Can Bata India give Metro Brands a run for its money?
Subscribe to enjoy similar stories. An average American owns 8 pairs of footwear. The Japanese and Europeans own about 6 each.
Our neighbouring Asians own about three each, which is the global average. An average Indian, as per Crisil's research, owns just two. Will Indians start buying footwear in the years ahead with the rise in per capita income? As the numbers show, India's per capita footwear consumption has not changed in years.
Hence, we would not recommend betting your money on that. So, what are the chances of Indian footwear makers experiencing exponential growth over the next few years? How can they ride India's consumption story? Will the footwear industry stocks continue to find takers? Well, even if it is not the per capita consumption that is multiplying over the years, it is certainly the quality and brand of shoes that Indians are discerning about. This cannot be reflected in the volume numbers.
Industry leaders Bata and Relaxo Footwears had their own share of challenges despite being well entrenched in the Indian market. While Bata outsources around 50% of its capacity, for Relaxo the production is almost entirely in-house. The companies faced production challenges during the pandemic.
Over the years, the shopping preferences of Indian consumers have changed from price-sensitive to fashion-conscious. Bata's positioning has always been of a sturdy, but low fashion quotient brand. The company's slow but steady growth over the decades has been on the back of consistency as against product innovation.
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