Kulkith Goes International

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Here, I want to tell you about one Indonesia local company that have capability to goes tonext level, which is go International that can expand their market to the other countries and increasing the sales.

Here, I want to tell you about one Indonesia local company that have capability to goes to next level, which is go International that can expand their market to the other countries and increasing the sales. The name is Kulkith.

Let’s meet Kulkith Company

Kulkith is one of the prominent shoes brand in Indonesia. Kulkith makes products by using traditional material such as batik, songket, tenun, etc. By using this material the owner kulkith wants to make a new trend to use traditional things not only to special occasion but also to daily activities. The main propose of the brand image that Kulkith wants to achieve is to become the top of mind product for traditional shoes, example: if people talking about traditional shoes product, they will remember to Kulkith.

ALL ABOUT KULKITH COMPANY

Product overview

Kulkith sells creative product especially fashion sector.

Before Kulkith was established, Agnes, the owner of Kulkilh, made another fashion product, which is Jacket from batik fabric. The purpose of this act is just to get extra pocket money. For one year, Agnes made this product with some of her friends. Eventually, the amount of leftovers from the fabrics that have been used to make the jacket is getting larger. Agnes came up with an idea to use all those leftovers fabrics to make shoes. The reason why she chose shoes is that shoes only need small amount] of fabric. From the time, Kulkith was established. Up until now, Kulkilth has been run for business for two years.

Kulkith focuses on shoes, but lately it also produces bags and accessories. For shoes, there are around 20 models and hundreds motives. Once per three months, Kulkith produces new models. Once per month, Kulkith release new motives for the same models.

Image

Kulkith makes products by using traditional material such as batik, songket, tenun, etc. By using this material the owner kulkith wants to make a new trend to use traditional things not only to special occasion but also to daily activities. The main propose of the brand image that Kulkith wants to achieve is to become the top of mind product for traditional shoes, example: if people talking about traditional shoes product, they will remember to Kulkith.

Target Market

Kulkith shoes is a shoes created for a women age between fifteen to thirty years old. However, in the actual realization the people who often buy the shoes is the young woman who is usually in the university or college student. Kulkith shoes target the young to middle age woman because this shoe is not casual shoes but rather shoes that can be used in both the casual and not casual condition such as going to the university or go play with friends.

Demand

Kulkith shoes sell the shoes both offline and online. Kulkith shoes open an offline store and also join a bazaar to sell their product. Beside the offline store, kulkith shoes also open the online store.

Business Strategy

Kulkith Vision is to be big company that have brand image as a Batik Shoes. Agnes, the owner wants her brand to be the one comes up in anyone’s mind when thinking about batik shoes. This is simple vision but hard to achieve because they should be top of mind of customer Batik Shoes. They want be same with brand Aqua that become top of mind of mineral water in Indonesia. It need long time to get it. But the owner, Mrs. Agnes believes to her business.

Kulkith Company have goal in two different ways. First, they want achieve they vision through online shopping by the website, http://www.kulkithshoes.com. They have been done of this goal, and continually sell and promote their product and brand with this website. This web is amazing. She made this by herself and helps by her boyfriend because basically her boy friend is master in that case. In other hand, Kulkith Company also sell product by offline shopping, with expand their market to others countries.

For the first time, Mrs. Agnes does not calculate her profit of this business since it all begun with no business intention at all. She just wanted to make some extra money for herself. It surprised that she could make a 300% income compared to the cost. So, she thinks this business is feasible. In addition, she is mastering in design because they have study in Bandung Institute of Technology (ITB) in order to make very good motive and matching to interest of customer. She also has professional outsourcing in progress to make it that has many experiences to make her product, located In Cibaduyut.

This business is focus in sell of shoes. This product have varies type and one type have varies motive. Every 2-3 month there is new one type in varies of motive. Usually there are 3 of motives in 1 type. In every month, Kulkith Company produces around 500 pieces of pair of shoes. The uniqueness of this product are they give different trend of fashion means Batik Motive, made customized to demand of customer, not massively produced in order to make customer feel different with others by their shoes that used. It becomes Kulkith competitive advantages, which are quality, and exclusivity besides the low cost. It also becomes strength in SWOT analyses. Other components are weakness, opportunity, and threat. The weaknesses are error of size, low in marketing, and cannot be reproducing. Basically, in online shopping the error of size is often appearing. Since every shoes brand have different size standard, the problem is inevitable.

We think that economic logic same like feasibility. It is very logic to apply this business and make it sustainable. This happened because of low cost, high quality, capability of the owner, and network of owner. Although she stated with a very simple logic, which is to make some extra money, she managed to find a very good logic of prospectus business. She mentioned that at the current condition, people must think of different reasons when wearing traditional batik, undangan, or wisudaan. Saddened by this irony, she found a way of repairing this habit. So this is her logic.

In promoting her product, she frequently joins exhibitions and usually makes a very good sale in those events. Online and events are her primary distribution lines. Having an outlet, she said, is only a formality. Since online is a very crucial factor to her business, she have varied online vehicles such as tumblr, facebook, and blogs. She is also friends with one of famous fashion bloggers which also helps her by putting Kulkith’s link in the blogger’s website.

 

BUSINESS MODEL

 

Value Proposition

The value proposition of Kulkith is “Shoes using traditional fabric with high quality and unique characteristics”. Unlike other shoes that using printed traditional fabrics; Kulkith uses handmade traditional fabric, such as “batik tulis”, etc. Other than that, Kulkith also limits its products so the products become prestigious. Kulkith uses high quality materials to make the product.

 

Stategic Partner

There are three main strategic partners of Kulkith, which are:

1. Fashion bloggers: Kulkith gives out its product to fashion bloggers to be promoted in their blogs. It is a way to promote the product

2. SMESCO : SMESCO is a unit consists of SME (Small Medium Enterprises). Kulkith is listed in SMESCO website. If there is any national or international exhibition that requires shoes product, or traditional based product, SMECO will let know Kulkith and offer the chance to join the exhibitions to Kulkith.

3. Suppliers: Kulkith has several suppliers to support the making process of the product. In addition, Kulkilth has a special fabric supplier who makes the fabric by handmade. Seventy percents of the fabrics came from the special fabric supplier.

Key Activities

1. Design : All the designs of Kulkith’s products are made by the owner itself, Agnes.

2. Marketing : Kulkith promotes its products by using social networks, such as twitter and facebook. Other than that, Kulkith also promotes its products by using blogs, especially from fashion bloggers. Up until now, Kulkith only use no charge promoting media. There is no tendency to promote in printed media.

3. Manufacture : Kulkith hires four persons to make the shoes. These persons are professional in shoes making line and they come from Cibaduyut.

Key Resource

1. Labors: There are 4 labors who worked for Kulkith. They are shoes maker that came from Cibaduyut.

2. Distribution partners: There are two main distribution partners. One is in Kuala Lumpur, Malaysia, and the other one is in Bandung. The distribution partners are responsible to distribute the orders that are made from online shop.

3. Fabric Suppliers: There is special fabric supplier who made all the fabrics by handmade. Seventy percent of fabric materials are fulfilled by this fabric supplier. The rest of fabric materials are came from other fabric suppliers without any special work relationship.

Customer Segment

The target market of Kulkith is women, between 17-25 years old, especially college students. Nowadays, Kulkith’s target market widen to career woman.

Customer Relationship

Since the life cycle of product in Kulkith is quite short, Kulkith will give out discounts for last season products since the size range is not complete anymore.

Distribution Channels

1. Others Company partner : The distributor partner in other companies handles all the orders that came from each countries. Kulkith will send all the orders to this person and he/she will distribute all the orders in Kuala Lumpur. The  bjective of this process is to reduce the delivery cost.

2. Geulis : Geulis is a store that sells fashion products in Grand Indonesia, Jakarta. Kulkith gives its product to Geulis to be sold there, but the label is still Kulkith.

3. Store : There are two types of store. The first one is main store, which is located in Owners’ house, and the second is online store (www.kulkithshoes.com). Now, Kulkith is more focusing in online store.

Cost

These are the sources of cost in Kulkith:

1. Labors: Kulkith needs to pay the salary of its worker.

2. Delivery : There are charges have been made because Kulkith delivers the products to the customers who order the products from online store.

3. Website : There is yearly payment that needs to be paid because of using server host.

4.Manufacturing : All the materials, such as fabrics, leather, etc, become the main costs of Kulkith’s revenue stream.

Revenue

1. Exhibitions: National and international exhibitions become additional revenue sources for Kulkith since Kulkith can sell its products there.

2. Main store: The main store of Kulkith is in Owner’s house. Customers can come to the store and buy the products.

http://www.kulkithshoes.com: http://www.kulkithshoes.com is the address of Kulkith’s online store. Customers can place their order in that website.

3. Retail store: Geulis in one of the retail store that make a special partnership with Kulkith. Geulis helps on selling the products of Kulkith

Conclusion

So,

Kita pake bahasa Indonesia yaa, karna kan ini produk Indonesia, naah jadi guys, setelah membaca-baca mengenai business model, business strategy, dan lain-lainnya diatas, terlihat bahwa perusahaan kulkith ini memiliki potensi yang tinggi untuk dapat Go International.

Ya jelaslaah, INDONESIA.

Kulkith itu produknya udah jelas, demandnya ada, target marketnya tapat, business modelnya bagus lengkap dan mantap, strategy-strategynya juga cihuuy. Sekarang kita tinggal tunggu waktu aja, yyuuuk! Mari berdoa untuk kesuksesan Kulkith. Amiiiiin

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