Aarong is one the most popular and leading handicraft and ethnic lifestyle brands in Bangladesh.
It has started their journey back in 1978 under BRAC initiative to empower rural artisans and
craftsman. It has supported almost 65000 rural artisans across the country. Throughout the last
decade it has gain major attention and name for themselves also as a fashion retail brand who
promotes Bengali ethnicity and tradition through their products to mass market. But over the
years, there are several major competitors arrived in the market and deshi dosh and their ten
brands are the strong one who are competing with Aarong. Apart from the emergence of these
competition, Aarong is currently in their “maturity” stage in terms of product life cycle. Even in
terms of Michael Porter’s five competitive forces theory, threat of new entrants is high, threat of
substitute is moderate, bargaining power of suppliers is low, and bargaining power of customers
is moderate. So the threat of upcoming competitors overtaking the market is quite high along
with bargaining power of suppliers is low which give Aarong the opportunity to extent their
number of artisans by investing more money which initially can be done by lower bargaining
power of suppliers. So overall the whole market situation indicates that, Aarong should extent
their market and capture major attention of customers by grabbing new market share. And one of
the major ways to achieve this target is, revising the market targeting and coming up with new
strategic positioning strategy for Aarong. In terms of targeting strategy, Aarong is currently
following “extensive targeting approach” where they serve multiple segments with product
variety, in terms of revised targeting, we are going to suggest Aarong to take “selective targeting
approach” where Aarong should target “niche segment” and in those niche segments there will
be “older customers” and “students” and they should also target to offer “product specialization”
by putting more emphasis on “Nakashi Kantha”. And in terms of positioning strategy, Aarong is
following all the three positioning concepts like functional, symbolic, experiential positioning
concepts through their clothing & accessories, home textiles & décor items, jewelry items, metal,
leather items, bamboo goods and food items among customers. So to achieve revise positioning
strategy, they should more focus on enhancing “experiential positioning concept”. To come up
with revised positioning strategy Aarong has to adjust and change their marketing program
decisions. All the marketing components like, product, value chain, price, promotion and its
strategy has to revise according to revised targeting and positioning objectives.
RMG industry in Bangladesh has always been the country's backbone. Being the 3rd largest apparel exporter in the world after China and Vietnam, the South Asian apparel manufacturing powerhouse is showing good signs in its global apparel exports. Team Apparel Resources has prepared a presentation to let the readers everything know about Bangladesh's RMG industry.
Aarong is one the most popular and leading handicraft and ethnic lifestyle brands in Bangladesh.
It has started their journey back in 1978 under BRAC initiative to empower rural artisans and
craftsman. It has supported almost 65000 rural artisans across the country. Throughout the last
decade it has gain major attention and name for themselves also as a fashion retail brand who
promotes Bengali ethnicity and tradition through their products to mass market. But over the
years, there are several major competitors arrived in the market and deshi dosh and their ten
brands are the strong one who are competing with Aarong. Apart from the emergence of these
competition, Aarong is currently in their “maturity” stage in terms of product life cycle. Even in
terms of Michael Porter’s five competitive forces theory, threat of new entrants is high, threat of
substitute is moderate, bargaining power of suppliers is low, and bargaining power of customers
is moderate. So the threat of upcoming competitors overtaking the market is quite high along
with bargaining power of suppliers is low which give Aarong the opportunity to extent their
number of artisans by investing more money which initially can be done by lower bargaining
power of suppliers. So overall the whole market situation indicates that, Aarong should extent
their market and capture major attention of customers by grabbing new market share. And one of
the major ways to achieve this target is, revising the market targeting and coming up with new
strategic positioning strategy for Aarong. In terms of targeting strategy, Aarong is currently
following “extensive targeting approach” where they serve multiple segments with product
variety, in terms of revised targeting, we are going to suggest Aarong to take “selective targeting
approach” where Aarong should target “niche segment” and in those niche segments there will
be “older customers” and “students” and they should also target to offer “product specialization”
by putting more emphasis on “Nakashi Kantha”. And in terms of positioning strategy, Aarong is
following all the three positioning concepts like functional, symbolic, experiential positioning
concepts through their clothing & accessories, home textiles & décor items, jewelry items, metal,
leather items, bamboo goods and food items among customers. So to achieve revise positioning
strategy, they should more focus on enhancing “experiential positioning concept”. To come up
with revised positioning strategy Aarong has to adjust and change their marketing program
decisions. All the marketing components like, product, value chain, price, promotion and its
strategy has to revise according to revised targeting and positioning objectives.
RMG industry in Bangladesh has always been the country's backbone. Being the 3rd largest apparel exporter in the world after China and Vietnam, the South Asian apparel manufacturing powerhouse is showing good signs in its global apparel exports. Team Apparel Resources has prepared a presentation to let the readers everything know about Bangladesh's RMG industry.
This footwear market analysis is done for one of the leading footwear brands in India in order to compare itself with the largest players in the global footwear industry using porter's five forces and SWOT analysis.
Haier: Taking a chinese company global in 2011Ilaria Fiore
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Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
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Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
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14. Profiles of Large, Medium & Small Manufactures
Small Medium Large
Business
Model
Subcontracting,
Low quality
manufacturer
Subcontracting &
own
Mostly own
Types of
Machines Used
Local Local & Imported Imported
Types of Labour Unskilled & Semi
skilled
Unskilled & Semi
skilled
Trained
Channels &
Distribution
Sold to wholesaler Own wholesale
shop
Use own channel
& distribution
Export Not all Sometimes Majority exports
fromo this
segment
15. Value Chain
Dynamics
Raw material and
Leather Supply
Manufacturing Marketing, Sales
and Distribution
Customers
-2 types: Leather
processing &
assembling
- Fluctuations in raw
material price affecst
small scale shoes the
most
- Good factory
condition
- Qualified workers
vs. Less qualified
- Innovation vs. Les
innovation
- Proper distribution
channel for big
players
- SMEs sells to
ditributors
- Promotions: Ad,
trade fair, warranty
- Domestic market
size is growing
- Demanded by
foreign customers
- Mostly B2C: low &
middle income for
SMEs
- Big players: Upper
to middle class
18. Internal Factors
Culture
Very fast growing
companies
Not environment
conscious
Capital
Depends upon
their market
Bank loans are not
much available for
SMEs
the bigger the
company, the bigger
the capital
Capabilities
Capabilities of the
firm decides which
strategy the firm
follows.
Not capable of
exporting Footwear to
cover a big portion of
world market
Except the big
players, others not
capable of large scale
export
19. Middle Factors
Customers
Vary depending
on the type of the
company
Segmented based
on gender and
income level and
age
Competitors
Fierce
competition
Presence of local
and global
competitors
Competitor are
also segmented in
terms of their target
market
Collaborators
Large parts are
located in the
country
Roles begin in the
very early stage of
operations
Vertical
integration tends to
reduce the
dependence
20. External Factors
Technology
Except Bata, no
other companies
are using the latest
machineries
This creates a
negative impact on
environment
Govt. Factors
Rising export of
footwear has made the
government interested
in this sector
Actively trying to stop
environmental pollution
by the tanneries
Tannery shifting plan
is changing the
dynamics of the sector
International
Factors
China is going away
from Footwear export
business
Negative growth rate
of Romania and Brazil
will help Bangladesh to
capture more market
from US and Germany.
Labor cost is lower
than average labor cost
of other countries
23. Firm Strategy
and Rivalry
SMEs
Exposed to international
competition
More flexible
lack investment capability
Often does contract work for
large companies
Intense rivalry among the SME’s
to gain local market
Large Companies
Constant growth in annual
turnover, employability and
profitability
Focused around employing
cheap labor and using low cost
resources
Aside from Bata, all the other
top players are export oriented
Rivalry is high between Bata
and Apex, but the rest don’t
24. Factor Conditions
▪Availability of Raw materials
▪Cheap manpower
▪Cost of production continues to be a challenge
▪Interrupted electricity supply is a huge burden
▪Sector requires high investments into equipment, highly qualified
professionals and qualified workers
25. Demand
Conditions
Market demand of footwear is rising both locally and globally
Rise of dispensable income has created a huge demand for high quality
products
Firms are expected to innovate new designs at a rapid pace
Most local big companies are focused on international market
Less concerned with setting own trends
Local market demand remains unfulfilled
26. Related & Supporting
Industries
▪Advantage comes from existing basic industries (leather and soles)
▪Production of leather is the most important support industry
▪Tannery industry is very competitive
▪Close proximity of the tanneries create national advantage
▪Lack of local machineries manufacturer is an obstacle
▪Big players have robust backward linkage
28. SWOT ANALYSIS
(1/2)
• Growing footwear exports
• Lower wage compared to competitors
• Robust backward linkage
• Government Incentive
• Established International Trading
• No import duty on capital machinery for export oriented industry
• 100% duty free footwear export facility to Japan
STRENGTH
• Lack of skilled designers for product design and development
• No institutional support available for the industry (Such as FDDI in India)
• Lack of QC system, reliance on foreign certification with penalized lead time
• High rate of interest on term loan
WEAKNESS
29. SWOT ANALYSIS
2/2
OPPORTUNITY
• Asian Market to drive
demand due to increasing
economic growth
• Local productions of
sandals and slippers are in
high demand in Middle-
East and Southern Africa
• China shifting focus from
footwear exporting
Threats
• India might stop exporting
cattle
• Rise of Vietnam in the
global footwear sector
• Political Instability
32. Where we are
now?
Market size of footwear sector : 1%
Increasing growth in export
Bata is the market leader in the domestic
market
Apex is the leader in export
Apex is the largest leather shoe
manufacturer
Low labor cost in Bangladesh over China
Positive
Sides
33. Where we are
now?
Lack of training facilites for SME
footwears
High Rent
Low innovation for SMEs
Limited leather made accessories
Due to tanneris in Hajaribag, wastes are
dumped into Burganga River
Dependent on India’s Leather
Problems
34. Where we want to
go?
Market Diversification
Increased Market Share
Increased Export
Jute/cloth made products
35. Identified Gaps in the
footwear Sector
01 Limited Leather
Made Accessories
02 Underutilization
of SMEs
03 Lack of training for
SME workers
04
Idenfiying the
substitute of
Leather
36. Framework For Overcoming Gap Analysis
Training
workers
Leather made
Product line
exention:
-Wrist watch
-Bags
-Jackets
Capitalizing
SMES
- Product
Innovation
- Jute/Cloth
made
Products
Resource
Development
Innovation Sector Development
Outcome
38. Recommendations (1) Increased leather made
products
(2) Taking care of SME
sector
(3) Financial incentives for
SMEs
(4) Supporting Market
Diversification
(5) Shift from hazaribag to
Savar
