Strategic analysis of Macro environment

PESTLE Framework

Economic

Strategic analysis of Micro Environment : Industry Analysis (5p)

Economic context was hardly conducive to expenditures for the French in recent months. On the full year 2009, household consumption finally rose 0.9% in volume, after a first decline in 2008. And the coming months ahead still difficult because of the lack of recovery, especially towards employment. The decrease in consumption has not similarly affected all segments of the market. While automobile expenses (premium case) or electronic equipment held up well, the textiles and clothing, spending on food or furnishings have been slashed from the households. These tradeoffs have resulted in a decline 3.5% in value of expenditures dedicated to lingerie. Location unpublished, buyers have both low prices and spécial decreased their purchase volumes. The women have spent an average budget of 93 euros for their purchases in lingerie 2009, against 102 in 2008.

Adjustments have also been observed within product families, with trade-offs in the ranges and distribution channels: on the one hand, the low-end and price products or private label basics, the other the top range, with an offer valued and happy in the dimension the purchasing and consumption. The consequence of this hourglass effect was a progressive disaffection in the middle range, consumers preferring the two ends market. Another new phenomenon, women of 45-54 years were the largest consumers of lingerie 2009, dethroning the first segment of 15-24 year is traditionally the market.

The distribution of lingerie in France is dominated for many years by large food accounted for more than 32% of purchases female undergarments in 2008. However, there is a strong competition from chains specialty stores that are a half in France. The network is the most developed of the brand Etam Lingerie with 263 outlets, followed by Cinnamon, one of the most strong growth