Rising competition pushes Bata’s market share to six percent

Once the leader of footwear market India, Czech brand Bata, which is still looked at as an Indian company is gradually losing grounds due to stiff competition from homegrown footwear companies. Bata India’s market share has slipped to almost six percent as it struggles to deal with declining revenues and profits. For the quarter ended March 2015, Bata India’s net sales dropped one percent year-on-year to Rs 491 crores, for the second year in a row. The company’s profit for that quarter was Rs 58.43 crores, an increase of 48.3 percent over a year ago, but owing to gains from a property development project.

To bounce back, the company now plans further retail expansion by opening 100 new stores each year apart from putting in efforts to change its identity to woo young customers. 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 plans to introduce 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.