CASE STUDY FashionValet: Penetration in West Asian Market and Collaboration with Brunei Princess FashionValet, Malaysia’s first online fashion store, aims to penetrate the West Asian Market as it sees high market and consumer demand coming from the region. Its founder, Vivy Yusof said apart from Malaysia, the high demand from West Asia was also due to Fashion Valet’s product and fashion offerings that suit the local community’s taste. She said the company already has established existing customers and plans to penetrate the business into West Asia to serve its loyal consumers. “As the growing e-commerce operators, business models need to change to remain relevant and viable. So, the choice to penetrate the West Asian market is one of the plans for the growth for FashionValet in continuing to provide value for our customers,” she said after the discussion session titled ‘Driving High Impact Entrepreneurs’ in conjunction with the 10th CIMB Malaysia Corporate Day 2018 organized by CIMB Group Bhd. Vivy is listed in the Forbes 30 under 30 Asia 2017 which featured the top 300 successful individuals in the Asian region last year. Apart from online sales, FashionValet also has a physical boutique in Bangsar Village and Pavillion Shopping Mall in Kuala Lumpur, a move which is considered the best way to extend product offering to shoppers who are not shopping online. Vivy said although the platform was originally online, it was intended to strengthen the presence of the brand on both online platform and physical boutiques. “In 2018, we also aim to open about two or three physical boutiques at several locations in the country to support the e-commerce segment as well as FashionValet vendors,” she said. Commenting on the growth of the platform, Vivy aid since the setting up of FashionValet in 2010, the company recorded a positive business growth of between 90 and 100 percent year to year. “Looking at the trend of e-commerce business, it is expected that this year will be more exciting after a challenging 2017.” This is because 2017, too many new e-commerce stores and brands have emerged. This has created a stiff and competitive environment,” she said. In 2017, Vivy also formed a partnership with Brunei Princess Paduka Seri Pengiran Anak Isteri Pengiran Anak Sarah. Princess Sarah then began brainstorm sessions with Vivy on hijab design concepts, 2 CONFIDENTIAL ABB3713/SESSION II 2021/2022 colours and fabrics for the Royal dUCk scarf line. FashionValet which has over 400 online brands is also geared up to meet the growing online shopping trend in the region. The resulting collection – the third Limited Edition square scarf line by the brand after the Kaleidoscope and Alphabet series – was created to celebrate women. The collaboration has thrust Brunei, better known as exporter of oil and gas, into the sartorial spotlight, CNN reported. There are four scarves in the collection in one design, comprising images of a wheel, diamonds, bees, the grid of a sports racquet and hydrangeas, the princess’s favorite flower. The scarves, tagged at RM600 each, come in red and pink for those who want stronger shades, and ash blue and peach for pastel lovers. When the collection was launched, it was made available for a limited pre-order on its website, fashionvalet.com. “On the first day of the three day pre-order period leading up to the launch, the (FashionValet) site crashed. “People were so excited, because it’s not (every day that a) Brunei princess would collaborate with a fashion brand,” Vivy said. Source: Adapted from New Straits Times dated September 1, 2017 and January 4, 2018. QUESTION 2 Discuss any THREE (3) business strategies implemented by FashionValet that can reduce competitive pressures from its competing rivals.
CASE STUDY
FashionValet: Penetration in West Asian Market and Collaboration with Brunei Princess
FashionValet, Malaysia’s first online fashion store, aims to penetrate the West Asian Market as it sees high market and consumer demand coming from the region. Its founder, Vivy Yusof said apart from Malaysia, the high demand from West Asia was also due to Fashion Valet’s product and fashion offerings that suit the local community’s taste. She said the company already has established existing customers and plans to penetrate the business into West Asia to serve its loyal consumers. “As the growing e-commerce operators, business models need to change to remain relevant and viable. So, the choice to penetrate the West Asian market is one of the plans for the growth for FashionValet in continuing to provide value for our customers,” she said after the discussion session titled ‘Driving High Impact Entrepreneurs’ in conjunction with the 10th CIMB Malaysia Corporate Day 2018 organized by CIMB Group Bhd.
Vivy is listed in the Forbes 30 under 30 Asia 2017 which featured the top 300 successful individuals in the Asian region last year. Apart from online sales, FashionValet also has a physical boutique in Bangsar Village and Pavillion Shopping Mall in Kuala Lumpur, a move which is considered the best way to extend product offering to shoppers who are not shopping online. Vivy said although the platform was originally online, it was intended to strengthen the presence of the brand on both online platform and physical boutiques.
“In 2018, we also aim to open about two or three physical boutiques at several locations in the country to support the e-commerce segment as well as FashionValet vendors,” she said. Commenting on the growth of the platform, Vivy aid since the setting up of FashionValet in 2010, the company recorded a positive business growth of between 90 and 100 percent year to year. “Looking at the trend of
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CONFIDENTIAL ABB3713/SESSION II 2021/2022
colours and fabrics for the Royal dUCk scarf line. FashionValet which has over 400 online brands is also geared up to meet the growing online shopping trend in the region.
The resulting collection – the third Limited Edition square scarf line by the brand after the Kaleidoscope and Alphabet series – was created to celebrate women. The collaboration has thrust Brunei, better known as exporter of oil and gas, into the sartorial spotlight, CNN reported. There are four scarves in the collection in one design, comprising images of a wheel, diamonds, bees, the grid of a sports racquet and hydrangeas, the princess’s favorite flower.
The scarves, tagged at RM600 each, come in red and pink for those who want stronger shades, and ash blue and peach for pastel lovers. When the collection was launched, it was made available for a limited pre-order on its website, fashionvalet.com. “On the first day of the three day pre-order period leading up to the launch, the (FashionValet) site crashed. “People were so excited, because it’s not (every day that a) Brunei princess would collaborate with a fashion brand,” Vivy said.
Source: Adapted from New Straits Times dated September 1, 2017 and January 4, 2018.
QUESTION 2
Discuss any THREE (3) business strategies implemented by FashionValet that can reduce competitive pressures from its competing rivals.
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