SUSTAINABLE COMPETITIVE ADVANTAGE OF INDONESIA’S SMES: FASHION SUB-SECTOR

Abstract

Fashion industry in Indonesia has experienced significant growth since 2019, driven by the country's strong creative economy, large domestic market, and strategic location in Southeast Asia. The growth of Indonesia's fashion industry is also influenced by several fashion trends. One significant trend is ready-to-wear clothing, which has adopted fast fashion concepts with rapid mode changes and low production costs (CNBC Indonesia, 2019). Additionally, the textile and apparel industry in Indonesia experienced high growth in the first quarter of 2019, reaching 18.98% (Ministry of Industry of the Republic of Indonesia, 2019). Indonesia's fashion industry is characterized by its vibrant cultural heritage and diverse consumer preferences. The methodology employed in this research is qualitative in nature, focusing on descriptive qualitative methods to enhance scientific community knowledge by establishing new meaningful distinctions as a result of getting closer to the topic being examined. The analysis of the data collected from various studies on Indonesian fashion SMEs reveals several key findings that contribute to understanding the sustainable competitive advantage (SCA) of these SMEs. By enhancing entrepreneurial orientation, effectively leveraging social media platforms, improving accounting performance, implementing knowledge management strategies, and adopting a market-oriented approach, Indonesian fashion SMEs can significantly enhance their competitive advantage.