Study On Benarasi

8/12/2019 Study On Benarasi

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Submitted to Submitted by:

Sheikh Morshed Jahan Group-3

Associate Professor BBA 20thInstitute of Business Administration (IBA) Section A

University of Dhaka 27th

April, 2014


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Letter of transmittal

April 27, 2014

Sheikh Morshed Jahan

Associate Professor

Institute of Business Administration

University of Dhaka

Dhaka 1000, Bangladesh

Respected Sir,

In compliance with the requirements of the Bangladesh Studies course, we are pleased to submit the

following report on the study of Banarasi saris from a SME perspective that you have authorized us to

work on.

After interviewing the managers of famous retail outlets of Mirpur Banarasi Palli, we were able to link

the primary data with the secondary ones collected from the internet. The data gathered by the

aforementioned means was then evaluated and with the help of the theories taught in the class, we

were able to plan the outline of our report. Clearly, the guidelines from the Bangladesh Studies course

as instructed has helped us both to prepare and write this report.

We thank you for this opportunity to present to you on such an interesting product as sari which is

commonly known as a symbol of traditional fashion amongst women of Bangladesh.

Sincerely

Group 3

BBA 20th

Section A


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Table of Contents

Introduction..05

Market segmentation...06

Doing business with local Banarasi Sarees.07

Sustainable Market Enterprise Condition..08

Grid Of Mandate 09

TTF Model 10

Problems...12

Key findings..14

Conclusion.15

Bibliography 16


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Executive Summary

This study was done on the current market scenario along with the marketing methods used by the

present businessmen involved in the industries Banarasi. Throughout the report, Banarasi essentially

refers to the Banarasi Palli of Mirpur. The report presents three models which highlight the significance

of this industry and has been analysed after the data collection. Inaddition tothese models this project

presents some key findings which was realized during conducting the primary survey.

The research on the aforementioned type of sarees brings forth the rich history that has let these

unique works of art come to existence. In fact, the history of Mirpur Banarasi plays a crucial role in

understanding their current market scenario. Hence, the report has been designed in such a way as to

make sense of the different features of their market, as well as the developing problems that are

hampering the progress of the business of these sarees at present through a brief background of their

origin and development through time.

Historical data was collected mostly by means of previously done reports available in the net, along with

other facts from articles published in well known daily newspapers like The Daily Star, New Age,

Financial Express, etc.

On the other hand, present information about Mirpur Banarasi sarees were gathered from both primary

and secondary data. The former form of data was collected by means of interview sessions with the

shopkeepers, owners and workers in Mirpur Banarasi Palli.In addition, a survey was carried out by

surveying 30 entrepreneurs or representatives of different ages and social backgrounds with a

questionnaire. Limitations were met especially in the collection of the primary data. Some of the major

ones were:

The survey done through the help of the questionnaire was not a census. Respondents were

only 30 men of different ages and social backgrounds.

The respondents might have deliberately or unknowingly given the wrong answers.

The shopkeepers and/or the manager interviewed in the field work might have exaggerated

the prices and other information about the sarees.

More time could have allowed further extensive research. These facts posed a limitation to

the study.

Despite the limitations, the process followed in collecting data added sufficient knowledge to the

understanding of the local Banarasi industries and guided the report to its conclusions. Therefore, the

report is a research based study on Mirpur Banarasi sarees to highlight their ongoing business dealings,

and the marketing strategies in effect at the time. It concludes with a brief recommendation from the

group regarding the improvement of the current scenario of this industry.


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Introduction:

A saree is one of the traditional clothing of Bangladesh. A saree is said to accentuate the beauty

of a women. There are various forms of sarees. One of the national heritages of this nation is

Banarasi Saree. It has been much prevalent amongst Bangladeshi women, that when they hearabout Banarasi, they think of bold colours like red, or purple with intricate designs called

brocades embellished in it. This type of silk cloth has been the frequent choice by women with a

gorgeous look in mind, especially during weddings. The gorgeous look is created because of thiscloth being made out of fine silk.

Although the Mirpur Banarasi Palli is quite well known for their Banarasi sarees, the original

story of this cloth began almost 4000 years ago in the Northern city of India called Banaras. It

was in the Mughal era that this industry had flourished in the continent. In the 1930s, Dhakaestablished its own Banaras Silk Industry Centre in Becharam Deuri, in the Old Town.

The political changes taking place in the 1940s from the Independence of India and then a birthof a separate Muslim state, Urdu-speaking community from India packed up their hand -loomsand migrated to the South to the Parbatipur of Rajshahi and to some areas of the Old Town of

Dhaka such as Becharam Deuri, Kazi Alauddin Road, Kaiktuli, Tanti Bazar, Doyaganj and

Gandaria from Benaras in India. After the formation of Bangladesh, these migrants began to livein the refugee camps in Mirpur set up by the then Government of Bangladesh and started earning

a living from the skills they inherited on weaving sarees. According to the Bangladesh

Handloom Board migrant community set up the Banarasi industry in Mirpur and

Mohammadpur areas of Dhaka city in 1950; thus, leading to the birth of the now famousBanarasi Palli in Mirpur 10, 11, 12.


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Market segmentation of Banarasi saree

Banarasi sarees are well known for being the preferred wear by Brides on the main event ofthe wedding. Its gorgeous look is what sets it apart from regular sarees that are not as bold-looking and traditional. Behavioral and demographic segmentation below provides further

insight of the target market of local Banarasi sarees in Figures below respectively.

Demographics Segments

Age 23-60

Gender Female

Income Above or equal to 20,000Occupation Homemaker, professionals, students

Religion Islam, Hindu, Christian

Nationality Bangladeshi, Indian, Sri Lankan, Pakistani

Figure: Market demographics of local Banarasi sarees.

Behavioral Segments

Occasions Wedding reception, Eid, Bangla New Year

Benefits Quality, fashionability

User status First-user, potential user, regular user

User rates Light user, medium user

Loyalty status

Attitute toward

product

Medium, strong

Enthusiastic and positive

Figure Behavioral segmentation of local Banarasi sarees


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Doing business with local Banarasi sarees

Banarasi Palli in Mirpur has some 110 shops, 20,000 weavers and salesmen whose sales are 40to 50 crore taka per year. This banarasi is a delicate piece of cloth made from the thread of high-quality silk imported from China, Thailand and/or Pakistan. The silk from these countries is

finer, and of much smoother texture than from Bangladeshs local Rajshahi silk. Silk thread

needed to make a Banarasi saree are found in Chauk Bazar and local market of Mirpur. India isthe main transit root of importing this high quality silk hence, adding substantially to the cost

of making a Banarasi saree. Often, the Banarasi saree is further adorned with a material called

Zari which gives a golden, shimmering look to it.This year Banarasi Palli shops sold sarees of

different catchy names such as Fulkali Katan, Dulhan Katan, Mirpuri Reshmi Katan, MillenniumKatan, Banarasi Cosmos, Organdy Katan, Tissue Katan, Brocket Katan, Chunri Katan and others

during the recent Eid seasons.

Description Price (in Taka)

Maslayis Katan 5,700

Banarasi 10,000-15000

Brocade banarasi 4,500

Carpet banarasi 5,000

Honeycoat banarasi 4,500

Rajkoat banarasi 5,500Baluchori banarasi 4,000

Satin banarasi 3,800


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Business Model: Sustainable Market Enterpr ise Conditi ons

For any business, the sustainability of the business will rely on the following factors:Profitprofit is the driving force of all business; no matter what approach one uses for

conducting a business, it can be traced back to the core objective of making a profit.

Profit is the source of further investment in the business in order to retain its existence in

the long run.

CustomersCustomers are the main source of profit and maintaining good relations

with the customers by providing irreproachable service will help retain these customers.

Some business go so far as to say the customer is always right as a motto of the

business organization.

EmployeeThis area is becoming increasingly popular as business organizations are

realizing how important it is to maintain good relations and taking proper care of

employees in to keep an organization running for a long time. However, in Bangladesh

this is not a popular concept yet.

VCA(Value Chain Adders)Distributers and retailers are the forward VCAs and

suppliers are the backward VCAs. Profit depends not only on the sales volume but also in

the cost of production and distribution. Having good relations with backward and forward

VCAs ensures an orgaizations sustainability in the long run

Owner/Profit

Customers

Employees

VCAs

Society


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SocietyVery few businesses (like green business) bother with this area as it deals with

how ones business affects the environment at large. This usually increases costs for the

organizations but it establishes deep roots for the organization in the environment and is

the ultimate way of remaining sustainable for any business.

Usually as an organization matures, it understands the importance of each step and so eventuallybecomes sustainable. Increasing profits make it easier to attain each step of the model as time

goes by. Ideally, all long running businesses become sustainable by climbing each step one at a

time. However, there are some businesses which selectively follow some steps and disregard

others. Theoretically, they too will cover the misssing steps in the long run.

Producers and sellers of Banarasi Sarees usually follow only the first step of this model. This is

because customers rarely buy these sarees as a regular product and profit margin not being very

high, it means that the most of the steps are not even considered. Customers are treated highly

because of the large number of shops in comparison to the number of customers. However there

does not seem to be any thought for the care of employees and, except for their meager wages,the employees do not have much to look forward to in working in any of these businesses. The

unsustaible nature and declining demand for Banarasi Sarees is a reason why many do not enter

into this business and why many leave it whenever they possibly can.

Grid of Mandate:

Policy Advocacy Knowledge

BDS Networking and collaboration


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Policy Advocacy: This is applied by the Unions when they approach the government to

implement new business policies. Example of such policies are the lowering of import

duty taxation rates and lowering the interest rates as well. Mirpur Banarasi Palli has only

one such union called Mirpur Banarasi Palli Malik Shomiti. The problem with is thefact that these businessmen are not as unified as is required for their business to flourish.

They take little or no initiative to make the government advance any such business

policy.

Knowledge: This refers to the industry potential as unions try to capture knowledge to

gain business advantages. Basic education is a must in this era and all the workers must

have minimum training and knowledge on their specific working field. The workers and

owners in Mirpur Banarasi are quite knowledgeable at what they do but to hold the

current level of expertise, future workers and entrepreneurs must be familiar with these

trainings and knowledge,

BDS

This is for training and consulting entrepreneurs. This is a very important program

where the emerging entrepreneurs get the lime light and this is also very important for the

business sector of our country.

Networking and collaboration :This refers to the unions keeping in regular touch with

each other as they collaborate and present their proposal to the government which in turn

results in change in business policies. In the case of Mirpur Banarasi though, only one

union exist and networking and collaboration even within them is not really good to be

frank.

Tr iple Tr iangle F ramework


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Organizational Layer

Capital:Capital is wealth in the form of money or other assets owned by a person or

organization or available or contributed for a particular purpose such as starting a company orinvesting. It is essential to start and run a business. The Benarashi Sharee sector needs much less

capital compared to other businesses. This is the main reason for many of the entrepreneurs to

come to this industry in the first place.

Capability:This refers to the human or technological competencies. Capability can also be

defined as the potential of an organization. In Mirpur Benarashi Palli, all the individual

businesses have potential to grow and thrive. The businesses are almost homogeneous in nature,

so their potential is also similar.

Culture:Culture indicates the work ethics, visions, management etc. The work culture of these

businesses is very sound. Employers are in harmony with the employees and vice versa. The

owners also keep good relations with each other.

Industrial Layer

Customer:Customers are the spirit of any business. In the Mirpur Benarashi Palli, the sellers

know this, thats why their main concern is customer satisfaction. All the businesses offer almost

the same level of service and treat customers with utmost importance.

Competitor:As in this industry the products are similar, there is much competition between thebusinesses. But the competition is fair, due to the homogeneous nature of the businesses. Each of

the competitors has their own techniques and business tactics which help them survive in the

long run.

Collaborator:Collaborators are value chain actors- distributors, suppliers etc. They ensure that

the products reach their due destination. Although VCAs play a crucial role in the industry, their

roles are hardly ever acknowledged in this sector. Most of the entrepreneurs think they dont

have any responsibility towards the suppliers and distributors. So VCAs are widely neglected in

the Benarashi sharee sector.

External/ Macro environmental Layer

Technology and Innovation:In the Benarashi sharee industry, new innovations are atypical.

The only major technological improvement that took place in several years is the use of power


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looms instead of hand looms. The only innovation that is common in this sector is in the design

of sharees. New variations in design take place every once in a while.

Globalization and International forces: The globalization factor has a huge impact on this

sector. Indian sharees are slowly taking the market shares. Due to excessive demand, some

sellers are selling more of the foreign sharees rather than the deshi ones. This can have direconsequences on the deshi sharee market.

State and Society:By selling Benarashi sharees, this industry is upholding our culture and

heritage. The owners of the business are concerned about the society and are determined to serve

the nation with the best products, for altruistic as well as survival purposes.

Problems

There are various problem relating to this industry and it is difficult to implement government

initiatives due to lengthy Policy implementation process, the presence of middleman, etc. There

also is a lack of government and non-government partnership work in this sector. As a result, the

number of craftsman, handlooms and outlets are decreasing day by day

At a glance, these problems become visible:

Narrow and damp working places.Insufficient air, lighting and toilet facilities.

The workers suffer from various types of occupational health hazards, like pain in

differentparts of the body, eye problem etc.The people involved in Banarasi do not have enough idea about the changing taste of the

customers.

There is a lack of communication among the workers of different sectors and within the

same sectors (such as weavers, designers, thread processors etc).

According to the men workers, these problems consist of:

High cost of the raw materials - The raw materials of Banarasi are imported from foreigncountries like China, Japan, Korea, Vietnam, India, Taiwan and Pakistan through

different agencies with 25 percent import duty, which is then sold to the local markets.

They have to buy the raw materials from local market at a very high rate. As a result

production cost increases.Decreasing demand of Banarasi - Open market policy pursued by the Government has

opened the country to Indian sarees. Indian sarees for their cheaper prices, varied designs

& availability usually lure more local buyers. Besides that, the expansion of Banarasiindustry in different areas of the country, such as Tangi ,Kaligang, Rupganj, Shirajganj has

increased the supply in comparison with the demand. So gradually the sale is declining.


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Lack of variation in design - The design of Banarasi sarees are almost traditional. The

local designers do not have any institutional training and have no interaction with

professional designers. So lack of variation in design is one of the causes of decreasingdemand of Banarasi.

The wages of the Banarasi workers are not sufficient and not regularly paid.

Because of inadequate financial and technical supports the entrepreneurs cannot producestandard quality of sarees in large amount.The market of Banarasi is mostly limited within the country. As there is no attempt for

exporting Banarasi, so it has no access in international market.

The publicity of Banarasi saree is not sufficient.Customers taste is changing day by day. Their preference for foreign products is also a

cause of declining the sale of Banarasi saree.

Low production rates due to length of time required to make one saree.

According to the women workers,

Income - Weekly earning of the respondents varies from Tk 200 to Tk 500, which is

about onefourth of the family income. With their income they meet the family expensesand cannot have any savings. Rather, they have to take loan from their relatives,

neighbours or employers.

Wage - The current wages of the female workers are Tk 200-250 for Karchupi and Tk400-800 for reeling Bobbin on average. They get this wage on weekly basis. But they do

not get their wage regularly. Some times it depends on the sale of the saree. Previously

they used to get Tk 500 per week, which was more or less acceptable to them. The

women do not face any gender discrimination in case of wage. No male are involved inreeling Bobbin. Some male and boys are involved in Karchupi work but their wage is

equal to the female. Male members work full time. As such their working hour is longer

than the female and so their total income is higher than female. But the wage per hour is

same for male and female.Occupation - Most of the women mentioned that, they were engaged in this profession to

support their family financially. Some of them are the main earning person of the family,

as they do not have any adult male earning member. The women generally work 4 hoursdaily besides doing their household works. Sometimes they have to work 8-9 hours per

day. Although because of the declining demand of Benerasi their working pressure

remains same throughout the year, in some emergency cases they work even at night. Theother members of the family help them in household work when they are busy in

Karchupi or Bobbin work. Most of them do their work at their own home. So they do not

face any special problem as a female in their working place. A few of them who work in

the factory get necessary support from their employers, though some male weavers do not

behave with them properly. They are more or less satisfied with their workingenvironment. As they have to work continuously (specially Bobbin workers) they often

suffer from pain in hands, shoulder and waist. If the machine, which they use for theirwork can be run by electric motor, it will be more comfortable for them. But they cannot

afford to do that, as it is costly to them. Most of them are not interested to continue this

profession, as they are not hopeful about the future of this industry. They are willing to

leave this job if they get better opportunity of earning more money.


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There are also some environmental concerns: a large number of silk dyeing units are

necessary in this trade are chemical dyes which cause pollution in the Ganges River.

However there is a movement towards natural dyes

Key Findings

Seasonal demand: The demand for Benarashi shares is mainly high during the months ofDecember to January, which means during the winter season. This is mainly because

Benarashi has more demand in occasions like marriage, and marriages mainly take place

during the winter. Because of this seasonal demand there is always ups and downs in the

business of Benarashi and it is impossible to maintain constant sales throughout the year.

Decreasing profits:In the earlier times, the Benarashi sellers used to have 15% profit on

an average. But now the profit margin has been reduced to around 10%. There are two

reasons behind this decline in profits.

(1)Increased competition has been one of the main reasons for decline in profit. The poolof profit is now shared among more sellers and the rate of increase in the size of the

pool of profits is slower compared to the rate of increase in the number of sellers.

(2)The other reason is the shift in the consumer demand pattern. Nowadays, especiallythe youth prefers western culture more over the Bangladeshi culture as far as dresses

are concerned. So the demand for Benarashi is undergoing a downfall.

Globalization is giving a better competitive edge to this industry: During the survey

as talked to the owners and store managers of the Benarashi polli, we came to know thatthe globalization is playing a vital role in improving their business. Due to the import of

Indian Benarashi, now the sellers can offer a wider variety of choice to the customers.This wider variety also contributes to increasing the level of customer satisfaction as

many customers prefer them. However one of the entrepreneurs gave us a different

perspective. According to him, due to the import of Indian Benarashi, the domestic handloomers are finding it difficult to thrive and due to lack of capital many of them as going

out of the market.

Efficient suppliers: As far as the opinion of the entrepreneurs is concerned, they believe

that the suppliers are quite efficient at delivering the sharees on time. They also added

that as long as the suppliers get their payment on right time they are ready to delivergoods as required.

A mixed perception obtained as far as the concern for suppliers profit is considered: One group of the entrepreneurs agreed to the fact that for them its their own profit that

matters and the suppliers profit is not a concern for their business as that is the concern tobe borne by the suppliers. Interestingly a few expert entrepreneurs contradicted this and

stated that they do make sure or at least try to ensure that their suppliers get a good share


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of the profit. They also added that without the suppliers their business end up in smoke

and therefore for the sake of the sustainability of the business they should care about the

profits made by their suppliers.

Generally high concern for employees: From the survey what we found is that most of

the owners are aware of the fact that in this highly competitive market it is imperativethat they provide high level of customer service and it is not possible to do so without asatisfied group of employees. However, an exception was encountered when we talked

with a manager in a Benarashi store. The manager claimed that most of the employees are

dissatisfied with the way the industry is operating. Currently these employees do not getany holiday in the week. And more importantly the owners have agreed to keep the shops

open even on special occasion like 21stFebruary and 14

thApril. Previously they used to

get a holiday on Sunday every week. So, according to him, the level of concern for

employees has actually declined which is in full contradiction to the claims made by the

owners.

Conclusion

Our findings suggest that if proper moves are not taken this traditional heritage might on the way

to extinction. Some of the following moves can save the industries from possible extinction due

to factors like poor working conditions, Indian competitors taking over the market, and change

an abrupt change in womens fashion. However, these worst outcomes can possibly be avoided ifsome of these actions are undertaken:

The weavers best interest must be met, providing them with fair remuneration and

respect.Government should facilitate the business of these sarees by negotiating with India to

remove tariffs on the local Banarasi

More promotion steps must be undertaken to label these sarees for their traditional workof art.

The middlemen factor must be eliminated as much as possible.

Continuous review and revision on design to meet the varied taste of the customers is

required to compete with Indian sarees.Weavers must be trained and given more information on the present market.

Overall cooperation and goodwill must be increased from the Government, owners, andcustomers side to increase the job satisfaction of the weavers who hand-loom thesesarees. This will ensure future generation of skilled weavers that will protect these

traditional sarees.

Fashion designers and entrepreneurs should come forward in making innovative wears

out of Banarasi and showcasing them on international fashion weeks.


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Bibliography

Websites

http://www.wikipedia.org/

http://www.openvizor.com/Content/Index/377

http://www.bangladesh.gov.bd/index.php?option=com_weblinks&task=view&catid=233&id=7

9

http://articles.bplans.co.uk/marketing-a-business/porter%E2%80%99s-five-forces/328

Reports

Democracywatch, The Socio-Economic Conditions of The Benarasi workers in Benarasi Palli: Present

Scenario and Future Prospect, 2008.

Boston Consulting Group (BCG) Growth-Share Matrix User Guide

Articles

The Daily Star, Lifestyle Benarasi fashion show held in London,

http://www.thedailystar.net/newDesign/news-details.php?nid=211805

The Daily Star, Lifestyle Heritage on the Ramps ,

http://www.thedailystar.net/lifestyle/2012/11/04/page03.htm

Bangladesh News 24 Ishwardi Benarasi Palli Gears Up for EidFestival,

http://www.bangladeshnews24.com/thedailystar/2012/07/29/ishwardi-benarasi-palli-gears-up-for-eid-

festival-8933.htm

Dhakai Sharee A History of Pride,

http://dhakaisharee.com/content/history-pride

Pakstan Defence Benarasi weavers caught in limbo,http://www.defence.pk/forums/bangladesh-defence/85439-benarasi-weavers-caught-limbo.html
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New Age Benarasi Palli gives in to Indian products,

http://newagebd.com/detail.php?date=2012-08-09&nid=20041#.UL-E0GdXxQw

Wikimania Mirpur Benarashi Palli,

http://wikimapia.org/14958125/Mirpur-Benarashi-Palli

Online Dhaka Banarasi Polli Mirpur,

http://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.html

Bangladesh Textile Residency Benarasi Weaving

Mirpur,http://bangladeshtextileresidency.wordpress.com/2010/01/11/banarasi-weaving-at-mirpur/

The Financial Express Pictorial,

www.thefinancialexpress-bd.com/more.php?news_id=133033
http://newagebd.com/detail.php?date=2012-08-09&nid=20041#.UL-E0GdXxQwhttp://newagebd.com/detail.php?date=2012-08-09&nid=20041#.UL-E0GdXxQwhttp://newagebd.com/detail.php?date=2012-08-09&nid=20041#.UL-E0GdXxQwhttp://wikimapia.org/14958125/Mirpur-Benarashi-Pallihttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://bangladeshtextileresidency.wordpress.com/2010/01/11/banarasi-weaving-at-mirpur/http://bangladeshtextileresidency.wordpress.com/2010/01/11/banarasi-weaving-at-mirpur/http://bangladeshtextileresidency.wordpress.com/2010/01/11/banarasi-weaving-at-mirpur/http://bangladeshtextileresidency.wordpress.com/2010/01/11/banarasi-weaving-at-mirpur/http://www.thefinancialexpress-bd.com/more.php?news_id=133033http://www.thefinancialexpress-bd.com/more.php?news_id=133033http://bangladeshtextileresidency.wordpress.com/2010/01/11/banarasi-weaving-at-mirpur/http://www.online-dhaka.com/1_2_451_0-benarashi-palli-mirpur-dhaka_en.htmlhttp://wikimapia.org/14958125/Mirpur-Benarashi-Pallihttp://newagebd.com/detail.php?date=2012-08-09&nid=20041#.UL-E0GdXxQw


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