Assignment Sample on Sunglass Industry in UK and India
Overview of the industry
The demand for sunglasses has doubled over time. As per the report, it has been identified the projected growth of the sunglass industry has been improved rapidly at a CAGR of 4.42% as per the forecast period (Researchandmarkets, 2021). The major reason behind the growth of this industry is to increase the awareness of the consumer and their overall demand for protection from the ultraviolet glare and the radiation (Researchandmarkets, 2021). At the same it is also becoming the major purpose and a growing popularity for the sunglasses for the fashion item (Researchandmarkets, 2021).
UK
In the United Kingdom the demand of the sunglasses industry has been improved over the time from 2015 to 2019 with the involvement of expenditure. As per the report from Statista in 2019, more than 239 thousand people have spent more than £200 thousand or more than that within the 12 months prior to the survey (Statista, 2020).
From this figure the number of people who are purchasing sunglasses in Great Britain has been evaluated effectively (Statista, 2020). The aforementioned factors are driving the market share for sunglasses (Mordorintelligence, 2021). In this report, it has also been highlighted that another important reason behind the rapid expansion of this market is the great supply chain that is involved with domestic and non-domestic markets as well and this eventually increases the demand for detailed historical analysis as well (Globenewswire, 2020). Simultaneously, this will eventually improve the average annual evolution of -6.5% between 2020 and 2024 (Statista, 2020).
INDIA
As per the research conducted by KIT in 2013, the demand of the sunglass industry was estimated at 4.8 billion rupees (Business-standard, 2013). At the same time, the researcher also believed that the demand of this industry in India will increase dramatically and the market value would reach up to 11 billion rupees by the fourth quarter of 2018 (Business-standard, 2013).
From a report, it has been identified that the eyewear market has been divided into two different sectors which are known as the larger unorganized and organized sectors (Crossley, 2017). By 2021, this industry is expected to reach 255.5 million dollars which are worth 1700 crores in Indian Rupee (Crossley, 2017). However, this sector is much more organized and moreover very much transparent as well which is indeed important. The CAGR value of India’s sunglass market has been increased by 4.5% (Deloitte, 2018).
Differences in between UK and India
There is a huge importance of the sunglass industry in between the United Kingdom and India. The United Kingdom market has improved a lot, over time it has been identified that the demand of the overall industry has been drastically expanded. There are several differences in regards to political situations, social factors, technological factors, and many other factors. From the political factors, it can be stated that the UK government is very much stable weather as in India the political scenario is much more ineffective as well. In financial terms, the overall business in the UK in regards to the sunglass industry has improved over time and it has been found that the CAGR value of India is 4.42% whereas 4.5% for the United Kingdom. As per the current size of USD 7.4 billion and by the end of 2024 the CAGR reached 9%. In the United Kingdom, the expected CAGR is going to reach 14%.
Similarities In between UK and India
There are several similarities between the UK market and the Indian sunglass market. The supply chain of the sunglass industry has been improved over time (Agrawal, 2016). The demand of the overall industry is also increasing over time across the globe even in India. Several french organizations are working on the sunglass industry in India. In both sectors governments are trying to support the industry however, the UK government is also very much support as well. Both the countries are concerned about quality matters, strong brand management is also important (Agrawal, 2016).
PESTLE Analysis
| Factors | United Kingdom | India |
| Political Factor | ● The United Kingdom has a very strong and commendable government.
● Brexit is the major problem for considering business over there |
● Very much unstable government.
● There are several political problems that have created a tough situation as well. |
| Economical Factor | ● The unemployment rate is under 4% which is approximately 3.8%.
● The GDP growth of this nation is very much attractive (Clark, 2021). |
● The unemployment rate in India is more than 7% (Unemploymentinindia, 2021).
● The GDP growth of India is not stable, it is growing at a slow pace (1.6%). |
| Social Factor | ● The average labor age in the UK is 65 years
● The average labor wage is much higher |
● A number of working-aged people are out of the labor force.
● The average labor wage is much lower in almost every Asian country including India (Unemploymentinindia, 2021). |
| Technological factor | ● The UK is highly technologically advanced
● Government is very supportive as well. Govt. spent more than 900 million for technological improvement (Gov, 2020) |
● Technology is not advanced as the United Kingdom
● The government is less interested in this segment |
| Legal factor | ● The nation has to follow the Employment act of 1996 (Lexisnexis, 2021).
● 2010 equality act will help the organization to maintain a smooth workflow in the organization. |
● Adhering labor laws
● Need to maintain all the government rules |
| Environment factor | Need to produce an eco-friendly product
|
Need to maintain the Environment (Protection) Act, 1986 |
Table 1: A comparative analysis between the United Kingdom and India in regards to the external business environment
(Source: Developed by author)
Reference List
Agrawal, A., 2016. The Sunglasses Industry: A Lesson In The Importance Of Branding. [online] Forbes. Available at: <https://www.forbes.com/sites/ajagrawal/2015/12/18/the-sunglasses-industry-a-lesson-in-the-importance-of-branding/> [Accessed 12 July 2021].
Business-standard, 2013. KIT: The sunglasses market in India. [online] Business-standard.com. Available at: <https://www.business-standard.com/article/management/kit-the-sunglasses-market-in-india-108110401062_1.html#:~:text=The%20sunglasses%20market%20is%20estimated,to%20the%20overall%20eyewear%20market.&text=Branded%20sales%20contribute%20about%2070%20per%20cent%20to%20the%20overall%20sunglasses%20market.> [Accessed 11 July 2021].
Clark, D., 2021. UK: GDP in pounds 2000-2018 | Statista. [online] Statista. Available at: <https://www.statista.com/statistics/281744/gdp-of-the-united-kingdom/> [Accessed 13 July 2021].
Crossley, I., 2017. India’s eyewear market becomes one of the fastest growing retail sectors. [online] FashionNetwork.com. Available at: <https://in.fashionnetwork.com/news/India-s-eyewear-market-becomes-one-of-the-fastest-growing-retail-sectors,883330.html> [Accessed 08 July 2021].
Deloitte, 2018. Eyewear market in India. [online] Www2.deloitte.com. Available at: <https://www2.deloitte.com/content/dam/Deloitte/in/Documents/consumer-business/immersion/Eyewear%20market%20in%20India.pdf> [Accessed 06 July 2021].
Globenewswire, 2020. UK Spectacles and Googles Market 2020-2024 – Supply, Demand and Pricing Data. [online] GlobeNewswire News Room. Available at: <https://www.globenewswire.com/news-release/2020/12/16/2146511/28124/en/UK-Spectacles-and-Googles-Market-2020-2024-Supply-Demand-and-Pricing-Data.html> [Accessed 12 July 2021].
Gov,2020.Budget2020.[online]GOV.UK.Availableat:<https://www.gov.uk/government/publications/budget-2020-documents/budget-2020> [Accessed 29 May 2021].
Lexisnexis, 2021. Employment Rights Act 1996 | LexisNexis. [online] Lexisnexis.co.uk. Available at: <https://www.lexisnexis.co.uk/legal/legislation/uk-parliament-acts/employment-rightsact1996c18#:~:text=Sign%2Din%20Help,Employment%20Rights%20Act%201996%20(1996%20c%2018),working%20and%20termination%20of%20employment.> [Accessed 13 July 2021].
Mordorintelligence, 2021. Sunglasses Market Size, Share | Industry Analysis Report, 2021 to 2026 – Mordor Intelligence. [online] Mordorintelligence.com. Available at: <https://www.mordorintelligence.com/industry-reports/sunglasses-market> [Accessed 10 July 2021].
Researchandmarkets, 2021. Sunglasses Market – Growth, Trends and Forecasts (2020 – 2025). [online]Researchandmarkets.com.Availableat:<https://www.researchandmarkets.com/reports/4622340/sunglasses-market-growth-trends-and-forecasts#:~:text=The%20global%20sunglasses%20market%20is,sunglasses%20as%20a%20fashion%20item.> [Accessed 11 July 2021].
Statista, 2020. Sunglasses expenditure in the UK 2015-2019 | Statista. [online] Statista. Available at: <https://www.statista.com/statistics/302960/sunglasses-user-expenditure-in-the-uk/> [Accessed 12 July 2021].
Unemploymentinindia, 2021. Unemployment. [online] Unemploymentinindia.cmie.com. Available at: <https://unemploymentinindia.cmie.com/> [Accessed 13 July 2021].
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