Bata's long-term growth startegy attracts analysts’ attention

Bata India had reported a decline in its Q3 of 2014-15 revenue by 3 percent owing to delay in dispatch of inventory to some of its stores due to issues with its new supply chain management system, at the same time the also went ahead with its retail expansion strategy adding 50 new stores during the quarter, which also led to rise in rental costs and employee expenses. The situation resulted in fall in its profit by 34 percent on year-on-year basis and 10 percent on quarter-on-quarter basis. However, analysts have faith in the long-term growth of Bata and they expect the sales to rise during July-September quarter of 2015-16.

The company now plans to expand its retail reach by opening 100 new stores each year apart from putting in efforts to change its identity to woo the young. It is also bringing changes to its footwear designs along with extending its range to sunglasses, belts and handbags to bring young customers to its stores. It is also trying to connect with them through social media campaigns as well as advertising for growth.

Of late, Bata is aggressively pursuing growth. To take on online competition, the company is looking at introducing initiatives like ‘Click and reserve’, so that if a customer likes a certain pair of shoes then he or she can reserve it on the company’s website. The brand is also working on reviving labels like Power, North Star and Hush Puppies that sell under its portfolio.