6 Export Opportunity Aarong is the countrys biggest handicrafts retailer doing

6 export opportunity aarong is the countrys biggest

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Export Opportunity Aarong is the country’s biggest handicrafts retailer doing business from 1978 having artisan base about 65000 generating highest lifestyle revenue and proven the most successful business model as social enterprise. Aarong's export business started in 1986, with an initial order from Tradecraft, a UK-based fair trade organization. Aarong is a recognized fair trade organization and a provisional member of IFAT, the global network of fair trade organizations. Based on Aarong's 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. Aarong maintained a London-based franchise that accounted for approximately 11 per cent of the total export sales in 2007. Aarong franchised itself in London to cater to the needs of the large Bangladeshi community living in the region. Growth potential The export earnings from the handicraft products increased quite steadily during the past decades. From about US $ 3.45 million worth of exports back in 1980-81, total earnings from the sector rose to US $ 6.41 million during the fiscal year 1995-96. And such a spectacular increase in export earnings from the sector has been most steady, and the rate of growth one of the highest. For instance, during the last 16 years export earnings from handicraft products grew by more than thousand times. Even during the period 1985-86 to 1991-92 export earnings from the sector grew at the rate of 79.70 per cent per annum. The export earnings increased tremendously during the year of 1989-90 amounted to US $ 5.18 million. 1991-92 fiscal year is considered to be the 'Golden Year' for Bangladesh, because the export earnings from handicrafts stood at US $ 8.72 million which was the highest amount ever since the export of handicraft was introduced. The market is much larger now, and as of last year Aarong’s last year’s revenue was USD 50 million, 4% of which came from exports. Product strategy: Aarong's growing presence outside Bangladesh - through fair-trade networks in Europe as well as a retail franchise in London - continues to broaden the market for Bangladeshi craft globally. Cost leadership strategy: Aarong is a firm that chose the cost leadership strategy aims to lower its production costs by implementing cost reduction through experience, constant cost control, cost reduction in the areas of research and development, advertising, promotion, etc. Having relatively lower costs than competitors becomes the goal of the strategy, although quality of services and other areas must not be ignored. Aarong concentrates its quality and features, and follow the promotional Activities like sponsors on fashion shows, online advertisement, exhibitions to retain its market position in the industry.

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