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Moslem fashion is potentially the next big thing in the retail industry. This research uses a marketing approach to investigate the relationship between marketing innovation and competitive strategy in Moslem fashion online shopping business by engaging in local Small-and Medium Enterprises in West Java. We conducted a quantitative approach by extracting the dimensions of marketing content and technology in marketing innovation. In addition, we looked at the cost leadership, differentiation, and focus on competitive strategy. The author collected the data from 295 respondents who did the survey within three months. The results demonstrate and strongly support the idea that the use of social media in marketing innovation contributes to its competitive strategy, especially in the differentiation strategy. However, the quality of the product becomes the most crucial thing in marketing innovation and has implications for the sustainability of business performance in the Moslem fashion industry in Indonesia.