Dini Lisnawati, Suryana, Eeng Ahman, Chairul Furqon
The fashion industry has recently become a lucrative industry in Indonesia. Its growth is constantly increasing, in contrast to the product fashion made by MicroSmall Medium Enterprises (MSMEs) in Indonesia. They are experiencing a trend of decreasing demand. Also, the sheer number of competing products from developed countries whose prices are lower and more fashionable in terms of function and appearance makes consumers prefer mass-produced products. One proof is the fashion centre in the city of Bandung. It has been decreasing in demand for the last three years. Declining public purchasing power is one cause of the decrease in demand for MSME products; it has been felt by most MSME entrepreneurs, from 2016 until now. This is consistent with the results of Statistics Indonesia (Badan Pusat Statistik, BPS) research. In 2017, 40% of the population was under pressure or crisis. This ensured that low purchasing power, innovation strategies, and product value are needed, to be able to compete with cheap but high-quality products in the market, to remain competitive. The research question is whether increasing product value and innovation will improve the business performance of fashion designers in the city of Bandung. Data is processed using Partial Least Square, on 99 MSME samples taken from consumer fashion houses in the Bandung area. The results illustrate that 99 MSMEs can improve their business performance, by escalating innovation and value chain management. © 2020 Primrose Hall Publishing Group.
Student of Doctoral Program of Management, Postgraduate School, Universitas Pendidikan Indonesia, Bandung, Indonesia; Study Program of Management, Universitas Pendidikan Indonesia, Bandung, Indonesia
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