Lesson Learned from Indonesian Biggest Fashion Retailer Company to Encourage the Development of Small Fashion Business

Indonesian retail industries for fashion sector continue growing vigorously due to raise of income per capita and rise of middle-up class people. PT Mitra Adiperkasa Tbk (MAP) is the leader of fashion retailer in Indonesia. The company's stock had ever categorized as a blue chip stock in Febuary 2013 - January 2014 indicates its satisfactory performances. The company successfully brought many top fashion brands from other countries such as Zara and takes the Indonesian market well. In 2014, the stock is no longer pinned as a blue chip even some securities dwindled 24% of the stock price and the profit growth reach the negative area. The issues above trigger a curiosity about the company performance and value. How is the actual financial performance of MAP compare with other local and global companies? What innovative idea does each brand of MAP have to captivate Indonesian market? How small fashion businesses in Indonesia should develop themselves to be the fashion leader brand in the home country? To assess the financial performance, ratio analysis is going to be used. PT Mitra Adiperkasa financial performance will be compared with PT Matahari Department Store, PT Ramayana Lestari Sentosa, FJ Benjamin Sdn Bhd (Malaysia), Royal Sporting House Ltd (Singapore), and Giordano International Ltd (Hong Kong). The valuation will use 2 methods; DCF and market approach. The valuation using DCF method confirms that MAP's shares will grow 46% in 2029. This financial analysis is an encouragement either for the entrepreneurs to start fashion business or small businesses to continue developing since in the future fashion business is always tempting for investors and customers. Small fashion business should implement effective and efficient supply chain to create fast retailing and become the fashion business leader in the home country. (C) 2015 The Authors. Published by Elsevier Ltd.