Introduction export. Bata’s shoe products include school shoes,

Introduction
Bata Pakistan Limited is occupied in manufacturing and
selling of all type of shoes, besides selling goods and accessories. (Bata Pakistan
Ltd (BATA.KA))

Since 1942 Bata in Pakistan has been rendering its accommodations
to its valued customers by offering quality products. It was incorporated in
Pakistan as Bata Shoe Company Limited in 1951 and went public to become Bata
Pakistan Limited in the year 1979. (Bata)

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Bata was a Companion of the Order of Canada. (J.Bata)

The global shoemaking giant sells shoes and
accessories through nearly 4900 retail outlets; the company has 25 production
facilities. Bata has three main business divisions namely retail, wholesale,
and export. Bata’s shoe products include school shoes, dress shoes, sandals,
slippers, athletic shoes, casual shoes, etc. The company targets a broad
demographic of men, women and children. Some of its popular shoe brands include
Bata Shoes, Bata Comfit, Marie Claire, Sandak, Bubble gummers, Weinbrenner,
Hush Puppies, Power and North Star.  (Zubari) 

Hush Puppies is the international brand, Bata uses the franchising
power to supply the product in the Pakistani market. The target customers
of this model are rich people. The weinbrenner shoe line is made up of
leather shoes and boots, style in low, mid, and high cut. Cuts or design are
directly fashion, but can include materials which help to feel comfort in doing
outdoor strong works. The shoes are casual in style closures generally with
laces and eyelets, sometimes supplemented with hooks, D-rings and straps with
buckles. Nike is a worldwide famous and popular athletic
shoe brand. Bata carries this brand as a licensing. This brand is for a
different segment of customers in Pakistan. Though it is an athlete shoe but in
Pakistan young generation wear it as a fashionable product. The target customer
of this product is higher income group people. Power is also
an athlete shoe which is considered as the alternative of Nike. Power shoes are
cheaper than Nike shoes. The target customer of this shoe is middle class
people. North-Star is a trendy shoe focused to the young customer group.
This shoe is cheaper than Nike and Power. This is considered as a seasonal
product as the demand increase in winter. Comfit has an important feature in design
and assembly of all the comfit shoes. This brand is focused on both comfort and
style of shoes. Unit rubber, PVC, PU or TRR sole are commonly used in this
brand. “Get comfortable today” is a tagline commonly associated with this range
of shoes. Sandak is plastic made bata product for lower income people to use
in every season of the year. This shoe is also made for rough use for all level
of customers. Bubblegummers is the leading children’s
footwear brand in Latin America and has developed an extensive presence in Asia
and in Europe. Bubblegummers offers quality, comfortable, funny and colorful
shoes for the 0 to 9 old that assure the healthy growth of a child’s foot. (Bata Shoe Company Ltd, 2008-2009)

To cater the middle upper income segment of the
market, 13 city concept stores were opened in Karachi, Peshawar, Rawalpindi,
Mirpur, Gujranwala, Gujrat and Quetta. The company has a strong retail network
comprising of more than 400 retail outlets, 467 registered wholesale dealers,
13 wholesale depots, 28 wholesale distributors and 41 DSP wholesale franchises
across the country. Bata Pakistan does not have its scope limited to the
domestic market, it also exports footwear. Recent performance Bata Pakistan is
among a selected group of local companies that generate over Rs.10 billion in
annual revenue. Bata Pakistan improved its performance during the third quarter
of 2006 with total net sales at Rs.970 million compared to Rs.706.9 million in
the corresponding period of 2007, the strong sales growth trend has continued
to be maintained. On July 10, the stock closed at Rs.3340 per share, with a
volume of mere 20 shares. Such mounting competition has also muted Bata’s
growth in retail outlets – only 27 outlets were added across the nation from
2011 through 2014. In the recently concluded CY15, the company reported sales
of Rs.14.8 billion – 7.5 percent more than the previous period. As of 2016,
Bata had 412 retail outlets and 13 wholesale depots across the country. The
Bata scrip is extremely thinly-traded on the local stock market. In the year
ending June 30, 2017, the stock’s average daily volume stood at just 96 shares
per day. After a lackluster CY16, Bata didn’t have a great start to CY17. In
the first quarter ended March 31, 2017, the firm suffered a top line fall of 5
percent year-on-year. In the end, net profit suffered a bigger decline, of 17
percent year-on-year, due to increases in distribution and administrative
expenses. Going forward, Bata’s challenge will be to reinvigorate its top line.
On one hand, Bata needs to expand its retail stores, especially in rural areas.
On the other hand, it needs to make its urban retail footprint more modern and
customer-friendly. (Zubari)