- 03 Jun 2022
- ICICIdirect Research
BATA TO FOCUS ON CASUAL SHOES PORTFOLIO WITH ACCELERATED RETAIL FOOTPRINT EXPANSION
BATAINDIA - 1336 Change: -3.75 (-0.28 %)News: As per media reports, Bata India is expected to continue casualisation and sneakerisation of its portfolio with focus on asset light expansion in smaller towns and cities.
Views: Post Covid, Bata has focused on changing its product portfolio in favour of casual shoes and also increased its presence in the sneakers category. The sneakers portfolio of Bata contributes around 20% of revenue and has been the fastest growing product category for it. The company believes preference for comfort is a long lasting trend. The company is looking to fill white spaces in its portfolio and align it to the latest consumer trends. Also, the company is looking to increase its retail presence (currently 1600 EBOs) commensurate with the strong brand recall that Bata brand enjoys across India. It is looking to add 20-30 stores every quarter, which would be mostly on a franchise basis in rural and small towns to capture consumer demand. Further, it is also planning to expand presence across the multi brand outlets (current reach around 25000 outlets). Both initiatives are expected to increase the availability of Bata products and aid in accelerating revenue growth.
Impact: Positive