Bata to open 200 upmarket stores

Kolkata, Jun 27(UNI) Taking advantage of the growing high end consumerism, Bata India will open 200 upmarket stores in the country in the next two years to tap the urban upward mobile.

" We propose to open another 200 new stores in the next two years. These stores will be at par with those in Singapore and Malayasia and we are expecting handsome returns from this venture," Chairman P M Sinha told reporters after the company's 74th Annual General Meeting.

Declining to specify the amount of investment Bata proposed to make for the new stores, Mr Sinha said the company had already opened 37 new stores till end of 2006 in locations of high demand and refurbished and upgraded 78 existing ones.

" We have dramatically redesigned our shoes and are witnessing very substantial increase in the turnover from these stores," he said.

Observing that the number of middle and upper middle class Indians, spending more on clothes and shoes, were growing rapidly, the Chairman said Bata was providing them much better design and choice. "Young consumers with more money are looking for a shopping experience for both buying and window shopping and this phenomenon is now spreading..." he said.

Mr Sinha informed that the proposed upmarket stores would be based on Bata's international standards in terms of look, displays and space.

In reply to a question, he said the company was expecting its topline growth to be doubled this fiscal from 8.3 per cent recorded last year.

In his address to the shareholders, the Chairman said the company continued to be a market leader in the footwear business and had emerged with 35.1 per cent score over all the other leading footwear brands.

" On the basis of popularity scores of houswives and working women, Bata leads the market by 28.9 p0er cent. We retain the top popularity among 16-24 years age group segment by 22.7 per cent compared with other popular brands," he said.

Observing that the outlook for the footwear and leather industry in the country was positive, Mr Sinha said Indian leather garment products export was growing at eight per cent CAGR (Compounded Average Growth Rate) and was like to double by 2010.

" With huge manufacturing capacities and investments coming into this sector, there will be increase in production capacities and it is time that the Government treat footwear and leather industry at par wit the apparel industry to generate large scale employment and to achieve an estimated target of 12 billion dollars trade by 2012," he said.

As large brands, particularly footwear manufacturers, around the world were planning to set up manufacturing facilities in the country, Mr Sinha also sought Government encouragement to investment opportunities, including FDI in this industry.

UNI