ANALYSIS ELIGIBILITY ESTABLISHMENT OF A CLOTHING BRAND BUSINESS LINEN FABRIC BASED “KIO STUDIO” AS FORM DEVELOPMENT “KATO+” BRAND BUSINESS

Abstract

KIO Studio is a clothing brand made from linen fabric as part of the business development of the KATO+ brand. KIO Studio targets a different market segment from KATO+ while offering similar product types, namely tops, bottoms, bags, and accessories for men and unisex consumers. This business represents an expansion of an existing enterprise; therefore, a feasibility study is required. The feasibility analysis considers market, technical, and financial aspects. Market aspect data were collected using a questionnaire with a purposive sampling method, resulting in a potential market size of 7,858,060 people, an available market of 6,443,610 people, and a target market of 0.04% of the available market, equivalent to 2,577 people. This study examines KATO+ as the company undertaking the business development, which is located in Malang. The research employs a descriptive qualitative method supported by a survey. The technical aspect is used to analyze business processes, labor requirements, investment needs and costs, as well as business location. The financial aspect is applied to assess the feasibility of the business. The calculation results show that the Net Present Value (NPV) is Rp 1,435,027,611, the Internal Rate of Return (IRR) is 11.287%, and the Payback Period (PBP) is 12 months and 21 days. Since the NPV is greater than zero, the PBP is shorter than the investment period, and the IRR exceeds the Minimum Attractive Rate of Return (MARR) of 10.88%, it can be concluded that the KIO Studio business is feasible to be established.