Proposed Innovation Strategy for Streetwear MSMEs using TOWS: Asbhoel

: MSMEs in Indonesia, especially in the fashion sector, have experienced significant growth. One of the fashion lines that continues to grow and is popular among Indonesians is streetwear. As a fashion center, Bandung has one of the leading streetwear founded in 2013, namely Asbhoel. A company ideally has stable sales because it shows that the company has the right strategy to maintain sales levels. At Asbhoel, there is a problem of decreasing turnover from 2019 to 2022 due to changes in consumer behavior after the Covid-19 Pandemic. This research was conducted to provide proposed strategy innovation on the problem limitations of the suitable business strategy in dealing with changes in consumer behavior after the Covid-19 Pandemic, which decreased Asbhoel's turnover. The research method used is qualitative. Data were obtained by exploring literature studies on the development of the fashion industry, streetwear trends in Indonesia, increase in the number and revenue of fashion MSMEs, the contribution of the fashion industry sector to Indonesia's GDP, business development, and business strategies to increase sales. The data was also obtained from interviews with owners to get sales data for 2019 to 2022 and other analysis-supporting data. The data brought were then analyzed using PESTEL, Porter's Five Forces, dan Competitor Analysis as an external analysis method to determine environmental conditions outside the company as well as Resource-Based View and Value Chain Analysis as an internal analysis method to determine environmental conditions within the company, which is then processed using TOWS to formulate strategic innovations for UMKM Asbhoel.


INTRODUCTION
Fashion is a sector that is experiencing growth in the world.In 2021, there was an increase in revenue from fashion products by 21%.The growth in sales of fashion products in Indonesia has also increased every year.These sales accounted for more than 17% and became one of the three main sectors contributing to the GDP of the Indonesian economy.In this case, it can be seen that the demand for fashion products has increased.The number of MSMEs, especially fashion, has also experienced a significant increase [1].Streetwear is popular in Indonesian society [2].Bandung, as a fashion center, has a superior MSME established in 2013 named Asbhoel, with at least 20 thousand people of users who call themselves Asbhoel Gang [3] [4].There was a problem in sales that continued to decline from 2019 to 2022.The impact of the Covid-19 Pandemic changed consumer behavior from offline to online shopping, which became an obstacle for business people [5] [6].These conditions make it difficult for Asbhoel to compete in their industry.According to Sarmada and Latief [7], in order to compete and increase revenue, companies must have a suitable business strategy.In addition, it is almost impossible for a company to compete with competitors and develop if it does not develop the right business strategy [8].There have been studies that discuss business strategies to increase sales, as done by Widiarni & Mirzanti [9], Oktaviannur et.al. [10], and Yi et al. [11], business development in MSMEs [12], business development strategy [13].However, there is a lack of research discussing strategy innovation for increasing sales, especially in Streetwear MSMEs.Therefore, this research was conducted to provide a proposed innovation strategy for streetwear MSMEs in Indonesia, namely Asbhoel.

RESEARCH METHODOLOGY
The research method used is qualitative, derived from primary and secondary data.Primary data comes from interviews conducted with Asbhoel owners to learn more about the company's condition, the problems it faces, and the business development efforts being undertaken.At the same time, secondary data comes from literature data regarding the development of the fashion industry, streetwear trends in Indonesia, the increase in the number and revenue of fashion MSMEs, the contribution of the fashion industry sector to Indonesia's GDP, business development, and business strategies to increase sales.After obtaining primary and secondary data, the next step is to analyze the data using PESTEL and Porter's Five Forces tools as an external analysis and Resource-Based View and Value Chain as an internal analysis.The internal and external analysis process produces Strengths, Weaknesses, Opportunities, and Threats points which are then processed using the TOWS matrix/analysis to formulate a new business strategy suitable for Asbhoel.

BUSINESS ISSUE
Based on the results of interviews with the owner, Asbhoel's turnover has decreased significantly from 2019 to 2022.This condition was influenced by changes in consumer behavior after the Covid-19 Pandemic.Various strategies have been tried to respond to the problems faced by Asbhoel, such as switching to marketplaces, advertising online, recruiting new workers, and creating websites, but they have yet to get the expected results.This strategy is inappropriate for overcoming existing problems, resulting in a turnover decrease until 2022.So that the root of the problem experienced by Asbhoel is its limited business strategy in dealing with changes in consumer behavior during and after the Covid-19 pandemic, making it difficult for Asbhoel to increase sales and profits.

Good reputation
Social Media with lots of followers

2.
Weaknesses Operational and maintenance costs are high Social media is not interactive

Risk of product originality due to reliance on third-party designers
There is no monthly promotion strategy planning

External Opportunities (O):
O1 Increasing market demand for local fashion products O2 Opportunity to build a brand with a differentiation strategy O3 Partnership with buyers O4 Increase collaboration O5 The need for product differentiation is increasing O6 Can improve customer experience O7 The opening of opportunities in new markets O8 Open opportunities for companies to innovate O9 Ease of negotiating prices and terms with suppliers O10 Explore new distribution channels O11 Open opportunities to improve service and quality Matrix After analyzing the external environment and internal environment, TOWS analysis is then carried out to formulate the following innovative strategy proposals: Table III.TOWS Matrix External Threats (T): T1 competition in the fashion industry in Indonesia is increasing T2 Market demand that fluctuates easily T3 Loyal Customers eroded T4 Risk of replication and impersonation T5 Increased marketing costs T6 Dependence on suppliers T7 Switching customers to competitors who offer more innovative products T8 Competition on a brand image with competitors collaborating with international brands T9 Pressure on prices and potentially declining profit margins T10 Decreased market share Internal Strengths (S): S1 Large production capacity SO: Production capacity expansion (S1, S3, S5, S6, S7, O1, O5, O7, O8, O9) ST: Innovative Customer Management Relationship (S2, S9, T3, T7, T10) S2 Have loyal customers S3 Operational Database S4 Good emotional relationship with public figures S5 Good emotional relationship with vendors and suppliers S6 Already has a fixed vendor S7 Have alternative distributors, suppliers, and vendors to minimize dependence on one company.S8 Trademark Rights S9 Reputation Baik S10 Social Media with lots of followers

2581-8341 Volume 06 Issue 06 June 2023 DOI: 10.47191/ijcsrr/V6-i6-60, Impact Factor: 6.789 IJCSRR @ 2023 www.ijcsrr.org 3706
1. External AnalysisAnalysis of the company's external environment is carried out to determine the external environmental conditions that affect the company's business processes.This environmental analysis used PESTEL Analysis, Porter Five Forces, and Competitor Analysis.PESTEL analysis is carried out to find out how the company faces macro conditions, such as political, economic, sociocultural, technological, ecological, and legal.Porter's Five Forces are carried out to find out the five forces that affect competition and company profitability in an industry.Competitor Analysis is conducted to determine the driving factors of competitors in competing in the same industry, strategies that competitors can carry out, and competitors' capabilities.This external environment analysis produces Opportunities and Threats faced by Asbhoel.The Opportunities and Threats are as follows: ISSN: * Corresponding Author: Raihan Luthfiandi Muhammad Volume 06 Issue 06 June 2023 Available at: www.ijcsrr.orgPage No. 3704-3710

Table I .
Opportunities and Threats This analysis of the company's internal environment is carried out to determine the condition of the internal environment to understand the utilization of the company's unique set of resources and capabilities used in the company's internal processes.This is done to exploit external opportunities and to reduce the company's Internal Weaknesses and External Threats.This analysis was carried out using Resource-Based View and Value Chain Analysis.The Resource-Based View is used to discover ISSN:

2581-8341 Volume 06 Issue 06 June 2023 DOI: 10.47191/ijcsrr/V6-i6-60, Impact Factor: 6.789 IJCSRR @ 2023 www.ijcsrr.org 3707
* Corresponding Author: Raihan Luthfiandi Muhammad Volume 06 Issue 06 June 2023 Available at: www.ijcsrr.orgPage No. 3704-3710 a company's unique set of resources and capabilities.Value Chain Analysis is used to determine the company's main activities and supporting activities.This internal environment analysis produces the Strengths and Weaknesses of the company.The Strengths and Weaknesses are as follows:

Table II .
Strength and Weaknesses