BUSINESS MODEL DEVELOPMENT FOR ORGANIC SCARF BUSINESS CASE STUDY VASANA

• Main Author: AISYA AL ZAHRA - Nim: 29115594, NOORLIA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29704
• Institution: Institut Teknologi Bandung

According to a report by Thomson Reuters and Dinard Standard, Indonesia is ranked third in the world's largest consumption list for Hijab / Fashion Hijab Mode. Moslem fashion industry business model relies on fast and mass production where the lead-time between designing to the store is getting shorter and threatened the sustainability issues including environmental issues due to overconsumption. The increasing challenge on sustainability shifts the consumer culture and perception against fast fashion retailers and the slow fashion movement begins to rise as an antithesis of fast fashion. <br /> <br /> <br /> As an organic scarf company in Indonesia, Vasana sees this opportunity to develop the sustainable modest fashion in Jakarta as the capital city of Indonesia. By 2020 it is estimated that the middle class is increasing by 12 million people in Greater Jakarta with almost 40% people are from Jakarta itself. This middle class tends to want to buy luxury goods, a high consumerism attitude, and technologically literate. They also tend to be open-minded, have fairly high purchasing power, and like something symbolic like hijab. However, Vasana struggle to introduce its organic cotton scarf or hijab product as part of slow fashion in the market. A proper business model is needed for Vasana to take further action plan to reach its potential target market. <br /> <br /> <br /> Internal and external analysis of the company condition is conducted to obtain data about company’s current condition. The internal analysis is explored using business model canvas, Segmenting, Targeting, and Positioning (STP) analysis, and marketing mix analysis. The external analysis is explored using competitor analysis. The result will be formulated with Segmentation Matrix, Customer Zoom Tool, Value Proposition Canvas, and Javelin Experiment Board as well as to validate the product. <br /> <br /> <br /> The results show an incompatibility between current target market and products offered. The solution to be proposed to resolve the root cause is new business model canvas and new marketing mix. The implementation plan focused to redefine the product of Vasana in order to correspond the target market demand. The implementation will be executed through product adjustment and improvement in marketing activities both online and offline to increase consumer’s awareness of the product as well as to increase sales. <br />