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Top1. Introduction
At the end of 2015, a free market was applied in countries belonging to the Association of South East Asia Nations (ASEAN). Countries included in it include Indonesia, Singapore, Malaysia, the Philippines, Thailand, Vietnam, Brunei, Myanmar, Cambodia, and Laos. The free market will benefit countries in it because the market share will be broader and more profitable. The development of creative industries in ASEAN countries has the opportunity to expand abroad, one of which is the Islamic fashion industry. Based on data from the largest Islamic fashion exporter in 2014 the first rank was Bangladesh, amounting to USD 22 billion, second place was Turkey for USD14 billion and third place was Indonesia for USD 11.78 billion. Indonesia has a great opportunity to develop the Muslim fashion industry. Increasing the expansion of Indonesia Islamic fashion abroad, the Islamic fashion industry must change the way offline marketing goes online. Another way is to increase the exhibition and fashion show in member countries of the ASEAN Economic Community.
Product competitiveness and innovation are vital in the Islamic fashion industry. Product competitiveness and innovation are important factors to improve SME performance (Ardyan, 2016; Ardyan et al., 2016; Ardyan & Sugiyarti, 2018; Sugiyarti & Ardyan, 2017). Product competitiveness can mean that SME products are better quality than their competitors (Luo, 2010). Product competitiveness is obtained because of superior quality (Ardyan & Sugiyarti, 2018) and the ability of SMEs to innovate (Liu & Jiang, 2016). Factors driving product innovation include knowledge sharing (Bao et al., 2012; Jenny, 2005; Wang & Wang, 2012), relationship and networking (Ardyan et al., 2016; Farida et al., 2017), and co-creation (Hidayanti et al., 2018).
The ability of SMEs to sense the environment is very important for SMEs. Market sensing capability can be interpreted as the company's ability to learn (Day, 2002), understand, and use information (Kok et al., 2003) about markets with the aim of anticipating changes in the market (Foley & Fahy, 2004). The ability to sense customers will have an impact on increasing innovation (Ardyan, 2016; Calantone et al., 2002; Sugiyarti & Ardyan, 2017; Zhang & Wu, 2013), speed to market (Ardyan, 2016), quality of market entry (Sugiyarti & Ardyan, 2017), and business performance (Lindblom et al., 2008). Adequate information will be able to influence the company's response (Daugherty et al., 1995). Companies that are able to respond will have an impact on their export performance (Darmawulan et al., 2018).