ADEL BEAUTIQ COLLECTION, AND STRATEGIC SOLUTIONS IN INDONESIA’S MODEST FASHION INDUSTRY (CASE STUDY OF BUSINESS EXPANSION CHALLENGES)

Abstract

Adel Beautiq Collection is a boutique that was born in the booming modest fashion industry in West Java, Indonesia, founded in March 2023 in West Bogor with the aim of offering exclusive and stylish Muslimwear for mid and upmarket women. The early success of the Bogor store motivated the owner to grow bigger and wider with the opening of a second store in Cibubur in October 2023, yet the new store lasted only until September 2024 as it faced insufficient sales revenue to compensate for expensive marketing and store rental. The shutdown shed light on numerous major business issues, including excessive offline dependency without robust online marketing presence, swift expansion without adequate research that heightened financial risk, and excessive fixed charges such as rental fees and employee wages. Other issues included seasonal sales trends whereby sales rose sharply around festival times yet fell dramatically after the festival season, as well as weak stocks that resulted in dead stocks. In an attempt to solve the problems, three potential ways were noticed: expanding online marketing, diversifying products, and offering clothes rental services. All three alternatives have certain benefits, yet after careful consideration, expanding online marketing is deemed the best and most relevant means as it is cost- effective, promotes less dependency on physical stores, and allows wider coverage with internet platforms such as Instagram, TikTok Shop, and Shopee. At the same time, gradual product diversification may be introduced to attract wider customer segments and diversify inventory risk, while clothes rental services may come as a supporting option in the long run. In the end, Adel Beautiq is required to shift from an offline-centric model to an internet-based strategy as innovation and internet marketing are key drivers of competitiveness,