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In recent months, sluggish demand and competition from the e-commerce sector have hit Bata India's footwear sales. In an interaction, Rajeev Gopalakrishnan, group managing director, Bata South Asia, responded to e-mailed questions from Namrata Acharya on changes in strategy. Edited excerpts:
In the past quarter, Bata’s net sales were down by nearly one per cent. How does Bata plan to rebound? Any change in marketing strategy?
We are already on a recovery path, with steady improvement in the supply chain, new store openings and emphasis on customer service at our stores.
The focus from a marketing perspective will be on improving the experience of consumers walking into our stores. This will be done by delightful in-store decor, with a clear emphasis on key products and story building around the categories. The objective is to make Bata a one-stop solution for all shoppers, offering a wide range of products for all occasions and purposes — sports, holidays, evenings, casual and formal.
How many of your products are locally made and how many are outsourced from China? Do you see yourself sourcing more from China to cut operating cost?
We have five factories around the country which are constantly evolving to manufacture the best of quality and style. We will certainly be investing in the existing factories over the year. A majority of the products are made in our own factories; the rest is outsourced to other vendors within the country. Manufacturing at Bata India will expand in the coming years, with better and skilled labour and advanced manufacturing machinery.
What is your plan with e-commerce sales?
There is a whole new opportunity for expansion of business via the e-commerce platform. Our e-commerce business has reached about 1,400 cities across India. An M-wallet (mode of payment) service has been launched. We have also introduced a mobile application of Bata for user-friendly experience via an interactive user interface, an easy and faster way to browse, without the necessity of using a laptop or computer.
To attract more online customers, new partnerships have been created over the past year with leading online entities Amazon, Myntra, Flipkart and Jabong.
What new innovations in product mix will drive Bata’s growth in the ensuing year?
The coming year will be full of product mix innovation. Bata has continued to focus on improvement in shoe design, through constant research & analysis. The latest collection will bring forth aspirational & contemporary styles, focused towards a younger audience, with an eclectic mix of accessories with which the brand will go big.
Over recent years, Bata has been focusing on opening large-format stores. Do you expect some change in this strategy? How many stores do you plan to open this year and what segments will it cater to?
Bata India opened around 100 stores in 2014 in metros, tier-2 and tier-3 markets. We aim to open around 100 more in 2015. A lot of investment will also be done on creating a delightful shopping experience for walk-ins — enhancing customer service, improving the layout and creating an emphasis on key products within the store. The stores we open now will be bigger and at key locations like malls, high streets and high-density highways.
In the past quarter, Bata’s net sales were down by nearly one per cent. How does Bata plan to rebound? Any change in marketing strategy?
We are already on a recovery path, with steady improvement in the supply chain, new store openings and emphasis on customer service at our stores.
The focus from a marketing perspective will be on improving the experience of consumers walking into our stores. This will be done by delightful in-store decor, with a clear emphasis on key products and story building around the categories. The objective is to make Bata a one-stop solution for all shoppers, offering a wide range of products for all occasions and purposes — sports, holidays, evenings, casual and formal.
How many of your products are locally made and how many are outsourced from China? Do you see yourself sourcing more from China to cut operating cost?
We have five factories around the country which are constantly evolving to manufacture the best of quality and style. We will certainly be investing in the existing factories over the year. A majority of the products are made in our own factories; the rest is outsourced to other vendors within the country. Manufacturing at Bata India will expand in the coming years, with better and skilled labour and advanced manufacturing machinery.
What is your plan with e-commerce sales?
There is a whole new opportunity for expansion of business via the e-commerce platform. Our e-commerce business has reached about 1,400 cities across India. An M-wallet (mode of payment) service has been launched. We have also introduced a mobile application of Bata for user-friendly experience via an interactive user interface, an easy and faster way to browse, without the necessity of using a laptop or computer.
To attract more online customers, new partnerships have been created over the past year with leading online entities Amazon, Myntra, Flipkart and Jabong.
What new innovations in product mix will drive Bata’s growth in the ensuing year?
The coming year will be full of product mix innovation. Bata has continued to focus on improvement in shoe design, through constant research & analysis. The latest collection will bring forth aspirational & contemporary styles, focused towards a younger audience, with an eclectic mix of accessories with which the brand will go big.
Over recent years, Bata has been focusing on opening large-format stores. Do you expect some change in this strategy? How many stores do you plan to open this year and what segments will it cater to?
Bata India opened around 100 stores in 2014 in metros, tier-2 and tier-3 markets. We aim to open around 100 more in 2015. A lot of investment will also be done on creating a delightful shopping experience for walk-ins — enhancing customer service, improving the layout and creating an emphasis on key products within the store. The stores we open now will be bigger and at key locations like malls, high streets and high-density highways.
