Risk Management in New Product Development Process for Fashion Industry: Case Study in Hijab Industry

The fashion industry is part of textile industry where innovation and creativity becomes essential factors to success. To satisfy customers, the fashion industry should always follows the fashion trend which makes the business very dynamic in nature. Because of this, fashion product ussualy have a short product life cycle which increase the challenges of new product development (NPD) process. Lots of NPD projects have been conducted by companies, but the success rate of NPD's project is still considered very low. This may due to the increased time and cost, difficulty in scheduling, and short product life cycle. All these factors could increase risks to the project, which call for a risk management practice to deal with this issue. Until now, there is still limited attetion on risk management in NPD which cover the whole NPD process in fashion industry especially for hijab fashion. Hijab fashion is a growing industry in Indonesia but not all companies in this industry are aware on their risks and how to mitagate them. Therefore, the purpose of this study was to apply risk management to fashion industry especially in hijab fashion by identifying and analizing risk factors and developing risk mitigation strategies. The present research involves three different hijab fashion enterprises.The method used in this research is Failure Mode Effect and Critically Analysis (FMECA) and House Of Risk (HOR). The data was collected through interview process by using a questionnaire. The research found critical risk events, critical risks agents and risk mitigation strategies. The contribution of this research is to provide framework that can be used to assist managers in implementing risk management and making effective mitigation strategies to be success in NPD for hijab industry.