Serge Makhoul

Product concept: Body chains: The product we’re about to discuss falls into the category of luxurious female lingerie. The targeted segment for this product is females aged between 16-24 years old and the preferable nationalities would be Italian, Chinese and Spanish. The inspiration of this product comes from African origins where a female’s seductive nature is showcased through the usage of Bayou. Targeting plan: The targeting plan for this product is going to be concentrated, emphasizing on females aged between 16-24 that are into the fashion world and especially luxurious fashion and would pay a good buck to get their hands on some luxurious lingerie. Position planning: The main characteristics of this product would be extremely high quality and very luxurious, a big ask when it comes to price, the lightness of the product is also considered a must as the product should be perceived as both complex and simple. Making it a healthy product through the lightness of the product and the fact that it will be easy on the skin and won’t leave any marks on the consumer’s body. Targeting in the global country: Pest analysis: PESTEL ITALY Political Microenvironment: Italy is a written constitution unitary federal republic. The country's President is the head of state, while the Prime Minister is in charge of the economy. Three political forces dominate Italian politics: the Five Star Movement, the Democratic Party, and the LEGA. Though the nation is well-known for many aspects, it has a long history of political turmoil dating back to the end of WWII. NATO and the European Union each have Italy as a founding member (formerly known as the European Economic Community, EEC). It is also a member of the United Nations, the OECD, the World Trade Organization, the OSCE, and the Group of Seven. It has positive diplomatic ties with a number of countries. The emergence of far-right politics, on the other hand, has become a significant source of concern for the region. In the last few years, political unrest, disputes between the ruling partners, and disagreements over policies and election promises have all had an impact on the region (Ellyatt, 2019). Despite making significant gains over the years, Italy is now regarded as one of the most corrupt countries in Europe. To combat the outbreak of the coronavirus in Italy, officials have taken drastic steps. Thousands of citizens have been charged with breaking the lockout measures, according to Tondo (2020). Some people initially thought it was a harsh solution; however, perceptions soon shifted, and most people began to see it as an acceptable response to a dire situation. Economic Microenvironment: The economic climate is the next thing to consider in the PESTEL study of Italy. Italy is one of the world's top ten economies. In 2019, its nominal GDP was $2030 billion (Trading Economics, 2020). It is a member of the Eurozone, but its relationship with Brussels has been strained due to its contentious budget proposals (Winchester, 2019). Italy is one of Europe's most strong manufacturing nations. Tourism, construction, agriculture, service, and commerce are the main sectors that have been pushing the economy. Big enterprises as well as smaller, family-run companies make up these sectors. However, a scarcity of raw materials raises a significant economic threat, which the nation addresses by importing substantial quantities. Coronavirus would have a negative effect on the Italian economy in the short and long term. The government's promise to accelerate spending on a "huge shock therapy" to offset the virus's economic effects, on the other hand, has been met with largely positive responses (BBC, 2020). Similarly, many companies have moved quickly to implement remote working wherever possible in order to limit the spread of the virus and minimize financial losses. PESTEL SPAIN Political Microenvironment: Spain is a federal representative republic. That is a constitutional monarchy as well. The Head of State is the hereditary king, while the Prime Minister is the head of government. Spain is divided into 17 autonomous regions known as "Comunidades Autónomas" in Spanish. It belongs to a number of important international organizations, including the United Nations (UN), the European Union (EU), the Eurozone, the Council of Europe (CoE), NATO, the Organisation for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO) (WTO). Spain is a key player in the EU and beyond, especially in international security matters. However, the country's civil unrest has harmed its international reputation. For a long time, Catalonia, a semi-autonomous territory, has campaigned for independence. This has thrown Spain into its most serious diplomatic turmoil in 40 years (BBC, 2019). The independence bid, daily pro- and anti-independence rallies, violent protests, and the imprisonment of some Catalan leaders and activists have all exacerbated the situation. Spain and the United Kingdom have a border dispute over Gibraltar. Disagreements between political parties, as well as several general elections in a short period of time, do not bode well for the region. A political recovery in Spain is urgently needed. Economic Microenvironment: Spain has the world's 13th biggest economy. For the year 2018, its Gross Domestic Product (GDP) was $1426.19 billion, accounting for 2.30 percent of the global economy (Trading Economics, 2019). Over the last five years, the economy has been booming. In 2018, it grew by 2.5 percent. It's worth recalling that Spain is one of the Eurozone’s largest contributors (Romei, 2019). Poverty is widespread, and many occupations are precarious, resulting in ongoing uncertainty. Exports, on the other hand, have increased, as has domestic market demand. Tourism, shipping, irrigation, oil, and electricity are the major sectors that contribute significantly to Spain's GDP. Spain exports primarily to France, Germany, and Italy, while importing household products, equipment, pesticides, and other goods primarily from Germany, France, and China (World Atlas, 2019). In Spain, the general corporate income tax rate is 25%; but, depending on the form of business, different tax rates can apply. Technological Macro environment: When it comes to technology, Spain is an advanced country. It is one of the first EU countries to use all national id cards in electronic format. Businesses in Spain have been at the cutting edge of technical advancement and creativity. Their contributions to air and ground traffic management, renewable energy, civil engineering and infrastructure, and mobile communications are well-known worldwide (MIT Technology Review, 2019). The extensive use of social media by Spaniards is well-known. Facebook, Instagram, Pinterest, Twitter, YouTube, Reddit, and Tenuti are the most popular social media platforms in Spain. It is worth noting, though, that the nation needs more IT personnel. ICT experts are among the country's most in-demand occupations. Within the European continent, the Spanish government participation in the sector is limited. Environmental macro environment: Spain is one of the world's most popular vacation destinations. In fact, tourism is one of Spain's most important sectors, accounting for about 11% of the country's GDP. Issues such as deforestation, air pollution, water pollution, and desertification, on the other hand, have become some of the country's biggest concerns. Similarly, an overemphasis on tourism has been criticized for excessive levels of pollution from airlines and cruise ships, as well as the mismanagement of natural resources and the depletion of green spaces. Hence, environmental issues are a major concern in Spain, as they are in other European countries. This ensures that all corporations and people are subject to different laws including the amount of waste they generate, the services they use, and even the way their garbage is sorted. Spain gets more than 70% of its energy from fossil fuels. Renewable energy sources, on the other hand, are becoming more common. Nuclear energy reportedly accounts for 12% of Spain's energy, making it the country's main clean energy source. This means that, in contrast to many Scandinavian countries, Spain has been reluctant to embrace renewables, but it is mindful of the need to do so. Legislative macro-environment: The legal system in Spain is based on a civil structure code. This allows the public and private sectors to be separated. Municipalities, municipalities, regions, and autonomous communities make up Spain's "territorial" division. In their daily lives, more than half of Spaniards have been vulnerable to corruption. The Spanish judicial system is separate from the executive branch; prosecution and police proceedings are conducted exclusively by judges. It is important to be mindful of government corruption involving legislators and corporations. The Spanish penal code was revised in 2010 to allow companies to be prosecuted for their acts. Since international investors seek to spur economic growth, Spanish business law is friendly to them. Spain's economic rules and legislation have been modernized as a result of the country's admission into the EU in 1986. It's worth noting that the Catholic Church has a significant impact on the Spanish people. However, anti-clerical and rather secular uprisings in the early twentieth century provided further separation between the church and the state. Since the relationship between law and the church may be more divided than in other countries, an expatriate may face ethical conflicts. Spain is just like any other European nation, it has rules in effect for the modern age, including stringent copyright and data protection regulations. Spain is a heavily bureaucratic place, which means that there are a lot of legal hoops to jump through when investing or starting a company there. When it comes to e-commerce, operations are currently controlled in Spain, as they are in neighboring countries. Distance pricing, ads, basic contract terms, electronic signatures, data security, intellectual and industrial property, and e-commerce and information society services, among other laws, can all be considered in e-commerce transactions. Apart from these particular rules, it is also important to review the general regulations on civil and industrial contracts, as well as the specific policy on consumer safety in the case of e-commerce addressed to customers (B2C). E-commerce poses tax questions that are difficult to resolve from a strictly Spanish standpoint. As a result, the Spanish tax authorities have decided to wait before a regional and even global agreement is reached on the steps to be implemented. The process of finding a consensus on the VAT handling of "on-line e-commerce" has advanced well. In terms of direct taxes, any arrangement is likely to take the form of a coordinated, uniform understanding of the different parameters that decide how e-commerce is taxed. The modifications to the OECD Model Convention commentaries are a clear example of this. PESTEL CHINA Political Microenvironment: China is one of the world's most dominant nations. It is a permanent member of the United Nations Security Council. It is also the world's fourth-largest nation in terms of land area. China's capital city is Beijing. The Communist Party of China is the People's Republic of China's founding and ruling political party. About the fact that China's political climate is peaceful, the lack of political independence is a source of concern. Many observers doubt China's political system's lack of transparency. It is worth remembering, however, that China positions itself as a perfect destination for foreign direct investment due to its predictable political climate, low labor costs, and developed infrastructure (FDI). China, unsurprisingly, drew a record high of US$139 billion in FDI in 2016, making it the world's third largest FDI destination. In 2018, it attracted $135 billion in FDI. As previously noted, China is a permanent member of the United Nations Security Council. It is also a member of the World Trade Organization, the Asia-Pacific Economic Cooperation (APEC), the BRICKS, the BCIM, ASEAN Plus, and the G20. It retains cordial diplomatic ties with several major trading and political forces around the world. However, it has had a difficult relationship with the United States for a long time. Similarly, recent demonstrations in Hong Kong have raised concerns. Economic Microenvironment: China's economy has grown at a significant pace over the last five years. According to reports, if China continues to grow at this pace, its GDP would soon exceed that of the United States. Some factors that could be beneficial like sigh rate of savings, abundant and skilled labor, and potential urban growth. Any urban growth has the potential to have a significant effect on SMEs and their behavior. According to China's GDP pace, each person is contributing more and more value to society. As a result, consumers' buying power is growing. China's labor costs are relatively low. Therefore, major corporations such as Apple choose to recruit people from the region. While the pace of growth is impressive, it has the potential to decline. Some of China's alarming trends are high inflation rate and high property prices. Interest rates have been increased by the People's Bank of China. Commercial banks' liquidity requirements have since been increased by nine times. Furthermore, the central bank is advising banks to lend less and place restrictions on home transactions. Technological Macroenvironment: With 829 million internet users, China has the world's highest online community (CNNIC, 2019). China has several large tech companies, including Baidu, Alibaba, and Tencent, to name a few. These and other companies are so powerful in China that many large companies from other countries have collapsed. China has a goal of becoming a world leader in science and technology. To do this, the nation initiated a program called "mass entrepreneurship and creativity" in 2015. The aim of this program is to promote entrepreneurship in China. It also aims to assist the nation in transitioning from a labor-intensive to an innovation-driven economy. The internet is the most important technical driver assisting the Chinese industry. China has almost 450 million internet users, which influences their shopping habits. However, there are few reliable online payment methods in China, and credit card penetration is extremely low. Another important trend that has aided the buying power of the Chinese people is e-commerce. Taobao is China's largest e-commerce portal, with a large percentage of the population using it to purchase all of their products. In addition, there is a strong shift in the world toward physical shopping. This is partly due to China's traditional social traditions, which many generations continue to follow, and partly due to the myriad dangers involved with online shopping. Environmental macro environment: China's rapid economic growth has had a significant negative effect on the country's natural environment. Water and air pollution, hazardous waste, deforestation, climate change, and biodiversity depletion are only a few of the environmental issues that China is currently dealing with. China is now one of the most polluted countries on the planet. As a result, many companies must spend more money to ensure that their productions meet environmental requirements. As a result, manufacturing costs rise, resulting in lower profit margins. As a result, China's immediate priority should be removing processes that damage the environment and maintaining the viability of its numerous industries. It is worth noting, however, that the Chinese government has taken a range of steps to resolve environmental issues. Decentralization of accountability at state levels and promoting citizen interest in environmental conservation are two examples of interventions. Legislative macro-environment: In China, there are a variety of laws that govern industry and work practices. The PRC Employment Law 1995, the PRC Labour Contract Law 2007, and other administrative laws, for example, regulate labor practices, job remuneration and compensation, labor disputes, and other related matters (Chen, 2019). FDI in the country is regulated by the Catalogue of Industries for Guiding Foreign Investment. The Catalogue categorizes foreign direct investment into four groups: promoted, limited, banned, and allowed. There are 384 businesses in the Encouraged band. This division includes sectors such as agricultural machinery manufacturing and the processing of fruit and vegetable drinks. There are 35 businesses in the Restricted range. This division includes sectors such as power grid construction and service, banks, and financial firms. There are 28 businesses that are prohibited. This division includes sectors such as air traffic control, postal services, and international mail letter delivery. Industries that do not fall under any of the above-mentioned categories are included in the permitted category (Chen, 2019). The formulation of e-commerce legislations and their numerous peripherals, such as intellectual property rights, consumer rights, tax policies, and so on, is a hot legal issue in the Chinese economy. E-commerce is still a relatively young field in China, and its legal growth would primarily benefit the economy's existing development model. Trade-related legalities are another such concern. This is something that is still changing and is commonly geared towards the development of a bourgeois economy. However, if the economy achieves its maximum potential, it is estimated that the import tax will be cut. D.D: These luxury body chains are meant for a very specific type of people. This type being the wealthy and the royal, as it is worth mentioning that in these three countries (China, Spain, Italy) body chains have always been linked to royalty. In China, these body chains were normally worn by the Emperor’s escorts (some women he sleeps with regularly) as to attain to the status of grandeur that someone such as the Emperor of China would be proud of. In Spain, Royal families have been wearing them for years upon years. These body chains are instantly linked to royalty when in Spain, as no other families except for the extremely wealthy ones would be able to afford them. In Italy, it goes way back to the times of the Roman Empire. A time where orgies were a thing done for fun. A woman would wear a body chain upon her thigh in order to convey that she wants to have sex, seduce her husband, and the typical luxury use of the Aristocratic class. Body chains have played a big part throughout history, maintaining its’ importance till the present day through the royalties of the modern world. The purpose of creating this luxurious item is reviving the high tastes of the bourgeoisie class of today. These items are meant to be purchased by the modern high classes (the 3% of the people that can afford them) that can appreciate the history, seductiveness and meaning of these items. Competitive analysis: Lace by Tania: Founded by Tania Henry, ‘Lace by Tania’ is a jewelry company that mainly sells body chains, necklaces, earrings and everything in between with a net worth set at 10 million USD. Tania Henry is the biggest shareholder in the company with her shares constituting about 51% of the total shares. “Lace by Tania” is using a strategic goal-based model. Its’ fundamentals are made by investors and the redirection of cash flow and reinvesting it into the company itself. This business did not use the SBA to start it’s uprising. The name ‘Lace by Tania’ is based on the pure target market (females). The production of the company is based on outsourcing all their materials straight from Africa to the US, where the company is based. Distribution is done in 3 ways: Retail shops, E-commerce shop and a store in California. Their target market is medium-wealthy people that like to decorate themselves. The supply of chain is distributed between the three distribution methods. The price of these products is understandable and cheap and the target segment is females aged from 16-40. It is using a form of free promotion by the marketing done by celebrity influencers through social media.