Retailing of footwear

INDIAN FOOTWEAR INDUSTRY

The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011.

Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07.

Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market.

By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market.

• As footwear retailing in India remain focused on men's shoes, there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment

• The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market.

• The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market.

INDIAN FOOTWEAR INDUSTRY

MAJOR PLAYERS

COMPANIES TARGETING THE CONSUMERS BASED ON INCOME

PUMA, NIKE

ADIDASACTION, LIBERTY,

NIKE, ADIDAS

BATA, ACTION, LIBERTY, RELAXO

BATA,ACTION,RELAXO

RICH CLASS

UPPER MIDDLE CLASS

LOWER MIDDLE CLASS

LOWER INCOME GROUP

BATA SHOE ORGANIZATION

Bata Industrials Worldwide Bata Industrials is a specialized division of the World’s largest shoe

manufacturer: the Bata Shoe Organization (BSO)

Today, Bata Industrials is one of world’s largest manufacturer & marketer of Safety footwear The company headquarters is located in Best, the Netherlands.

Bata Industrials has operations and production facilities in most of the Countries worldwide.

Bata Industrials Footwear incorporates more than 100 years of experience.

Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932.

Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues.

Bata India Limited is the largest footwear retailer in India.

Bata India has more than 1250 stores across the Country.

BATA SHOE ORGANIZATION

USP

• GOOD QUALITY• LOW PRICE• SIMPLICITY

TYPES OF RETAIL STORES

FAMILY

CITYFLAGSHIP

BAZAAR

MARKETING STRATEGY

Bata is reinventing itself and has introduced the concept of flagship stores to provide complete and unique shopping experience at par with their stores abroad.

International trends, relaxed ambience, great products, and courteous staff at the new-look Flagship store are all a part of Bata’s new marketing strategy.

Reposition brand 'Bata' - High brand recall for consumer lead to higher footfalls and better conversions

Target new market (ladies and kids) - Filling the missing 45% pie of footwear market

Improving shoe line - Launching international brands, focus on style will attract new young customer class

Comfort Wind Flexible

breakthrough product in

women's footwear.

It uses dynamic spring pads that act as cushion

for your feet.

.

it has an in-built air

circulation technology that

allows your feet to breathe and

ensures that you stay fresh

a.m. to p.m.The rubber outsole lets The foot follow its nature curvature

and help movements flexible

and comfortable.

TECHNOLOGY

Bata’s Offerings

BATA – Wrong Target

In the early 1990s, Bata decided to embrace the high-end segments of the Indian shoe market as a part of its target market.

The segment constituted a mere 5 to 10 per cent of the footwear market in India.

This segment was not sizable for a company like Bata and the segment did not gel with Bata’s distinctive competence.

The top end of the market suddenly became the main focus of the company and it forgot its bread-and-butter shoes that had given the company its identity.

The year 1995 saw the company running a loss of Rs. 42 crores.After learning the lesson the hard way, Bata did an about-turn

from its adventure with high-end segment and returned to the mass segment.

BATA-OVERVIEWMarket segment low to medium priced footwear for the common person

across the globe

Local Strategy Bata runs semi-autonomous companies targeted at the low to medium end of the scale.

Marketing Approach Bata clusters countries geographically into groups; the expatriate would build regional specialization & training activities would be more relevant on a regional basis for similar counties

International strategy Bata follows a multi domestic strategy. It stands for low integration across country units & high local responsiveness

THANK YOU

VIVEK DOSHI- 56