Social cultural, demographic and environmental forces
If purchasing habits remain stable, it is an opportunity for the industry and it will be possible to continue generating income through sales and the industry will remain stable.
Buying Habits
OPPORTUNITY"Buying habits refer to the products that customers usually buy and the places where they buy them." Buying habits consist of the behavior patterns of a user with respect to their consumption actions in terms of where, what and how people spend their money.
A BBVA study that breaks down purchasing habits and consumer changes with respect to the goods and services shows us the following graph
The consumption index of goods is divided into classifications. For the textile industry (clothing), the brown color represents the percentage of consumption of goods. Because of the pandemic in 2020 the buying habits in the textile industry lowered, since 2020 until 2021, buying habits remain stable.
Social Responsability
THREAT
Consumer behavior has been changing over the years, and the market is increasingly seeing a growing concern for social issues and the positioning of companies. Consumers stopped buying only by evaluating the characteristics of the products, now Social Responsibility is already part of the purchase decision.
The domains of industrial activities that made the greatest investments in environmental protection and conservation in 2020 were: Coking, manufacturing of petroleum refining products and nuclear fuel with $204,977 million (43.7%), Food, beverages and tobacco with $107,176 million (22.8%), and Other industrial divisions with $41,547 million (8.8%)
For the industry, competitiveness with respect to the social responsibility of the country is a threat since the industries that adopt social responsibility gain greater competitiveness in the market, increasing their chances of being among the leaders of the segment and in the graph the textile industry has a less contribution.
This is a threat for the industry because with the time there will be less people to buy and work in the future.
Number of Births
THREAT
Birth rate is a demographic term that refers to the number of live births per 1,000 individuals in a population over a specific period of time, usually a year. It is a commonly used indicator of population growth and fertility.
According to the graphic the number of births is decreasing among the years, in one year it decreased from 14.023 to 13.772.
Number of Deaths
THREAT
Death rate is a demographic term that refers to the number of deaths per 1,000 individuals in a population over a specific period of time, usually a year. It is a commonly used indicator of public health and mortality.
According to the graphic the number of deaths has decreased among the years, but it started increasing slowly again in one year it increased from 5.848 to 5.929.
The last year the number of deaths have increased again, and it represents a threat because if the rate increases there will be less population for the target audiences.
Endangered species
THREAT
Threatened species are those species, or populations thereof, that could become endangered in the short or medium term.
Many of the bags that are made today are made with animal skins, which is why many species are becoming extinct. For this reason, in our company, we are going to work with bags made with synthetic leather to help stop the extinction of animals for the elaboration of bags with crocodile skins, snakes among others.
In conclusion, to make a good bag it is not necessary to use animal skin, not only because synthetic leather is more accessible but also because we avoid serious problems such as the extinction of species mentioned above. On the other hand we also have to keep in mind that animal skin is very expensive and many people see it as very good quality and prefer it a thousand times over things made of synthetic materials so we would be below.
Per Capital Income
OPPORTUNITY
GDP per capita, income per capita or income per capita is an economic magnitude that results from the relationship between the income level of a country and its population. To do this, the gross domestic product (GDP) of said territory is divided by the number of inhabitants. With the intention of obtaining data that somehow shows the level of wealth or well-being of that territory at a given moment.
The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation the national income (through GDP in a specific period) and the inhabitants of this place are interrelated.
We can see with this chart that Colombia in the last years from 1990 to 2021 has been increasing the GDP per capita, this means taking into account the definition that Colombia has increased its wealth as a country. The GDP per capita in 1990 was 1467.5 and in 2021 was 6104.1, this means the GDP per capita has increased 24%.
The GDP per capita is an opportunity for the manufacturing industry because as we saw it has increased in Colombia, meaning that the country is wealthier and wealthier, this makes that investors from other counties take interest in Colombia´s market and come to help the companies of this and other industries.
In conclusion, this would affect us because in some occasions we would have delays with our clients and in our production.
Traffic Congestion
TREATHTraffic in Colombia is one of the worst in the world, mainly in the capital which is Bogota, followed by Medellin and Cali, this is due to some roads are not in good condition, accidents or high traffic flow.
Mainly it is estimated that the traffic jam in Bogota consists of approximately 47 hours in the middle of the traffic, which is a disadvantage for us because we would have different delays in delivery of the order or in receiving our raw materials.
- Bogotá, la ciudad con el peor tráfico de América Latina: un informe de la BBC explica las tres razones del caos (semana.com)
- Por qué Bogotá tiene el peor tráfico de América Latina - Bogotá - ELTIEMPO.COM
Life Expectancy Rates
Life expectancy is an indicator that shows the average number of years a person lives, based on the mortality rate of a group.
According to Juan Daniel Oviedo, director of the DANE, life expectancy has been increasing in the last years in Colombia, with an average of 80 years for 2022, where women have more life expectancy than men.
It can be seen that this would be an advantage for us, since we would have a large market since our products are aimed at girls to women of the elderly, so we would have the opportunity to build customer loyalty and have the loyalty of these to the brand. In spite of this, we do not have that our customers will always stay with our brand which would also be a disadvantage because they can change their tastes and more when we see that nowadays fashion is very changeable.
in conclusion we could say that in part generates an advantage because we have a large number of public to which to offer our products, however we are not certain that these are entirely loyal to our brand.
Waste Management
THREAT
Waste management in different industries is related to the care and awareness of the environment and how the waste produced in the different factories can be harmful to it. Likewise, over the years the importance of this factor has increased, so different environmental management and care systems have been implemented on it.
However, through the graph it can be evidenced in the textile sector it has a lower percentage in recycling and reuse, so it also has a maximum utilization potential of 5%, which is very low compared to others.
This can be justified considering that according to a study by the European Commission called Environmental Impact of Products, it is established that textiles are characterized by having short life cycles, consequently having a high environmental footprint.
Therefore, this waste management factor would be a threat since there is no good waste management in the industry, and they would be generating a negative effect on the environment.
Sex Roles
Opportunity
Attitudes, behavior patterns and personality attributes defined by the culture in which the individual lives as stereotypically male or female social roles.
A bag is important because in many cases it is the self-definition of people in their self-esteem, in their family, in their partner, in their social and economic relationships because depending on the type of bag you use or the design it has, it defines you as all of the above.
We as a company are directed to all women offering different designs for the different personalities that exist.
In conclusion we are going to create a place where women feel comfortable and can acquire a bag of any design, shape and size that defines them in all aspects.
