Aarong
Introduction:To provide a stable and gainful source of
employment for the under privileged rural artisans, lift up the
traditional identity and the commitment of quality service
On the basis of these principal Aarong started its journey in
Bangladesh. Aarong is an organization that is dedicated to change
the lives of disadvantages, promoting traditional products from
Bangladesh and opening the doors so their products can be exported.
Throughout Bangladesh and in international destinations, the name
of Aarong is the synonym of quality originality and uniqueness. The
designer and the creators of the product range offered by Aarong,
have not only established the organization as leaders in deshi
handicraft, but have also reignited interest and popularity for
styles and traditional crafts that are native to the country. It is
the gracious blend of contemporary and customary that ensures that
each product is original and saleable in modern society. Aarong
therefore has thousands of artisans producing pottery work,
jewelry, woven baskets, silk, leather items, brass pieces and
magnificent wood cravings. Today, few urban consumers will argue
that Aarong is the local Mecca for deshi handicraft. Aarongs
product designs has brought consumer attention back to the products
and styles that are indigenous to Bangladesh, its designers
blending the traditional with the contemporary in a manner that has
won instant consumer appeal, starting a revolution in trends that
has now been taken up by countless other boutiques and stores.
Aarongs product designs focus on the diverse types and textures of
crafts and patterns that have been passed along from generation to
generation among weavers and artisans in craft hubs around the
country. The name of the organization Aarong is a Bangla word. It
means a village fair or market. The village fair provides of all
trades a marketplace to display and sell their traditional
handicrafts. The naming of Aarong as such upholds the organizations
commitment to promote the indigenous goods of our country, which
are a part of our rich cultural and artistic heritage. It is the
handicraft marketing arm of BRAC (Bangladesh Rural Advancement
committee), the largest NGO in Bangladesh. Aarong has created a
village fair for the craftsmen of all trades come together to
exhibit and sale their traditional handicrafts. It helps vitalize
the traditional craftsmanship and find a wider market for their
products nationally and internationally.Established in 1978, Aarong
is a fair trade organization dedicated to bring about positive
changes in the lives of disadvantaged artisans and underprivileged
rural women by reviving and promoting their skills and craft.
Reaching out to weavers, potters, brass workers, jewelers, jute
workers, basket weavers, wood carvers, leather workers and more,
Aarong embraces and nurtures a diverse representation of 65,000
artisans, 85% of whom are women. Today, Aarong has become the
foundation upon which independent cooperative groups and
family-based artisans market their craft, in an effort to position
the nations handicraft industry on a world platform of appreciation
and acknowledgement. Over the years, Aarong has earned a name as
one of the finest rural craft producers and marketer in home and
abroad.
Background of the Organization:Aarong began as a cause a means
to an end for a quiet organization fighting to uphold the dignity
of the marginalized. In1976, when BRAC- a Bangladeshi NGO dedicated
to alleviating poverty and empowering the poor, first began
encouraging sericulture for women in Manikganj, their only buyers
were a few scattered retailers in Dhaka. Weeks, even months would
pass between supply and payment, until BRAC intervened. Aarong was
born out of a need to ensure that the penniless silk farmers of
Manikganj were paid for their goods upon delivery, so that they
could feed their families.
Today, Aarongs reach has spread beyond Manikganj to the rest of
the country. It has grown into a thriving international enterprise
showcasing ethnic wear to beautiful crafts from silks, handloom
cotton, endi to terracotta, bamboo, jute and much more. From a
single shop, Aarong has grown into one of Bangladesh's biggest
retail chains, with eight stores spread across the major
metropolitan areas of the country - in Dhaka, Chittagong, Khulna
and Sylhet and one in London, UK. Aarong symbolizes fairness in the
global village. The organization has identified three basic
constraints for gainful employment of the low income and
marginalized people in the rural areas: lack of working capital,
marketing support and opportunity for skills development. In order
to bridge these gaps, Aarong provides a wide range of services to
its workers and suppliers: Spot payment on product delivery to
encourage efficiency and productivity Reach out to producers in
remote areas to ensure fair value for their efforts Marketing
communication and information for artisans Advances against
purchase orders where necessary Training & Education in skills
development to raise product quality and marketability Product
Design and Support in Product Development Quality Control to
increase producer awareness of the importance of quality
These values reflect fair trade principles which have been
developed by registered Fair Trade Organizations. It contributes to
sustainable development by offering better trading conditions to,
and securing the rights of, marginalized producers and workers in
Bangladesh.
Aarongs Mission Statement:To make Aarong the best in the world
in providing a unique Bangladeshi lifestyle experience to empower
people and promote Bangladesh while protecting our environment.
Vision:Aarong has a vision to establish them as worlds one of
the famous fair trade fashion house, and to remain market leader
throughout its business. Aarong expanded its business in
international arena. Aarong has a dream to develop more artisans of
Bangladesh and make them self-dependent and attract more and more
international customers towards Bangladeshi culture.
Goals: Empowering destitute rural women by providing
opportunities for employment and income generation. Ensuring
commercial success of the enterprise of women producers. Reviving
traditional skills of rural artisans. Services: Free Medical
check-up including free eye treatment, eye-glasses and treatment
costs for severe illnesses Advance wage payments for employees in
need Day care services Workers retirement fund Twenty five thousand
independent cooperative groups and traditional family-based
artisans also market their crafts through Aarong. Potters, Brass
Workers, Jewelers, Jute workers, Basket Weavers, Handloom Weavers,
Silk Weavers, Wood Carvers, Leather workers and various artisans
with specialized skills from all over the country come to Aarong
for marketing and support services.
Brand and customer overview:The word Aarong means village fair.
The brand is meant to generate an emotional connection and loyalty
while bringing people together to showcase the best that
Bangladeshis highly skilled artisans have to offer. The Aarong
brand is well-known in the urban and middle-class communities and
is synonymous with high-quality products that bring consumer
attention back to the products and styles that are indigenous to
Bangladesh. The customers of Aarong are not only the urban
Bangladeshi communities but also include Bangladeshis expatriates
looking for products that connect them to their roots and represent
their identities as a Bangladeshi. The customers also include
foreigners visiting Bangladesh, and as a result Aarong was
mentioned in the guide to Bangladesh, Lonely Planet. It is a place
to pick up a piece of Bangladesh as a souvenir to remind them of
the culture, vibrancy and warmth of the people and country.
Products and services of Aarong: Holding the steadfast to its
original Mission, Aarong today supports the lives and livelihoods
of thousands of rural artisans and handicraft producers. These
producers and artisans create wide range of products for the
different types of consumers in home and abroad. The products are
unique and traditional and appealing to the modern consumers,
starting from clothes, accessories to home wares. Aarong designs
and creates clothes for women, men and children. There are
designers and more than 3000 weavers across the country are
involved with the production of Aarong clothing lines. And for the
fashionable accessories there is one special department called
jewelry department where jeweler creates elegant jewelries that are
contemporary yet traditional using gold, silver and jewels like
pearl, emerald and diamonds. The other accessories like bag,
sandals and produced in AAF centers using leather, jute, bamboo
etc. In home ware and decorative Aarong produces pottery vases and
sculpture of wood, bamboo, brass and clay etc. For exporting the
products Aarong has a separate department in head office and very
selective artisans work here to produce fine quality products and
these are sent to the production centres as sample of the exporting
products. Here is the list of products Aarong produces:
Clothes & Accessories: MEN'S PRODUCTS1. Traditional2.
Executive Shirts3. Maanja4. Fotua5. Short Kurta6. Tshirts7.
Stoles/Shawls8. Sandals
WOMEN'S PRODUCTS1. Traditional2. Western3. Nightwear4.
Shawls/Scarves5. Shoes6. Bags7. FabricsCHILDRENS PRODUCTS1.
Clothes2. Toys3. Books4. Shoes
JEWELRY PRODUCTS1. Gold2. Silver3. Pearl4. Other
LEATHER PRODUCTS1. Shoes2. Bags/Wallets3. Belts4. Boxes5. Photo
Frames
NAKSHI KANTHA PRODUCTS1. Decorative2. Wall hangings3. Christmas
decorations
Along with the clothes, accessories and home ware Aarong also
produces food products like milk, flavored milk (mango &
chocolate) juices (mango & tamarind), yogurt drinks (orange,
strawberry), curd (sweet & sour), butter and honey. And herbal
skincare products like soaps, shampoo, oil and face pack etc.
Home Wares & Furniture:HOME ACCESSORIES1. Curtain2. Bed
cover & cushions3. Rugs4. Table Lamps5. Photo Frames6.
Coasters7. Napkin Rings8. Mats9. Trays10. Cutlery11. Bowls and
Platters12. Photo Frames13. Bookends14. Boxes15. Hammocks16. Plant
Accessories17. Candles
Aarong Retail Outlets:Aarong sales its products through its own
outlets, Aarong follow zero distribution channel. Around the
country Aarong has ten outlets six outles in Dhaka in six major
parts (Dhanmondi, Gulshan, Uttara, Maghbazar, Wari and Mirpur) and
outside Dhaka Aarong has two outlets in Chittagong, one in Sylhet
and one in Khulna. And outside Bangladesh Aarong has one shop in
London, United Kingdom.
Ayesha Abed Foundation (AAF) Centers:As of 2013, Aarong operated
13 AAF centres and 638 sub-centres that are responsible for
employing more than 30,000 artisans, mainly women. The AAF aims to
work with the most underprivileged women in the society. Therefore,
the centres and sub-centres are located in semi-urban or rural
areas. AAF engages its workers with other women of similar
socio-economic backgrounds and creates a platform which they can
use to achieve income generation and personal growth. Using that
platform, women receive trainings and can choose to utilize the
opportunity to change their lives. The AAF is closely interrelated
with other BRAC programmes; the female workers are the participants
or a family member of the participants of the village organizations
of BRACs development programmes-. These organizations are involved
in microfinance and other economic, social and environmental
development programs.
Promotion of Aarong:As it is in other avenues, Aarong is a
trendsetter in promotional activities as well. Having been one of
the first Bangladeshi brands to use professional models and create
sophisticated ad campaigns, Aarong continues to set the style and
quality Standard for promotion by achieving greater levels of class
and elegance with each campaign. Aarong also selects its
promotional mediums carefully to ensure accurate reflection of the
brand's values. Aarong's promotional events - such as its carefully
orchestrated fashion shows, unique and detailed exhibitions and
highly popular sales events - have become a significant part of
popular culture in urban Bangladesh. Aarong also focuses on
in-store promotional activities such as its 'My Aarong Rewards'
programme to enhance customer experience. Aarong maintains a
dedicated marketing staff to assist with major marketing
initiatives including traditional print and billboard advertising,
exhibits and fashion shows. In 2008, Aarong celebrated its 30-year
run by participating in numerous fashion shows and sponsoring a
nakshi katha exhibition titled Story of Stitches at the National
Art Gallery of Bangladesh. Aarongs export business started in 1986,
with an initial order from Traidcraft, a UK-based fair trade
organisation. Aarong is a recognised fair trade organisation and a
provisional member of IFAT, the global network of fair trade
organisations. Based on Aarongs reputation as a social business, it
has successfully grown its export customer base over the last 20
years through the addition of a number of fair trade organisations
in Europe, North America, Australia and New Zealand. The fair trade
organisations are mostly wholesalers that channel products to
retail outlets such as world shops or fair trade shops. Goods sold
in this form are usually marketed under the importers brand;
however, retailers tend to attach stories in the tagline or
promotional materials about Aarong and the social and financial
benefits it provides for the development of the underprivileged
artisans. Aarong remains focused on a long term strategy to enter
the mainstream Western markets.
Brand value:Aarong stands for a unique mix of design, quality
and convenience, of the traditional and the contemporary. Aarong is
one-of-a-kind - globally positioned as a highly successful
Bangladeshi craft-based retail chain and brand of pride. It also
carries the distinction of being BRAC's most successful social
enterprise. Aarong's responsibility is therefore two-fold -
delivering unique products with the highest level of quality and
service to its customers and the strongest level of support and
protection of artisans and their craft. To its consumers, Aarong is
a household name - a one-stop shop and a trusted brand that
inspires pride, promises quality and sophistication, and helps to
keep cultural roots alive in everyday life. For the artisans,
Aarong represents the endurance of both their age-old art as well
as their livelihoods. For consumers and artisans alike, Aarong has
become a part of the cultural fabric of their lives.
Export:Aarongs export business started in 1986, with an initial
order from Tradecraft, a UK-based fair trade organization. Aarong
is a recognised fair trade organization and a provisional member of
IFAT, the global network of fair trade organizations. Based on
Aarongs reputation as a social business, it has successfully grown
its export customer base over the last 20 years through the
addition of a number of fair trade organizations in Europe, North
America, Australia and New Zealand. In 2007, nearly five per cent
of sales came from exports, approximately 85 per cent of which were
to fair trade organizations and the remaining 15 per cent to
commercial organizations. The fair trade organizations are mostly
wholesalers that channel products to retail outlets such as world
shops or fair trade shops. Goods sold in this form are usually
marketed under the importers brand; however, retailers tend to
attach stories in the tagline or promotional materials about Aarong
and the social and financial benefits it provides for the
development of the underprivileged artisans. Aarong maintained a
London-based franchisee that accounted for approximately 11 per
cent of total export sales in 2007. Aarong franchised itself in
London to cater to the needs of the large Bangladeshi community
living in the region. However, the franchise was not continued
after 2010 in anticipation of launching an e-commerce website. In
1991 and 1992, Aarong opened its own retail outlets in Vancouver
and London. Due to poor management and inventory control both
locations were closed in 1994; however, Aarong remains focused on a
long term strategy to enter the mainstream Western markets.
Terms and Conditions for International
Business:Beneficiary:BRAC66 Mohakhali C/A, Dhaka 1212BangladeshTel:
880-2-9885424, 880-2-8824180Fax: 880-2-8828576, 880-2-8823614
Payment to:L/C at sight or 50% Advance* with order & 50%
before shipment by T.T. to-BRAC Bank Limited1, Gulshan Avenue,
Gulshan-1, Dhaka-1212,BangladeshTel: 880-2-8824501;Fax:
880-2-8813543Account # 150180010606Account Name: BRAC Aarong
Delivery:Between 60 to 120 days, depending on volume of order,
on receipt of L/C.
Port of Dispatch:By Air: Zia International Airport, Dhaka.By
Sea: ICD Dhaka for Full Container Load (FCL); Chittagong for Loose
Container Load (LCL).
Packing:Fragile items are packed individually in 3 ply carton
boxes and master packing in 5 or 7 ply carton boxes. Other
non-breakable items are packed individually in a ploy bag and
master packing in 5 ply carton boxes (20/25 kgs in a box.). Freight
and Insurance:Freight and Insurance to be covered by the importer
which varies from port to port. *Advance: If 50% is paid in advance
againstthe ordered value,then the documents will be sent to the
importers directly. Otherwise the documents will be sent to the
bank for collection against bill of exchange.
SWOT Analysis of Aarong:
Strengths:Aarong is a very reputed organization. They are now
capturing 68% of total handicraft market share in Bangladesh. Its a
local brand and now exporting their products outside of the
country. Aarong has good reputation for fine quality products. It
has a strong management team who are continuously giving their
great effort to make it a successful one. Another important fact is
that, Aarong has almost Zero production damage rate which reduces
their cost. They are innovative and always bring some new product
in the market which meets customer requirement and expectations.
The organization is a respected employer that values its
workforce.
Weaknesses:Aarong has a reputation for new product development
and creativity. However, they remain vulnerable to the possibility
that their producer may not be able to produce product timely due
to their inability. The collection channel of the organization is
not that much structured so that they can get the products from the
producer on time and it may create problem for them in future. If
any producer is not able to make the product on time due to some
personnel problem then the company will also not be able to deliver
their product on time. This is a big problem and it happens most of
the time on delivery. Aarong charges higher price relatively than
their other competitors as a result sometimes customers lose their
interest to by product from them. Its sales force or sales girls
within the outlet are not properly trained up. Sometimes they make
customers disappointed by their attitude and customer doesnt feel
good to buy from there. Sometimes they suffer for financial
problem, although its a rare situation.
Opportunities:Aarong is very good at capturing the advantage of
opportunities. It can go for new distribution channel like it can
make some joint venture with some other small Boutique and sales
its products in more places. Through that it can capture more
market share in the handicraft industry in Bangladesh. Aarong can
expand its business globally. New market for handicraft such as
Europe and America are beginning to emerge. People are now trendier
about local events & functions like Pahela Falgun, Pahela
Baisakh, Victory day, Independence Day etc and they buy new and
special products for these events. Aarong can make new products to
sell in those special occasions. According to the season change,
people are also changing their preference in buying products and
considering this scenario Aarong can produce products on the basis
of seasonal variations.
Threats:Aarong doesnt have any big competitors right now. But
they have some small competitors like Kay Kraft, Anjans, Deshal,
Jattra, Khubsurti, Rina Latif, OZ, Rang and some other Boutiques
established at Banani 11, who are taking their 32% customer and
increasing in a slow rate. Aarong always face price wars with their
competitors. Its competitors have some superior products like OGs
Panjabi shape, Khubsurtis design of Salwar kamiz Rangs Sharis
color, which is decreasing Aarongs market share as well as sales.
But now they are repositioning their Brand to compete with
them.
Recommendation:Some recommendations which Aarong can use for
their advancement- Maintaining international standard of the
products Aarong can expand their marketing area in abroad.
Publicity is very important to make a positive image at consumers
heart so that they need to have a good publicity especially in
abroad. Observing marketing possibilities they can establish their
outlet over the world. Participating in every international trade
fair they can make publicity. The price of products is so high.
They should minimize their selling price. They should target in
common people; it will add further value in customer satisfaction.
Besides taking interviews Aarong should take written test on the
computer to understand the applicants computer literacy and other
job related knowledge. The Training for the sales associates should
be more related to their job responsibilities rather than just
product orientation. The amount of work in HR department is huge
but the manpower is comparatively lower. As the Organization is
ever growing Aarong should recruit more HR personnel to get the
jobs done in a more effective manner. Aarongs website should be
updated more frequently with the current issues and vacancies. It
will ease the work of HR as more people would be informed. Aarong
should introduce online application for their vacancies, it will
help them reducing cyber hunting times in bd jobs and other sites
The compensation package in Aarong is not Attractive they should
restructure their salary and other compensation. As there is
competency gap in employees Aarong should start employee training
and other development programs to develop the employees. Government
should mostly contribute in this sector. Establish fashion
institute and arrange fashion competition in the country. Invite
foreigner; etc.
Conclusion:Established in 1978, Aarong is a fair trade
organization dedicated to bring about positive changes in the lives
of disadvantaged artisans and underprivileged rural women by
reviving and promoting their skills and craft. Reaching out to
weavers, potters, brass workers, jewelers, jute workers, basket
weavers, wood carvers, leather workers and more, Aarong embraces
and nurtures a diverse representation of 65,000 artisans, 85% of
whom are women. Today, Aarong has become the foundation upon which
independent cooperative groups and family-based artisans market
their craft, in an effort to position the nations handicraft
industry on a world platform of appreciation and
acknowledgement.
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