Key Success Factors of Aarong

Aarong is an enterprise of BRAC (Building Resources across Community) and

it‟s a CSR based handicraft company established in 1978. Aarong means “village
fair” Today; Aarong reach has spread beyond Manikganj to the rest of the
country. At present Aarong is operating through 9 domestic outlets and one
franchised outlet in London wear handloom terracotta retail chains Bangladeshi
patterns paid for. Aarong has more than 488 products in their outlets. They have
grown into a thriving international enterprise showcasing ethnic to beautiful crafts
from silks, cotton, Endi to, bamboo, jute and much more. From a single shop,
Aarong has grown into one of Bangladesh’s biggest , with Twelve outlets spread
across the major metropolitan areas of the country – in Dhaka, Chittagong,
Khulna, Sylhet and Comilla, Narayangonj and one in London, UK. Aarong
embraces and nurtures a diverse representation of 65,000 artisans, 85% of
whom are women. Aarong also plays the role of protector and promoter of
traditional products and designs. It houses an extensive design library where
remnants of our rich craft heritage, such as Nakshikatha art and Jamdani , have
been widely researched and archived for present as well as future use. Aarong
was born out of a need to ensure that the penniless silk farmers of Manikganj
were their goods upon delivery, so that they could feed their families. The women
Aarong employs are among the countries most disadvantaged. Through Aarong
they have been offered a way out of destitution and degradation where before
they had none.

History

“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
began as a cause – a means to an end for a quiet organization fighting to uphold
the dignity of the marginalized. In 1976, 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, Aarong’s 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, Narayangonj, Comilla and Sylhet and one in London, UK.
Throughout Bangladesh and in international destinations, the name Aarong is
synonymous with quality, originality and uniqueness. The women Aarong
employees are among the countries most disadvantaged.

Through Aarong they have been offered a way out of destitution and degradation
where before they had none. And the benefits that they receive extend well
beyond simply the wages they earn for their products, since every single woman
who works in Aarong-owned production facilities is also a beneficiary of BRAC’s
multifaceted development programs. As a support entity of BRAC, a significant
portion of Aarong earnings go directly into financing the NGO‟s development
programs in healthcare, education as well as economic and social development.
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

Naming:

The name of the organization “Aarong” is a Bengali word. It means Village Fair.
The village fair provides craftsman 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 culture and artistic heritage. “AARONG” means: A:
Active: we will execute our plans in an active manner.

A: Appealing: we will make ourselves and our workplace appealing.

R: Reliable: we will carry out our duties in a reliable manner.

O: Outstanding: w will perform in an outstanding manner.

N: Novel: we will always look for novel creative ways of improving everything we
do.

G: Genuine: we will be genuine in our thoughts and actions.

Diagram: Aarong over the years

Today’s Aarong
Today, Aarong serves through 13 retail stores across the country and employs
more than 65,000 rural Bangladeshi artisans, of which 85 per cent are women.
Aarong believes in setting high standards for the quality and craftsmanship of its
products and designs. It sets the trend of blending the traditional with the
contemporary, which revitalized consumers‟ interest in Bangladeshi products and
designs. At Aarong, we aspire to bring all that we love about Bangladesh to
customers around the world. In 2006, and again in 2012, a number of Aarong
products received the UNESCO Award of Excellence for Handicrafts. As a fair
trade organization, Aarong‟s products are exported to fair trade companies
across Asia, Europe and North America.

Aarong is the top trend house in Bangladesh and initiate in promoting the trend
industry of Bangladesh. Aarong has established in 1978. Quality, originality and
uniqueness are three basic characteristics of Aarong. It is supported by BRAC
NGO. Aarong is conducting all its operation with Ayesha Abed Foundation (AAF).

OVERVIEW OF HANDICRAFT

Handicrafts are mostly defined as „items made by hand‟, often with the use of
simple tools, and are generally artistic and for traditional in nature. They are also
object of utility and object of decoration. Some common types of handicrafts are
Textile based handicrafts, Clay, Metal, Jewelers, Woodwork, Stone Craft, Glass
and Ceramic.

Handicraft industry of Bangladesh

Handicraft sector in Bangladesh is comprises with small manufacturing units and

mostly located in rural areas, operated either by the owner themselves or with
the assistance of a small work force of 10-20 people. Most enterprises use
traditional techniques with or without the use of tools or simple instruments. Total
number of workforce associated with the industry stands approximately over 3
million of which over three quarters are employed in textile, jute goods, wood,
leather, cane and bamboo.. Key players in the sector involved in domestic
supplies as well as exporters are:

 Non-Government Organization (NGO) exporters of Handicrafts. (e.g. Arong)

 NGO supportive product house (Non exporters)
 Private manufacturers /exporters. (e.g. Various jute good manufacturers)
 Small private manufacturers (Non exporters, e.g. Naksha, Rang, Nabarupa etc.)

Handicraft Products of Bangladesh

There are a great variety of Handicrafts products produced in our country. These
are:

1. Antiques & Collect

2. Bamboo & Wooden Crafts
3. Crafts Gifts

Characteristics of handicraft-based Retail Industry

Retail Industry: Small to huge store

The spectrum of Retail Industry is quite wide in nature. Retail serves consumers
through a small grocery store to a huge departmental store. Retail Industry is
heavily dependent on consumer spending. During economic slow-down
consumer spending decreases and it poses threat to the Retail industry.
Consumers‟ confidence is one of the key drivers of the industry.