It is widely debated whether climate change will have a detrimental impact/ adverse impact on the business sector or present a source of business opportunities. This essay will first closely examine both views before showing my final thought.
On the one hand, climate change could somewhat spell trouble for the fashion industry. The vital reason here is that the sector always depends on the weather patterns because customers often buy clothes for the season. For example, during the summer, individuals tend to purchase lightweight clothing for comfort, while winter prompts the need for warmer attire. With the unpredictability brought about by climate change, fashion retailers often face dilemmas in inventory management. Fashion often follows trends, if clothes are in inventory for too long people will not buy it , so fashion retailers have to discount these clothes. Moreover, extreme weather such as droughts or floods can disrupt supply chains, affecting the availability of raw materials then the process will rupture.
On the other hand, climate change could also open doors to new business prospects. First, those that promote sustainability can expand their market. This growth is because as climate change takes effect, human will gradually have to change their consumption habits. These are businesses that sell products like reusable water bottles, portable wooden utensil packs, or biodegradable cosmetics. Secondly, I believe tech companies will become the top players. For example, Tesla is now doing extremely well with its electric cars. In Vietnam, The VinGroup corporation can also collect more profits from its electric scooter products.
In my opinion, I believe that the impact of climate change on business is multifaceted, encompassing both favorable and unfavorable outcomes. While the sector businesses imminently push some companies to the edge, it can be the moment to research the way for new business models and markets.