Article: “Consumers will suffer without ‘comprehensive’ trade deal” (Drapers, Isabella Fish, 17th Feb 2020)
With the Brexit, british government is on the path of negotiating trade laws with EU that is supposed to be put into action from Jan 2021. The negotiation is said to be a difficult change for consumers if not done correctly as they might have to pay higher cost for products. The article explains how it might be an inconvenience to retailers and consumer if the “zero tariff trade deal” is not discussed and considered.
Here are some key points from the article:
1. Negotiation of the trade deal might end up with consumers suffering
2. The BRC (British Retail Consortium) has launched a report “A fair deal for consumers: EU Trade Roadmap”, it mentions retail industry’s priority for the upcoming negotiations
3. Without the zero tariff deal, the consumers are the one who will be paying higher costs.
4. Helen Dickinson, chief executive of BRC said “higher tariff and extensive checks will result in recruiting a large army of trained staff for heaps of paper work along with exhaustive checks for thousands of lorries and end up with consumers paying more and reduced availability on shelves.
5. The negotiated terms without proper plan in action like advanced warning for training staff, proper IT upgrade or new infrastructure will affect the retailers and along with that it will affect the UK economy.
This article is a perfect example how the political criteria from PESTEL can affect fashion brands. New incorporation of laws can either result in a boost to the retail market or affect it badly. The decision needs to be made after careful consideration about how it affects the consumers by the end of it all.
What is PESTEL?
It is a marketing strategy that comprises of politics, economy, social, technological, environmental and legal which affects a company or brand.
Adya's fashion blog 