BUSINESS MODEL FORMULATION FOR YARN STORE AS CULTURAL TOURISM : A CASE STUDY OF MONDU CRAFTS

• Main Author: Rahil Sahira Widodo, Ameera
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83076
• Institution: Institut Teknologi Bandung

Indonesia’s rich natural fibers and vibrant cultural heritage promotes Mondu Crafts, a yarn store, ample opportunity, especially in light of governmental support for the creative economy and tourism. This study aims to develop a sustainable business model for Mondu Crafts as it establishes its first physical store, intending to attract cultural tourism. Research objectives include analyzing market characteristics to understand tourist preferences, identifying internal and external factors affecting the business, and designing a suitable business strategy. Employing a mixed-method approach, the study utilized questionnaires and interviews, analyzed through descriptive and cross-tabulation methods. To create an effective business model, the study combined analytical tools such as SWOT analysis, PESTEL analysis, and the Business Model Canvas (BMC) Nine Building Blocks framework. Key findings reveal strong interest in Mondu Crafts among tourists, particularly females aged 17-35, but is surprisingly not limited to only arts & crafts hobby enthusiasts as individuals with masculine hobbies such as sports also show high interest in visiting and purchasing from Mondu Crafts. High income groups show significant interest, however the identified challenge is time constraints, on the other hand lower income groups have high interest but face budget limitations. To overcome this issue and enhance visitor engagement, the study recommends strategies such as offering free, short trial workshops. The results also show a trend in one-stop-shops, creating comprehensive experiences that include sightseeing, food, activities, and souvenirs. It’s also very important to create a location that is easily accessible by personal and public transportation with improvements on road accessibility for visitors with mobility needs, such as strollers and wheelchairs, especially when the target market consists of mothers and elderly interested in low-energy activities. Study also finds that when people travel, they will bring friends or family that have different wants and needs. Male companions (sons, brothers, partners) may not be interested in participating in a craft workshop, however they show great interest in other activities such as eating and high-energy activities, which is why the Mondu Crafts store will include a Cafe and yarn installation playground area/ The store can also create pop-ups and exhibitions to attract new and repeating visitors. Moreover, for long-term sustainability, the study emphasizes the integration of innovative technologies like AI-based language translation services for tourists. Environmental initiatives, such as recycling yarn and fabric waste with incentives through store rewards, are proposed to promote green practices. The study concludes that establishing Mondu Crafts Cafe & Store in Bandung is both viable in the market and financially feasible. Expansion opportunities to Bali are also seen as strategic for tapping into a broader tourist market. Insights from this research provide practical guidance for developing a robust Business Model Canvas tailored for cultural tourism, highlighting essential factors for creating an appealing tourist destination. In summary, this study offers valuable insights into leveraging Indonesia's cultural and natural heritage to drive economic growth through sustainable tourism initiatives. Recommendations derived from this research serve as a roadmap for Mondu Crafts and similar businesses looking to establish themselves as cultural landmarks and preferred destinations for both local and international tourists. Embracing innovation, inclusivity, and environmental responsibility can not only ensure business success but also contribute positively to Indonesia's tourism landscape and economic development.