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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