PEST Analysis

We have carried out an analysis of Zara’s external environment by carrying out a Porter’s Five Forces
Analysis, PEST Analysis and an Industry Value Chain Analysis.

PEST Analysis

Political: There does not appear to be any political factor impacting the current sales of the retail fashion
industry. However, multinational players in the industry will be mindful of possible trade-tensions
between their countries of interest.

Economic: The primary economic condition which is expected to shape the industry is the current and
projected increase in the income levels of households in emerging markets. This is expected to increase
the purchasing power of households in these markets and their demand for

Social:

Technological: