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Introduction:
To provide a stable and gainful source of employment for the under
privileged
rural
artisans,
lift
up
the
traditional
identity
and
the
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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
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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.
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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
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1. Gold
2. Silver
3. Pearl
4. Other
LEATHER PRODUCTS
1. Shoes
2. Bags/Wallets
3. Belts
4. Boxes
5. Photo Frames
NAKSHI
KANTHA
PRODUCTS
1. Decorative
2. Wall hangings
3. 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.
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HOME ACCESSORIES
1. Curtain
2. Bed cover & cushions
3. Rugs
4. Table Lamps
5. Photo Frames
6. Coasters
7. Napkin Rings
8. Mats
9. Trays
10. Cutlery
11. Bowls and Platters
12. Photo Frames
13. Bookends
14. Boxes
15. Hammocks
16. Plant Accessories
17. Candles
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 30year 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
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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
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Payment to:
L/C at sight or 50% Advance* with order & 50% before shipment by T.T. to11 | P a g e
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.).
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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
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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
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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
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
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effective manner.
Aarongs website should be updated more frequently with the
current issues and vacancies. It will ease the work of HR as more
help them reducing cyber hunting times in bd jobs and other sites
The compensation package in Aarong is not Attractive they should
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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