Le Pest C

Legal

There are many laws that Dior must abide by in order to remain in business as well as ethically competitive they are as followed:

Labour laws

Discrimination laws - Everyone is treated equally 

Consumer law - Fair trade 

Competition laws - This means actions such as fix pricing is not allowed

Health and safety laws 

Whats Going On In The Fashion Industry

Dior And The Law 

One way Dior is using the law is with licensing. From the beginning Dior has used licensing agreements to create lucrative revenue and rapidly spread the Dior name. They have 165 duty free outlets to distribute their goods. However as much as licensing has helped Dior, they now want to take back control over their products. 

Under the new EU Laws Dior’s Miss Dior might have to be reformulated as it contains mosses which studies now suggest cause allergies, this will lead to an increase in costs for Dior that could be spent else where.   

Ethical

Dior is not considered to be an ethical company, they are all about expanding the business and having ugh profits while maintaing a prestigious image. Dior is all about "self-promotion and corporate growth through any means not restricted legally". 

In The News

Political

Certain factors that the government put in place will affect business such as Dior, some of that regulations that business such as Dior must abide by are and will be affected by are:

Tariffs

Trade Restrictions

Tax Policies 

Environmental Regulations

Political stability

Economic

The economic factors that will affect business are:

Economic growth/decline
Inflation ratesInterest rates 

As the majority of Europe is still in a recession, many business decided to focus on gaining sales from the middle east and emerging economies. Asia was particularly the place to go, for example they have the largest growing luxury market which is perfect for Dior. The graph below shows just how fast Asia's luxury market is growing.

The recession has left many consumers being very careful about what they spend their money on. This has lead to designer having to rethink their strategies, one way to still gain revenue and keep the more money conscious customers is designer collaborations. This makes luxury brands accessible and targets a new type of customer.

Below we can see how popular collaborations are becoming from the information collected by Mintel: 

Social

The way consumers are shopping now and what they want are drastically changing here are some ways brands will need to accept and adapt to in order to remain current:

Omnichannel retailing 

Mobile wallet 

Consumers want a more personalised in store experience

Stores need to be interactive 

Mobile businesses 

Loyalty programmes to be reinvented  

Show where the products are sourced, made etc

Technology

Many fashion brands are embracing digital technology and they are trying to be first at whatever is the latest gimmick. Some examples of Dior and technology are:

Exclusivity access to a Dior website by gaining a access code that is only available through a phone

The use of technology in their nail varnish advertising 

For their launch of Dior Addict Fluid Stick they produced a multifaceted digital campaign from using YouTube to Instagram 

The current socioeconomic landscape:

"At this very moment, the economy, the environment, science and technology, and the global balance of power are undergoing massive shifts: some are calling it cataclysmic change, a shift so radical we now have to think the unthinkable as a matter of course" - Sourced from LSN