With in-house developed Flow Foam technology, redesigned silhouettes, and backend manufacturing built around the Floatz line, casual styles today comprise around 60% of Bata’s product mix, up from 40% a few years ago.

Bata has launched ‘Red 2.0’, a redesign of retail spaces to remove clutter and reorganise inventory. “We’re now implementing zero-base merchandising (ZBM),” Shah explains. Introduced in 146 stores, ZBM has cut Bata’s inventory by 25% while improving availability, according to YES Securities.

“What you see in one store may be very different from another because the consumer is different. We’re building responsiveness into the system,” Shah says. Platforms like Blue Yonder are helping Bata push consumer feedback across the value chain, from shelves to supply. It is also betting big on the omnichannel strategy, including a recently piloted app, home delivery from stores, and curated digital-only collections. The digital blend has helped Bata retain the momentum it gained during Covid. “E-commerce has been our fastest-growing channel for five years,” Shah says.

Non-metro play

Metros drive the sales of high-ticket products such as Hush Puppies, with 150 exclusive brand outlets. But India’s fast-expanding smaller cities are synonymous with growth for Bata. Four years ago, in an early and aggressive push, it opened its store network to franchise partners in these markets. Now, it has around 600 franchises, mostly outside metros. As a result, Tier II and III cities have emerged as major growth engines.

“There’s been a silent migration from rural India to towns with 50,000–100,000 population,” Shah says. “These are the real demand centres now. They may not be ready for full-scale company-owned stores, but they want access to brands.” The franchise model lets Bata stay asset-light while expanding reach. In FY25, the company added around 100 stores, including 91 franchises. In Q4, nine stores were added, taking the total to 1,962. In FY26, the company targets more than 100 new stores, with 80% expected to be franchises. By FY29, Bata expects to nearly double the number of franchises to 1,000.

Flow Foam Technology

Bata India's Playbook: Chasing growth across Tier I and Tier II cities