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Export OpportunityAarong is the country’s biggest handicrafts retailer doing business from 1978 having artisan baseabout 65000 generating highest lifestyle revenue and proven the most successful business modelas social enterprise. Aarong's export business started in 1986, with an initial order fromTradecraft, a UK-based fair trade organization. Aarong is a recognized fair trade organizationand a provisional member of IFAT, the global network of fair trade organizations. Based onAarong's reputation as a social business, it has successfully grown its export customer base overthe last 20 years through the addition of a number of fair trade organizations in Europe, NorthAmerica, 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 thetotal export sales in 2007. Aarong franchised itself in London to cater to the needs of the largeBangladeshi community living in the region.Growth potentialThe export earnings from the handicraft products increased quite steadily during the pastdecades. From about US $ 3.45 million worth of exports back in 1980-81, total earnings from thesector rose to US $ 6.41 million during the fiscal year 1995-96. And such a spectacular increasein export earnings from the sector has been most steady, and the rate of growth one of thehighest. For instance, during the last 16 years export earnings from handicraft products grew bymore than thousand times. Even during the period 1985-86 to 1991-92 export earnings from thesector grew at the rate of 79.70 per cent per annum. The export earnings increased tremendouslyduring the year of 1989-90 amounted to US $ 5.18 million. 1991-92 fiscal year is considered tobe 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 50million, 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 costsby implementing cost reduction through experience, constant cost control, cost reductionin the areas of research and development, advertising, promotion, etc. Having relativelylower costs than competitors becomes the goal of the strategy, although quality ofservices and other areas must not be ignored. Aarong concentrates its quality andfeatures, and follow the promotional Activities like sponsors on fashion shows, onlineadvertisement, exhibitions to retain its market position in the industry.