25 July 2024, Mumbai
Reinforcing its position as India’s largest retailer with over 1,860 stores across the nation, Bata India opened its 500th franchise store.
This achievement underscores Bata's strategic shift towards a franchise model, creating real estate opportunities for entrepreneurs across India. According to Bata's annual report for FY24, there is a ‘growing interest in opening franchise stores’ due to the brand's strong recognition. This approach enables Bata to extend its reach into smaller towns and cities without the need for direct investment in physical stores.
Bata India's expansion strategy focuses on Tier III-V cities, where there is a growing demand for branded products and the convenience of digital payments is fueling an increase in demand for premium and casual footwear. This trend is evident in the rising sales of brands like Hush Puppies, Red Label, Floatz, and North Star. By partnering with local franchisees, Bata leverages their market knowledge and potentially reduces real estate costs compared to prime locations in metropolitan areas.
Bata India's "premiumisation strategy" extends beyond product offerings to enhance the retail experience. The company recently launched its first exclusive Power Brand store, catering to fitness enthusiasts. These specialised stores may require larger retail spaces than traditional Bata outlets, which could impact real estate needs in targeted areas.
While the Indian footwear industry has witnessed a robust recovery post-pandemic, it continues to face challenges such as inflation, rising commercial rents, and global economic uncertainties. However, Bata remains optimistic about future growth, driven by increasing disposable incomes and evolving fashion trends influencing consumer preferences.
