Bata eyes festive season boost, expansion as e-commerce drives growth

The company is further enhancing its operational efficiency through technology-driven automation in inventory management, aiming to boost productivity.

Bata India is gearing up for a revival in the coming quarters, with Managing Director and CEO Gunjan Shah expressing confidence in the company’s growth prospects despite recent sluggish consumption. In an interview with PTI, Shah highlighted the potential for a bounce back, driven by the upcoming festive season and the company’s ongoing retail expansion efforts.

Shah emphasised that e-commerce, now a "profitable" and "viable" segment for Bata, is poised to be a key growth driver. The company has been actively expanding its online sales through its portal and channel partners, reflecting a strategic focus on leveraging digital platforms to reach a broader audience.

In addition to its e-commerce push, Bata is targeting younger consumers by investing in store renovations and launching new, affordable products. Shah noted that this demographic accounts for around 40% of the company's transactions, underscoring the importance of appealing to this segment. Bata is also set to expand its apparel range, increasing its presence from 70 to over 200 stores. The athleisure brand ‘Power’ will see the addition of 13 exclusive outlets, bringing the total to 15 by the end of 2024.

The company is further enhancing its operational efficiency through technology-driven automation in inventory management, aiming to boost productivity.

However, Bata faced a 1.4% decline in consolidated revenue, reporting Rs 944.63 crore for the June quarter. Despite this, Shah remains optimistic, describing the current slowdown as "temporary." He anticipates a resurgence in demand, particularly with the festive season on the horizon.

Bata India Chairman Ashwani Windlass acknowledged some "softness" in the lower and mid-end market segments, attributing it to factors such as the upcoming general elections and heat waves. However, he echoed Shah’s confidence in recovery, citing the company’s long-term strategy of retail expansion, both online and offline, and investments in marketing and consumer experience as key growth drivers.

As part of its premiumisation strategy, Bata will continue to enhance the value of its products while maintaining a focus on affordability for its traditional customer base. Shah highlighted the success of the brand Floatz, which offers casual and comfortable footwear at competitive prices, as an example of this approach.

Looking ahead, Shah expects e-commerce to remain a significant growth engine. He noted that online sales have been the fastest-growing segment for the past three to five years, contributing to low double-digit growth, and predicts this trend will continue. Windlass added that India remains Bata’s largest market, with revenue of Rs 3,478.41 crore in FY24.

As the company prepares for the festive season, it remains focused on expanding its market presence and driving growth through a combination of innovation, retail expansion, and a strong digital strategy.