Market
Times were when you distinguished a lady or a
gentleman from the rest by a quick dekko at
their feet. That era may have gone but shoes are
still a testament to status. As celebrity reporter
Rhonda Markowitz once remarked: “The study
of the shoe, far from being frivolous, is a heady
mix of sociology, anthropology and fashion.
Shoes hold a unique place in our hearts.”
Indians have always fancied shoes. Jutti – a
slipper-like closed upper stitched or tacked on
to a sole – is the well worn Indian word for
shoe. Jutti – worn by men and women – range
from the plain to the exotic embellished with
pearls, embroidery, sequins or fabric. All of these
are traditional manufacture and almost every
pair that is available in the market is part of the
huge unorganised sector.
Organised shoe manufacturing is a relatively
young industry in most countries. In India, the
credit for this achievement belongs to Bata. The
company has been manufacturing shoes ‘of
choice’ since the 1930s for successive
generations of Indians.
Bata India Limited has established itself as one
of Asia’s largest footwear retailers. It has
cornered a 35% market share in the
organised sector (and 8.5% of the
total footwear market) (Source:
industry estimates). Almost 98%
of the company’s revenue comes
from domestic sales. The rest is
from exports. Bata India
currently sells over 45
million pairs of shoes
every year and has an
annual sales turnover
of more than
Rs. 800 crore (US$
177.8 million).
The Indian
shoe market is
dynamic. Its
production
capacity is
second only
to that of China. The IMAGES Retail Report in
2002 estimated the market size at Rs. 9300
crore (US$ 2.1 billion). This figure grew to
Rs. 10,000 crore(US$ 2.2) in 2004. In 2005/06,
the market is estimated to have grown at the
rate of 12% to reach a stunning Rs. 11,700
crore (US$ 2.6 billion). What has especially
been remarkable over the last one year is
the rapidly increasing share of the branded
organised segment (Source: IMAGES-ACNeilsen
ORG-MARG study on Indian footwear
market – 2006).
With the rise of the premium segment, the
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footwear industry that has traditionally been
price driven is slowly becoming a quality and
fashion conscious market. Bata strides both ends
of this spectrum – and everything in between. A
retail network of 1250 stores gives it a reach
unmatched by any other company. They cover all
the metros, mini-metros and towns that have
above half a million population. The company
also has six retail distribution centres spread
across the country and eighteen wholesale
depots serving more than 250 wholesalers.
Achievements
Bata is synonymous with the rise and the
development of a modern footwear industry in
India. It has established a leadership position in
the industry and is the most
trusted name in
branded footwear. sprinting ahead of all footwear companies.
Over the last few Customers sat up and noticed. A survey on
years, with the market India’s most trusted brands conducted by Brand
opening up and Equity ranks Bata amongst the top ten Most
competition stiffening, Trusted Brands in the country – ahead of other
the company significant brands such as Coca Cola, Pepsi, Titan,
weathered a Maggi, Nokia and Gillette. The survey results
downturn were published in February 2006.
between Bata also emerged as the Most Preferred
Footwear Brand in a survey conducted by
Images magazine in association with ACNeilsen
ORG-MARG. Bata India scored 35.1% of the
popular votes and demonstrated greater market
strength in all consumer segments, including
women and youth. The second retailer was way
behind with an 8% score.
The countless honours showered on the
company include its being ranked as the
number one retail organisation in India
in the 2nd Retail Asia Pacific Top 500 Awards,
2005. Clearly, Bata’s footprint is formidable.
History
The Bata Shoe Organization (BSO) was
founded in August 1894, by Tomas Bata, in Zlin,
a small town in the erstwhile nation of
Czechoslovakia (present day Czech Republic). In
less than two decades, this company was
identified with expertise in mass manufacturing
2002 and 2004. It bounced right back, showing a of footwear. Today, it is the undisputed global
remarkable turnaround in 2005. The company leader in the footwear industry, with its
has sustained that black ink with each successive products having a significant share of the world
month better than corresponding periods in shoe market.
previous years. In India, The Bata Shoe Company was set up
This achievement was
the result of aggressive new
measures in which the
company re-invented itself.
It started a massive
restructuring exercise of its
retail operations and
implemented all renovation
and expansion plans quickly
and efficiently. Existing
stores were renovated to
provide a more customer-
friendly atmosphere. New
stores opened. Smaller,
unprofitable stores closed
down. Following three years
of decline, Bata was now
initially as a small operation in Konnagar (near
Calcutta) in 1932. In January 1934, it acquired a
plot of 155 acres from the Calcutta Port Trust
and from adjacent landowners. The foundation
stone for the first building of Bata’s operation –
now called the Bata Clinic – was laid on 28th
October 1934. In the years that followed, the
overall site was doubled in area. This township is
popularly known as Batanagar. It was also the
first manufacturing facility in the Indian shoe
industry to receive the ISO: 9001 Certification.
In the meanwhile, Bata has also created four
other large-sized manufacturing plants in
different parts of the country.
Product
Products offered by Bata have become icons for
millions of satisfied customers. Among the
notable success stories in this regard are
Ambassador, the classic dress shoes for men;
Power, the sports footwear functionally designed
for casual athletes; Mocassino, the trendy and
comfortable casual office wear; Dr. Scholls, the
original massagios; and Hush Puppies, which are
among the world’s most comfortable shoes in
the premium segment.
Bata has also enjoyed great success with
Bubblegummers, the fun footwear range
exclusively for children. Sandak is the leading
plastic all-weather footwear range and Bata
Industrials, the industrial and factory footwear
offers great comfort with the highest
safety standards.
Other acclaimed labels that Bata has under its
umbrella include Hawaianas, Sundrops, Comfit,
Wind, Reverso and Flexible. The international
collection of footwear now includes
Weinbrenner, Marie Claire and North Star; each
of these is aiding Bata create a trendier, more
youthful image and assisting the company
occupy and consolidate a key position in the
upper-end segment of the industry. New
collections are designed and built regularly with
a focus on global, regional and local fashion
trends. The emphasis is on introducing trendy
and exciting products, which are comfortable,
competitively priced and provide consumers
with value for money.
Recent Developments
Bata has revamped its retail operations to cater
to various consumer segments, giving each of
them better choices and an enhanced shopping
experience. There is a tiered retailing structure
that meets the needs of the stylish and the
traditional. At the top are the flagship stores in
up market locations in metro cities. Targeted at
the higher income groups, these stores stock
top-of-the-line brands and a chic and
fashionable shoe-line. Flagship stores are air-
conditioned, well appointed and sport a totally
international look. The next in line, city stores,
covering metros and mini-metros, cater to the
needs of the fashion-oriented middle and high-
income groups. In the third tier are family stores
in high traffic, commercial locations displaying
basic and middle-range footwear. These are non
air-conditioned stores with a totally commercial
look and mass displays.
The company has aggressive expansion plans
under way. 34 new stores have been opened in
2006. Plans are to open more than 40 stores by
the end of the year and another 150 in the
following two. The customer response to these
new stores has been phenomenal – their
average turnover more than three times that of
existing stores.
Bata India is also building a new chain of large
format stores called Superstores. These will be
above 300 square metres in area and will be
located in the metros. The stores will put on
display a wider range of products, carefully
tailored image and visual merchandising. Two
Superstores are already operational in India in
Mangalore and Hyderabad.
In manufacturing, Bata India is focusing on its
core strengths. It is specialising its production
and strengthening those categories where the
company has a higher competitive advantage. In
the wholesale trade, the company is in the
process of reinventing its business and will put
its resources in safety footwear, institutional
business and branding.
Promotion
Bata’s product range offers style, elegance and
durability even as it continues to be affordable
to millions of Indians. Value for money and good
quality are the two most important elements of
Brand Bata. The company’s promotions and
advertisements have leveraged these two key
factors. In the early 1990s, for instance, Bata
came up with a winning promotion titled
‘Superhit Price Range’, aggressively pushing its
affordable pricing.
This strategy continues even today with Bata’s
‘Best Value’ promotions. The objective is to push
certain articles from different categories each
month. The point of purchase (POP) materials
highlight these articles, along with the price
and cosmetic features. ‘Best Buys’ items are
those that get discounted and ‘Chosen for You’
articles are selected as special buys for a
particular time frame.
‘First to Bata. Then to School’ has been
another successful Bata campaign. This
promotion is undertaken every year during the
school season and generates an overwhelming
response from children and parents alike. Bata
has also managed to reach out to women in the
age group of 22/30 years. A ‘Month of Women’
is planned once every year, offering incentives
for women to walk in to a Bata store and see
the wide collection of very trendy, stylish and
comfortable shoes for ladies.
The Power brand has been re-launched as a
credible, performance-driven sports shoe. The
objective was to position it as a lifestyle brand
for amateur sportspersons.
Brand Values
The Bata brand evokes deep-rooted trust
among customers. It has been a household
name in India for several decades and has met
every variety of footwear demand. Bata aims to
provide shoes-of-choice to its customers for
every step of their lives.
Some of the values that Bata believes in, and
stands by, include constant innovation in design
and product development, superior customer
service, excellence in operational and
commercial execution, entrepreneurial spirit and
a passion to win, teamwork in an international
environment, trust and respect for its
employees, adding value to the community and
delivering on its commitments to shareholders.
www.bataindia.com
THINGS YOU DIDN’T KNOW ABOUT
Bata
Bata serves one million customers each day,
employs more than 40,000 people, operates
4,600 retail stores and manages a retail
presence in over 50 countries.
Bata India is the largest company for the Bata
Shoe Organization (BSO) in terms of sales and
the second largest in terms of revenues.
Since it was founded on 24th August 1894,
Bata has sold more than 14 billion pairs of
shoes – more than the number of pairs of feet
that have walked the earth during that time.
Laid end to end, the shoes Bata has sold would
cover a distance greater than 30 times the
distance between the earth and the moon.
Bata founder,Tomas Bata, was a ninth
generation shoemaker determined to become
the ‘King of Shoemakers’.This explains why the
numeral ‘9’ appears in all Bata pricing.
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