Upcoming festive season and retail expansion will help revive sales: Bata India
19 August 2024, Mumbai
Terming the current sluggish consumption as a temporary phase, Gunjan Shah, Managing Director and CEO Bata India, says, the upcoming festive season and ongoing retail expansion will help revive the company’s sales in the coming quarters. With online sales continuing to expand through its portal and channel partners, the company expects its e-commerce platform to be a key growth driver.
Bata is investing in store renovations to attract younger consumers, who currently account for about 40 per cent of its transaction. The company is also launching new, relevant products with affordable pricing to further strengthen its market presence.
In addition to expanding its product range, Bata plans to grow its apparel line to over 200 stores, up from the current 70, and increase the number of exclusive outlets for its athleisure brand ‘Power’ to 15 by the end of 2024. The company is also making significant investments in technology, particularly in automating inventory management to boost productivity.
Despite reporting a 1.4 per cent decline in consolidated revenue to Rs 944.63 crore for the June quarter, Bata hopes performance to improve in the second half of the fiscal year. The company’s ongoing efforts, investments, and strategic initiatives will help yield positive results, Shah affirms.
Looking ahead, Shah anticipates consumer spending will resurge in the upcoming festive season. Ashwani Windlass, Chairman, notes, factors like general elections and heat waves have created some softness in the lower and mid-end of the market.
In future, Bata plans to align the company’s growth drivers with its long-term strategy. It will focus on offering relevant products, expanding both online and offline retail, and investing in marketing, branding, and consumer experience, emphasises Shah. The company will also continue to focus on premiumisation by adding value to its products while ensuring that it remains accessible to its traditional value-conscious consumers.
Citing the success of the Floatz brand, which offers casual and comfortable footwear at competitive prices, Shah says, Bata also aims to enhance the value-for-money perception. India remains the company’s largest market with revenues worth Rs 3,478.41 crore in FY24.
