?Bata plans to expand business through a franchise model

According to Rajeev Gopalakrishnan, President, South Asia, Bata Emerging Markets, Bata India is eyeing Tier III and Tier IV cities through a franchise model rather than opening new stores.

Gopalakrishnan, said, "Considering the fact that retail business will grow rapidly in Tier III and Tier IV markets over the next five years, due to increasing disposable incomes and the fact that these markets are largely unrepresented by organised players, it was decided to enter new markets through franchising instead of opening own stores. Most important point in managing the franchisee business is to ensure that partners grow consistently with brand and get decent return on their investment."

In 2015-16, Bata recast its plans of opening 100 stores every year and decided to concentrate instead on achieving same-store growth.

He said, "We have been following dual strategy of driving same store-growth and opening new stores."

Bata currently has 64 franchise stores and about 1,300 retail stores. Bata has five manufacturing units and 7,770 employees. It sells 50 million footwear pairs annually. Bata India is part of the Switzerland-based Bata Shoe Organisation.

Bata is evaluating new locations and has currently identified "100 potential trade areas that cover both malls and high street areas. Almost 40 percent come from cities, while the remaining will come from low tier cities and towns where consumers are looking for convenience, latest designs and diverse-range for various occasions.

Gopalakrishnan said, "We plan to open stores focusing on Bata, Hush Puppies, Footing thereby catering to various segments."