Besides, child As part of its strategy to attract next-generation shoppers, the company is also investing in store renovations to make them more attractive and modern, and in new relevant products with affordable propositions to further increase its presence. Young shoppers account for around 40 percent of its transactions.
It will also expand its clothing range to over 200 stores, up from 70 currently. It will also add 13 exclusive outlets for its sports brand “Power”, taking the total to 15 by the end of 2024, Shah said.
The company is also investing in technological transformation in automation in terms of inventory management, which will drive better productivity, he said.
child Earlier this month, it reported a 1.4 per cent decline in its consolidated revenue from operations to Rs 944.63 crore for the June quarter and expected a better performance in the second half of this fiscal year.
Asked about the outlook, acknowledging a slowdown, Shah told PTI: “Yes, in the short term, we have seen slow consumption and hence an impact on revenue growth.” However, he also added that the company is continuing with its “efforts, investments and various thrust areas and initiatives” with the hope that this phase is “temporary” in nature. “We should expect that even in the short term, with the festive season approaching, we should see a recovery from the consumption point of view,” he added.
Bata India president Ashwani Windlass also said there was “some weakness in the mid and lower segments of the market” due to factors such as the general elections and heat waves.
Asked about the drivers of growth, Shah said it would be in line with the company’s long-term strategy of offering relevant propositions, retail expansion, both online and offline, and investments in marketing, brand and consumer experience.
Bata will also continue its premiumisation journey by adding value to its products, however, it would not be at the cost of its traditional consumers who expect value for money and are its “key pillar”, Shah said.
Citing the success of his Floatz brand, under which he offers casual and comfortable footwear, Shah said his alternative in the market will be available at two to three times the price.
“We have the opportunity to create that perception of value for money while at the same time making sure that we continually put the wallet first. So I think we’ll combine the two,” he added.
Currently, pairs of shoes priced at Rs 4,000 or above contribute to around 20 to 25 per cent of the segment.
“We expect premiumisation to continue, but even then we want to make sure we can offer a value-for-money proposition to consumers, but the contribution will continue to increase. That process has been going on for a number of years now,” Shah said.
Shah expects e-commerce to further boost its growth.
“E-commerce has been the fastest growing business for almost three to five years and it continues to grow faster than the overall business. It is now in the low double-digit contribution, and I have a feeling that it will continue to grow faster than the overall business, so that will drive our growth,” he said. Windlass added: “Our online business is a profitable and viable business.”
India is the largest market for Bata Shoe Organization. In fiscal year 2024, its revenue was Rs 3,478.41 crore.
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