Value Proposition Design Testing for Developing Fashion Business

Abstract

In 2019, 90% of start-ups fail with 42% of businesses failing due to a lack of demand for their product or service. The absence of an appealing value proposition that would compel prospective buyers to take a purchase action was the reason for a new business or start-up's failure. Due to the massive fierce competition, a company should have unique characteristics upon its value offered for its existence to be accepted and perceived by the market. As a new business, Olwité, a women's clothing from Indonesia, has not articulated a value proposition because there is no evidence that the jobs, pains, and gains stated actually matter to the customer; additionally, there is no evidence that the products add value to the customer. Thus, value proposition hypotheses were developed. To test the hypothesis, three stages of testing were conducted based on the hypotheses: Interest Validation, Preference Validation, and Willingness to pay Validation through Facebook Ads tracking actions. The result of the test is value related sustainability of the brand becomes the most compelling value proposition with the highest willingness to pay.