PROPOSED SOLUTION TO INCREASE REVENUE IN FASHION DENIM INDUSTRY (THE CASE OF LACUS.ID DENIM)

Abstract

Denim is an independent fashion industry sector that offers great opportunities for work and trade within the fashion. In Indonesia as the denim industry expanded, local entrepreneurs started creating own brands. Manylocal brands are emerging and producing a different category of product that can be differentiated from others in order to compete with renowned global brands. So, every brand make strategy to compete in the market. Denim is one of the fashion qualities that is common all over the world. Lacus.id was born as a denim fashion brand. Lacus.id is a brand that focuses on men's fashion styles with rugged, vintage, ethnic and religion styles. With the main material focusing on denim, as well as canvas and other materials that are handmade by using atbm (alat tenun bukan mesin) or (non-machine looms). Lacus.id focuses on the denim industry that prioritizes materials of the highest quality. As well as combining elements of Indonesian culture. However, Lacus.id has problem in its business, for the last three years its revenue was flat. The purpose of this research is to analyze the company’s performance and propose solution to increase revenue of Lacus.id. The research used Qualitative and Quantitative methods to collect and analyze the data. Qualitative data is collected by conducting an observation and direct interview with the owner of Lacus.id and Lacus.id Costumers. Quantitative data is collected by conducting survey, distributing online questionnaire, using purposive sampling method to measure and provide Denim consumers and Denim Enthusiast. This study applied methods of internal analysis (STP Analysis, Marketing Mix and VRIO Analysis) and external analysis (PESTLE analysis, Porter’s Five Forces Model, Competitor Analysis and Costumer Analysis). The proposed solution based on SWOT analysis in form of strategies. The results suggested that the company applied three main strategies: the corporate strategy should integrate horizontal and vertical growth; Business strategy based on operational excellence, through Quality, Continuous Improvement, Lean and Agile; Business strategy based on customer intimacy.