Abstract. Busingss fashion retail industry in Indonesia is growing rapidly since 1995. Characterized by its growing number of international brands to enter Indonesia. This condition is of course also impact to the local brand that provides many options for customers to choose fashion which according to their characteristics. The demand for local products from Bandung has a huge market of big cities in Indonesia, such as Jakarta, Semarang, Surabaya and Medan. Another thing that causes the growth of the local brand in the fashion industry in Singapore increased significantly is the price of imported products very expensive, so the biggest target market that is largely started looking for a subsstatute item. With so many demands of the market, many local entrepreneurs are competing to offer their products. With growing fashion retail industry in Indonesia, many new products found in the market. In this study, researchers wanted to examine how local brands brand can compete and increase customer loyalty to a brand through innovation of business done performing and using the innovations. In this study, author use you local brands from Jakarta name Kala as a subject. The method that author used is by interview respondent that match with characteristic with the target market Kala. From the results of interview author can generate some of the alternative business innovation. Business innovation in question is doing product innovation, consisting of product innovation and manufacture innovation, the next process is by innovating the process of delivering information to the target market is by brand innovation and marketing innovation. Keywords: Kala, business innovation, innovation marketing innovation, product innovation, brand loyalty
                        
                        
                        
                        
                            
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