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Bata India Plans To Start Future Retail Expansion In The Franchise Method

Opportunity India Desk
Opportunity India Desk Dec 10 2021 - 2 min read
Bata India Plans To Start Future Retail Expansion In The Franchise Method
Bata expects 80-90 per cent of stores to come from franchises, expanding its presence and covering most of the second- and third-tier towns in India.

Bata had till date kept its registered office in Calcutta, over the years it depended on company- owned and company-operated showrooms to reach its customers. In its latest annual report 220 of the 1,576 retail stores were on the franchise mode.

Rural areas are urbanising very quickly, more importantly their aspirations are going high. They are getting exposed to digital mediums; disposable incomes are going up and therefore their aspiration for brands like Bata. This results in a huge headroom and opportunity. Nearly 80-90 per cent of new store additions in the next 2-3 years are possibly coming from franchises.

A franchise reduces the company’s investment to a large extent but also facilitates rapid penetration into the semi-urban areas and the rural hinterland.

Gunjan Shah, CEO Bata said, “The Bata brand cuts across the length and breadth of the country – whether it’s north-south or east-west or the eastern-most part. If that is the equity, there is potential for expansion and therefore franchise thereof is also significant. We are right now present in 400-450 towns. Some of the initiatives taken during the pandemic continue to gain a grip even though the reduction has eased and customers have stepped out of their homes. This could be possible because of the result of common inventory management. If a customer does not find the right pair of footwear at a particular store, the salesperson can find out online if the same is in stock at any other outlet close by. If available, the customer can place the order and the product would be home delivered at a later date.”

It is a multifaceted inventory exercise at Bata’s side. As per CEO, the customer must not face difficulties and must have a flawless experience with the company.

Now the customers are back to the stores. “In the last few months, especially since the festive season started, we are seeing even the metros and malls coming back. And I think that’s also to do with the confidence of the consumers and vaccination and the way their confidence is coming back and so hopefully both the engines will keep firing.” Shah added.

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