Wildcraft PESTLE Analysis
Detailed PESTLE analysis of Wildcraft examining political, economic, social, technological, legal & environmental factors.
Political Factors:
Wildcraft is a manufacturing and distribution company for trek-to-travel solutions in India, Middle-East and South East Asia. Thus, the company is affected by the regulatory environment in these regions. Any changes in regulation related to the manufacturing and distribution of clothing, footwear, gear, luggage products affect the brand. Stricter regulations can increase the cost of compliance for the brand. Any violation of such regulations may invite punitive action in the form of fines or penalties, affecting the financial performance of the brand. Yet, the brand is well-established to take advantages of opportunities as well. In 2019, Wildcraft made a deal with the Ministry of Defense, Government of India to produce rucksacks for the Indian Army. It is a multi-million-dollar deal and the company was in talks with the Indian government for more than 5 years. The company would have to make rucksacks keeping in mind the needs of the Indian Army, particularly the rough terrain and time spent outdoors.
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This concludes the political factors in the Wildcraft PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Wildcraft:
Although the spread of Covid-19 crippled the sales of clothing brands, Wildcraft spotted new opportunities. The company already had some experience in making Personal Protective equipment and masks for the army, and thus began manufacturing these products on a larger scale.
It even produced tactical gear post Covid-19. The company has enhanced its manufacturing headcounts and sold 3 crore masks in one quarter. The company is producing super masks that have a filtration efficiency equivalent to that of N95 masks. Also, these masks can be used more than 25 times for reuse. The company also partnered with Myntra to offer PPE masks on its e-commerce store. Myntra began offering Wildcraft Hypashield protection mask. This is an innovative mask with a three-layered filtration system. The heavy dust particles are filtered out in the outer layer of the mask, and the middle layer provides protection against bacteria and resistance to splash to block droplets. Finally, the inner layer offers moisture and anti-bacteria protection.
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Social Factors:
Following are the social factors impacting Wildcraft PESTLE Analysis:
As a sporting and outdoor adventure brand, Wildcraft is witnessing more growth in the urban markets, with consumers wanting to experience outdoor activities. Although the penetration of adventure and sports equipment was quite low in India, in recent years there has been a change in consumers’ taste and preferences. Due to changing lifestyles, urban consumers are moving away from sedentariness. The segment here is value-conscious and prefers planned trips. The consumers also want products that can be used for various purposes. For example, a rucksack bag can be used for both trekking and travelling. The company has also set up international collaborations. For example, in South East Asia, the company has collaborated with Zalora to gain access in markets like Taiwan, Hong Kong, Malaysia and Singapore. In the UAE, too, the brand has built offline and online partnerships for distribution. For instance, the company even tied up with Souq.com, an e-commerce platform in the UAE.
Technological Factors:
The technological factors in the PESTLE Analysis of Wildcraft are mentioned below:
The Wildcraft company is cognizant of the opportunities in its technological environment. It entered the wearable technology space in the country with SPOT, a GPS tracking device via app on smartphone. The device is user-friendly and can be worn on the wrist or even attached to a backpack. The device serves the safety needs of parents who would be interested to know where the child is during trekking trips. Recently, in another collaboration, the company has partnered with IBM to build a CRM-as-a-service platform. The software uses Artificial Intelligence and Machine Learning to analyze customer interactions throughout the customer purchase journey and then enhance the buying experience. IBM has linked with Wildcraft’s ‘The Circle’ to share information related to brands, products and services on one common platform. It serves the consumers by way of using chatbot. This chatbot is a one-stop solution to register complaints, ask queries related to products, policies and procedures.
If required the chatbot can also transfer the chats to personnel within the company.
Legal Factors:
Following are the legal factors in the Wildcraft PESTLE Analysis:
Wildcraft has to ensure compliance with the laws in the jurisdictions where its business operates. Any violation in this regard may force the company into litigation and incur legal costs. The company also needs to be careful about its intellectual property rights. The law may not provide enough protection to companies in case of any violations. This may force companies to enter into litigation and file legal cases against the accused. In some cases, resolution to such cases may take considerable time and money, affecting the financial resources of the company.
Environmental Factors:
In the Wildcraft PESTLE Analysis, the environmental elements affecting its business are as below:
Any unforeseen event like natural disasters can negatively affect the financial and operational performance of the business. Such natural disasters include floods, earthquakes, cyclones, spread of infectious diseases, etc. The outbreak of Covid-19 is one such prime example. Yet, the brand tapped the market opportunities available during the months of the lockdown. Wildcraft started mass scale production of masks. These are special masks with a 3-layered filtration process and are reusable till 30 days. It also started producing personal protective gear and PPEs. Also, during the pandemic, the demand for respirators and hazmat increased, particularly for medical professionals. Thus, the brand even sought approval from the Ministry of Textiles to help such medical professionals who needed the gear.
During this time, the brand also collaborated with Myntra to provide PPEs on Myntra’s e-commerce platform. The Hypashield mask is a special mask, which provides a three-layered filtration protection system for people. Thus, these steps helped the company gain financially from the measures taken to tap opportunities in the market.
To conclude, the above Wildcraft PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
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