CASE Study Report- Fashionvalet SDN BHD PDF

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TECHNOLOGY ENTREPRENEURSHIP (ENT600)INDIVIDUAL ASSIGNMENT : CASE STUDY REPORTFACULTY : FACULTY OF APPLIED SCIENCEPROGRAMME : AS201- BACHELOR OF SCIENCE (HONS.) BIOLOGYPROJECT TITLE : CASE STUDY REPORTCOMPANY’S NAME : FASHIONVALET SDN. BHD.STUDENT’S NAME : WARDINA SYAHIRAH BINTI MOHD NAZRISTUDENT ID ...

Description

TECHNOLOGY ENTREPRENEURSHIP (ENT600) INDIVIDUAL ASSIGNMENT : CASE STUDY REPORT

FACULTY

: FACULTY OF APPLIED SCIENCE

PROGRAMME

: AS201- BACHELOR OF SCIENCE (HONS.) BIOLOGY

PROJECT TITLE

: CASE STUDY REPORT

COMPANY’S NAME

: FASHIONVALET SDN. BHD.

STUDENT’S NAME

: WARDINA SYAHIRAH BINTI MOHD NAZRI

STUDENT ID

: 2020878648

GROUP

: AS2013A-1

LECTURER’S NAME

: TS. DR. JUDITH GISIP

TABLE OF CONTENTS NO .

TOPIC

PAGE

1

TITLE PAGE

1

2

TABLE OF CONTENT

2

3

EXECUTIVE SUMMARY

3

4

2.0 COMPANY INFORMATION

4

10

2.1 Background

11

2.2 Organizational Structure

12

2.3 Products / Services

7-9

13

2.4 Business, marketing, operational strategy

10

14

2.5 Financial achievements

11

15

3.0 COMPANY ANALYSIS

12

16 17

4-5 6

3.1 SWOT Analysis

12

4.0 FINDINGS & DISCUSSION

13

18

4.1 Findings

13

19

4.2 Discussion

14

20

5.0 CONCLUSION

15

2

1.0

EXECUTIVE SUMMARY

The purpose of this case study is to explore more about a well-known and largest modest fashion company in Asia, FashionValet Sdn. Bhd. FashionValet is a fashion Ecommerce site based in Kuala Lumpur, Malaysia, founded by Vivy Yusof and her husband, Fadzaruddin Shah Anuar. Besides, Vivy Yusof is also the Co-founder of Duck Group. FashionValet began as an E-commerce platform that brought together the top fashion and cosmetics brands in one platform. The general information about the company has been collected and compiled for research purposes in the first part of this project report. I have did some research about the company’s background, about how Vivy Yusof and her husband were able to open a FashionValet. I also review FashionValet's organizational structures, products, and services. Following that, I researched the company's business, marketing, and operational strategies used by this company to promote their products that they have been implemented for years as well as their financial achievements throughout this company has established. Furthermore, for this case study, I used SWOT analysis to evaluate the company's performances by analyzing their strengths, weaknesses, opportunities, and threats. By examining and studying the significant problems that this company have faced, I was able to come up with some of the greatest ideas and solutions to upgrade and improve some of the issues in order to impress and meet the needs of their existing customers as well as attract new customers to buy goods from their company. By the end of this case study, I had learnt on how business works in the real world. All of these research was done solely via the use of the internet.

3

2.0 COMPANY INFORMATION 2.1 Background

Figure 1 : Company Offline Store Company’s Name

: FashionValet Sdn. Bhd.

HQ Address

:

Industry

: Fashion

Business Action

: Boutique

Founder

: Vivy Yusof & Fadzarudin Shah Anuar

HQ Contact Number

: 1-300-88-6060

3.16, Level 3, Glo Damansara, 699, Jalan Damansara, Taman Tun Dr Ismail, 60000 Kuala Lumpur

Date of Starting Business : November 2010 Tagline

: “ Your Modest Fashion “

FashionValet (FV) is one of the largest and most well-known fashion sites in South East Asia, appealing to consumers' fashion tastes and preferences. This firm was launched in November 2010 by Malaysian entrepreneur Vivy Yusof and her husband Fadzaruddin Shah Anuar. It was Malaysia's first multi-brands E-commerce. This company has expanded their market in three countries: Malaysia, Indonesia, and Singapore, and have their offices and 4

warehouses in these three countries. FashionValet began with only 10 local brands when it was oficially launched, but this company has expanded tremendously with over 500 brands from all around Southeast Asia, retail stores, and featured brands which are dUCk, dUCk Cosmetics and LILIT as well as over 150 staff, including warehouse employees. FashionValet has been very famous due to the high quality and extensive choice of fashion garments, cosmetics, and accessories offered by the firm from local brands and designers as well as designers from outside Malaysia such as, Mimpikita, Rizman Ruzaini, Woo/Fiziwoo, Mel & Molly, Thavia and more other brands. This company which is based in Kuala Lumpur sends selective local fashion brand items to customers all over the world on a daily basis. FashionValet focuses on stylish women, younger individuals, and notably those and has expanded their brands to menswear. They targeted customers primarily those who are engaged on the internet between the ages of 18 and 45. FashionValet was founded by Vivy Yusof and Fadza with RM10,000 in initial funds from personal savings and borrowings for the company's start-up, stock acquisition, and promotional activities. Vivy and Fadza went to meet with a number of financial institutions and venture capitalists in try to solve their capital concerns. After two years into the business, Vivy and her husband, Fadzaruddin, competed and won first place in a national television show called "Make ThePitch." MyEG Services Bhd awarded the couple a RM1000,000 investment. With their victories, they invest the money they won on Fashionvalet to develop their company, and the publicity from the programme increased their potential customer base. They had 4 investors which are Khazanah Nasional Berhad, ZOZO, and Elixir Capital from the MyEG Services. They agreed that the prices of the items offered by their company are fairly high for some members of society, but the company adhered to the philosophy of offering excellent products to consumers. The organisation has a separate staff in charge of quality verifying the items supplied in FashionValet. Price, consistency, quality, and a fashion designer's track record are four crucial traits established by the corporation to preserve the quality of the items. Meanwhile, FashionValet has always supported emerging local brands and fashion designers that wish to make a name for themselves in the fashion industry so that more local people will support by buying products from local brands that have same quality like international brands.

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2.2

Organizational Structure

CHIEF EXECUTIVE OFFICE (CEO) Fadzarudin Shah Anuar CHIEF CREATIVE OFFICER (CCO) Vivy Yusof

CHIEF FINANCIAL OFFICER (CFO) Loh Toi Meei

CHIEF TECHNOLOGY OFFICER ( CTO ) Aien Zaini CO-FOUNDER Fadzarudin Shah Anuar, Vivy Yusof SALES DIRECTOR Min Jee Kho

CREATIVE DIRECTOR Jacky Hussein, Min Luna

GENERAL MANAGER Nadia Alisya Norzuhdy

HEAD OF MARKETING May Phuah SENIOR MARKETING EXECUTIVE Razin Mohd MARKETING MANAGER Adhwa Zalil

Figure 2 : Organizational Chart

6

2.3 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Products/Services

h the differentiation of tastes, interest, demographic and geographic. The strategies successfully expand their, market not only in local market but also in global market especially Southeast Asian’s. FashionValet also shows its improvement in the fashion industry through the creation of a new brand for women's scarves which is the subsidiaries company under this company, The Duck Group. This innovation make FashionValet product special is duck shawl that used two-line segment which is the ordinary scarves and the limited edition. The Duck scarves have attracted an individual or group of people that desired an exclusive scarf. In terms of their service, FashionValet also have a return product policy within 30 days if customer did not qualify or not satisfy with the quality or size of the product that they have purchased. FashionValet also have offers free shipping for express delivery with the local delivery and international A product is anything that may be provided to a market for attention, purchasing, usage,

or consumption in order to satisfy a want or need. A service, on the other hand, is defined as any action or benefit that one person might provide to another that is intangible and does not result in ownership of anything. A product or service must be tailored to the demands and desires of the target market or consumer group. FashionValet is a modest fashion hub that sells a wide range of products for men, women, and children. Apparel, accessories, beauty, shoes, and more are among the items available. They offered with hundred of brands such as aere, Batika, Kree and more other brands as well as from famous fashion designers such as Rizman Ruzaini, Maatin Shakir, Schmiley Mo and many more. They also comes with their brand itself which are FashionValet and FV Basics. FashionValet also demonstrates its progress in the fashion sector by launching their own brands, dUCk and LILIT. The dUCk Group brand basically sells woman hijabs and cosmetics as their main products. dUCk brand also sells bags, stationeries, beauty care s and home and living essentials. However, LILIT basically sells scarves, woman apparels, shoes and some accessories. Women & men apparels in FashionValet : 7

Figure 3.1 : Woman Clothing from aere

Figure 3.2 : Man Clothing from FashionValet

Shoes in FashionV

Figure 4 : Shoes from LILIT7 Products of FashionValet’s featured brand, The dUCk Group :

8

Figure 5.1 : Woman Hijab from The dUCk Scarves

Figure 5.2 : Beauty Care from The dUCk Cosmetics

Figure 5.3 : Handbags from The dUCk Group

Figure 5.4 : Stationeries from The dUCk Group 9

For their services, FashionValet has a 30-day return policy if a customer does not qualify or is dissatisfied with the quality or size of the items they have purchased. FashionValet also ship locally and internationally. With a purchase of RM100 or more, FashionValet now offers free express delivery and local delivery. Internationally, they provide free shipping with a purchase of RM150 or more in Singapore and Brunei, and free shipping with a purchase of RM300 or more in the rest of the world.

2.4 Business, marketing, operational strategy FashionValet is a worldwide fashion merchant in Southeast Asia. The company works with a number of local and international designers to show that the product is ready for worldwide distribution. One of FashionValet's business strategy is market development. This business has grown its market into three countries: Malaysia, Indonesia, and Singapore. FashionValet wants to enter into the West Asian market because it sees a lot of potential there in terms of market and consumer demand. FashionValet's intention to enter the West Asian market is part of their long-term expansion strategy to provide value to their customers. Fashion Valet chooses and hires the most professional and top designers to provide product uniqueness and competitive advantages in order for the product to appear elegant, of high quality, and exclusive. As a result, they are able to create products that are special from those of their competitors, and they are always aware of and follow the flow of worldwide changes in the fashion sector. Next, offline and internet marketing are two types of FashionValet marketing strategies. Billboard advertising is one of their offline marketing techniques. To attract customers, billboards are typically placed in highly visible and appealing locations. This billboard advertisement can raise FashionValet's brand awareness and inspire people to buy their products, especially when there is a deal or promotion going on. 10

In the meantime, FashionValet establishing their business that involves marketing products through internet resources, such as a website which is www.fashionvalet.com. Customers choose online shopping stores because they are more convenient and cost less. The company has direct dealings with the designer, a production process, and sells the products directly to their website tools for its product distribution channel. It has also established a large internet sales network. The customer can browse all of the products at their leisure and place orders via the internet. As a result, the Fashion Valet has seen an increase in sales volume. FashionValet also is using social media to promote itself online. To deliver and spread news about their goods to the general public, they use social media platforms like Facebook and Instagram. This strategy is effective not just in terms of promoting their goods, but also in terms of engaging and maintaining a relationship with their clients, whether they are repeat customers or first-time purchasers. 2.5 Financial achievements

Figure 6 : Company’s Performance Chart

11

FashionValet Sdn. Bhd., which began as an e-commerce-only brand, has grown to become a highly successful business. The FashionValet Group currently includes ten retail locations. In Figure 3, the chart shows FashionValet Sdn. Bhd. latest financial highlights for 2019 revealed a 62.46 percent growth in net sales revenue. FashionValet total assets grew at a negative rate of 0.93 percent during the same time period. FashionValet net profit margin improved by 16.52 percent in 2019.

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3.0 COMPANY ANALYSIS 3.1 SWOT ANALYSIS Weaknesses o The price of their products is a bit

Strengths o They have online and offline stores

expensive

o Selling famous local brands

o Their website and apps only provide

o The products have premium quality

English as a language option.

o Have their own shop application

o Their website only have 12 currencies ( FashionValet apps)

o Their website has limited time for

o They can ship internationally

online chat services o Have a detail descriptions for each

o Had delivery issues

product

o Their new release edition always sold

o Have loyal customers out within few days of launching

Opportunities o Their brand has collaborated with

Threats o Had to compete with some other

some international big brands for

online competitors

their limited edition collections. o

o People are selling fake product from

Had an exclusive collaborations

their brand

with local fashion designers and

o Have a large number of brands but

celebrities o

o

o

sales were declining.

Recognized by Malaysian

o Had to deal with abusive comments

consumers

o The majority of people prefer

Organizing some consumer-

international brands to domestic

oriented events and campaigns

brands.

They use social medias as the marketing strategy to promote their product

o

Expand their market outside Malaysia

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4.0 FINDINGS AND DISCUSSION 4.1 FINDINGS Even though FashionValet has opened several offline stores, FashionValet originally began as an e-commerce fashion store with its own website, www.fashionvalet.com, where customers could buy their preferred items without having to walk in to any FashionValet offline stores. As we know, online shopping provides convenience and peace of mind, particularly for busy women who must manage jobs and family life. However, I found that there are some weaknesses that their website features and systems had.

4.1.1 FashionValet Website Only Provide English Language FashionValet website only provides English and doesn't provide other language options for theirs customers like Malay, Mandarin, and Tamil. FashionValet doesn't only offer their items in Malaysia, but they ship their product to countries across the globe, which can cause some customers to be inconvenienced if they're not fluent in English. 4.1.2 FashionValet Website Has Lack of Currency Options Next, FashionValet has only featured 15 countries' currency alternatives, like MYR, USD, EUR, and more, yet FashionValet has sold its merchandise over the world. As a result, some customers must waste time converting currencies to other websites so as to get accurate pricing for items. 4.1.3 FashionValet Website Has Limited Time for Live Chat Service FashionValet lives chat services are only available during the weekdays from 9 a.m. to 6 p.m. where people are busy working with their jobs. When the live chat is unavailable, customers may only use 'contact us' as a channel to depart a message or make a telephone to the corporate, and also the customers must wait an extended time for a response from the corporate. it's possible that the customer will feel annoyed and can quit purchasing due to the company's inability to retort to messages quickly and also the live chat is unavailable.

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4.2 DISCUSSION Based on the findings, several improvements to the concerns mentioned, which are the lack of some features and the unreliable systems of FashionValet website, can be made.

4.2.1 FashionValet Website Should Provide All Language Options I think FashionValet should offer all language options to their customers both inside Malaysia and customers from the rest of the world. As a result, their international customers will find it simple to make purchases or view site material in their own language. When a website provides a language choice, customers from other countries may easily convert the page into their native tongue and continue browsing and making purchases. Not only that, they also will have a better understanding of the product information and details as well as the company's privacy policy because of their familiar language. Thus, the customers will feel happy shopping from their website. 4.2.2 More Currency Options Should Be Available on the Fashionvalet Website FashionValet should also improve the current money currency options in their website. This is because the purchaser will be more convenient since they will not have to waste time calculating the currency exchange rate on another website, and the customer will be less likely to make a purchase choice if the pricing is in an unfamiliar currency. If the price showed in different currency from their own country money currency, they will unsure about the exact price of a particular goods and most probably they will feel hesitate to buy from that website. 4.2.3 Fashionvalet Website Should Offer 24 Hours Live Chat Services FashionValet should extend their live chat service hours from 9 a.m. to 6 p.m. to 24 hours a day in order to respond to buyer questions quickly. Customers are more willing to use live chat to seek about information, and they prefer to obtain support from a live person right away if they have a problem or query. Not only that, yet live chat may assist a the company in collecting client feedback and maintaining a positive long-term connection with the customers. FashionValet also can also look on the feedback and issues submitted by customers so that they can improve the shortcomings faced in their company.

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5.0 CONCLUSION To summarize, FashionValet may overcome their issues and improve their website for the comfort of their buyers to buy their goods online b...