To effectively analyze the market situation, it is necessary to trace the current trends, and quantitative and qualitative changes in the industry, associated with both internal and external factors. One such analysis is the environmental scan, which combines factors such as funding opportunities and technological innovation. The purpose of this paper is to conduct an environmental scan in conjunction with a PEST analysis of the loungewear market.
The analysis of internal factors, in this case, is somewhat tricky since the object of the study is not one specific company but the whole market. However, among the internal trends, the tendency towards the mass market can be distinguished. Nearly 70% of all loungewear and pajamas manufacturers target the low to mid-price segments (“The eCommerce loungewear & sleepwear,” 2020). Simultaneously, only 5 percent of brands are in the luxury segment, which leaves room for new companies to emerge in this market area.
Considering external factors using the PEST model can provide much more information in the current world situation. From a policy point of view, there are not many direct influences on this industry. However, there are outside groups such as PETA that boycott companies that use animal materials in their production (Frue, 2018). However, their influence on loungewear manufacturers is small. The most striking economic factor is the significant increase in demand for sleepwear in 2020. While many companies suffer losses due to COVID-19, the industry is more likely to benefit from staying at home as the market is forecast to expand (“Sleepwear and loungewear market,” 2020). The coronavirus affects the social sphere as well, as self-isolation has made people value comfort more. Consequently, due to this shift in values, the loungewear market is now booming. Nevertheless, since manufacturers adhere to working development strategies, there are no fundamentally new technologies in this area.
Thus, the field’s environmental scan shows that the loungewear and sleepwear industry is now thriving due to a combination of several factors. Firstly, most of these clothes are sold in a reasonably low-price segment, making them attractive to a potential buyers. In the current COVID-19 environment, there is a massive demand for this type of clothing, as people have to stay at home for a long time. Consequently, this economic niche is thriving and profitable for both current producers and new potential investors.
References
Frue, K. (2018). PESTLE analysis of the fashion industry. PESTLE Analysis. Web.
Sleepwear and loungewear market to grow by $ 19.5 bn during 2020-2024 | Industry analysis, market trends, market growth, opportunities, and forecast 2024 | Technavio (2020). Yahoo Finance. Web.
The ecommerce loungewear & sleepwear category is booming (2020). Medium. Web.