Results of Bata’s Transformation – Analysis

Bata's Hush PuppiesWe have already covered the strategy Bata India Ltd adopted towards transformation. We will now analyze the outcome of Bata’s transition.

Bata was long known for its strong presence in the men’s footwear range. However, the global and Indian experience shows that ladies and kids are the driving factors for larger footfalls. the company roped in Rani Mukherjee for its ladies brand, Marie Claire, which saw increased sales subsequent to the campaign.

The brand Bata essentially had a feel and appeal for the value-for-money class of consumers. The company’s strategy to replace its older and slow-moving footwear lines with newer designs and styles paid back. It now retails footwear upto as high as Rs 5,000. This coupled with its newly launched range of accessories (school bags, socks, fashion bags, etc) would help the company in cutting across customer classes.

Net Sales and No. of Stores jumped from INR 770 cr and 1,183 to INR 995 cr and 1,320 between 2006 and 2008 respectively. Bata’s position as a market leader in the Indian footwear market cannot be doubted, except over the last few years when the company’s market share fell to 6.5% in 2007 from 7.2% in 2004. however, with all the measures in place we expect the market share to increase to 7.6% in 2010 from 6.5% in 2007.

The company has also bagged Images Retail Award, Wolverine Worldwide Award for its Hush Puppies brand and Lycra Images Fashion Award.

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