6 th Bandung Creative Movement International Conference in Creative Industries 2019 (6 th BCM 2019) Innovation through Design Strategy: Case Study of SMEs in Bandung Bijaksana Prabawa 1,2 , Ahmad Zuhairi Abdul Majid 2 , Ermira Trinovia 1 1 Visual Communication Design, Telkom University, Bandung, Indonesia 2 School of The Art & Design, Universiti Sains Malaysia, Penang, Malaysia bijaksanaprabawa@gmail.com, zuhairi.majid@usm.my, ermira.td@gmail.com Abstract The rise of business in the city of Bandung has caused the intensity of competition to be very high. Small-scale businesses are very difficult to survive especially facing companies that have larger economies of scale. Innovation can be one way for SMEs to compete. Previous research stated that implementing a design strategy can trigger opportunities to create innovation in the company. This study examines how design is used by Soca companies to produce innovation as a strategy to survive in competition. Soca is an SME in Bandung that produces glasses with wood materials. As a startup, Soca is considered successful in penetrating the market amid intense competition. This study uses a qualitative method with a descriptive case study approach. Primary data is obtained through document review, in-depth interviews and observations. The results of this study are expected to be a reference for how design strategies are used by SMEs to generate innovation Keywords Innovations, SMEs, Design Strategy 1. Introduction One of the cities in Indonesia that experiences a very high level of development is Bandung. According to BPS (2017) data, the rate of economic growth in Bandung reached 8%. This figure is relatively high when compared to the growth rate of the West Java province, national to international. This high economic growth is an attraction for investors or entrepreneurs to do business in the city of Bandung. The increasing number of businesses caused the intensity of competition in the Bandung area to be high. This condition has made it difficult for small and medium enterprises (SMEs) to develop their businesses. One way for SMEs to compete is to innovate and be creative in their business ac- tivities. One of the SMEs in Bandung is Soca Sundanesia. The products offered are fashion sunglasses made of wood ma- terial. Because of its limitations, until now Soca Sundanesia only sells its products online through Instagram. Although it has been established since 2017, the business development of Soca Sundanesia has not experienced significant growth. The high competition with other eyewear manufacturers has caused Soca Sundansia to be unable to expand its market share. Entering mid-2019, company management feels that they need a new strategy in order to survive in competition. Previous studies have mentioned the link between innova- tion and SME performance. According to Soderling [1], innovation in SMEs is related to how their businesses reach business opportunities through product development, mar- ket expansion, and organizational growth. Innovation is also related to adding value received by customers. The conclu- sion is that innovation can be a mechanism for companies to adjust to the changing dynamic business environment. One of the elements needed to produce an innovation and integrated in business processes is through design. Design becomes very important for small and medium enterprises because it can improve communication and product devel- opment, and can be a source of support for innovation [2]. The same opinion was expressed by Lockwood et [3] who stated that design has more potential to direct business change, strengthen innovation, create customer experience, and add value. According to [3], design creates value through innovation, improving functions, visual differentia- tion, strengthening brands and giving positive energy to