Sales must go on, how Dian Pelangi thrives amidst pandemic

Ramadan is one of the can’t-miss annual celebrations for all brands. They capitalise on consumers’ massive appetite for shopping by offering huge discounts and other promotional deals with the target of boosting sales by multiple folds.

However, the Covid-19 pandemic has a profound impact on the global economy. People are required to stay at home, restaurants and shopping centres have to be temporarily closed and holding any form of social events is forbidden, all to curb the spread of the virus. The government also called on the general public not to organise any gatherings that are normally carried out during Ramadan, such as communal fast-breaking dinner, religious activities and bazaars.

As a result, employees were laid off, tailors saw zero order and creative workers lost their jobs.

According to a McKinsey survey, although the purchasing power of Indonesians remains rather stable, declining economic performance during this pandemic forced buyers to tighten their belts by focusing on buying basic necessities and fulfilling their need for entertainment from home. This in turn dragged down sales in the retail sector, including fashion.

In the modest fashion sector, a lot of Ramadan events have to be canceled, while many brands have created Ramadan collections with the aim of making a fortune during the holy month. How do modest fashion designers survive this pandemic?

According to Nuurul Zafitra, co-founder of Dian Pelangi Studio, the brand has not experienced any significant disruption in production as it is well-prepared for Ramadan and Eid sales. However, the large-scale social restrictions policy in the Greater Jakarta area forced them to close offline stores.

Founded 28 years ago by Nuurul’s in-laws, Dian Pelangi, a homemade Palembang Songket brand, has grown into a home industry of Palembang batik and songket. Over time, Dian Pelangi has become a household name in the fashion industry. The brand now focuses on formal and ready-to-wear Muslim clothing that targets the middle and upper class.

Image: Shella Alaztha in Dian Pelangi Studio (@shellaalaztha)

The eponymous brand expanded its business by creating a versatile premium printed hijab business, Dian Pelangi Studio. The collection of this second-line business can be used for any occasion, with price starting from Rp200,000.

Amid the COVID-19 pandemic, Dian Pelangi Studio shifts its focus to online sales and reseller chain that has been established since the inception of its parent brand Dian Pelangi. Their reseller chain has matured, now spreading throughout Indonesia (Bandung, Jakarta, Bekasi, Surabaya, Yogyakarta, Banda Aceh, among others).

As the new normal begins, brands must work on any possible channel for their sales. Modest fashion brands must adapt quickly to the large-scale social restrictions by switching to online marketing. When people have to stay at home, they shop online.

Among online marketing strategies that can be used by brands is marketing their products through websites, e-commerce and social media - using paid marketing methods such as digital ads and influencer endorsements or free marketing via the respective platforms of each businessperson.

Although the launch of their hijab series got canceled due to the pandemic, sales must go on. The brand continued its collaboration with several hijabi influencers, such as Analisa Widyaningrum and Nina Septiani, to promote the new hijab series.

In addition, the brand held a giveaway to commemorate Kartini Day, under which those who purchased the new series received a set of makeup as bonus.

"Business players must be wise and careful in changing their way of selling in each of their online platforms," said Nuurul, suggesting that brands stimulate their customer base to shop, one of them through attractive offers. "If customers still shop, eventually the business can strive. We can produce and employees can remain in the company without having to be laid off."