Question

Industry analysis

Lady shoes industry in China by using PEST analysis

-Political (policies, laws and regulations, BRI, Greater Bay Area,FTZs, CEPA, ....)

-Economic (economic condition, unemployment, labor supply, savings, household income, future prospect, business channels, ....)-

-Socio-cultural (demography, culture, shopping habits, ....)

-Technological (netizens, use of mobile apps,fintech, AI,....)

Answer 1

Political	Economic
Opportunities Stable government Threats - Foreign Direct Investment Policies that prohibit full ownership of retail stores. These policies hold a threat to internationalization - Currency exposure risk - Competitive tax system internationally	Opportunities - Growth potential - Economy of scale (low manufacturing cost) - Strong brand equity Threats - Increase in interest rates - Increase in labour costs and inflation in China - Shoe sales rely on a consumer’s discretionary income - Increase in the shipping costs of raw materials and company resources
Socio-Cultural	Technological
Opportunities - Quality over price is valued in the footwear industry - Rise in the no. of fashion enthusiasts - Increase in physically active seniors - Rise in the number of women athletes - Higher disposable income	Opportunities - Increase in the use of commerce conducted electronically - Increase in the use of mobile commerce - New technologies emerging that allow corporations to become more energy efficient as well as reduce manufacturing costs Threats: Access to most of the commonly used social media platforms is restricted

Conclusion:    The opportunities for the lady shoe industry outweigh the threats. there is greater opportunity for global growth as well.