Bata India is currently engaged in discussions, with Adidas, a footwear leader to form a strategic partnership specifically designed for the Indian market. In a market that poses challenges, Batas shares experienced a 1.80% increase while benchmark indices saw a decline of 0.3%. These talks indicate Bata’s commitment, to exploring opportunities to remain competitive and meet the changing preferences of consumers.
Bata India is reportedly, in discussions with the renowned footwear brand Adidas for a collaboration in the market according to insider sources. At around 11;10 am Bata Indias shares were showing a gain of 1.80 percent while the overall benchmark indices were experiencing a decline of 0.3 percent.
During Q1FY24 the company witnessed a decline of 10 percent in its profit. Bata posted a net profit of Rs 119.3 crore in the corresponding quarter of the previous year. However, there was a growth of 2 percent in revenue from operations for this quarter which stood at Rs 958.1 crore. Expenses during this period increased to Rs 826.9 crore compared to Rs 792.6 crore.
This slower revenue growth marks the lowest since the March quarter of 2021 for Bata India as it grapples with an increasing consumer preference for casual wear despite being well-known for its Formal shoes. According to Ambit Capitals, note in May Bata faced challenges due, to innovation and declining brand appeal compared to its competitors. Analysts suggest that high inventory levels have mattered and necessitated an early end-of-season sale.
In terms of expansion, Bata India added a total of 70 stores during this quarter bringing their store count to 2,100.
During an interview Gunjan Shah, the Managing Director and CEO of Bata India mentioned that the company is making a comeback, in the premium price range by introducing product offerings. At the time they are increasing their investment in advertising and promotional activities to connect with savvy young consumers.
Bata is also focusing on growing its sales. Expects a significant portion of its growth to come from expanding through franchising. They have plans to open 125 stores in FY24 and expand their presence in brand outlets (MBOs).
To support their strategy Bata is investing in aspects such, as improving front-end operations enhancing store infrastructure adopting technology advancements prioritizing design and research & development. Additionally, they are constantly introducing collections at a pace to stay competitive with other brands.
