Homegrown footwear brand Bata is on expansion mode with a focus on expanding in Tier-2 and metro cities . The company’s CEO Gunjan Shah said he aims to have digital sales outpace overall growth. Shah, who completes a year of being the CEO of legacy brand Bata, spoke to BusinessLine about the company’s plans on portfolio expansion, inflation and changing consumer needs.
How has Bata adapted to the changing market scenario?
It’s a journey we have been on for over six years to make sure we keep pace with our consumers and evolve in every aspect ; including our portfolio, styles, and segments of shoes. Apart from this, expanding our footprint across the country while understanding why Bata should be available only in select cities. We have been working on expanding in both Tier-2 cities and metros, whether it is through our own stores or multi-brand stores. Another thing we did was working on our brand appeal to millennials and Gen Z.
Which areas does the company plan to expand in?
All across the country, and in all formats, whether it is imagery stores, in malls or key high-traffic street locations, as well as smaller town shops. Consumer aspirations are evolving and people in smaller towns expect the same experiences as those in metros. That’s what we aim to satisfy.
What trends are you seeing ?
Trends keep changing, but we are seeing a bounce back in occasion-based purchases, office wear and school wear. Simultaneously, we are seeing an evident need for comfortable yet stylish footwear, and that is a portfolio we plan to satisfy.
How are Bata’s digital sales performing? Will you hit 50 per cent sales from online channels?
Currently, our sales are fabulous. With regards to 50 per cent online sales , we’re a little away from that target, but it’s not impossible. Eventually, I would like to see digital sales outpace overall growth. It is our goal to have a robust approach whether it is through our D2C channel, e-commerce platforms or omnichannel approaches — which are a big hit among customers.
Despite the fact that markets are opening up, inflation is at an all-time high. How does Bata plan to tackle that?
It is a delicate balance because inflation is not an easy puzzle to solve. We have made ourselves as lean and efficient as possible, therefore extracting savings to help mitigate inflation. Given the extent of inflation we have seen, we needed to take a few measured price increases. I am sure, between the two pillars, we will be able to navigate this.