<![CDATA[This study aims to analyze the application of Strategic Human Capital Management (SHCM) in increasing competitive advantage in the fashion industry, especially in small and medium enterprises (SMEs). The research is motivated by the development of the fashion industry which is increasingly competitive due to globalization, digitalization, and changing market trends that require business actors to have competent, creative, and innovative human resources. In this context, human capital is seen as a strategic asset that plays an important role in creating product differentiation and increasing business competitiveness. This study uses a qualitative approach with a descriptive research type to gain an in-depth understanding of human resource management practices, human capital conditions , and their contribution to the competitive advantage of fashion businesses. The research subjects are small and medium-scale fashion entrepreneurs who are selected purposively . Data collection was carried out through in-depth interviews, observation, and documentation, then analyzed using an interactive analysis model that includes data reduction, data presentation, and drawing conclusions. Data validity was tested through source triangulation, technical triangulation, and member checking . The results show that fashion entrepreneurs have a high attention to human resource competency, especially in the recruitment and employee development process. SHCM practices have been implemented simply through competency-based recruitment and on -the-job training . Human capital , particularly in the areas of technical skills, creativity, and innovation capabilities, has been shown to play a crucial role in creating high-quality, innovative, and market-trend products. These competencies are key factors in creating product differentiation and enhancing the competitive advantage of fashion businesses. However, research also found limitations in HR management, particularly related to suboptimal and formally structured compensation and reward systems. This research confirms that the implementation of Strategic Human Capital Management (SHCM) supported by strategic human capital management can sustainably enhance the competitiveness of the fashion industry.]]>
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