The once-mighty Bata India, whose iconic shoes have adorned feet for generations, is now struggling to regain its lost footing. As the country’s largest footwear manufacturer faces a declining market share, it begs the question: Can Bata India recover its lost glory or will it forever be relegated to the periphery of the industry?**
Bata India has been synonymous with quality and comfort since its inception in 1931. The company’s legacy is built on over nine decades of innovation, with its iconic shoe designs being worn by generations of Indians. However, beneath this storied legacy lies a reality that is as unvarnished as it is grim – the company’s market share has been in decline for years.
According to Euromonitor data, Bata India’s market share in the footwear market stood at 7.6% in 2015. Fast forward to 2022, and that number has dwindled to a mere 4.6%. The writing is on the wall – Bata India’s inability to adapt to changing consumer preferences, technological advancements, and the rise of e-commerce has led to its slipping market share.
One can’t help but contrast this decline with the phenomenal growth of Relaxo Footwear, which has emerged as a dark horse in the industry. While Bata India was struggling to maintain its market share, Relaxo grew by 15%+ between 2015 and 2022, according to Euromonitor data. Even Campus Shoes, another relatively new player, has been expanding rapidly, leaving Bata lagging behind.
A closer look at competitor performance reveals a worrying trend for Bata India – while competitors are innovating with digital transformation, engaging consumers through e-commerce platforms, and pricing strategies tailored to the times, Bata seems to be stuck in the past. For instance, according to a recent report by Deloitte, e-commerce penetration in the footwear market stood at 22% in 2022. In contrast, offline sales for Bata India continue to suffer, shrinking 25% between 2015 and 2022.
Where exactly did Bata go wrong? One major strategic misstep has been its pricing strategy. In an effort to protect its brand image, the company maintained a premium price point, which alienated budget-conscious consumers in a market where affordability is king. According to data from Statista, prices for footwear have fallen by over 30% since 2015, and Bata’s refusal to adapt has only exacerbated its decline.
Another crucial factor contributing to Bata India’s troubles is its slow digital transformation. The company was tardy in recognizing the importance of e-commerce, allowing competitors like Relaxo and Campus Shoes to steal a march on it. According to a recent report by Accenture, 60% of Indian consumers prefer buying shoes online, underscoring the imperative for brands to go digital.
Now, let’s consider three scenarios that could unfold for Bata India:
Scenario 1: Continued Decline**
If current trends persist, Bata India will be left with a dwindling market share and dwindling prospects. Relaxo and Campus Shoes will continue to grow exponentially, eating into Bata’s market share.
Scenario 2: Full Recovery**
In this optimistic scenario, Bata India embarks on a drastic transformation – revamping its pricing strategy, accelerating digital transformation, and engaging consumers through innovative marketing campaigns. The company would need to infuse fresh capital, prune non-performing assets, and hire talent that can navigate the changing market landscape.
Scenario 3: Partial Recovery**
This middle path assumes Bata India acknowledges its weaknesses and takes measured steps towards recovery. While the company wouldn’t be able to regain its pre-eminent position in the market, it could stabilize its market share at around 6-7%. However, this would require Bata to revamp its product portfolio, pricing strategy, and digital presence while engaging consumers through targeted marketing campaigns.
As we reflect on Bata India’s struggles, one question lingers: Will the company be able to regain its lost glory or will it forever be relegated to the periphery of the industry? Only time will tell.
