Macro-environment of Second-hand Clothing Business in Helsinki

Abstract

Second-hand clothing business, as a part of new business models aiming at maintain- ing ecological balance, plays a key role in making the fashion industry more sustainable. Despite its rejuvenation in Europe and the USA, there have not been many studies about the second-hand clothing industry, especially about external factors that affect the business operation. For this reason, it is vital to seek in-depth insights into the topic. The thesis aims at providing readers with in-deeper understanding about the external driving forces affecting second-hand clothing sector in Helsinki; while the final goal is to generate suggestions on improvement and a new comprehensive PES- TEL on what retailers and companies need to consider when entering the second- hand clothing business in Helsinki. The research was conducted in an inductive approach. Qualitative method was applied. Secondary data were obtained from up-to-date and related information including published books, electronic sources, and journals, etc. Primary data were gathered through one-to-one interviews with five second-hand clothing store owners in Helsinki. In this study, in-depths insights about external variables affecting a business success in the second-hand clothing industry in the Helsinki market are presented. These external variables are based on the macro-environment theory, particularly the PESTEL framework. Key findings gained from the research showed what external factors that affect second-hand clothing business in Helsinki and to what extent these factors impact a business success in this sector. From the results gained from both theoretical and practi- cal findings, suggestions on improvements and a new PESTEL analysis on what re- tailers and companies need to take into account when entering the second-hand clothing business in Helsinki are conducted.