• For decades, Bata was synonymous with quality and comfort. Now, the legendary shoe brand has been bestowed with one more accolade – Stylishly Ahead.  The game-changing styles, the hottest fashion trends and a matchless craftsmanship to boast of, the new age Bata has it all. And this is being reflected in the awe and admiration of its consumers; old and new.
  • To drive home this cool new image, Bata has teamed up with Smriti Mandhana & Kriti Sanon as new face of the brand.  On the back of this momentum, the Company opened many new stores and took its much loved articles to stores in Tier-II and Tier-III towns across the country.
  • As we all know, women and kids footwear are the fastest-growing segments in our country. In view of this, the Company has continuously launched a wide portfolio of flagship products for women and kids. In the men’s segment, we’ve focussed on contemporary shoes as well as the sports and athleisure categories. This strategy has strongly reinforced the brand’s positioning across the country.
  • The Company continues to push strongly its digital agenda and our digital sales have rocketed last year as well. We relaunched our website with a much trendier and user-friendly UX/UI. Our partnerships with e-commerce players like Amazon, Flipkart, Myntra etc. have grown deeper and more meaningful. This has helped us grow continuously and profitably in our digital business. We’ve also debuted our much-awaited Home Delivery service in Delhi and NCR using digital tools.
  • The TVC campaign announcement reflects Bata’s conscious strategy to move towards becoming the go-to fashion brand for people in the 25-35 year-old range. It is targeted at women who have grown up on Bata school shoes, yet over the years might have ceased to associate the brand as being fashionable and stylish. The media, advertising and digital marketing campaigns successfully strengthened Bata’s position as a contemporary, must-have brand for the youth as well as the style savvy consumer.
  • Your Company continued to be India’s leading and most preferred footwear brand by developing and implementing a strong marketing strategy to support its new image and position. Last year your Company has invested in understanding consumer needs through intensive consumer interactions and research and used that knowledge in effectively delivering consumer need based solutions.
  • A key focus for your Company this year has been to build the brand among the youth of the country especially the millennials. The online marketing initiative, social media presence, blogs and advertisements along with two youthful brand ambassadors Smriti Mandhana and Kriti Sanon have helped strengthen your Company’s connect among the younger consumers. With the introduction of new collections in Power, a fashion forward collection under Bata Red Label and a contemporary range of casuals for both men & women, we have seen more and more young Indians come back to our stores.
  • The Indian footwear industry is currently under transformation phase and moving from a traditionally labour-intensive industry to a more technological and innovation driven industry. The footwear industry in India employs over 1.1 million workers, making it one of the top employment generating industry in the country. The footwear production in India is over 22 billion pairs annually, which is approximately 9.6% of the total global annual footwear output. India is the second largest global producer of footwear after China and also the world’s third-largest footwear consumer after China and the USA.
  • The organised footwear market in India is still dominated by men’s footwear which contributes around 58% of the total retail footwear market and is expected to grow at a CAGR of around 10% by 2020. The women’s footwear segment, however, is projected to grow at a much faster CAGR of around 20%. In terms of the product type, casual footwear is the largest product segment in the Indian footwear market and contributes to approximately 67% of the total retail footwear market.
  • The footwear industry is dominated by the unorganized domestic footwear manufacturers but with the fast changing consumer behaviour, growing Indian fashion and lifestyle market, increase in disposable income of middle class, awareness of fitness among youth, urbanization and demographic changes, the organised sector footwear brands are likely to witness higher growth in the near future.
  • It is expected that around 11% of total revenue in the Indian footwear market will be generated through online sales by 2021. Due to rapidly increasing urbanization, there is a also an opportunity in Tier II and Tier III cities across India.
  • The Government of India recently approved special package of Rs 2600 crore for leather and footwear sector which also includes measures for simplification of labour laws. The package involves implementation of central scheme ‘Indian Footwear, Leather & Accessories Development Programme’ with an approved expenditure of Rs. 2600 crore over the three financial years from 2017-18 to 2019-20. The package would lead to development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.
  • During the twelve month period ended March 31, 2018, your Company added over 100 new retail stores, 31 franchisee stores & renovated more than 90 stores across India. These spacious new stores are located in the growing markets of the country and are based on global design, making them look enticing with contemporary display of the products. Your Company shall continue to make investment on renovating existing stores hence creating a delightful shopping experience for the customers by improving store layouts on the lines of new ‘Red Angela Store Concept’ and creating an emphasis on key products within the retail stores.
  • Your Company’s online business has recorded a remarkable growth during the year under review. Your Company sold more than 8.9 lac pairs of footwear through online channels and achieved a turnover of Rs. 879 Million. Your Company’s e-commerce presence has penetrated in 1000+ cities and towns across India.
  • The financial year 2017-18 saw various new initiatives for Hush Puppies – your Company’s international brand known for comfort, quality and style. Launching of new ‘Signature Collection’ across its exclusive stores, marking a new tradition of contemporary and fashionable shoes for the new younger generation, etc. were the major highlights for the brand. Apart from this, an increased focus on womens footwear as a premium comfort category has been introduced in the new and refreshing lines of ‘The Body Shoe’ for women and the new successful sporty casual collection.
  • In order to cater to the children’s ever changing footwear demand, your Company has been introducing many new designs and innovative footwear. Through ‘Bubblegummers’ brand of footwear, your Company has always been striving to make quality shoes with uncompromising comfort and features that safeguard their little feet. Bubblegummers is retailed through all Bata stores across the Country and has been the first point of contact to start our consumers’ journey to establish long term association with Bata. With 18% of the Country’s population below the age of 10 years, potential to grow in the children category of footwear is huge which makes this category as one of the key focus areas for your Company.
  • Your Company does not have any Bank Borrowings and the entire capital expenditure has been funded through internal sources.
  • The Capital Expenditure incurred during the year under review amounted to Rs. 930.77 Million as compared to Rs. 386.79 Million in the previous year.

Bata India Annual Report 2018

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