PROPOSED BUSINESS STRATEGY FOR NEW BUSINESS MODEL FASHION STARTUP “RESTYLE”

• Main Author: Nelfriani
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49327
• Institution: Institut Teknologi Bandung

At the beginning of 2020, Corona Virus (COVID-19) spread along with the nation and cause a crisis affecting our daily lives. The pandemic will bring values around sustainability into sharp focus, and the consumers will be more cost-conscious in their purchasing decision. This situation could be an opportunity for a fashion startup with a concept of sharing fashion items such as clothes, bags, shoes, etc. to provide experience ever-changing fashion without commitment and extend the use period of those items to reduce the waste and reach sustainability fashion. Restyle is a startup to be created. The objective of the study to formulate a business strategy to establish a new business model - fashion renting startup for middle-class millennials that carries the sustainable fashion industry and sharing economy. The study will highlight the potential of the Indonesian market in the segment that this new fashion startup is willing to enter. It will help to understand if the business model can be a sustainable business and could be successful in penetrating the market with the right strategy. The renting fashion startup could change the consumption behaviour on fashion items and participate in improving the environment by reducing the fashion industry waste. In this study, the author conducted the external analysis to identify the current condition of renting fashion product business using PESTEL, Porters's Five Forces and competitor analysis, and for internal analysis to identify the resources that Restyle has and have to has using VRIO. Besides, the author also conducted interviews and questionnaires to understand more about the target market perspective of renting fashion products. After analyzing the data, the author generates the business strategy for Restyle using the general business strategy and strategy diamond model. Also, the author proposes a business model for restyle using the business model canvas. The research shows that Indonesia millennials are environmentally conscious and willing to use pre-loved clothes or other fashion products. They are not ashamed to use pre-loved items. An enormous variety of clothing and hygiene, which are rent clothes with consumers' priority. Unfortunately, most of them are not willing to rent clothes; only 30% of the respondents that willing to rent clothes. Moreover, there are only a few consumers who have had experience in clothes renting. This is the big challenge for Restyle and others renting fashion companies, introducing this new consumption model, and broadening the market segment. Currently, the market scale is still small, and the industry leader has not yet appeared, the new or small clothing enterprises have a great chance to win market recognition. Restyle, as a newcomer in the fashion renting business, have to create a new norm in society, trough excellent marketing activity. Define the right vehicle and differentiation to gain trust from the consumers. Restyle will focus on differentiation in the B2C market in the first phase. Next is developing a new product in Jabodetabek, scale up to the B2B2C market, and increasing the communication with the customer through digital marketing. Besides that, Restyle has to find investors with attending by several startup events.