Obstacles Faced by Local Fashion Businesses in Medan

Oct 13, 2025 by vinooalluri.com 28 views

Introduction

Medan, the capital city of North Sumatra, Indonesia, is a hub for creative economy and fashion industry. The city's fashion business, particularly the "Street Wear" sector, has been growing rapidly among the people. However, local fashion businesses in Medan face various obstacles that hinder their growth and competitiveness. This study aims to provide a general picture of local fashion businesses based on the creative economy in Medan and identify the various obstacles faced by these businesses. Furthermore, this study will find appropriate development solutions and strategies to overcome these obstacles and increase the competitiveness of local fashion businesses in Medan.

Methodology

This study uses a qualitative analysis approach, employing the Miles and Huberman models. The data collection process involves gathering information from 15 samples of local fashion businesses based on the creative economy in Medan. The data reduction process involves analyzing the data to identify patterns and themes. The data presentation process involves presenting the findings in a clear and concise manner. Finally, the conclusion and verification process involves drawing conclusions and verifying the findings.

Obstacles Faced by Local Fashion Businesses in Medan

The results of this study show that most of the local fashion businesses in Medan are classified as micro businesses. The constraints faced by these businesses include:

1. RAW MATERIAL PRICE

Fluctuations in high raw material prices often pose a challenge to local fashion businesses in Medan. These fluctuations can influence the ability of the business to set a competitive selling price. As a result, local fashion businesses in Medan must be able to adapt to changes in raw material prices to remain competitive in the market.

2. Product Quality

Ensuring consistent product quality is the key to business continuity for local fashion businesses in Medan. Problems in production can damage the brand reputation in the market, leading to a loss of customer trust and loyalty. Therefore, local fashion businesses in Medan must prioritize product quality to maintain a strong reputation and customer loyalty.

3. Competitory Products

The tight competition with products from outside the region and internationally requires an innovative strategy to continue to be able to compete. Local fashion businesses in Medan must be able to differentiate their products and services from those of their competitors to remain competitive in the market.

4. Conditions of Sales and Income

Many local fashion businesses in Medan are still dependent on offline sales, which hampers access to wider markets. To overcome this obstacle, local fashion businesses in Medan must be able to adapt to changes in consumer behavior and preferences, such as the increasing demand for online shopping.

5. Accidents and Unexpected Events

Unexpected risks can interfere with business operations, so that risk planning becomes very important for local fashion businesses in Medan. Local fashion businesses in Medan must be able to anticipate and mitigate risks to ensure business continuity and minimize losses.

Development Strategies for Local Fashion Businesses in Medan

To overcome the various obstacles faced by local fashion businesses in Medan, several development strategies can be applied. Among others are:

1. Back Integration

Taking over the source of raw materials can reduce dependence on suppliers and reduce costs. This strategy can help local fashion businesses in Medan to increase their competitiveness and reduce their reliance on external suppliers.

2. Market Penetration

Expanding market reach by increasing marketing efforts, such as promotion through social media in accordance with current trends, can help local fashion businesses in Medan to increase their sales and revenue.

3. Market Development

Looking for a new market segment that has the potential to increase sales, both locally and online, can help local fashion businesses in Medan to increase their market share and revenue.

4. Product Development

Innovation in the products offered, creating new fashion items that can meet the needs of consumers in different ways, can help local fashion businesses in Medan to increase their competitiveness and differentiate themselves from their competitors.

5. Concentric Diversification

Adding product variations while maintaining a close relationship with existing products can help local fashion businesses in Medan to increase their sales and revenue.

6. Horizontal Diversification

Introducing different new product lines but is still related to existing businesses, to attract more consumers, can help local fashion businesses in Medan to increase their market share and revenue.

Conclusion

The application of the right strategy can help local fashion businesses in Medan to increase their competitiveness and economic growth. The participation of the government and local communities is also very important in supporting the development of this business, both through policies that encourage innovation and infrastructure development that supports the creative economy sector. In the long run, with the application of the right strategy, local fashion businesses in Medan will not only survive, but are also able to develop and make a significant contribution to the local economy.

Recommendations

Based on the findings of this study, the following recommendations are made:

Local fashion businesses in Medan should prioritize product quality and innovation to maintain a strong reputation and customer loyalty.
Local fashion businesses in Medan should adapt to changes in consumer behavior and preferences, such as the increasing demand for online shopping.
Local fashion businesses in Medan should be able to anticipate and mitigate risks to ensure business continuity and minimize losses.
The government and local communities should provide support for the development of local fashion businesses in Medan, through policies that encourage innovation and infrastructure development that supports the creative economy sector.

Limitations of the Study

This study has several limitations, including:

The study only focuses on local fashion businesses in Medan and does not include other cities or regions.
The study only uses qualitative analysis and does not include quantitative data.
The study only includes 15 samples of local fashion businesses and may not be representative of the entire industry.

Future Research Directions

Future research should focus on:

Conducting a more comprehensive study that includes other cities or regions.
Using a mixed-methods approach that combines qualitative and quantitative data.
Including a larger sample size to increase the representativeness of the study.
Exploring the impact of government policies and infrastructure development on the creative economy sector.
Q&A: Local Fashion Business Development Strategy Based on Creative Economy in Medan City =====================================================================================

Q: What is the main focus of this study?

A: The main focus of this study is to identify the various obstacles faced by local fashion businesses in Medan and find appropriate development solutions and strategies to overcome these obstacles and increase the competitiveness of local fashion businesses in Medan.

Q: What are the constraints faced by local fashion businesses in Medan?

A: The constraints faced by local fashion businesses in Medan include:

Fluctuations in high raw material prices
Ensuring consistent product quality
Tight competition with products from outside the region and internationally
Dependence on offline sales
Unexpected risks

Q: What are the development strategies that can be applied by local fashion businesses in Medan?

A: The development strategies that can be applied by local fashion businesses in Medan include:

Back integration (taking over the source of raw materials)
Market penetration (expanding market reach by increasing marketing efforts)
Market development (looking for a new market segment that has the potential to increase sales)
Product development (innovation in the products offered)
Concentric diversification (adding product variations while maintaining a close relationship with existing products)
Horizontal diversification (introducing different new product lines but is still related to existing businesses)

Q: Why is it important for local fashion businesses in Medan to prioritize product quality?

A: Prioritizing product quality is important for local fashion businesses in Medan because it can help to maintain a strong reputation and customer loyalty. Problems in production can damage the brand reputation in the market, leading to a loss of customer trust and loyalty.

Q: How can local fashion businesses in Medan adapt to changes in consumer behavior and preferences?

A: Local fashion businesses in Medan can adapt to changes in consumer behavior and preferences by:

Increasing marketing efforts to reach a wider audience
Offering products and services that meet the changing needs and preferences of consumers
Using social media and other digital platforms to engage with customers and stay up-to-date with the latest trends

Q: What role can the government and local communities play in supporting the development of local fashion businesses in Medan?

A: The government and local communities can play a significant role in supporting the development of local fashion businesses in Medan by:

Providing policies that encourage innovation and entrepreneurship
Investing in infrastructure development that supports the creative economy sector
Providing training and education programs to help local fashion businesses develop the skills and knowledge they need to succeed

Q: What are the limitations of this study?

A: The limitations of this study include:

The study only focuses on local fashion businesses in Medan and does not include other cities or regions
The study only uses qualitative analysis and does not include quantitative data
The study only includes 15 samples of local fashion businesses and may not be representative of the entire industry

Q: What are the future research directions for this study?

A: Future research directions for this study include:

Conducting a more comprehensive study that includes other cities or regions
Using a mixed-methods approach that combines qualitative and quantitative data
Including a larger sample size to increase the representativeness of the study
Exploring the impact of government policies and infrastructure development on the creative economy sector

Q: What are the implications of this study for local fashion businesses in Medan?

A: The implications of this study for local fashion businesses in Medan are that they should prioritize product quality, innovation, and customer service to maintain a strong reputation and customer loyalty. They should also be able to adapt to changes in consumer behavior and preferences, and take advantage of opportunities to expand their market reach and increase their sales and revenue.