Aarong is a social enterprise and retail chain in Bangladesh established in 1978 by BRAC to provide market access to artisans. It operates production units that employ over 65,000 artisans, primarily women in rural areas. Aarong ensures fair prices and skills training for artisans. It has become a leader in the handicraft market, capturing 68% share, and promotes Bangladeshi handicrafts globally through high quality, innovative products. While successful, it faces challenges in timely production and higher prices compared to competitors. Opportunities exist in new markets and seasonal products. Threats include smaller competitors and price wars. The report recommends addressing prices and training to strengthen Aarong's position.

1. SWOT analysis/matrix: is an acronym for strengths, weaknesses, opportunities, and threats
and is a structured planning method that evaluates those four elements of an organization, project
or business venture. A SWOT analysis can be carried out for a company, product, place, industry, or
person. It involves specifying the objectives of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that objective. Some
authors credit SWOT to Albert Humphrey, who led a convention at the Stanford Research
Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies,
However, Humphrey himself did not claim the creation of SWOT, and the origins remain obscure.
The degree to which the internal environment of the firm matches with the external environment is
expressed by the concept of strategic fit.
 Strengths: characteristics of the business or project that give it an advantage over
others.
 Weaknesses: characteristics of the business that place the business or project at a
disadvantage relative to others.
 Opportunities: elements in the environment that the business or project could
exploit to its advantage.
 Threats: elements in the environment that could cause trouble for the business or
project.
Arong
Aarong is one of the retail chains in Bangladesh operating under BRAC. The organisation was
established in 1978. Aarong operates production units in rural and semi-urban areas as a part of its
social enterprise model and provides the market linkage through its own retail outlets
History
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.
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 the se
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

2.  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. Fair Trade is a trading partnership, based on dialogue, transparency and respect, that
seeks greater equity in international trade. It contributes to sustainable development by offering
better trading conditions to, and securing the rights of, marginalized producers and workers –
especially in the South (IFAT).
Aarong Production Centre
The Ayesha Abed Foundation (AAF) is an organization that aims to provide avenues for employment
and income generation for underprivileged rural women. It is an enclave for women, formed to uplift
them economically, through their work as producers, and also socially, through their development into
entrepreneurs. The Foundation provides an appropriate working environment, financial and technical
assistance, and training to develop the women’s skills in various crafts. The Foundation was
established to commemorate the memory and work of late Mrs. Ayesha Abed, a co-worker and wife
of the Founder and Chairperson of BRAC. The work that is done in the Foundation is a testament to
her commitment to the issues of education, training and employment opportunities for disadvantaged
women. It was she who in 1976 initiated all the present major activities of AAF in Manikgonj.
The AAF aims to work with the most underprivileged women in the society. These women are often
the most neglected and are in need of much assistance and support. The AAF plays the role of a
facilitator. The women are placed in an enabling environment, with other women of similar socio-
economic backgrounds. They are trained and then given the opportunity to generate income. One of
the major challenges that these women have to face is that they are marginalized and they, on their
own, have no way of becoming part of the economic system. This is where the AAF steps in, helping
such marginalized women out of their peripheral existence in society, and giving them the opportunity
to become involved in sustainable enterprise.
The AAF is closely interrelated with other programs, especially BRAC Development Program (BDP)
and Aarong. The women workers of the AAF come from the BDP organized Village Organizations.
Working at the AAF thus gives the women access to other BRAC programs. All of the AAF’s finished
products are sold through Aarong, which additionally provides designs, raw materials and financial
support to the AAF. Since AAF supplies exclusively to Aarong, it is treated as Aarong Production
Centres.
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.

3. 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
WOMEN’S PRODUCTS
 Traditional
 Western
 Nightwear
 Shawls/Scarves
 Shoes
 Bags
 Fabrics
MEN’S PRODUCTS
 Traditional
 Executive Shirts
 Maanja
 Fotua
 Short Kurta
 T-shirts
 Stoles/Shawls
 Sandals
CHILDREN’S PRODUCTS
 Clothes
 Toys
 Books
 Shoes
TEXTILE PRODUCTS
 Bed
 Table
 Living
 Kitchen
 Kids
 Rugs
 Fabrics

4. JEWELRY PRODUCTS
 Gold (see Gold)
 Silver
 Pearl
 Other
LEATHER PRODUCTS
 Shoes
 Bags/Wallets
 Belts
 Boxes
 Photo Frames
 Office
BAMBOO/LEAF PRODUCTS
Living
 Boxes
 Photo Frames
 Dry Decorative
 CD Racks
 Floor Mats
Dining
 Mats
 Napkin Holder
 Trays
 Place Mats
 Coasters
TERRACOTTA PRODUCTS
Decorative Dining
 Bowls and Platters
 Dining ware
 Glasses/Mugs
 Hot Plates
 Pitchers

5. Strength
Aarong is a very reputed organization. They are now capturing 68% of total handicraft market share
in Bangladesh. It’s 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.
Weakness
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 doesn’t feel good to buy from there. Sometimes they suffer for financial problem, although
it’s 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 doesn’t have any big competitors right now. But they have some small competitors like
KayKraft, 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
alwaysface price wars with their competitors. Its competitors have some superior products like OG’s
Panjabi shape, Khubsurti’s design of Salwar kamiz Rang’s Shari’s color, which is decreasing Aarongs
market share as well as sales. But now they are repositioning their Brand to compete with them.

6. Conclusion & Recommendations
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 nation’s handicraft industry on a world platform of appreciation and
acknowledgement.
In these situation I recommend some to go ahead in fashion sector:
1. To eliminate the price.
2. To establish fashion institute.
3. To arrange fashion competition in Country and out of Country.
4. To train up in Fashion and Future trend.
Prepared by:
Mohammad Habibur Rahman
Student ID. : 2016-2-5-003
Dept.: Textile Engineering Management
Msc in Textile Engineering
Bangladesh University of Textiles