BUSINESS STRATEGIC REALIGNMENT FOR A SUSTAINABLE FASHION BRAND (STUDY CASE: HOUSE OF MAJIK AS AN UPCYCLING FASHION BRAND)

• Main Author: Ayularas, Bonita
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80789
• Institution: Institut Teknologi Bandung

Sustainability has become the highlight of the fashion industry’s agenda, concerning the urgency to move toward responsible practices under growing customers. However, when such sustainable brands experience a surge in popularity, they are confronted by the challenge to scale up their business while preserving to maintain ethical values. House of Majik, a brand which first strike as an upcycling brand, faces challenges and opportunities of realigning its business model amidst the complexities of managing a multi-brand store. The overshadowed sustainable initiatives need to be taken aback in order for the House of Majik to refocus on its initial identity. This study aims to determine and formulate a business strategy for House of Majik, an upcycling fashion brand, to redefine its business model as a sustainable fashion brand. This study uses a conceptual framework which uses several steps and tools, such as Business Environmental Scanning through External Analysis (PESTEL, Porter’s Five Forces, and Competitor Analysis), Internal Analysis (Value Chain Analysis). Furthermore, Value Proposition analysis is also carried out to understand the value of customers and create company value that is more related to customers. Qualitative analysis was assessed by interviewing customers who have bought sustainable fashion items to meet the degree of familiarity towards sustainable fashion, in order to know their motives, needs, and preferences. Data analysis is processed using thematic analysis and SWOT analysis, with data triangulation. The findings are then formulated into strategy using TOWS Matrix Analysis. The result of this study suggests House of Majik to adopt focus-differentiation business strategy, as this strategy is the most appropriate to leverage the exclusivity, creativity, and uniqueness inherent in upcycled or reworked products, with value proposition to offer limited editions of upcycled pieces as distinctive products with reasonable prices. Ultimately, the strategy is used to redefine the Business Model Canvas with further implementation plans that are new product development initiatives, online movement initiatives, offline movement initiatives, and other supporting initiatives to strengthen the determined business strategy.