Sustainable Business Model Development Strategy for Arae Fashion Using the Triple Layered Business Model Canvas (TLBMC)

Abstract

Conventional fast fashion contributes significantly to environmental degradation and social challenges, encouraging a transition toward sustainable business models. Arae Fashion, an eco-print-based social enterprise in Bogor, Indonesia, has implemented various sustainability practices but lacks a structured business model framework that can effectively respond to market development. This study aimed to analyze Arae Fashion’s existing business model, identify internal and external factors influencing its sustainability, and formulate a sustainable business model development strategy using the Triple Layered Business Model Canvas (TLBMC) approach. A descriptive qualitative method was employed, with data collected through in-depth interviews, observations, and questionnaires involving management, artisans, and consumers. The TLBMC approach was used to map 27 business model elements across economic, environmental, and social layers. VRIO analysis was applied to evaluate internal resources, industry foresight was used to identify future trends, and SWOT analysis was conducted to formulate strategic recommendations. The VRIO analysis showed that 58.82% of Arae Fashion’s resources represented sustainable competitive advantages, particularly in intellectual property ownership, human resources, reputation, and organizational capabilities. The SWOT analysis generated several priority strategies, including developing derivative products, strengthening styling capabilities for export markets, and formalizing sustainability certification. This study produced an improved TLBMC framework that integrates these strategies across the 27 business model blocks, providing practical recommendations for Arae Fashion to simultaneously strengthen its economic, environmental, and social sustainability.