Before the millennium ushered in and the internet brought all Indians with their diversity and differences on a common platform, BATA was one brand that enjoyed nationwide trust. The Switzerland-based brand that manufactures shoes, as well as fashion accessories, was founded in the Czech Republic in 1894. It was the same year when the Punjab National Bank, recently in news for issuing fraud LoU’s, was founded by Lala Lajpat Rai in India. Post the Economic Liberalisation of the 1990’s, BATA’s popularity scaled new heights and became a household name amidst India’s growing as well as budget oriented middle class. Not so far back, the name was synonymous with shoes in India. Millennials will have some cherished memories of the brand.
Besides witnessing the economic reforms of the 90’s, BATA has witnessed major political events that now are part of the folklore of the world’s largest Democracy. Amidst the new indirect tax reform and the bold step of Demonetization, BATA thrives to gain the popularity of bygone days. Recently, the Nairobi based retail and accessory manufacturer held the second edition of Bata Fashion Weekend. Present at the event was Alberto Toni, Bata’s Chief Financial Officer, who on being asked about the impact the Goods and Services Tax (GST) and demonetization had on the brand said, “The GST was pre-announced and communicated. The government gave time to prepare and it was something that was totally acceptable. It was a positive step”. The initial reaction on Demonetization was of shock. However, Mr. Alberto Toni lauded its Organizations effort for backing the Governments out of the blue decision. Hailing GST and Demonetization as opportunities, the CFO said that despite the initial drop in sales d, the company reacted well and went through a wet period without suffering a lot. The current sales reports hint towards a recovery from the initial jolts.
The organization which celebrates its 85th anniversary this year is upbeat about the prospects and opportunities that the stable and positive Indian Economy promises. In his words, India is now a priority market and all future investments will be driven by the following key factors:
- Opportunity
- Trading Conditions
- The Economy
- The Population
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The brand enjoys a stronghold across major Tier-1 and Tier-2 cities. It further plans to extend its reach in Tier-3 and Tier-4 cities with an objective to open 100 all-new and completely stores per year. Most of the stores will be based on Franchise Model and BATA is willing to join hands with people who know the ins and outs of the local market.
