East West University

Spring 2025

Course Title: Introduction to Management Information Systems

Course Code: MIS 101

Section: 2

Term Paper on Aarong

Kazi Tasfia Zaman 2022-3-10-321

Juabyer Ahmed 2023-1-10-034

Shahed Ahamed 2023-1-10-033

Nishat Naila 2022-2-10-181

Submission Date: 28 April 2025

Submitted To: Bushra Humyra Esha

Senior Lecturer

Department of Business Administration,

East West University

Aarong 1978

Aarong 2025
Abstract
This term paper provides an in-depth analysis of Aarong, Bangladesh’s leading lifestyle and
fashion retailer, owned by BRAC. The study begins with a comprehensive overview of the
company’s history, mission, and diverse product and service offerings. It then presents a financial
analysis focusing on key indicators such as EBIT (Earnings Before Interest and Tax) and Profit
Margin, while noting the absence of certain financial ratios like EPS, ROE, ROA, and P/E ratio
due to Aarong’s status as a non-listed private company. The marketing section explores Aarong’s
competitive environment, sales and service strategies, efforts to build a successful e-commerce
platform, and a breakdown of its marketing mix through the Four P's framework. A detailed
SWOT analysis highlights the company’s internal strengths and weaknesses alongside external
opportunities and threats. The paper concludes with recommendations for Aarong’s future
growth, discusses the evolving landscape of Bangladesh’s retail sector, and evaluates the user
interface and effectiveness of Aarong’s digital applications. Overall, the paper offers a holistic
view of Aarong’s business model, strategic initiatives, and potential for sustainable success.
Table of Contents
Introduction​ 1
Company overview​ 2
Background:​ 2
Current Scenario of Aarong:​ 2
Basic Information:​ 3
Mission:​ 3
Vision:​ 3
Aarong Logo :​ 4
Values:​ 4
Aarong’s journey from starting to beyond-​ 5
Brands:​ 5
Awards:​ 6
Product Details:​ 7
Women​ 7
Men​ 7
Kids​ 8
Home Décor​ 9
Wedding Collection​ 9
Additional Brands by Aarong​ 11
Taaga​ 11
Taaga Man​ 12
Herstory By Aarong​ 12
Aarong Earth​ 12
Aarong Dairy​ 13
Aarong Natural​ 13
Financial Analysis :​ 14
EBTI​ 14
Revenue​ 15
Net Profit After Tax​ 16
Profit Margin​ 17
Recognition and Awards​ 18
Marketing​ 20
Competitive Forces​ 20
Bargaining power of suppliers:​ 20
Bargaining power of buyers:​ 20
Threat of substitutes:​ 20
 Industry rivalry:​ 21
Sales​ 21
Marketing Strategy​ 22
Strategies to Build a Successful E-commerce Site​ 22
Four P’s of Marketing​ 23
SWOT Analysis of Aarong​ 24
Conclusion​ 25
Recommendations​ 25
Future of Aarong​ 26
Reference:​ 27
1

Introduction

This term paper aims to provide a comprehensive analysis of Aarong, one of Bangladesh's
largest and most iconic lifestyle retail chains, owned and operated by BRAC. The paper is
structured into four major sections, each highlighting a critical aspect of Aarong’s business
operations and strategic positioning. The first section offers an overview of Aarong’s corporate
background, along with detailed insights into its diverse range of products and services, ranging
from traditional handicrafts to contemporary fashion and home décor. The second section delves
into a financial analysis of the company, focusing on key performance indicators such as EBIT
(Earnings Before Interest and Tax), Profit Margin, and other relevant ratios. However, it is
important to note that because Aarong is not listed on any stock exchange, certain financial
metrics like Earnings Per Share (EPS), Return on Equity (ROE), Return on Assets (ROA), and
Price-to-Earnings (P/E) ratio are not publicly available or applicable. The third section discusses
Aarong’s marketing approach, examining the competitive forces it faces, its sales and service
strategies, and its marketing activities. Special emphasis is placed on analyzing the company’s
ecommerce development strategies and the classic Four P’s of marketing (Product, Price, Place,
Promotion). The fourth section presents a detailed SWOT analysis, highlighting Aarong’s
strengths, weaknesses, opportunities, and threats. The paper concludes with key
recommendations for future growth, a discussion on the company’s prospects in the evolving
Bangladeshi and global retail market, and an overview of the interface and functionality of
Aarong’s digital platforms and mobile application. Through this comprehensive exploration, the
paper aims to offer valuable insights into Aarong’s business model, financial standing, marketing
effectiveness, and strategic outlook.
2

Company overview

Background:
The word “Aarong” – Bengali for ‘village fair’ – is Bangladesh’s most popular lifestyle retail
chain. From clay pots to diamond jewellery, and silk and cotton fabrics to brass and leather
products, Aarong’s vast range of innovative products, backed by a robust supply chain and
distribution network, makes Aarong truly a household brand in Bangladesh. Aarong started its
journey with Brac by Fazle Hasan Abed. To help craftspeople in remote regions escape
unemployment, Aarong was founded in 1978.

The organization, which previously established the retail market with great standards for quality
and production, expertly blends traditional and modern style fashions to draw customers from
both local and foreign markets. All of the products are made in traditional Bengali style by
women from villages in Bangladesh. Aarong is among the first companies that identified itself as
“Made in Bangladesh.” This ethical brand originated in 1978 as an easy and natural way to
empower rural artisans, especially women, to rise above poverty.

One interesting thing about Aarong products is in the price tag they put the information of from
which district the product is made from, which is a new addition to their product development
journey. So that consumers can get connected with the root of the artisans. Thus how this brand
made connections between artisans and buyers.

Current Scenario of Aarong:

Aarong has a huge assortment of unique products, a reliable supply network, and a
well-established dissemination system, which have helped it become renowned in Bangladesh.
The products include clay vessels to diamond jewellery, from metal and leather items to silk and
cotton textiles. By 12 means of trade alliances and an online shop, it is growing the Bangladeshi
market goods internationally and providing craftsmen greater possibilities to preserve their
traditional expertise and techniques of support. In this way, Aarong employs about 75000
artisans, helping 325000 people across Bangladesh.
3

Basic Information:
Name: Aarong

Parent Organization: BRAC (Bangladesh Rural Advancement Committee)

Founded: 1978

Founder of Aarong: Martha Chen, and Ayesha Abed

Parent Organization: BRAC – the world’s largest NGO in terms of scale and impact. (Fazle
Hasan Abed, Founder of BRAC)

Headquarters: Dhaka, Bangladesh

CEO/Managing Director: Tamara Hasan Abed (Present)

Product Focus: Ethically handmade products

Artisan Focus:​Majority women from rural areas

Retail & Online Presence: Physical stores & international e-commerce

Sustainability:​Emphasis on ethical sourcing, organic materials (Aarong Earth)

Type: Social Enterprise Chain

Industry: Retail (Handicrafts, Fashion, Home Décor, … … … )

Mission:
Our mission is to empower people and communities in situations of poverty, illiteracy, disease
and social injustice. Our interventions aim to achieve large scale, positive changes through
economic and social programs that enable women and men to realize their potential.

Vision:
Everyone will have the chance to reach their full capabilities in a society without all types of injustice

and prejudice, according to Aarong's vision.

4

Aarong Logo :
Aarong logo is a peacock in full plumage, symbolizing the pride we feel as a nation of tradition
and culture in resemblance with the phrase ‘proud as a peacock’.

Social, Growth, and Impact Highlights:

●​ Artisans and Workers Impacted: Aarong supports over 75,000 artisans, most of them
are women. Over 320,000 people impacted indirectly through BRAC’s holistic support
system. Potters, brass workers, jewelers, jute workers, basket weavers, handloom and silk
weavers, wood carvers and leather workers and embroiderers are but some of the skilled
people who make Aarong what it is. Their craft supply chain has artisans from various
parts of Bangladesh. 30,000 of these skilled craftspeople work through the Ayesha Abed
Foundation (AAF) and its network of 15 production centers and over 800 hand
embroidery sub-centres spread across Bangladesh. The rest of the 45,000 artisans work in
independent workshops and traditional family-based artisan groups and produce for
Aarong. Through its inclusive supply chain and fair-trade practices, it contributes to
poverty alleviation and the preservation of heritage crafts in Bangladesh.
●​ Retail Network/ Outlets: They currently have a total of 31 outlets in Bangladesh. Some
of the popular outlets inside Dhaka are Aarong Dhanmondi Flagship Outlet, Aarong
Uttara Flagship Outlet, Aarong Moghbazar, Aarong Jamuna Future Park, Aarong Tejgaon
Multi-Brand Outlet.
●​ Export Markets: In addition to local service, they ship their products and operate a
website for six other countries: Australia, Germany, Singapore, the UAE, the USA, and
the UK.
●​ E-commerce Reach: Global delivery through aarong.com
●​ Product Development: Fusion of traditional Bangladeshi designs with modern fashion
aesthetics.

Values:
●​ Integrity- Be honest in all dealings
Be reliable and trustworthy
Assume complete accountability for actions
●​ Innovation- Think creatively for solutions while learning from setbacks and mistakes
5

Be courageous to try something new

Adapt well to changes in work environment
●​ Inclusiveness- Treat everyone fairly without discrimination
Be open and responsive to diverse perspectives
Think ‘One BRAC’
●​ Effectiveness- Create impact through achievement of agreed objectives
Solve problems constructively
Be driven by achieving results

Aarong’s journey from starting to beyond-

●​ 1978- Aarong opens its first outlet in Shukrabad, Dhaka, Bangladesh to ensure market
linkage for marginalized women.
●​ 1982- The Ayesha Abed Foundation was established to provide an appropriate working
environment, financial and technical assistance and training to develop women’s skills in
various crafts. Today, with over 20,000 artisans, it operates 14 craft production centers
and over 700 hand embroidery sub-centers in rural and semi urban areas.
●​ 1989- Aarong opens the country's largest retail store of its time in Dhanmondi.
●​ 1995- Aarong organises one of Bangladesh’s first major fashion shows at Pan Pacific
Sonargaon Hotel, positioning itself as a mainstream fashion brand.
●​ 2008- Aarong launched a 2-part exhibition 'Story of Stitches' (2008) on nakshi kantha and
'Story of Pride' (2010) on jamdani at Shilpakhala Academy.
●​ 2011- Aarong Flagship outlet established in Uttara, Dhaka, the country's largest retail
store of its time
●​ 2014- E-commerce platform launched with ambitions to connect global consumers to
Bangladeshi crafts.
●​ 2018- The Aarong 40 Years Festival was held at Army Stadium, Dhaka. The 3-day
festival marked the brand's 40th anniversary and featured live craft exhibitions and
workshops, fashion shows, a producer award ceremony and musical performances.

Brands:
●​ Aarong
6

●​ Taaga
●​ Taaga Man
●​ Herstory/Aarong
●​ Aarong Earth
●​ Aarong Dairy
●​ Aarong Natural

Awards:
●​ 2012- Award of Excellence for Handicrafts- UNESCO
●​ 2015- Best Brand Award- BD Brand Forum
●​ 2016- Asia Marketing Excellence Award- The Asia Marketing Federation
●​ 2017- International Craft Award- Craft Village Org, India
●​ 2018 & 2019- Excellence in Supply Chain Finance- BSCMS
●​ 2023- Top VAT Payer Award- National Board of Revenue
●​ 2024- SDG Brand Champion in Women Empowerment- SDG Brand Champion Awards
7

Product Details:
Women
●​ Saree: Cotton, muslin, silk, katan, nakshi kantha saree, jamdani, brac silk
●​ Salwar Kameez: Casual, semi-dressy, exclusive
●​ Kurta
●​ Panjabi
●​ Tops
●​ Coats & Jackets
●​ Co ords
●​ Shrugs
●​ Skirts
●​ Maternity: Tops, tunics, dresses, pants, sleepwears
●​ Dupatta
●​ Scarves
●​ Nightwear
●​ Shawls: Viscose, cotton, nakshi kantha
●​ Fabric (Meters): 3-Pieces sets, blouse Pieces, Yokes, Cotton

Men
●​ Panjabi: Cotton, addi, endi, silk, muslin & Jamdanni
●​ Panjabi Pajama Sets: Cotton & Blends, silk
●​ Pajama
●​ Coaty
●​ Short Kurta
●​ Jackets
●​ Trousers: Formal, Chinos, Denim, lounge wear
●​ Shirts: Ethnic, casual, exclusive
●​ Fatua: Cotton & blends, endi, silk
●​ Lungi
●​ Shawls
●​ Scarves & Mufflers
 8

●​ T-shirts Polos
●​ Sleeping Suits
●​ Shoes: sandals, shoes, nagra
●​ Accessories: Belts, wallets, card holders, key rings, bags, bracelets, rings, toppers
●​ Tupi

KIDS

●​ KIDS PARTYWEAR
●​ NEWBORN GIRLS (0-1.5Y): Nima, Frocks, Skirt Tops, Pant Tops, Shalwar Kameez, Ghagra
Choli, Nappy & Pants, Bibs, Feeder Covers

●​ NEWBORN BOYS (0-1.5Y): Nima, Shirt Pant Sets, Panjabi, Panjabi Pajama Sets, Nappy &
Pants, Bibs, Feeder Covers, T-Shirts, Sweater Sets

●​ JUNIOR GIRLS (2Y-9Y): Frocks, Skirt Tops, Pant Tops, T-Shirts, Shalwar Kameez, Ghagra
Choli, Saree, Sweaters & Jackets, Skirts, Pants, Party Wear, Jumpsuits

●​ JUNIOR BOYS (2Y-7Y): Shirts, Fatua, T-Shirts & Polos, Shirt Pant Sets, Pants, Panjabi, Panjabi
Pajama Sets, Pajama, Tupi, Waistcoats & Hoodies, Sleeping Suits, Party Wear

●​ GIRLS (8Y-15Y): Frocks, Tops, Skirts, Pants, Shalwar Kameez, Ghagra Choli, Sweaters &

Jackets, Shawls, T-Shirts, Party Wear, Jumpsuits

●​ BOYS (8Y-15Y): Shirts, Fatua, T-Shirts & Polos, Shirt Pant Sets, Pants, Panjabi, Pajama,

Panjabi Pajama Sets, Waistcoats & Hoodies, Party Wear, Sleeping Suits, Belts

●​ SHOES: Newborn (0.3Y-1.5Y), Toddler (1Y-3Y), Junior Girls (4Y-6Y), Junior Boys (4Y-6Y),
Girls (7Y-14Y), Boys (7Y-14Y)

●​ TOYS & BOOKS, Learning & Education, Stuffed & Plush Toys, Wooden Toys, Traditional Toys
& Dolls, Musical Instruments

●​ HOME DÉCOR
●​ KANTHA & GIFT SETS
 9

●​ ACCESSORIES

Home Décor

●​ Living: Bedcovers, Pillow Covers, Kantha & Quilt, Cushion Covers, Pillows & Cushions,
Curtains, Table Covers & Sofa Back, Rugs & Carpets

●​ Dining: Dinnerware Sets, Plates & Platters, Bowls, Cups Mugs & Jugs, Kitchen Accessories,
Cutlery & Utensils, Trays, Tablecloths, Runners, Placemats & Napkins, Napkin Holders,
Coasters

●​ Décor: Wall Hangings, Photo Frames, Brass Novelties, Cast Iron Novelties, Vases, Lamps &
Shades, Candles, Lanterns & Candle Stands, Mirrors, Wooden Accents, Boxes, Dry Flowers
& Potpourri, Decorative Items, Planters, Traditional Toys & Dolls

●​ Kids Home
●​ Stationery & Gift Cards: Aarong Gift Card, Books, Cards, Notebooks, Folders, Desk

Accessories, Recycled Paper Products, Wrapping Paper

●​ Lawn & Gardening: Indoor Plants, Gardening Accessories

Wedding Collection
●​ WOMEN: Saree, Shalwar Kameez, Shoes, Accessories
●​ MEN: Panjabi, Panjabi Pajama Set, Coaty, Pajama, Shirts, Shoes, Accessories
●​ HOME DÉCOR: Living, Dining, Décor
●​ JEWELLERY: Silver, Gold, Pearl, Fashion, Jewellery Box
●​ SKIN & HAIR
●​ AARONG GIFT CARD
JEWELLERY

●​ EARRINGS: Silver, Gold, Pearl, Fashion, Gold-plated

●​ NECKLACES: Silver, Gold, Pearl, Fashion, Gold-plated
●​ NECKLACE SETS: Silver, Gold, Pearl, Fashion, Gold-plated
●​ BRACELETS & BANGLES: Silver, Gold, Pearl, Fashion
 10

●​ RINGS: Silver, Gold, Pearl, Fashion

●​ NOSE PINS, Silver, Gold
●​ TOE RINGS
●​ ANKLETS, Silver, Fashion, Pearl
●​ LOCKETS & PENDANTS: Silver, Gold, Fashion
●​ HAIR ACCESSORIES
●​ JEWELLERY BOX
Gifts & Crafts

●​ GIFT CARDS
●​ EARTH GIFT BASKETS
●​ SOUVENIRS, Novelties, T-Shirts, Traditional Toys & Dolls
●​ BOOKS
●​ LAWN & GARDENING
●​ OCCASIONS, Anniversaries, Baby Showers, Bridal Showers, Farewells, Wedding Gifts
●​ GIFT IDEAS BY PRICE: Under BDT 1000, BDT 1001 – 3000, BDT 3001 – 5000, Above BDT
5000
●​ TEXTILE CRAFTS: Block Printing, Embroidery, Jamdani, Katan, Nakshi Kantha, Screen
Printing, Tie-Dye, Weaving
●​ NON TEXTILE CRAFTS: Bamboo & Cane, Candles, Carpets & Rugs, Studio Ceramics,
Jewellery, Leather, Metal, Natural Fibres, Recycled Handmade Paper, Terracotta & Clay, Toys &
Traditional Dolls, Wood
Skin & Hair

●​ CELEBRATION CARE
●​ NEW ARRIVALS
●​ GIFT BASKETS
●​ HANDMADE SOAPS
●​ BODY WASHES
●​ BODY CARE
●​ SOOTHING GELS
●​ FACE WASHES
 11

●​ FACE MASKS
●​ FACE PACKS
●​ HAIR PACKS
●​ HAIR & BODY OILS
●​ ESSENTIAL OILS
●​ SHAMPOOS

Additional Brands by Aarong

Taaga
●​ A Tale of Prints and Weaves: Prints speak, weaves whisper, and textures echo the hands
that crafted them. The TAAGA Spring/25 collection is an invitation to step into
artistry—to embrace both history and the present moment. Because style, like legacy, is
never fleeting; it evolves, it endures, it commands.
●​ Style Your Spirit: Discover the ultimate guide to chic and elegant women's Eid fashion
this summer in contemporary flair perfect for celebrating in style.
●​ The Journey of Exploration: Step into the sanctuary of harmony with every stitch of
our Eid collection, where beauty and tranquility intertwine seamlessly.

Products:

Tops, Tunics, Dresses, Coats & Jackets, Co-ords, Shrugs, Scarves, Skirts, Pants, Shoes,
Accessories, Bags, Purses, Wallets, Belts, Jewelleries, Maternity, Tops, Tunics, Dresses, Pants,
Sleep wears
12

Taaga Man
●​ A Game of Refined Style: Strike the balance between athletic ease and refined style. A
well-tailored fit and bold hues of polo energise the course and make every move as sharp
as your mindset. Because when you look the part, you play the part.
●​ A Curated Capsule Wardrobe: Elevate your Eid celebrations this summer with our
definitive guide to men's fashion, blending classic elegance with modern trends for
stylish and sophisticated looks.
●​ Festive Finesse: Curate a wardrobe of timeless ethnic pieces that command success. This
Eid, stride forth in sophistication worth celebrating.

Products:

Shirts, Premium, Formal, Semi-Formal, Casual, Panjabis, Waistcoats, Jackets, Trousers, Formal,
Chinos, Denim, Lounge Wear, Tees, Design, Basic, Polos, Design, Solid, Shoes, Formal, Casual,
Sandals, Innerwear, Accessories, Bags, Belts, Wallets, Bandanas & Scarves, Pocket Squares,
Socks, Chains & Pendants.

Herstory By Aarong
Herstory by Aarong is a luxury womenswear line inspired by the rich cultural heritage of
Bangladesh. Blending modernity with time-honoured artistry, this line brings the fine artisanal
craft of Bangladesh into sophisticated couture. Herstory strives to offer a luxurious experience,
where each piece tells a story, evokes emotions, and represents a lasting symbol of timeless style.

Herstory's brand ethos revolves around empowering women to embrace their natural grace,
beauty, and individuality. Herstory believes in designing clothing that enhances a woman's
confidence and complements her unique style, enabling her to make a statement wherever she
goes.

Aarong Earth
Aarong Earth is a new herbal hair and skincare brand launched by Aarong, focusing on natural
and holistic care. The brand offers a range of products, including shampoos, bathing bars, and
essential oils, all designed to celebrate nature's bounty and promote healthy skin and hair.

Products:
13

Wedding Gift Basket, Aarong Earth Winter Gift Basket, Aarong Earth Rosemary Essential Oil -
10 ML, Aarong Earth Coffee Face & Body Scrub - 200 ML, Aarong Earth Aloe Vera Soothing
Gel - 200 ML, Aarong Earth Tea Tree Essential Oil - 10 ML, Aarong Earth Aloe Vera Body
Wash - 380 ML, Aarong Earth Pure Sesame Oil for Hair and Skin - 200 ML, Aarong Earth Hair
Oil - 200 ML, Aarong Earth Shampoo - 200 ML, Aarong Earth Herbal Body Scrub - 100 GM,
Aarong Earth Neem Face Pack - 100 GM, Aarong Earth Mosaic Bathing Bar-Red - 100 GM,
Aarong Earth Clove Exfoliating Bathing Bar - 100 GM, Aarong Earth Goat Milk Bathing Bar -
100 GM, Aarong Earth Mehndi Hair Pack - 100 GM, Aarong Earth Aloe Vera Face Mask - 200
ML, Aarong Earth Orange Peel Face Mask - 200 ML, Aarong Earth Tulsi Face Wash with
Bursting Beads - 100 ML, Aarong Earth Oatmeal Exfoliating Bathing Bar - 100 GM, Aarong
Earth Kaolin Clay Bathing Bar - 100 GM, Aarong Earth Herbal Hair Dye - 100 GM etc.

Aarong Dairy
Aarong Dairy UHT Milk 500ml, Aarong Dairy Chocolate Milk Drink UHT 200ml, Aarong
Dairy Instant Full Cream Milk Powder 500gm, Aarong Dairy UHT Milk 200ml, Aarong Dairy
Roshogolla, Aarong Dairy Golapjam, Aarong Dairy Ghee 100gm, Aarong Dairy Instant Full
Cream Milk Powder 75gm

Aarong Natural
Aarong Natural Nazirshail Rice, Aarong Natural Chinigura Rice, Aarong Natural Katarivog
Rice, Aarong Natural Moshur Dal, Aarong Natural Kalijira Rice, Aarong Natural Miniket Rice
etc.
14

Financial Analysis :
Aarong, as a social enterprise under BRAC, does not publicly disclose detailed financial
statements in the same manner as publicly listed companies. However, based on available
information and BRAC's annual reports, we can provide insights into Aarong's financial
performance.

EBTI
Over the past five years, Aarong’s EBIT performance demonstrates remarkable resilience and
adaptability. Although the COVID-19 pandemic caused a significant dip in 2020, the company
recovered strongly, achieving its highest EBIT in 2023. This suggests that Aarong not only
stabilized its core operations post-crisis but also capitalized on market opportunities, showcasing
a robust operational foundation. Moving forward, if Aarong continues leveraging digital
channels and expanding product diversification, its operating profitability is likely to grow even
further.
15

Revenue

Aarong’s revenue trend from 2019 to 2023 shows a story of resilience and growth. In 2019, the
company delivered a solid performance with revenue reaching BDT 88,131 million, driven by
strong retail sales. However, in 2020, revenue dropped to BDT 84,493 million due to the impact
of COVID-19, lockdowns, and restricted store operations. The business entered a recovery phase
in 2021, bouncing back to almost pre-pandemic levels with BDT 88,257 million in revenue. In
2022, Aarong experienced a significant jump to BDT 106,606 million, fueled by the reopening
of the economy and festive sales. Finally, in 2023, Aarong achieved record-breaking growth with
revenue reaching BDT 126,033 million, reflecting the brand’s successful expansion, digitization
efforts (such as boosting online sales), and continued customer loyalty.
16

Net Profit After Tax

Over the past five years, Aarong’s net profit after tax has shown a steady yet resilient journey. In
2019, the company posted a net profit of BDT 5,328 million, reflecting strong business
momentum. However, in 2020, profits declined to BDT 4,521 million due to the widespread
effects of the COVID-19 pandemic, including lockdowns and lower consumer spending. In
2021, Aarong managed a modest recovery with a net profit of BDT 4,639 million as the market
gradually reopened. By 2022, the company bounced back strongly, recording a net profit of BDT
5,923 million, boosted by increased demand and festive seasons. In 2023, Aarong continued its
growth, achieving a net profit of BDT 6,114 million, underpinned by expanded operations, a
stronger digital presence, and its loyal customer base.
17

Profit Margin
Over the past five years, Aarong’s profit margin has remained fairly stable with some minor
fluctuations. In 2019, the company achieved a profit margin of 6.05%, reflecting strong
operational performance. However, the margin slightly dropped to 5.35% in 2020, mainly due to
the economic slowdown during the COVID-19 pandemic. In 2021, the margin remained
relatively stable at 5.26%, signaling a cautious but steady recovery. By 2022, Aarong improved
its margin to 5.56% as the economy reopened and sales picked up momentum. In 2023, however,
the profit margin dipped to 4.85%, possibly due to rising operational costs and increased
competition despite higher overall revenues. Overall, Aarong has shown consistent profitability,
balancing between market challenges and growth opportunities.
18

Since Aarong is not a publicly listed company on the stock exchange, certain financial metrics
such as Earnings Per Share (EPS), Return on Equity (ROE), Return on Assets (ROA), and the
Price-to-Earnings (P/E) ratio are not publicly disclosed or applicable. These indicators typically
require publicly available share data and equity market valuations, which are only available for
companies that are listed and traded on a stock exchange. In the case of Aarong, being a private
enterprise under the umbrella of BRAC, it is not legally required to publish detailed financial
information like shareholder equity structure or market-based valuations. As a result, calculating
or analyzing these specific financial ratios for Aarong is not feasible with publicly accessible
data.

Recognition and Awards

Aarong’s commitment to financial excellence and responsible business practices has been
recognized through prestigious awards in recent years. In 2023, Aarong was honored with the
Top VAT Payer Award by the National Board of Revenue (NBR), reflecting the company’s
strong compliance with tax regulations and its significant contribution to the national economy.
This achievement highlights Aarong’s transparent financial management and dedication to
19

ethical business operations. Additionally, Aarong received the Excellence in Supply Chain
Finance Award from the Bangladesh Supply Chain Management Society (BSCMS) in both
2018 and 2019, acknowledging its outstanding efficiency and innovation in managing supply
chain financing. These awards not only reinforce Aarong’s financial credibility but also position
it as a leader in both the retail and supply chain sectors of Bangladesh.
20

Marketing

Competitive Forces

Threat of new entrants:

Low threat – It’s hard for new companies to enter the market and compete with Aarong. Aarong
has a very strong brand, lots of loyal customers, and a big network of skilled artisans. New
businesses would need a lot of time, money, and trust to reach Aarong’s level.

Bargaining power of suppliers:

Low to medium power - Aarong mostly works with its suppliers via the Ayesha Abed
Foundation. This gives it greater control over the materials and products. As a result, suppliers
have little negotiating ability to demand higher pricing or adjustments.​

Bargaining power of buyers:

Medium power: Customers believe that Aarong offers ethical and high-quality items. However,
some people are still sensitive about prices, especially when lower solutions are available. So,
while Aarong has loyal customers, it must keep costs reasonable.​

Threat of substitutes:

High threat – There are many other customer options, like fast fashion brands, small local
boutiques, and online stores. These can offer lower prices or trendy styles, making it easy for
customers to switch from Aarong.

​
21

Industry rivalry:

High competition – Aarong faces strong competition from similar brands like Artisan, Kay Kraft,
and Anjan’s. New online stores are also growing fast. All of them fight for the same customers,
which makes the market very competitive.

Sales, Services, and Marketing Strategy

Sales

Physical Stores: Aarong has shops in big cities like Dhaka, Chittagong, and Sylhet. People can
visit these stores, see the products, and buy them directly.​
Online Store: Aarong also has a website where customers from anywhere in Bangladesh can
order products. They deliver to homes all over the country.

Mobile app: Aarong also has a mobile app that works like the online store. Customers can easily
browse products, place orders, and track deliveries using their smartphones.

Services

Custom Tailoring: If someone wants a dress or outfit made in a specific size or style, Aarong
can tailor it for them.​

Loyalty Program: Aarong has a membership system where loyal customers can earn points and
get special offers or discounts.​

Seasonal Sales: During festivals like Eid, Puja, or in the winter, Aarong offers big discounts to
attract more buyers.
22

Marketing Strategy

Storytelling Marketing: Aarong talks about how buying their products helps rural artisans (like
weavers and craftspeople). This message makes people feel good about shopping at Aarong.​

Collaborations: Aarong sometimes works with celebrities or influencers who wear and promote
their clothes on social media, which helps attract younger customers.​

Multichannel Presence: Aarong is active both online and offline. You can find them in stores,
on their website, and on social media like Facebook and Instagram. This way, they stay
connected with different types of customers.

Strategies to Build a Successful E-commerce Site

❖​ User Experience (UX): Aarong’s website and mobile app are designed with a clean
layout, fast loading speed, and mobile-friendly features. This makes it easy for customers
to browse and shop comfortably, whether they are using a computer or a smartphone.​

❖​ SEO & Digital Marketing: Aarong ranks high on Google search results, which helps
people find their website easily. They also run targeted ads on Facebook and Instagram to
reach potential customers based on their interests and shopping habits.​

❖​ Content Strategy: Aarong uses high-quality product photography to show their items
clearly and attractively. They also share stories about the rural artisans who make their
products. This storytelling builds emotional connections and helps promote their social
mission.​

❖​ Logistics & Delivery: Aarong has partnered with reliable delivery services to ensure
quick and safe delivery. They also provide real-time tracking, so customers can see where
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their package is and when it will arrive.​

❖​ Secure Payment Gateways: Aarong offers multiple secure payment options, including
bKash, Nagad, debit and credit cards, and Cash on Delivery (COD). This gives customers
flexibility and confidence while shopping online.

Four P’s of Marketing

●​ Product: Aarong offers high-quality, handcrafted products such as clothing, home decor,
jewelry, and accessories. Each item reflects Bangladeshi culture and craftsmanship.
These products are made by skilled rural artisans, which adds both cultural value and
social impact to every purchase.​

●​ Price: Aarong follows a premium pricing strategy because of the excellent quality of its
products and its strong brand name. While the prices are a bit higher, many customers are
willing to pay more for authentic, handmade items. However, Aarong also offers
discounts during special occasions like Eid or end-of-season sales.​

●​ Place: Aarong has physical stores in major cities across Bangladesh, making it easy for
customers to shop in person. They also have an online store that allows nationwide
delivery, and they now offer international shipping so customers abroad can also buy
their products.​

●​ Promotion: Aarong promotes its products through festive campaigns, nonprofit

marketing, and celebrity collaborations. They often highlight how buying from Aarong
supports rural artisans. They also use loyalty programs to reward regular customers and
run paid ads on Facebook and Instagram to reach a wider audience online.
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SWOT Analysis of Aarong

Strengths:

●​ Aarong has a strong brand reputation in Bangladesh.

●​ Aarong produces high-quality handmade products.
●​ There is a large artisan network (75,000+) supporting over 325,000 people.
●​ There is a strong retail and e-commerce, which includes international delivery.
●​ Aarong has a loyal customer base due to its social enterprise model.
●​ The financial resilience shows a steady revenue and profit growth.
●​ Aarong has collaborated with Ayesha Abed Foundation that ensures product consistency
and supply chain control.​

Weaknesses:

●​ The premium pricing strategy is less preferred to the price-sensitive customers.

●​ Aarong has limited financial transparency though it is a non-listed private company.
●​ The operational costs are high, which affects profit margins.
●​ Aarong has heavy dependence on manual production that might limit their scaling
rapidly.
●​ The organization has had a slight profit margin decline in recent years despite the growth
of revenue.

Opportunities:

●​ Aarong has a growing demand for their sustainable and ethically sourced products
globally.
●​ The expansion of e-commerce and international shipping can play a vital role into the
global markets.
●​ Aarong can increase their collaboration with some influencers and can attract the younger
youth.
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●​ Their product diversification (Aarong Earth, Aarong Dairy, Aarong Natural) has opened
new markets for their customers.
●​ Aarong’s potential partnerships with global fair-trade organizations.​

Threats:

●​ Aarong has competition with a lot of traditional brands (like Kay Kraft, Anjan's) and fast
fashion brands.
●​ There is always a threat from the substitutes like cheaper local and international products.
●​ The economic fluctuation affects consumers’ spending behavior.
●​ The increasing raw material and operational costs.
●​ There is a risk of the artisans to shift to other professions if they get more profitable
opportunities.

Conclusion

Aarong is a pioneer in ethical retailing and social enterprise in Bangladesh with a strong heritage,
quality products, and a resilient operational strategy. Aarong has grown from a small handicraft
retailer into a nationally beloved and internationally recognized brand. Though there are market
challenges and operational costs, Aarong has successfully maintained its cultural authenticity,
artisan empowerment goals, and business sustainability. As the retail landscape evolves,
Aarong’s strong foundations in brand loyalty, digital transformation, and social impact initiatives
make it well-positioned for continued growth and relevance.

Recommendations

●​ Strengthen the Digital Channels: If Aarong invests more in their online store and app
for the global customers by improving user experience and marketing automation.​
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●​ Expanding Their Product Range: Aarong can increase their mid-range pricing options
to attract middle-income groups without diluting the premium brand image.​

●​ Developing the Artisans’ Skill: By training the artisans in newer craft techniques for
innovating designs to preserve the traditional methods.​

●​ Cost Optimizing: They might focus on operational efficiencies to stabilize or improve

profit margins without compromising product quality.​

●​ Global Brand Building: Engage in partnerships with international ethical fashion

platforms and participate in global trade fairs.​

Future of Aarong

The future of Aarong seems very promising, especially as global consumers value sustainable
increasingly, ethical, and artisanal products. Aarong has solid brand equity, digital transformation
initiatives, and deep-rooted social mission has placed it in a strong position to lead not just
nationally but internationally. Aarong has strategic expansion, continuous innovation in product
lines, and enhanced global marketing efforts that it has the potential to become one of South
Asia’s most recognized and respected lifestyle brands. They are committed to empower the
artisans and preserve the cultural heritage of Bangladesh, which ensures that their impact will
remain profound for decades to come.
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