Human Factor

- Shifting Consumer Preferences: A growing customer preference for fashion that is

created ethically and sustainably has been impacting the apparel business. Customers
are searching for companies that share their beliefs as they become more aware of the
social and environmental effects of the items they buy. According to a report by
McKinsey, 66% of global consumers are willing to pay more for sustainable brands.
According to a report by McKinsey and the sustainable fashion market is expected to
grow by 15-20% annually, reaching a value of $350 billion by 2025 (McKinsey &
Company, 2019).
- Intense Competition for Talent: Competition for the best industry specialists is
anticipated to get more intense as the need for qualified talent in fields like design,
technology, and sustainability grows. Companies will gain a competitive edge if they
put a high priority on talent recruiting, retention, and development. The World
Economic Forum estimates that by 2030, the fashion industry will face a talent
shortage of over 50 million workers globally (World Economic Forum, 2020).
- Labor Costs and Workforce Stability: The industry will continue to face
considerable issues related to labor prices and workforce stability. The cost structures
of manufacturers may be impacted by rising wages, modifications to labor laws, and
demands for better working conditions, necessitating proactive actions to maintain
sustainable and ethical practices. The International Labour Organization reports that
around 170 million workers in the global fashion industry are subject to low wages and
poor working conditions (International Labour Organization, 2019).
- Employee Engagement and Retention: Employers who want to cultivate a motivated
and productive staff must continue to focus on employee engagement and retention.
Employer well-being, career advancement, and work-life balance are priorities for
brands that are more likely to draw in and keep top talent. According to Gallup, only
34% of U.S. workers in the wholesale and retail industry feel engaged in their jobs
(Gallup, 2022).
- Talent Diversity and Inclusion: Talent diversity and inclusion can help companies
better understand and respond to evolving consumer preferences. By fostering an
inclusive work environment, companies can tap into diverse perspectives and
experiences, enabling them to anticipate and meet the changing demands of a diverse
consumer base effectively. A study by McKinsey & Company found that companies
with ethnically and culturally diverse executive teams were 36% more likely to
understand and meet the needs of a diverse customer base compared to companies with
less diverse leadership (Hunt et al., 2022).
- E-commerce and Digital Transformation: E-commerce has transformed the way
consumers interact with brands and make purchasing decisions. The retail sector is
undergoing a continuous digital change, which presents organizations with enormous
opportunity to broaden their reach, enhance customer experiences, and collect
insightful data. Brands that make investments in digital marketing, e-commerce
platforms, and individualized online experiences will be well-positioned for expansion
in the future. According to eMarketer, global e-commerce sales reached $5.8 trillion by
2022 ( Emarketer, 2022).
Based on the environmental analysis, , we have selected two opportunities and 2 threats that
deem as a priority for Hanesbrands.

Opportunities:

Growing Demand for Sustainable and Ethical Fashion: Given that Hanesbrands is in the
garment business and that there has been a big movement in customer preferences in favor of
sustainable and ethical fashion, this possibility is extremely pertinent to the company.
Hanesbrands may benefit from the rising demand for environmentally and socially responsible
products by embracing this trend and integrating sustainability and ethical considerations into its
business procedures. This offers the business a chance to improve the perception of its brand,
draw in more clients, and set itself apart from rivals.

E-commerce and Digital Transformation: E-commerce has grown significantly as a result of

the ongoing digital transformation of the retail sector. Hanesbrands may benefit from the rising
popularity of online shopping by boosting its digital capabilities and e-commerce presence. This
enables the business to reach a larger audience, offer a seamless online purchase experience, and
collect useful information for tailored marketing initiatives. Hanesbrands is able to adapt to
changing consumer behaviors and maintain competition in the changing retail environment by
investing more on e-commerce and digital transformation.

Challenges/Threats:

Shifting Consumer Preferences: The tastes of consumers are changing all the time, and
Hanesbrands needs to adapt to stay competitive. Due to this issue, the business must carefully
watch trends, do market research, and modify its product offers, designs, and marketing plans as
necessary. Failure to adapt to changing consumer preferences may lead to market share loss and
a decline in client loyalty.

Intense Competition for Talent: The fierce rivalry for qualified people in the apparel sector is
well known. The problem for Hanesbrands is finding and keeping great people, especially in
fields like design, technology, sustainability, and digital marketing. To meet this challenge, the
business must create strategies for attracting and retaining top personnel, cultivating a healthy
workplace environment, offering chances for professional advancement, and setting itself out as
an employer of choice. The company's capacity to innovate, adjust to shifting market conditions,
and keep a competitive edge may suffer if this issue is not resolved.
REFERENCES:

1. McKinsey & Company. (2019). What radical transparency could mean for the
fashion industry. Retrieved May 22, 2023, from
https://www.mckinsey.com/industries/retail/our-insights/what-radical-
transparency-could-mean-for-the-fashion-industry
2. World Economic Forum. (2020). We need a global reskilling revolution. Retrieved
May 22, 2023, from https://www.weforum.org/agenda/2020/01/reskilling-revolution-
jobs-future-skills/
3. International Labour Organization. (2019, February 13). Poor working conditions
are the main global employment challenge. Retrieved from
https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_670171/lang–en/
index.htm
4. Gallup. (2022). U.S. Employee Engagement Needs a Rebound in 2023. Retrieved
from https://www.gallup.com/workplace/468233/employee-engagement-needs-
rebound-2023.aspx
5. Hunt, V., Layton, D., & Prince, S. (2022). Diversity Matters. McKinsey & Company.
Retrieved from https://www.mckinsey.com/featured-insights/diversity-and-
inclusion/diversity-matters
6. eMarketer. (2022). Global Ecommerce 2022. Retrieved from
https://www.emarketer.com/content/global-ecommerce-2022