Journal Integration of Management Studies
Vol. 2 No. 2 (2024)

Financial Feasibility Analysis of Self-Owned Pattern Printed Kain as Product Innovation Strategy in Fashion Business: A Case Study of Tanair

Sinaga, Gloria Galore Puandhia (Unknown)
Irawan, Atika (Unknown)



Article Info

Publish Date
29 Jul 2024

Abstract

Generation Z in Indonesia faces a challenge in establishing a strong national identity, underscoring the importance of fostering pride and appreciation for local culture (Manurung et al., 2022). Fashion is a significant avenue for self-expression and can be crucial in cultural promotion. The burgeoning fashion market in Indonesia presents substantial opportunities for businesses aiming to leverage cultural pride. Tanair, a new fashion brand founded in Bandung in 2024, seeks to enhance Indonesian pride through its innovative use of kain (traditional fabric). To navigate the competitive fashion landscape, Tanair requires a comprehensive financial feasibility study to validate its product innovation strategy. This study encompasses a five-year financial projection across three distinct scenarios—pessimistic, baseline, and optimistic—to evaluate Tanair's business plan's financial viability. The analysis reveals positive outcomes across all scenarios, with the pessimistic case demonstrating a payback period of 3.37 years, a net present value (NPV) of Rp61,807,419, a profitability index of 2.5, and an internal rate of return (IRR) of 29%. Notably, the IRR exceeds the weighted average cost of capital (WACC) of 8.92%, indicating a favourable financial outlook for the company. This study confirms that Tanair's innovative approach is financially feasible, positioning it for success in promoting Indonesian cultural heritage through fashion.

Copyrights © 2024






Journal Info

Abbrev

JIMS

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Journal Integration of Management Studies (JIMS) is an academic journal in the field of business published by Integrasi Sains Media, Indonesia. This journal intends to foster and stimulate the exchange of scholarly thought on applied business research issues among professionals and academics ...