Economic factors such as a change in the purchasing power of EcoShelves’ targeted consumers or an economic growth in the region where the company is settled could impact the demand for sustainable foods, and thus the company’s sales. Watermael Boisfort is now one of the wealthiest municipalities in Brussels, with the highest medium income per inhabitant. Since the level of income is correlated to the consumption of organic food, the company can expect a rise or fall of its sales if the local income of its consumers varies.

 

Also, increasing unemployment rates in the region would imply lower consumer spending, especially on expensive products whereas lower unemployment might increase the company’s sales.  

 

 

 

Ecological factors are at the core of the company’s preoccupation, since EcoShelves sells food that is eco-friendly and sustainable. People all around the world have been rethinking there ways of producing, moving and eating food these past few decades: farmers have been more sensitive to their waste of water and uses of harmful pesticides, distributors and retailers have been more strategical to assure less distance is travelled for each food, and consumers pay more attention to how their food was produced, and how it got into their plates.

 

In Belgium particularly, recent studies show that 48% of Belgians are now more cautious of the environmental impact of their food. Also, 60% of Belgians are looking for healthy food with a clear label when purchasing food, which shows that consumers are being more sensitive to how their food is produced. The “eco-friendly mentality” is a trend that affects the consumer's demand for durable food, such as the ones offered by EcoShelves, which implies that the company’s sales are also dependent of these trends.

 

 

 

Social and cultural factors in the local areas also influence EcoShelves. Changes in demographic trends and in the level of education of the targeted consumers of the company are examples of cultural factors that can influence its sales. The urbanization rates of Watermael Boisfort will also have an influence the company’s sales. As the population grows in Watermael Boisfort, less space will be used to cultivate food and more space will be used to build housing. This could imply a higher consumer demand in the long run. Finally, changes in the lifestyle and the buying behavior of consumers would directly affect the demand for EcoShelves’ products.

 

 

 

Political factors such as the political orientation of the party in power on a local basis can impact the launch and the well-being of the company. Until 2018, Ecolo (a green party) has been elected by majority by the inhabitants of Watermael Boisfort. Not only does this show the mentalities of the municipality’s inhabitants, but this also implies that the power in place could help to set up the company and promote its benefits.

 

 

   

Technological factors could help EcoShelves reduce its costs. In hydroponic culture in buildings, when the sunlight is missing, it must be replaced by artificial light. However, this kind of buildings can be quickly energy intensive. The technological evolution of LEDs is promising for our vertical farm project because although the costs are huge, LEDs are becoming increasingly efficient and cheaper. We notice that the cost of LEDs has been divided by 10 every decade, while their performance (amount of light produced) has tripled every three years. Such improvements in the production costs could insure the company’s profitability and viability in the future.

 

 

 

Legal factors also impact EcoShelves. Our system uses hydroponics, an emerging technology that is mostly practiced in Singapore and other Asian cities. So, currently, there is no clear and definitive legislation regarding this practice in Belgium. However, our process is based on synthetic nutrients, which bars us from labeling our product as “organic” and might discourage buyers from buying.  On the other hand, other Europeans legislation, such as the one aimed at reducing the uses of pesticides in agriculture, could play in EcoShelves’ favor. Finally, local laws regarding urbanism and agriculture would affect the architecture of our building, as well as our producing methods.