Executive Summary
The proposed digital solution for the company would be coming up with a Singapore fashion portal app that will help the company differentiate itself from other competitors in the industry by only dealing with local designers and fashion labels. Through the application, the business will offer unique selling points such as personalized styling advice, facilitated local shopping, exclusive local designs, customization options, and augmented reality technology (Granger et al., 2019). To ensure that the Singapore Fashion Portal application features only local fashion labels and designers, several measures will be implemented in the platform, such as the verification process. Through the verification process, the app will ensure that the brands provide proof of their Singapore residency and citizenship. Also, the brands and designers will need to provide information on where they would source their materials, which will help ensure that the brands only deal with local suppliers and manufacturers to create their products. Another measure would be regularly reviewing the designers and brands featured on the app to ensure that they still meet the criteria of locally sourcing their products and services (Granger et al., 2019).
Additionally, users of the app will be encouraged to provide feedback on the products and designers featured on the Singapore Fashion Online app. Those identified as not meeting the local criteria would be investigated and appropriate action taken against them if necessary. By promoting and supporting the Singaporean fashion industry, the app appeals to a niche audience of fashion-conscious consumers. In order to gain competitive advantage over other players in the online fashion industry would be coming up with an application that has competitive pricing and showcases only local fashion labels and designers, unlike other online marketplaces that sell products mostly from big corporations in China and India.
Market Analysis
Unmet market needs/ Market gap
The fashion industry in Singapore is characterized by both merging and established designers who create a mix of contemporary and traditional styles respectively. Despite having many online fashion marketplaces in Singapore, there is no platform that focuses exclusively on local fashion brands and designers as most marketplaces sell products produced by big corporations and companies in countries such as India and China (Alimin, 2022). Therefore, there is a market gap in locally produced fashion merchandise. There is need for an online marketplace that showcases only local fashion brands and designers, offers unique products, and has exceptional customer service and competitive pricing.
Size and potential outlook of the unmet market gap
Over the years, the fashion industry has been growing and gaining recognition due to its dynamic nature. According to statistics, Singapore collected approximately $3,408m in revenue from the fashion sector (Thomassey & Zeng, 2018). These statistics show that Singapore’s fashion industry is big enough to accommodate new businesses. Several studies in the fashion industry show that there is expected growth in Singapore’s e-commerce, with the rate expected to rise by 10.6 percent between 2021 to 2025 (Thomassey & Zeng, 2018). The expected growth in the country’s e-commerce shows that a company focusing on local fashion brands and designers has a high chance of success.
Digital Business Strategy
i) Revenue model
Singapore Fashion Online marketplace aims at making revenue through commissions. Commissions earned on sales made on the marketplace will help fund the business’s day-to-day activities. Based on the product type and volume of sales made on the platform, the business will be able to come up with the commission percentage.
ii) Revenue Projection/ Cost Savings Projection
Estimated sales volume and the commission percentage on each sale will help Singapore Fashion Online to come up with its revenue projections. Digital marketing strategies will help reduce marketing expenses and come up with cost savings projections for the online platform.
iii) Competitive Strategy
Most fashion marketplaces in Singapore work with big corporations and companies in India and China. To create a competitive advantage, Singapore Fashion Online will work at being unique by exclusively working with local fashion brands and designers. Additionally, the platform will offer personalized styling advice, integrate augmented reality technology, and provide customization options that will allow its users to sell their products directly to their customers. Also, local designers can reach local and international customers through virtual advertisements and product promotion of their locally produced merchandise (Mishra, 2017). The online business platform also has measures that will ensure only local designers and brands work with the marketplace. Some measures that Singapore Fashion Online will implement include a verification process, local sourcing requirements, ongoing monitoring, and a user feedback system. Through these measures, the marketplace will ensure the authenticity of designers and brands featured on the online platform. Through these unique selling points and supporting local designers and brands, Singapore Fashion Online will be able to gain sustainability, a competitive advantage in the monopolistic competitive market of Singapore’s fashion industry.
Digital Marketing Strategy
In order to increase profit and save on costs, Singapore’s Online local Fashion business aims at applying different strategies. Among the strategies includes establishing an efficient system of online payment and system design. The business also reduces the need for an additional customer service staff by categorizing customers based on their preferences, styles, and interests, which helps match the customers with designers who focus on their different tastes and preferences. Through this strategy, the business is able to achieve customer satisfaction and save on any additional costs (Faisal, 2016). Another strategy that the business uses to cut on costs is reducing the need for additional manpower through its online payment system that allows for Master/Visa or Paynow for customers. This has increased revenue for the business as customers can shop from the convenience of their homes and from any geographical location (Begum & Hassan, 2021). Singapore Fashion Online is able to cut on costs and increase its profits through better customer experience, leveraging technology, and streamlining overall processes in the business.
For a new business to be successful and competitive in the global market, there is need of coming up with a well-thought-out marketing strategy (Begum & Hassan, 2021). Singapore Fashion Online aims at differentiating itself with other online fashion marketplaces that exist in Singapore. This is only achievable if the business comes up with a marketing strategy that will allow for competitive pricing, exceptional customer service, and unique products for its customers. Through a strong digital marketing strategy, Singapore Fashion Online will be able to increase its brand visibility and attract more customers both locally and internationally. While other competing businesses in the Singapore fashion market sell merchandise produced by big corporations in China and India, Singapore Fashion Online aims at only showcasing local fashion labels designers in the market place. This will help hem gain a competitive advantage over other businesses such as Carousell and Zalora. Customers will easily identify and buy products that are locally produced and are easily available in the local fashion marketplace.
The following marketing strategy will be used in promoting Singapore Fashion Online, ensuring the business offers unique opportunities to sell its locally produced products to its consumers. Singapore Fashion Online is an e-commerce platform that offers a direct-to-consumer sales channel for local fashion designers. The platform charges a lower commission rate than other popular shopping platforms in Singapore, making it an attractive option for designers to sell their creations.
Inbound-Earned Media Strategy
The Inbound-Earned marketing strategy uses social media, content creators, and search engine optimization (SEO) to attract potential customers to the business’ website (Wendler, 2018). A business can achieve brand awareness, attract quality customers, and establish a successful business through an effective and efficient inbound marketing strategy (Sheikh, 2022). Some of the inbound marketing strategies may include:
- Events
Singapore Fashion Online aims to use events as a marketing strategy for selling its products and attracting customers to the new online platform. Taking part in events such as Singapore flea markets, boutique fairs, and pop-up stores effectively creates brand awareness for the e-commerce business (Muthu, 2019). The business can set up booths at the different events, allowing people to inquire about the business, its products, and its services. Also, the business may take this opportunity and use it to showcase the unique features of the Singapore Fashion Online platform, with more emphasis on features such as lower commission rates and direct-to-customer sales. Another feature that may be attractive to the customers may be the use of online payment using payment options such as Visa and Paynow (Begum & Hassan, 2021). Also, the platform can offer free consultations to local designers who want to join or collaborate with the platform. This will help to get more local fashion designers on board to sell their products directly to their customers through our platform.
- Collaborate with Design Singapore Council
Design Singapore Council promotes cultural and economic development in Singapore. Through design, the government agency can work with local designers and fashion industries and help them sell their products locally and internationally. Singapore Fashion Online can collaborate with Design Singapore Council to invite and connect with local fashion designers to a seminar helped by our business and educate the local fashion designers on how our online platform works and the benefits of selling their products to consumers through our e-commerce platform. Through this collaboration, the business will be able to build on its trust and credibility among fashion designers and position the business a reliable and efficient platform for designers to sell their products. It is easier to convince fashion designers when working with a government agency as the fashion designers are assured of transparency and accountability in the business (Mandal, 2017). Also, the fashion designers will be convinced the platform is best for business as the Design Singapore Council has vouched for it.
- Marketing and Sales Support
Another marketing strategy that will attract designers to the online platform would be providing free marketing ad sales support services to any local designers. These services may include free logos, banners, and name card designs with our weblink. Also, the business can blast free email direct mail (EDM) for the first few months of operation for new signups if they do not have any of those (Mitzkus, 2023). Designers that may not have the resources to develop marketing strategies such as logos, name cards and banners will happily take up this offer to boost their businesses.
Outbound-Paid Media Strategy
According to studies, paid media is a powerful way of creating traffic to your website and generating leads quickly (Saxena, 2021). With paid media, Singapore Fashion Online will be able to target specific audiences and track their results more accurately than traditional advertising methods, which are slow and tedious. Some of the Outbound-Paid media strategies include:
- Social Media Advertising
In the modern world, where almost everyone has internet connection and smartphones, social media marketing has become an effective way for businesses to market their products and services. Several studies show that social media platforms such as Facebook, Instagram, Twitter, and TikTok are best in advertising and reaching a broader range of consumers (Lum, 2011). Singapore Fashion Online can as well offer 10 percent discount for the first three months and 20 percent for signing up one year of advertising space during special events such as Chinese New Year and Black Friday. Through social media influencers, the business will make use of influencers to reach their target customers in the fashion industry (Mahajan, 2015). Use of celebrities, musicians, politicians, and other well-known people will create traffic in the platform, hence more sales for the local designers who have signed up to sell their products through the platform.
- Google Ads
Google Ads are advertisements that appear on search engine results page. Singapore Fashion Online platform may make use of these Google Ads by paying to have their own customized text or video ads, in that whenever customers search for a fashion product or terms, they will meet an ad on the platform. For this strategy to be successful, the business needs to select the right keywords, which will help the business have access to people looking for what the platform sells (Wendler, 2018). Coming up with fashion-related keywords will drive the targeted customers to the business’’ platform.
- Founder’s Talk
To sum up on the marketing strategies, we would invite the co-founder, Wai Mun, to talk about the business and the future of Singapore Fashion Online. His speech will be recorded and can be used in the company’s website and social media channels to promote the business. This strategy may help in building credibility and trust among the target audience by helping the company establish itself as a thought leader in the fashion industry.
Generally, Singapore Fashion Online needs an inbound-earned media and outbound-paid media to market its products and services to its target audience. Combining the two marketing strategies will lead to the success of the business and make it gain competitive advantage over other businesses that have existed in the fashion industry for years.
Digital Business Management recommendation
Organizational Forms
There are several factors that Singapore Fashion Online needs to consider when adopting an organizational form. These factors include the capital requirements, degree of control that the owners want to have, the size of the company, and the level of risk involved. Some of the organizational forms that Singapore Fashion Online marketplace may consider include:
i) Sole proprietorship
This organizational form is for businesses owned by one person. This is the simplest organizational form and requires less legal and regulatory compliance (Connolly, 2022). If the owner of Singapore Fashion Online wants to have complete ownership and control over the business, then he/she may consider this organizational form. Another advantage of sole proprietorship is that it requires minimal capital to start (Connolly, 2022). Although it may be risky for someone starting out as the owner is accountable of any business transactions such as debts and other business obligations, the business may be good for someone who wants to enjoy all the profits made in the business.
ii) Partnership
A partnership is when two or more persons come together to form and own a business. In this organizational form, the partners share profits and losses made in the business. Also, the partners contribute towards the capital of the business and collectively take part in decision-making(Connolly, 2022). If the owners of Singapore Fashion Online want such an organization, they may decide and adopt it, allowing the owners to share the profits and risks in the business. Although a partnership is easy to set up as two or more people contribute towards the capital, it may not be the best organizational form as the partners not being able to sell the shares of the company, and a slower decision-making process when compared to sole proprietorship.
iii) Corporations
Another organizational form is corporation, which is more suitable for larger businesses with multiple owners as it is complex in nature. Among the advantages of corporations is that they offer limited liability protection to their owners, have a separate legal identity from their owners, and can issue stocks to raise capital (Guerard et al., 2020). However, corporations also have more stringent legal requirements and are subject to double taxation. I do not think this will be the best organizational form for Singapore Fashion Online as the market place is starting out and does not have multiple owners. The double taxation policy may also not be good for the business.
iv) Private Limited Company
This is a separate legal entity with limited liability. This organizational form is highly structured and may require compliance with regulatory requirements for it to be successful. In private limited company, the owners can raise capital by selling shares in the business (Guerard et al., 2020). If Singapore Fashion Online business wants such a limited liability, then they may adopt such an organization form. A private limited company is advantageous as the company may continue operating even if the owners change (Guerard et al., 2020). This form of organization has perpetual existence and it is a separate legal entity from its owners. However, some of the cons of the private limited company may include high regulatory and compliance requirements, conflicts among shareholders, and slower decision-making process.
Generally, it is clear that for Singapore Fashion Online business to be successful in its operations, it will have to weigh the options, both the advantages and disadvantages of each organizational form and choose one that meets its needs, goals and objectives. The owner of the business has to choose an organizational form that will ensure sustainability of the marketplace in the thriving fashion industry.
Organizational Considerations
Singapore Fashion Online has to consider several factors other than the organizational form. Some of these factors may include strategy, culture, structure and leadership.
- Strategy
In order to be successful, Singapore Fashion Online platform needs to have a clear strategy that will help the platform achieve its goals and objectives. In order to gain competitive advantage, the online marketplace needs to focus on providing unique value proposition that will differentiate the business from its competitors (Popp & Schmeisser, 2016). The online platform may come up with strategies such as providing styling advice, integrated augmented reality, customization options and facilitate local shopping for local brands and designers. Implementing these strategies will help the company be successful and thrive in the market. As discussed above, having a strong digital marketing strategy will increase brand visibility and attract customers for Singapore Fashion Online.
- Culture
Businesses with organizational culture tend to be more successful when compared to less structured companies. Organizational culture helps businesses to improve their productivity, engagement, and performance. A culture that promotes the company’s values and objectives will promote innovation, creativity and collaboration among designers and brands, helping them to express their unique ideas and styles ((Xiaopei Wu & Li, 2020)). A customer-centric culture that emphasizes excellent customer service and personalized experiences will help Singapore Fashion Online thrive in the fashion industry market.
- Structure
The hierarchy, systems and processes within an organization form the structure of that particular organization. Therefore, structure is the manner in which a business is organized. For a business to be successful, it needs to consider the structure of its organization (Patil & Khathuria, 2020). Structure influences different aspects in a business. Some of the aspects influenced by the structure of a business include accountability, communication, efficiency, and flexibility. For a business to have a clear chain of command and communication, it needs to be well-structured. A well-structured business will ensure that information is disseminated effectively throughout the company, and the business is able to easily adapt to changes in the market and business environment (Patil & Khathuria, 2020). Singapore Fashion Online needs to consider the structure of its business as it will impact its ability to operate effectively and efficiently.
- Leadership
Establishing strong leadership style in a business will guide the organization towards achieving its objectives. Today, modern organizations are embracing transformational leadership style in their operations (Khan et al., 2020). Through transformational leadership, leaders who are passionate about fashion and have experience in the industry are able to influence their followers and motivate them to work harder. Unlike bureaucratic leadership style, transformational leadership style promotes strong communication skills that fosters collaboration and innovation in the business. (Khan et al., 2020) Through transformational leadership, Singapore Fashion Online will be able to easily adapt to any changes and trends in the fashion industry. A company that is flexible to market changes will be able to provide efficient and better customer experiences and satisfaction.
Conclusion
In conclusion, the Singapore fashion industry is fast-growing and for any business that wants to join the fashion industry in the country, needs to come up with smart market strategies that will help it gain competitive advantage over the already existing businesses. Singapore Fashion Online is an online market place that aims to address the market gap in Singapore’s fashion industry. Through the application, the business will help local fashion brands and designers to sell their products to customers directly. Several market strategies such as offering unique selling points such as personalized styling advice, facilitated local shopping, exclusive local designs, customization options, and augmented reality technology will see the business excel in the fashion industry. For a business to be successful, there is a lot that needs to be considered, including the organizational form and structure, and the needs, tastes and preferences of its customers.
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