-Aarong’s business model

The fact that Aarong is a social enterprise means that their business models are based on dealing with social implications. Needless to say, all the products produced by Aarong are fair-traded. Additionally, this is the reason why 85% of the products Aarong make are sold to fair trade organizations. Only 15% goes to commercial organizations.

Also, as a social enterprise, Aarong employs decentralized manufacturing strategy in order to employ designers who live in rural areas. Unlike decentralized manufacturing, companies that make goods based on centralized manufacturing scheme locate their factories in the industrial areas to take the advantage of low labor cost. Unlike these companies, Aarong pursue wider production lines coming from different regions across the country, regardless of its location.

Aarong’s marketing initiatives play a catalyzing role in increasing the popularity of their products. Not only they advertise their goods, but also they hold a fashion show and exhibit to attract wider variety of people.

Furthermore, their continuous research and investigation to make creative clothes put Aarong as one of the best fashion brand in the country. For instance, they conduct a regular poll to investigate which type of fashion the public likes. They also hire few experts and deploy them to factories for the purpose of educating their workers. Although Aarong faced financial setbacks at the beginning of 2000s, there continuous effort to seek new innovative goods protected them from further setbacks.

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