Aarong

Aarong

Type	NGO
Industry	Design, sales of clothing, accessories, jewellery, home goods, development, economic empowerment of women
Founded	Dhaka, Bangladesh (1978 (1978))
Founder	Ayesha Abed Martha Chen
Headquarters	Dhaka, Bangladesh
Area served	Bangladesh
Key people	Sir Fazle Hasan Abed, Chairperson, BRAC Dr. Mohammad Musa, Executive Director, BRAC Tamara Hasan Abed, Senior Director, Mohammad Ashraful Alam, Chief Operating Officer Sasi Kumar, Head of Operation, AAF
Products	Clothing Jewellery Fabric Non-textile craft Leather goods Footwear Houseware
Revenue	USD 20 million (FY 2012)
Website	www.aarong.com

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.^[1][2]

History

In the 1970s, BRAC was examining any and all possibilities for alternative forms of productive livelihood, especially for women, and the proper commercialisation of arts and crafts turned out to be a promising option. In 1976, Ayesha Abed, the wife of Sir Fazle Hasan Abed, founder of BRAC (NGO)BRAC, initiated many of the major activities of Aarong by identifying and experimenting with various crafts that women could produce at home such as nakshi kantha, embroidered goods, baskets, mats and items made of cane, bamboo and jute. However, the two main obstacles to turning craft production into a worthwhile enterprise were maintaining good quality and proper marketing. In 1978, BRAC entered into a joint venture with the Mennonite Central Committee, the international development arm of the Mennonite Church, to open a shop in Dhaka called Aarong – meaning 'village fair.' The Mennonites had a long experience of producing handicraft to generate income and had established a programme called Ten Thousand Villages, which worked with artisan groups around the world and sold their products through catalogues and retail shops in the US and Canada. In the first year the Mennonites assisted with the business side of the operation while BRAC worked to develop the skills of village women and their products. During the late 1970s and early 1980s, BRAC focused on developing Aarong's product lines and production capabilities. They began to study and catalogue the designs and motifs of traditional art forms by visiting museums, elderly craft masters and private collectors. They experimented with indigenous forms and materials, adapting them to possible new lines. They hired master craftsperson to help train village women and created a textile design and service workshop in Manikganj to experiment with materials and technologies in stitching, weaving and dyeing. BRAC also started producing historically imported items such as, men's panjabi. In 1982, the Ayesha Abed Foundation (AAF) was established by family and friends to commemorate the memory and work of the late Ayesha Abed who died leaving behind her newborn son, Shameran, and young daughter, Tamara. The foundation was created to develop women's skills in various crafts through an appropriate working environment, financial and technical assistance and training. Initially it was registered with the government to receive foreign charitable donations and raise funds, but now operates exclusively as a part of Aarong. The AAF board comprises the eight family and friends of the late Ayesha Abed. Its budget is part of the Aarong initiative under BRAC. The AAF workers are all members of BRAC's village organisation groups or the family of the members.

AAF's first project, the Manikganj centre, was opened on 3 September 1983. The foundation buys handicrafts made by the village women, other NGOs and handicraft producers. In addition to starting the AAF, Aarong opened four retail outlets and began exporting a small percentage of goods to fair-trade organisations during the 1980s. By the mid to late 1980s Aarong began to emerge as a fashion brand despite the fact that Bangladesh was still new to the fashion industry. Aarong was the first brand to start organising photo shoots along with fashion shows, exhibitions and other forms of media-focused events. Through these groundbreaking marketing initiatives, Aarong was able to expand its popularity and brand identity within the country. By the early 1990s, Aarong became the leading fashion house in Bangladesh and had created a one-stop destination for middle to upper class urban shoppers. At the same time, Aarong's product designs brought consumer attention back to the products and styles that are indigenous to Bangladesh. Its designers blended the traditional with the contemporary in a way that catered to consumers and started a revolution in trends, adopted by countless other boutiques and stores. During the 1990s, Aarong continued to build brand equity through fashion shows and media publicity events. The emerging prominence of fashion in Bangladeshi society played a catalysing role in doing this. Aarong also continued to expand its production capacity with the addition of three new AAF centres. However, by the late 1990s and early 2000s, Aarong faced a financial setback as a result of mediocre management and a lack of innovation. Between 2001 and 2004, the company was restructured to improve everything from costing, pricing, design and marketing to new product introductions and brand innovations. In 2004, its sales totalled almost USD 14 million. Aarong earned a profit of USD 1.96 million for BRAC which was distributed among its agriculture, education, and health programmes, with the majority going to a special programme for the ultra poor. In 2013, Aarong had crossed USD 50 million in sales.

Aarong Sholoshahar Branch Outlet Interior

Growth and success

Today, Aarong's reach has spread beyond Manikganj to the rest of the 64 Districts of Bangladesh districts of the country. It has grown into a thriving enterprise showcasing ethnic wear to 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 18 stores spread across the major metropolitan areas of the country – in Dhaka, Chittagong, Comilla, Khulna, Sylhet, Narayanganj, Bogra and Mymensingh. The company also operates 13 AAF centres while ensuring the livelihood of over 65,000 artisans.

Brand and customer overview

The word Aarong means 'village fair'. 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.

Design, manufacturing and distribution overview

Aarong uses decentralised manufacturing process to accomplish its goal as a social business by employing production workers in various rural and semi-urban areas. A purely commercial business would locate its production centres in concentrated areas where infrastructure and a low-cost labour supply are available. Many of the products are produced in off-site locations by workers who have very little exposure to the final products that are sold at the retail level. An overview of the design, manufacturing and distribution process is outlined below.

Aarong's process flow

Outlets

References