NAVIGATING THE INDONESIAN MARKET: UTILIZING ETHICAL RESPONSIBILITY CSR AS A SUCCESS FACTOR IN THE FAST FASHION INDUSTRY

• Main Author: Arsa Almira, Shilla
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80694
• Institution: Institut Teknologi Bandung

This research aims to identify which corporate social responsibility (CSR) ethical responsibility practices have a higher effect on Indonesians consumer purchase intention in fast fashion industries from developed countries when they seek to expand their brand to Indonesia. Two CSR ethical responsibility practices, i.e. implementation of refashioning strategy in clothing waste management and provision of living wages to employees were compared to investigate their effect on consumers purchase intention in Indonesia. For the data collection, the researcher used a quantitative approach where 2 different scenarios were made and distributed randomly to the participants. The researcher uses regression analysis and independent sample t test to compare the result between the 2 groups. The result shows that fashion companies that implement refashioning in clothing waste management have a positive impact on the consumer purchase intention. However, provision of living wages has no positive impact on purchase intention. The result also shows that implementation of the refashioning strategy in clothing waste management does not have a higher effect on consumer purchase intention than ensuring living wages for employees. In conclusion, implementing a refashioning strategy in clothing waste management in a fast fashion industry influences consumer purchase intention. However, providing a living wage to employees has no significant effect in the Indonesian market since Indonesians' awareness of the living wage is still low.