Bata To Pursue Volume-Led Growth Strategy, Targeting Middle Class Customer Segment

New Delhi, June 5: Footwear giant Bata India has announced a long-term, volume-driven revenue growth strategy for the next five years. The strategy focuses on catering to India’s rapidly increasing middle class with a clear focus.

Under its strategy, Bata aims to target middle-class customers and offer them cost-effective products, thereby remaining a relevant brand in the affordable product space. If all goes well, Bata will be able to capture the affordable product space and increase its sales and revenue through economies of scale.

In an earnings call earlier this week, Managing Director & CEO Gunjan Shah outlined the company’s direction, emphasising the importance of offering value-oriented products tailored for cost-conscious consumers.

“We want to ensure that it’s a volume-driven growth trajectory, not just for the next two years but for the next five years,” Shah said, while acknowledging the potential for short-term fluctuations.

He further said that BATA wants to target middle-class customers and that “the heart of our consumer base is the middle-class Indian”, indicating a strategic pivot to enhance relevance in this demographic segment.

Bata’s Store Expansion and Retail Strategy

Bata continues to maintain an 80:20 mix between franchise and company-owned (COCO) retail outlets, reflecting a balanced approach to retail expansion. As of fiscal year 2025, the company operated 624 franchise stores nationwide.

Within its brand portfolio, Hush Puppies and Power stand out as the second and third-largest contributors, after the core Bata brand. Combined, these brands account for approximately 20% of the total revenue.

While acknowledging tight demand conditions, Shah said Bata is actively leveraging multiple strategies to stay competitive:

• Offering a value-for-money product portfolio
• Enhancing visual merchandising by showcasing products in a clear and complete manner
• Ensuring availability across all sizes and providing a seamless consumer experience

Bata’s Floatz Business Is Growing Rapidly

Bata’s EVA-based Floatz segment is witnessing rapid growth. The brand has already crossed the ₹100 crore revenue mark, and Shah expects it to hit ₹200 crore if the current trajectory continues through the year.

How Did The Investors React? 

Following the announcement, it was anticipated that Bata’s share price would rise. However, they were down by 0.08%, or ₹1.00 and were trading at ₹1,222 at around 12:10 PM during the June 5 market session. The stock made an intraday high of ₹1,230 and a low of ₹1,220.55.

What’s Ahead For Bata?

Bata India’s strategic reset appears sharply aligned with the spending behaviour of India’s middle class, signalling its intent to drive growth through affordability, accessibility, and operational agility. Bata’s shift to a volume-led strategy targeting middle-class consumers could drive long-term growth by tapping into India’s expanding value-conscious market. If executed well with strong product availability and retail efficiency, this move may help boost sales and strengthen brand loyalty.

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