Bata focuses on products below Tk500 in Bangladesh market: CEO

Bata Shoe Company is implementing a two-pronged strategy to navigate rising inflation and solidify its position in the Bangladeshi market, according to CEO Sandeep Kataria.

To address the first challenge, Kataria explained that Bata is focusing on products priced below Tk500. The strategy aims to provide value and a wider range of options for budget-conscious consumers, he said.

"We've launched almost a thousand new items and many of them are of great value to consumers and they can take advantage of the quality and style that Bata brings."

He added that the other approach involves bringing the latest global trends in quality, technology, and style directly to Bangladeshi consumers.

"So they don't need to travel overseas to buy the most stylish products as they are available in Bangladesh already."

Kataria shared the company's strategies in an interview with TBS during his visit to Bangladesh.

We'd like to see Bangladesh grow rapidly, much faster than it has in the last few years to continue to make sure it continues to move up our priority globally. If the country's GDP grows at 6% or 7%, we should be looking to grow at 50% faster than the GDP.

Sandeep Kataria, CEO, Bata Shoe Company

Highlighting that Bangladesh has become a top 10 market for Bata, with continued growth potential Kataria also sees the country emerging as a potential global sourcing hub for the footwear industry.

"We'd like to see Bangladesh grow rapidly, much faster than it has in the last few years to continue to make sure it continues to move up our priority globally."

He also said, "If the country's GDP grows at 6% or 7%, we should be looking to grow at 50% faster than the GDP."

Bata's establishment in Bangladesh

Bata started its operations in Bangladesh in 1962, nearly a decade before its independence.

Emphasising Bata's long-standing relationship with Bangladeshi consumers Kataria noted their loyal patronage, from childhood purchases like school shoes and first shoes, to adult life's needs for work, everyday wear, celebrations, and even special occasions like Eid.

He also acknowledged that there is competition with the local brands but said Bata always welcomes such a move which keeps it on its feet and makes it do even better.

"We quite appreciate that we do have some of our competitors who are also our suppliers overseas especially. So if they improve product quality, we can also take advantage of sourcing up," he said.

Kataria mentioned Bata's advantage as a multinational brand.  He explained it strives to stay ahead of competitors by consistently delivering superior service, value, style, and comfort to their customers – all at competitive prices.

"A lot of innovation is coming from us to our consumers, across the spectrum of pricing, segments, types of shoes in our ability, taking advantage of our multinational ability to bring in trends from across the world by using our global reach, but manufacturing in Bangladesh," he said.

85% of products made locally

The Bata CEO also mentioned that the company locally produces about 85% of products at its factories.

"Local sourcing strategically is very important for us that some of these partners could actually become our sourcing partners for us across the world, not just for Bangladesh."

Kataria said Bata always focuses on updating its technology.

"We've recently implemented new technologies at our factory, including one behind the comfortable, all-weather footwear you've seen in stores under the 'Floats' brand."

He also said almost 50% of the raw material of the shoe comes from shoes that have been collected and recycled already.

"Even in our own factories, when we have any wastages, we try and make sure that we can actually use that raw material to be recycled and reused rather than letting go of it, of course," he said

They're significantly reducing plastic use and switching to environmentally friendly packaging materials, such as boxes made from recycled metal, he said.

"So a whole lot of that comes through and then looking at energy sources which can be more sustainable as we go forward," Kataria said.

The Bata CEO also said, "We have installed solar power on the roof of our factory."

Bata is looking at the effort to be able to bring it to more and more markets as it goes forward, he said.

Bata also features high-end brands in its product line. Brands like Marie Claire, Ambassador, and Weinbrenner belong to the high-end range. Apart from these, Bata also imports Adidas shoes in Bangladesh.