KULLIYYAH OF ENGINEERING
MANU 4211
TECHNOLOGY ENTREPRENEURSHIP
SECTION 5
SEMESTER 1 22/23
Business Model Canvas (BMC) Assignment on Fashion & Retails
Business
PREPARED BY:
NUR FATIN SYAHIRA BT NOR AZMAN (1917062)
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TABLE OF CONTENT
EXECUTIVE SUMMARY ......................................................................................................................... 3
INTRODUCTION ....................................................................................................................................... 4
BUILDING BLOCKS (9 ELEMENTS)..................................................................................................... 5
INTERRELATIONSHIP ............................................................................................................................ 6
BUSINESS MODEL .................................................................................................................................... 7
CRITICAL SUCCESS FACTOR .............................................................................................................. 7
DOWNSIDE RISK ....................................................................................................................................10
CONCLUSION ..........................................................................................................................................11
RECOMMENDATION .............................................................................................................................12
REFERENCES ..........................................................................................................................................13
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EXECUTIVE SUMMARY
Misslily.rtw is a Malaysian clothing retailer with a Ready-to-Wear line that focuses on
bringing the newest trends in fashion. This business was established so that middle-class and
lower-income people might use and experience goods that are primarily available to the wealthy.
Misslily.rtw is a women's fashion label that provides the experience every woman requires, with
new distinctive collections every season to ensure every woman looks beautiful even in ready-towear.
The Business Model Canvas(BMC) is a tool for visually representing business concepts
and ideas. Misslily.rtw employs BMC to obtain a fast business overview, such as the value
proposition, target buyers, and other concerns. BMC is crucial in ensuring that a company has a
proper direction and clear vision. The company needs to determine each of the nine-block of the
business model canvas. The customer's problem can be solved with opportunity recognition and
solution. Many solutions are made to improve the product available in the current market for
customer needs. In the business model canvas, the company must fulfil all the blocks to run the
business smoothly. This product also targets career women, plus-sized customers and women of
all ages and sizes. Therefore, this product will provide customers with the utmost comfort and
confidence while looking effortlessly chic in modest clothes.
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INTRODUCTION
Business today plays a crucial role in society, particularly in strengthening the nation's
might through supporting previous economic recoveries. As a result, many businesses are being
developed and implemented throughout our society to maintain economic growth. Business
model canvas has been widely adopted and has become a component of methods to interpret and
value one's ideas into actual businesses along with these unique insights and concepts that
improve over time. Therefore, the goal of creating the business model canvas is to aid in our
analysis of our own company's business model and to make sure that we, as young entrepreneurs,
can maintain focus on our main building blocks in order to succeed and save time. These nine
fundamental building blocks of elements give us a clearer idea of the messages we wanted to
convey and the markets we wanted to serve with our suggested business plan.
Therefore, I have suggested a fashion and retail company called MissLily.rtw for this
study. The company specializes in ready-to-wear fashion and sells clothing made accessible for
women of all ages and sizes, as well as exclusively Muslimah-inspired clothing in Malaysia,
Brunei, and Singapore. It is inspired by a love of essential, casual, yet necessary modest clothing.
Our clothing is practical, comfy, and versatile to enhance all women at all stages of life.
MissLily.rtw is always looking for new ways to make modest clothing more accessible to
all women. We meticulously hand-pick the materials used to build our designs and design the
items with the utmost precision, considering the numerous typical wardrobe malfunctions when
choosing the proper thickness, stretchability, and durability. The company also employ the
highest-quality materials to provide customers with the utmost comfort and confidence while yet
looking effortlessly chic. Misslily.rtw delivers to all your styling needs - and always at a
reasonable price! In addition to the basics, like tops, t-shirts, blouses, singlets, jeans, work pants,
and leggings, we also sell blazers, outerwear, cardigans, hoodies, and others. We also provide a
wide range of collections, including those for Muslimah, including the jubah, hijabs, tunic tops,
corporate wear, sports and sportswear, formal wear, lounge, and relax wear. With our selection
of Basics, Activewear, Innerwear, Hijabs, and more, you'll never be low on modest fashion
options for any event!
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BUILDING BLOCKS (9 ELEMENTS)
Business Model Canvas : Misslily.rtw
Key Partners
Key Activities
-
-
-
Jovian.rtw
Rizman
Ruzaini
ecommerce
Zalora,
Shopee
-
-
-
Value Proposition
Open small
booths
Paid influencer
to do reviews
Running ads
on Facebook/
Instagram
Offer best
prices for first
customett
Designing
plus-sized
clothing line
High quality
with lower
prices
Exlusive,
Original
& Femine
fashion
Modest Made
For All
Customer
Relationship
Customer
Segments
-
-
-
-
Give discount
offer freeshipping
Reward points
to loyal
customers
Do fashion tips
or tutorial
-
Key Resources
Channels
-
-
-
-
Staff and
production
teams
Material
supplier
courier
vendor
agents
-
Social Media
(Instagram,
Facebook,
Tiktok)
Open Vendors
System
Agent/Dropship
Influencer paid
reviews
Physical Outlet
Cost Structure
Revenue Streams
-
-
Employee Salary
Marketing cost
Shipping cost
Manufacturing cost
Overhead cost
Rent cost
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Advertisement
Website
Booth and Expos
Direct selling
Bridal Events
CustomMade events
(engagement,
Dinner
career woman
fashion
models
Students
Plus-sized
customer
INTERRELATIONSHIP
A business organization's long-term viability depends on the ability to recognise,
cultivate, and deepen relationships between the many parties inside or between the company.
The parties involved, the practical steps required to continue the business, and how to
accomplish so will all be covered in this segment. Suppliers, staff, and customers are a few of the
parties that relate to this.
In order to ensure the business runs smoothly, effective supplier relationship management
is necessary, hence various qualities should be taken into account. The foundation of a mutually
beneficial agreement is two-way communication. Second, there must be a shared willingness to
take into account the suppliers' perspectives in order to maximise both parties' interests via
respect for one another. Thirdly, there should be transparency and honesty between the parties.
Reaching agreements that benefit everyone is more likely when there is transparency. Lastly, to
have confidence in the supplier. The management of our business must build trust in order to
look for creative solutions to difficulties.
There are various ways that big businesses can apply rules and policies to create a healthy
workplace and relationships with their staff. The OB Model or Maslow's hierarchy of needs,
which addresses the needs of self-actualization, esteem, belongingness, safety, and physiological
needs, is one theory that is employed to accomplish those goals. Executives of the company
should prioritise considering their organisation as their primary product. If you want to improve
a product, you must constantly adjust, revise, and iterate. The same is applicable to businesses,
and this heavily focuses around the employee.
The interaction with the customers comes last and is of the utmost importance. Since the
customer is the source of all revenue, the company should prioritise safeguarding their interests.
To create loyal customers, the company's service should always be at its best. The quality of our
products and services will constantly be maintained and enhanced throughout time. This will
demonstrate to our customers the dependability of our service.
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BUSINESS MODEL
The company's consumer base can be targeted with the help of the business model. It
helps to create marketing plans and income and expense estimates while considering business
models and customers. Business models can be divided into four categories: business-to-business
(B2B), business-to-consumer (B2C), subscription-based models and on-demand business
models.
Our company adheres to the business model known as "Business-to-Consumer" (B2C).
Here, business-to-consumer relationships are formed between MissLily.rtw, our company, and
customers in Malaysia, Singapore, and Brunei. A retail business model is based on a direct-toconsumer approach. The business makes direct sales to end users through outlets, flagship stores,
shops inside shops, shops in shops, and online shopping malls. This implies a predominantly
local company model with higher margins, costs, and distribution risks. Trendy products can be
made; however, they are typically made for profit by businesses rather than B2B designers who
"submit" their ideas to the market. Particularly, this is the case for small- and medium-sized
brands. Since our brand is a start-up business, marketing for B2C is crucial since it makes our
brand and product known to consumers.
CRITICAL SUCCESS FACTOR
Critical Success Factors are elements in a business that helps to decide the company's
strategy canvas. According to the interviews, the following are the main success elements for this
company: brand, marketing, product quality, product innovation, customer education, quality
control, price, store, and after-sales. These are the top ten competitive factors in the apparel
sector.
1. Brand
In the clothing sector, brands are crucial since they can boost customers' confidence while
making clothing purchases. In order to improve customers' trust, brand awareness must be raised.
2. Marketing
In this situation, the company's marketing efforts can more closely adhere to
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current marketing trends, including social media promotion, endorsements, and working with
famous designers or hired influencers to do reviews. Misslily.rtw has to strengthen its social
media marketing, brand endorsements, and teamwork to increase its current customers' interest
in purchasing products.
3. Product Quality
The things that companies sell must be of high quality to prevent customers from being
dissatisfied. Therefore, Misslily.rtw must constantly raise the quality of the goods it sells, to
prevent customers from losing faith in the business because the products they purchase have
defects.
4. Product Innovation
Product innovation must be promoted to avoid customers saturating purchases of the same
product. Additionally, product innovation needs to be strengthened in terms of models and
design.
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5. Customer Education
It is important to educate customers so they are aware and understand that even local products
produce of high and good quality. For customers and potential customers to feel that the items
offered by Misslily.rtw are not inferior to products from outside sources, customer education
must be developed within the company.
6. Quality Control
In terms of product quality, quality control must have a standard for one factor that should
receive more attention, while other factors do not necessarily need to receive too much attention.
Long threads are one example of a minor issue that doesn't require much attention during quality
control because clients don't notice those things.
7. Price
Some business customers are sensitive about price. Thus businesses must offer competitive
pricing. Misslily.rtw's price will be better if it is decreased because its competitors also offer
lower prices. Price is a key consideration for the middle-low market.
8. Store (Online & Offline)
In the present digital era, having both offline and online storefronts is crucial to making it easier
for customers to purchase. Therefore, it is advantageous to have both online and offline stores.
However, having only one of the two stores is sufficient because consumers will purchase a
product if it is appealing via offline or online retailers.
9. After Sales
After sales service is a crucial aspect that a company must have to establish good relationships
with existing customers. Misslily.rtw must also provide after-sales services in order to maintain a
positive relationship with its customers.
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DOWNSIDE RISK
One downside risk is copycats & product counterfeiting. One of the major issues fashion
brands currently face when looking for growth and expansion opportunities in overseas markets
is product counterfeiting. Smaller businesses are at risk because they could not have the
resources to stop it before it enters their markets, especially those who sell online. Additionally,
it can be quite challenging for customers to determine whether a product is authentic or not once
it has entered the market.
Next risk is an inefficient supply chain & distribution. The fashion industry's supply
chain is intricate because it involves a dispersed network of producers, suppliers, retailers, and
customers. A company must first choose the materials needed and fabrics for the particular items
it wants to produce. Then it must locate a manufacturer that can turn those materials into clothing
at a competitive price. Numerous inefficiencies occur from the need for more visibility into this
intricate network, which eventually causes late product delivery to the market. Thus, using
Business Model Canvas easily clarifies thinking on the business model and that one building
block leads naturally to the next plan.
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CONCLUSION
In conclusion, MissLily.rtw focuses on ready-to-wear clothes with a wide selection that is
affordable for women of all ages and sizes and modest clothing. These products are offered at a
lower cost while retaining the same level of quality. It's because our target market includes
women of all ages and sizes, including plus-size women and fashion-trendy women. Therefore,
we always take care and keep an eye on the items' quality throughout the process to produce
high-quality products.
We can effectively define our business idea through Business Model Canvas (BMC). In a
unique value proposition, MissLily.rtw offers a wide selection of basic, trendy, simple wear and
many more that are always in line with current fashion trends with good quality and affordable
prices so that everyone can be stylish in their ways. In terms of the customer relationship,
MissLily.rtw is able to catch up by using a customer feedback system. MissLily.rtw also has
numerous channels, including physical stores, vendors, agents/dropship and an official website,
so everyone can access any platform to purchase the products. For customer segments,
MissLily.rtw was established to meet the needs of customers in order to improve their style in
fashion with the latest fashion trends.
Additionally, revenue streams refer to the different ways a business generates income
from selling goods or rendering services. The most important stage in this process is cost
structure, which will determine whether to pivot or keep on. A company's key activities show
what it needs to do for the business model to succeed. It is the most important asset required to
make a business model work for key resources. Finally, key partners are associations a business
has with other organisations supporting the business model's operation.
To sum up, we hope that by operating this company, we will assist customers in
achieving their goals of purchasing high-quality goods at cheaper rates than those offered by
other retailers or online shops.
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RECOMMENDATION
The first idea to improve Elements of the 'Value Proposition' and 'Customer
Relationships' of the Business Model Canvas is by doing Short surveys regarding fashion and
product preferences can be undertaken both at Misslily.rtw's physical stores and their online
shop. This proposal intends to strengthen the Elements of "Value Proposition" and "Customer
Relationships" of the Business Model in fashion & retail. I suggest using feedback devices or
tablet stands for the surveys in the physical stores. In order to attract customers to this method of
sharing their opinions, there needs to be an instant reward for filling in the survey. This can be
accomplished by rewarding them with a 5% off coupon. This voucher should only be valid for
one purchase on the same day and per person.
The next idea was to develop a sustainable way of incorporating a more circular economy
into the MissLily.rtw apparel lifecycle. Most fast-fashion retailers, like Zara, Uniqlo, and H&M,
have this kind of service in place. Maybe in the future, Misslily.rtw will offer this service in the
form of recycling boxes in their stores or even as a pick-up service at home for people living in
town. After sorting, these clothes are either recycled into new textiles for new products or
donated to nonprofit organisations. Thus, we can save our planet from fashion's environmental
impact.
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REFERENCES
5 common problems faced by the fashion industry (with solutions!) - WFX. (n.d.).
Business Model Canvas for Zara_ Analytical Essay - Free Essay Example - Edubirdie. (n.d.).
HARSEST - B2B and B2C in Fashion Business - HARSEST International. (n.d.).
Sabatinus, S., & Utami, C. W. (2021). Innovation Strategy Analysis through a Blue Ocean
Strategy for Wear It. KnE Social Sciences, 2021, 460–466.
https://doi.org/10.18502/kss.v5i5.8832
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