Bata targets volume growth, retail expansion

Thursday, 28 June 2012

Changing its last year’s strategy of creating product mix for different consumer segments, Bata India, one of India biggest footwear manufacturer and retailer has decided to target volume growth coupled with retail expansion. Also, the brand has launched yet another exciting campaign, ‘Discover New’. It aims for the consumer to discover something new on every visit to a Bata store. Through the campaign the brand endeavors to attract more customers to its wide variety of footwear and accessories. The campaign is also an extension of the previously launched ‘Be Surprised’ campaign, with a greater emphasis to associate Bata with lifestyles of people.

On the business front it may be recalled that while announcing the financial results for year ended December 2011, Rajeev Gopalakrishnan, Group Managing Director, Bata India had said: “The year 2011 has been a tremendous year for Bata India. Our strategy continued to be strong on the extensive expansion plan which has resulted in excellent results of the company due to higher sales and profitability. The company created new exciting product lines to suit the taste of young and new customers.”


The achievement came on the back of retailer’s continued strategy of expanding its retail stores. It opened 146 new large format stores in 2011 with over 3,000 sq. ft. spread across metros, Tier I and Tier II cities. The company will continue to add around 100 new outlets during 2012 and renovate existing stores creating enough space for product display. The company also continued expansion of its Hush Puppies brand by opening 20 exclusive new stores and 5 shop-in-shops with leading department stores in the same period.

At the company's annual general meeting last month, Gopalakrishnan, had told the media that they were looking to open a little over 100 stores this calendar year. “We will invest Rs 45 crores in plant modernisation in Batanagar, Patna and Bangalore, besides investing Rs 70 crores in store expansion,” he said.

The Indian footwear market is currently estimated at Rs 25,000 crores, growing at 20 per cent per year. Of this, 40 per cent is organised. Besides the volume game, Bata is also working on creating sub-brands in Hush Puppies and Footin. While Hush Puppies targets male buyers, Footin is aimed at youngsters.