Bata India Reaches Landmark of 500 Franchise Outlets.

Footwear giant Bata India has achieved a significant milestone by surpassing 500 franchise outlets for the first time, amidst growing interest in opening franchise stores. The country's largest footwear retailer has strengthened its presence with over 1,860 retail stores across 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 stated in its FY24 annual report released on Monday.

As Bata India crossed the 500 franchise store mark, its distribution channel expanded 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, and 125-plus Hush Puppies stores,” said Gunjan Shah, Bata India MD and CEO.

During FY24, Bata India experienced steady growth in demand for premium and casual footwear, resulting in an increase in average selling price (ASP) and higher category articles in brands such as Hush Puppies, Red Label, Floatz, and North Star. “Our strategy for premiumisation continues progressively,” the company noted, highlighting the surge in demand for premium products in smaller towns as Indian consumers climb the income ladder.

“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 company added. Last fiscal year, Bata also launched its first exclusive Power Brand store, catering to fitness enthusiasts.

Bata India successfully implemented a voluntary retirement scheme (VRS) at its Southcan unit in Bengaluru last fiscal year, offering around ₹40.90 crore for the VRS. The company currently operates 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 stated. Bata emphasized the resilience of the Indian footwear industry post-pandemic, with growth driven by higher disposable incomes, aspirations for branded and comfortable footwear, and evolving fashion trends.

“However, factors such as domestic inflation, rising rentals in the commercial real estate market, enhanced volatility in global financial systems, and geopolitical stress may challenge India’s footwear market growth,” the company cautioned.

HBL