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Bata Set To Expand Asset-Light Franchise

To expand physically, Bata India is all set to adopt asset-light franchise.

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To expand physically, Bata India is all set to adopt asset-light franchise. After the recently concluded annual general meeting (AGM), it was decided that 80 per cent of its physical store expansion will be undertaken through the route of the franchise.

The shoe giant now has 1,200 company-operated stores, compared with 320 franchised stores, mostly spread out in semi-urban areas. The shoe giant's franchise-led expansion strategy is consistent with its regional penetration plans.

The company had a record first quarter performance and posted a 7 per cent improvement this quarter.

Bata currently has 4,000 products, 50 per cent of which are casual and 50 per cent formal. Before the pandemic, casuals made up 40 per cent of his product portfolio for the footwear giant. Novelties include casual, fashion shoes, and even formal.

The company will expand its exclusive e-commerce coverage to further penetrate the digital market.

The company has tripled it’s growth in digital channels over the past three years. Digital segment growth was 70 per cent continuously from April to June 2022 compared to January to March 2022. sold 40 million pairs of shoes last year. Bata India's accessories category now accounts for 6 per cent of the total business, and the growth rate is 2-3 per cent higher than that of the overall business.