Adidas and Bata, are an Indian shoemaker companies, which are in discussions about forming a strategic relationship for the Indian market. For a strategic cooperation for the Indian market, Bata India and the world’s largest shoe manufacturer Adidas are in discussions.Â
Bata India has been contacted by many hailing news channels for comment.
As of 11:10 am today, the share price of Bata India was up to 1.80% while the benchmark indices were down close to 0.3%. In Q1FY24, the company’s net profit decreased by 10%.
In the same quarter of the previous year, the Bata company had made a net profit of Rs 119.3 crore. The quarter’s operating income totaled to Rs 958.1 crore, an increase of 2% over Q1FY23. If a comparison is made to the operating income of the previous quarter, expenses increased to Rs 826.9 crore from Rs 792.6 crore.
As the brand Bata, which is more renowned for its formal shoes of School Or office people, struggles with a growing consumer preference for casual wear, as the consumer is nowadays more into casual wear and that too of a branded company, had witnessed its one of the worst revenue rise since the March-quarter of 2021.
Several reasons for the downfall is due to a lack of innovation in the company and the waning brand recognition, Bata has lagged behind its competitors according to the research from the brokerage Ambit Capital published in May.
Several analysts claim that as a result of its struggles with quite a heavy inventory, it was compelled to hold an early end-of-season discount or else the company would have ended up with unwanted assets.
The company has added 70 new outlets to its retail network during the period of third quarter, bringing the total number of locations nationwide to 2,100.
Gunjan Shah, who is the managing director and chief executive officer of Bata India pvt ltd, stated in an interview with the news agency PTI, that the business Bata is re-entering the premium pricing points in the market with new portfolios of the company while increasing its spending on advertising and promotions to reach out to the young and digitally savvy consumers across the world.
Additionally, Bata is working quite hard to improve its offline sales in India, which were not going well as the demand for consumer casual preference had increased more and more and it anticipates that a significant portion of that growth which the company will make, will come from its expansion using the franchise business model, where it wants to open an additional 125 stores in financial year 2024 and further strengthen its ties to multi-brand outlets (MBOs). Bata is investing in front-end operations, stores to back-end infrastructure, technology, design, Research and Development, etc. as a part of the company strategy. In addition, Bata is releasing new collections quickly, on a monthly and weekly basis in order to keep up with its competitors.
