxes, tariffs, raw materials, duties, and customs can threaten the company’s profitability. In recent times, the company was involved with the Italian Revenue Agency in the matter of tax dispute. The company has faced several allegations over the tax issue in the past. These kinds of allegations and controversies can badly damage the reputation and image of the company. It also hurts the profitability, market share, and other incomes resources of the company. It is crucial to address such issues in order to avoid any inconvenience in the future.
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Economic Factors – PESTLE Analysis of Dolce and Gabbana
D&G’s business performance is heavily reliant on several economic factors of different countries. First of all, as a global company, you are very vulnerable to any economic ups and downs. If the country’s economy is good in which Dolce and Gabbana is operating, it can open various growth doors for the company. Right now, Asian markets are one of the best markets that offer plenty of improvement opportunities for companies like Dolce and Gabbana because of their population. Even though the fashion industry is overloaded with several local and international brands, Dolce and Gabbana can take competitive advantage by setting the right price of products according to a country’s economic conditions.
Social Factors – PESTLE Analysis of Dolce and Gabbana
The role of social behavior is very huge on the business performance of Dolce and Gabbana. In China, the company faced backlash over its advertising method. Understanding the social and cultural pattern is imperative before marketing the brand. If you unintentionally hurt customers’ sentiments, then it is not good for your brand as they boycott your products. The owner or CEO’s comments on sensitive issues can be harmful to the brand. These things can injure the image and repo of Dolce and Gabbana. By understanding the cultural sensitivities, Dolce and Gabbana can easily win customers’ trust.
Technological Factors – PESTLE Analysis of Dolce and Gabbana
The latest technology can make the company’s level to new heights, and Dolce and Gabbana can open plenty of opportunities by utilizing modern technology. In Milan Fashion Week, the company recently used drones to showcase their handbags. This was the biggest hit that time and the company earned positive feedback from the experts. Moreover, Dolce and Gabbana initiated a campaign in 2020 named Holiday Animation. This was the best campaign to engage customers. In this campaign, the company highlighted its latest collection of clothes, bags, shoes, and fragrances. On the other hand, the company uses different video ads to promote its product and brand at the global level. The company’s 360-degree virtual experience allows customers to shop their favorite items in a unique way.
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Legal Factors – PESTLE Analysis of Dolce and Gabbana
In several countries, the company is subject to various tax laws. Also, the company is facing several challenges regarding tax. Due to these issues, the company uses its resources to fight such problems. The company is also spending unnecessary money to protect its brands, intellectual property rights, and trademarks. Moreover, any change in tax rules and other laws can also cause a problem for the company. As a result, the company can lose its competitive advantage and effectiveness.
Environmental Factors – PESTLE Analysis of Dolce and Gabbana
Several fashion brands have stopped using animal fur, but D&G is still using animal fur. Due to this reason, the company is facing a petition from PETA (animals’ rights group). As people are really concerned about the environment and nature than ever before, such news can tarnish its reputation and image. According to some resources, the company is using biodegradable silk fabric in their clothes. The production of this silk fabric causes water pollution, cancers, and mental illness. So, the company should adopt green initiatives and produce eco-friendly apparel to get the attention of eco-friendly shoppers. This is the best way to get a competitive lead in the market.
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