Footwear major Bata India, which has been witnessing increasing interest for opening of its franchise stores, has crossed the milestone of 500 franchise outlets for the first time.

The country’s largest footwear retailer’s presence gained strength through its over 1,860 retail stores pan-India, including franchisees, in the last financial year.

“Your company continues to expand its retail network, renovate stores to elevate customer experience and accelerate expansion through franchise and distribution networks. Due to strong brand recall, your company has been witnessing increasing interest for opening of franchise stores,” Bata said in its annual report for FY24, which was released on Monday.

As the company crossed the milestone of 500 franchise stores, its distribution channel was scaled up to over 1,500 towns.

“Our expansive retail store network now encompasses an impressive 1,850-plus doors, registering some notable milestones – we opened 500-plus franchise stores, 650-plus sneaker studios — a haven for sneaker enthusiasts with single walls adorned with a plethora of sneaker styles and 125-plus Hush Puppies stores,” Bata India MD and CEO, Gunjan Shah, said.

Premiumisation strategy

During FY24, the company witnessed a steady growth in demand for premium and casual footwear. This demand translated into the growth of average selling price (ASP) and gain in the share of higher category articles in brands such as Hush Puppies, Red Label, Floatz and North Star. “Our strategy for premiumisation continues progressively,” it said, adding as Indian consumers shift up the income pyramid, small towns saw a surge in demand for premium products.

“Aspirations for branded products, ease of digital payments and the impact of digital marketing and social media, attracted consumers from tier 3-5 cities,” the footwear manufacturer said.

Bata launched its first exclusive Power Brand store last fiscal, with offerings to fitness enthusiast consumers.

The company said it successfully implemented a voluntary retirement scheme (VRS) at its Southcan unit in Bengaluru last fiscal. Around ₹40.90 crore was offered for the VRS.

The company currently has four manufacturing plants, including the Southcan unit.

“2024 presents a clear opportunity to leverage the foundation laid down in 2023 and proceed further on our sustainable profitable growth agenda,” Shah said.

Healthy revival

According to Bata, the Indian footwear industry has displayed resilience after the pandemic-led shocks and since then, has been exhibiting healthy revival. The industry growth is expected to be driven by higher disposable income across geographies and segments, aspiration for branded and comfortable footwear and the constantly-changing fashion trends and consumer preferences.

“However, factors such as domestic inflation, rising rentals in commercial real estate market, enhanced volatility in global financial systems, escalation of geo-political stress, etc, may challenge India’s footwear market growth,” it added.

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