Bata CEO Charts Aggressive Growth Path for Indian Market
BENGALURU: Panos Mytaros, the CEO of the Bata Group, has been in the corner office for just over six months and is already on his second visit to India. The Czech Republic-born executive, leading the Switzerland-headquartered footwear giant, is focusing intensely on India, which is Bata's largest market globally. Mytaros, who replaced Sandeep Kataria, is implementing an aggressive growth strategy to awaken what he describes as a "sleeping giant" in the Indian market.
Reviving a Century-Old Presence
Bata has been present in India for over 100 years, but growth has been stagnant in recent times. Mytaros has set a challenging target of doubling the company's India business turnover within the next five years. He emphasized the need to make the brand and products more relevant to a wider audience in India. "There is a big responsibility from our side to be relevant for a wider audience in India and to the times of today. You will see Bata being more visible and more relevant," Mytaros stated in an exclusive interview. He noted that many people mistakenly believe Bata is an Indian company, highlighting its deep-rooted connection to the country.
India currently contributes close to one-fourth of Bata's global revenues. Mytaros expressed his commitment to the market, saying, "The team has been working on India. I wanted to come and see the progression. When I come here, I learn a lot." This hands-on approach underscores his dedication to revitalizing Bata's operations in a highly competitive landscape.
Expansion and Strategic Focus
To achieve its growth targets, Bata plans to expand its retail network through a mix of own brand outlets and franchise shops. The company will also double down on e-commerce initiatives and strategize specifically for young shoppers, with a strong emphasis on its sneakers portfolio. This move comes as global brands like Skechers, Nike, and Adidas, along with local players such as Metro Brands, Campus, and Relaxo, have intensified competition in the Indian footwear market.
Additionally, a new breed of direct-to-consumer (D2C) brands, like Delhi-based Gully Labs, are capturing the attention of Gen Z and early millennials with their chic styles. In response, Mytaros highlighted the importance of defining a clear product portfolio to attract younger consumers. "I would like to separate shoes and sneakers... What you will see in India from 2027 onwards is a very clear proposition—this is the shoe and this is the sneaker," he explained. Sneakers will become a key focus area with significant expansion plans, as Mytaros believes they are "the best bridge to bring the younger consumer."
Balancing Premium and Mass Markets
While premiumisation will be part of Bata's India strategy, the company remains committed to its mass market roots. Mytaros described Bata as a "mass market" company, and despite sluggish performance in this segment recently, it will continue to be a core consumer cohort. The firm's India portfolio includes a mix of own and licensed brands such as Power, North Star, Floatz, Hush Puppies, and Scholl.
In terms of pricing, Bata is not implementing price hikes in India currently, even as the West Asia war poses concerns for many companies. This decision is facilitated by the company's local manufacturing capabilities in India. Moreover, Mytaros announced plans for a "dramatic" increase in exports from India over the next five years, signaling a broader economic contribution.
Market Challenges and Stock Performance
Bata India's stock price has faced significant pressure, currently trading at Rs 642.60 per share on the BSE, down from its 52-week high of Rs 1,300. The company has also missed out on key partnerships recently; for instance, Metro Brands secured the rights to operate American footwear retailer Foot Locker's India stores. These challenges highlight the competitive pressures Bata must navigate as it seeks to rejuvenate its market position.
Overall, Panos Mytaros's vision for Bata in India involves a multifaceted approach: enhancing brand relevance, expanding retail and digital presence, focusing on youth-centric products like sneakers, and maintaining a balance between premium and mass market offerings. With these strategies, Bata aims to transform from a "sleeping giant" into a dynamic leader in the Indian footwear industry.
