Pest Analysis

Political-Legal

Recently Apple watch was launched in Australia. The import regulations are generally positive with Australia having free trade agreements with many countries. Australian regulations are friendly towards wearable technology. It is one of the 1^st countries to allow e labeling. Similarly, the political situation in the country is fairly stable, it has not been affected by any sort of unrest. Taxes for a while were relaxed but the government is trying to slowly cut down on tax evaders who buy wearable technology on office expenses. However, still, it is very investor/buyer friendly. The only challenge would government request for personal information. With the threat of terrorism etc. government regulation in this area, this would be a challenge in future.

Economic

Reserve Bank of Australia (2015) presented an analysis of the Australian economy. It has been stable post-recession and amid problems with its biggest economic partner China, it has shown decent growth. Therefore, the economic situation is positive and people do have the money to buy luxury products. All the wearable technology products can be categorized as luxury products. Within 4 months of its launch, 205,000 had bought Apple Watch but a fair number were unsatisfied by it and had abandoned its usage. This shows the economic viability of such products and shows there is a market is willing and able to buy for wearable technology product which they like.

Social-cultural factors

The Australian Nation is becoming a lot more health conscious. This reflects in their lifestyle and the choices they make every day. A lot more people are interested in sports. There is a trend to become fitter. Therefore, for products like Hexoskin, which focus on health-conscious people, it is an ideal time to launch their product. Currently, there are a brand factors attached to it to some degree i.e. Apple Watch has more brand value than its own utility. With more people genuinely worried about health brand value will not be the main factor rather; it would be about how accurate and precise reading of the machine. The functionality of the product would be important rather than what brand it is from. As the health concerns grow, with an gaining population, this factor will become more important.

Technology

In terms of acquiring further technology, it should not be a problem as long as the company is able to pay its way. There may be chances that bigger competitors try to buy out the company or start similar products as technology is not unique to Hexoskin. This is one area of concerns that its unique selling proposition can be copied by competitors.