Shoemaker Bata is reinventing itself with premium price points, fresh portfolios as inflation cools off, the company’s managing director and CEO Gunjan Shah stated. The CEO said the company is planning to focus spending on advertising and promotions to connect with the younger generation.
According to a PTI report, Shah noted that Bata plans to expand both physically and digitally, as part of it’s latest sales strategy. The company expects e-commerce to provide 20 per cent of the total sales in the upcoming two to three years, he said.
“We have the fastest growth from our e-commerce channels from last three years and we see no difference this year and it will keep growing. Right now it is 10-12 per cent of our turnover and in the next 2-3 years, we would like to see that to grow to 18 to 20 per cent,” Shah stated.
With regards to growing offline sales, the company said it estimates the expansion under the franchise model to contribute majorly to it’s growth, and for the same, about 125 stores will be added to the portfolio in the current fiscal year. Further, it intends to strengthen it’s presence at multi-brand outlets (MBOs).
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Shah added, “ The trend of casualization would continue in the long term and Bata is pursuing it by extending its mid-premium brands Hush Puppies and Red Label in the segment. As part of its strategy, Bata is investing in front-end operations, stores to back-end infra, technology, design, R&D, etc. Besides, Bata is bringing new collections at a rapid pace to compete with its rivals. This season we will bring our ever-highest newer range to consumers, taking to almost 35 to 40 per cent of refresh. This used to be below 25 per cent two years before,” while in conversation with PTI.
Talking about the inflation calming down and passing it’s benefits to the customers, Shah added, “There were price points we had vacated in the past because of cost pressures but now with the easing of inflation, we are entering some of those with fresher offerings as they had worked well for us…at the same time, there are consumers who are looking at superior product offerings which we continue to build our portfolio on.”
Commenting on the reach in the rural market, Shah noted that there are no structural problems in that area and the inflation is a short-term ‘blip’ which will take some time to be absorbed and things will get back to normal soon. The CEO remained optimistic about the medium-term outlook for the company and the overall industry.