Ananas-Anam's Pinatex: Sustainable Textile Essay In Australia.

Introduction of Ananas-Anam and Pinatex

Question:

Discuss about the Strategic Analysis of Australian Market.

With the introduction of a newly formed and innovative material to run hand in hand with the thought of sustainable development, Ananas-Anam has stepped into the global market whereby industrial development can be ensured via using the scrap of the agro or natural product.  The following report puts light into the new market that has been targeted in Australia. Originating in the United Kingdom, Ananas-Anam has been doing business on the textile  and other products that are basically procured and produced from the bio wastes. The report aims at the strategic analysis of Australian market  wherethe new product of the company is going to be launched. Pinatex, the latest venture of Ananas- Anam has extensively different quality and entity from the other products marketed by the leading business organisations. Ananas- anam believes in total safety and sustainability of the environment thus notwithstanding the chemical and plastic production in the company.

The report strictly focuses on the search of suitability of Australian market. The external environment of the Australian market will also be under consideration of the analysis. The report is written in a PESTEL analytical format whereby the external factors of the company in Australia is going to be assessed. PESTEL analysis stands for political, economic, social, technological, environmental and legal factors that are effective and decisive in determining the success or failure of a company or a product in a market.

Anas-Anam is a textile company that has its business headquarter located in London,UK.  The company is the founder and seller of the brand Pinatex a textile product made from the leaf fibres of pineapples. Pinatex is noe fo the  most viral products in global textile industry ("ananas anam - New materials for a new world", 2017). The basic reason behind the success of the product is that it has be structured on the priority basis of environmental degradation. Pinatex has a  global market of its own. However, the company’s market expansion is quite limited and it sees to step onto the major markets in the world (Goswami & O'Haire, 2016).

The marketable product of the company is Pinatex that has been developed by the industrious effort of Dr. Carmen Hijosa, the CEO of the company. Invention of Pinatex has been a phenomenal deed as it is based on the natural products without zero ensemble of synthetic items. It is a natural leather alternative that has been designed in order to create a substitute for the synthetic products. In order to ensure sustainable development in manufacturing industry, Dr Hijosa has invented the new textile process that is made by pineapple fibre. Since Dr. Hijosa found during her job in a leather factory that the products made by leather materials are extremely unstable and harmful for the environment, she decided to introduce a new face of textile production. Pinatex is the consequence of her dream and concept. Since Pinatex is not petroleum made synthetic product, it is degradable. It has utilised the pineapple leaves that are wasted in a huge amount every year. After the invention of Pinatex the Dr. Hijoa started campaigning its credibility and responsible uses. This time she focuses on the Australian market. Apart from the pineapple products, the researchers have recently found an alternative way by applying the fibre of cocoa in weaving process.  

Target Market in Australia

Clothing and textile market in Australia is highly potential for the entrepreneurs where the textile products can be sold and earn huge amount of profits. The scope of creating new market demand r the newly launched product needs detailed study of the market trend as the already existing companies and their products have captured the entire market audiences.  The country has vast cohesion of people from different countries thus creating a huge scope for the new entries to look deep into their existing and future demand. Most of the Australians prefer wearing cotton or linen clothes that have brand image. The youths are found to prefer the trendy and cheap clothes and shoes. The preference for the trendy and cheap clothes has blocked the opportunity for the quality products.   However, the Australian people are also known as supportive and interactive after the launch of new brands and new companies.

In order to analyse the market trend for the newly launched products, the market analysts need to comprehend the external market factors of the company in terms of the target country. There are various determining factors such as the legal factor, political factor, economic factor, social factor, technological factor and environmental factor. These factors are all together called PESTEL (Political Economic Social Environmental and Legal). Suitable linkage of those factors between the company and the target market results in successful business.

Political analysis of textile industry in Australia tends to the understanding of government’s intervention in terms of industrial development through the implementation of different laws either by facilitating new entries in the already congested market or by creating a bar on front of the innovative ideas of the new entries. In this context it can be  said that the company’s market analysis will try to find out the positive endeavours of the Australian government in supporting the venture of Pinatex. Political segment in PESTEL constitutes the following aspects:

1. Taxation Policies
2. Employment Facilities and Options
3. Political Stability
4. Government of Australia’s TCF taxation covers the entire range of textile, clothing and foot-ware industry. The government does not impose high rate of taxes upon the new entries, thus encourage them to invest in the country for the sake of the country’s overall development.
5. In the recent years the government of Austraalia has been utilising the availability of workers in the labour market. However, the rate of employment in TCF sector has been declining at times. In the Financial Year 2012-13 employment in the TCF secotr witnessed certain hike with more than 39000 hiring of the workers indifferent segments (Günig & Kühn 2015). It has started going down in the next two financial years. In the FY 2013-14, the total number of employment in TCF industry was 37, 787 that was much lower than the previous year and it continued to go down in the next financial year that is the FY 2015-2016 . In that financial year the total number of employment in the sector  came down to 36,000. This declining trend of employment in the TCF sector creates curve in one’s forehead pertaining to the investment. Othe government has designed some frame work. The main reason behind the decline was the ageing population in the country. Major part of the Australian population is more than 45 years thus creating a void place in employment segment.  This has been a major concern for both the government as well the willing investors (Textiles, Clothing and Footwear (TCF), 2017).
6. Australia is politically stable country. Less conflict among the political parties create greater opportunity for the investors to work peacefully .the recent year has not found any major political violence that might affect business and marketing in Australia. This is the positive aspect of the country in doing business.

Economic Factors:

The economic factors in PESTEL constitute the capital strength of the country where the company plans to do business. Economic fctors in a country are

1. Economic Stability
2. Economic growth
3. Economic stability: After the great depression of 2008, the country has recovered all the economic strains that has broadened the scope of the foreign companies to show interest in doing business. Most of the market segment have the  ability to to buy good quality product in substantial rates. However the burgaining tsctics of the audiences or the customers may affect the preliminary business of the company in the new country. In this case the most influential economic background is the mode of industrialisation.
4. Australia has witnessed certain economic growth after 2008. Since the manufacturing of Pinatex  is not labour extensive, it can even enjoy the small number of marketing personnel.  

The social analysis in PESTEL relates to the public trend in terms of clothes and footwear. Most of the Australian youths opt to wear trendy and fashionable clothes. Hence, the newly elegant clothing can be simply modified according to the social demand.

1. i) Australia is a socially cohesive country and its population is highly diverse in nature. The social approach of the country has vast integration to cultural aspects. Thus there is a scope for the company to venture a new product idea in the Australian market. History has witnessed that the market in Australia is inclined to the fashion products which are qualitatively high.  
2. ii) The social trend to the acceptance of the eco-friendly products is going to help the company launch Pinatex. However, there might a problem pertaining to the pricing of the Pinatex products as majority of the population is inclined to purchase the products in cheap rate.

The organisation is fully equipped with modern technologies. The government facility to provide technological assistance is also helpful in the marketing strategy during time consumption.

1. i) Australia has vast technological resources. Most of the business subsidies seem to be enjoying the prevalence and abundance of technological advancement in the country.
2. ii) The fashion industry in Australia is highly equipped with technologies and ICT tools. This is why the organisation might be benefited as the government also encourages the tech factors to grow business in the country.

Environmental analysis is nothing but the message of sustainability. The product aims at the maintenance of the balance and governments’ law and legislation on the  protection of environment

Fig1: PESTEL Analysis

Source: Created by the Author

Conclusion:

The strategic market analysis has created a basic idea on Australian market that has to be dealt with in a succinct manner. Product launch of Pinatex needs profound market understanding thus facilitating the entire course.

Reference:

ananas anam - New materials for a new world. (2017). ananas anam. Retrieved 18 April 2017, from https://www.ananas-anam.com/

Goswami, P., & O'Haire, T. (2016). Developments in the use of green (biodegradable), recycled and biopolymer materials in technical nonwovens. Advances in Technical Nonwovens, 97.

Grünig, R., & Kühn, R. (2015). Global Environmental Analysis. In The Strategy Planning Process (pp. 89-96). Springer Berlin Heidelberg.

Hugo, G., & SA, A. (2014). The demographic facts of ageing in Australia. available at the website to the DSS website: www. dss. gov. au.

Jurevicius, O. (2013). PEST & PESTEL Analysis. Strategic Management Insight, 13, 2013.

McDonald, P. (2016). Ageing in Australia: Population changes and responses. POPULATION AGEING, 65.

Productivity Commission. (2013). An ageing Australia: Preparing for the future. Commission research paper overview. Canberra: Media and Publications Productivity Commission.

Textiles, Clothing and Footwear (TCF). (2017). Industry.gov.au. Retrieved 18 April 2017, from https://industry.gov.au/industry/IndustrySectors/TextilesClothingandFootwear/Pages/default.aspx