Bata India has announced a significant leadership change with Sandeep Kataria being elevated to Group CEO as part of its strategic transformation. According to latest reports, this appointment comes as the company accelerates its digital transformation initiatives to address growth challenges. The leadership change represents a strategic move to strengthen the company's position in the competitive footwear market while focusing on digital-first growth strategies.
Bata India is implementing a comprehensive digital transformation to address its growth challenges. According to an exclusive interview with Mint, CEO Gunjan Shah announced the company aims to derive 20-25% of total revenue from digital platforms within the next 2-3 years. Currently, digital contributes about 14-15% of revenue, representing a significant increase from below 5% five years ago. As reported by Mint, Shah emphasized that digital sales have been the fastest growing engine and will remain the primary driver of future growth.
The century-old shoe maker is facing significant growth headwinds compared to industry peers. According to Mint reports, Bata's revenue grew just 3% year-on-year in Q3 FY26, while nine-month sales remain almost stagnant. This performance lags behind competitors such as Metro Brands and Campus Activewear, which report double-digit growth rates. Campus Activewear has built a particularly strong online presence, generating more than 40% of its ₹588.61 crore Q3 FY26 revenue from digital platforms.
Bata is targeting millennials and Gen-Z shoppers through strategic marketing initiatives. As reported by Mint, the company has shifted its media strategy with 80-90% of marketing spends now allocated to digital platforms. The brand has partnered with actor Sanjana Sanghi for its Ballerina line and influencer Kusha Kapila for its "Make Your Way" campaign. Shah noted that Bata's core consumer is around 25 years old, plus or minus five years, while the company is also positioning to attract the next wave of Gen-Z buyers.
Bata is simultaneously moving upmarket while reshaping its product portfolio. According to Mint reports, the company holds the exclusive license to manufacture and retail Hush Puppies, which operates at the super premium end with an average selling price of ₹5,000. Shah plans to expand Hush Puppies from its current 160 stores to 200 stores. The company has also significantly increased its casual footwear contribution to 60% from less than 40% pre-Covid, focusing particularly on sneakers.
Bata's investment in digital transformation comes amid significant competitive pressures. As reported by Mint, the company's Q3 marketing spend grew by close to double digit year-on-year, while competitors like Campus Activewear spent ₹132 crore on advertising in FY25, up 25% from the previous year. The company has also experimented with quick commerce, collaborating with Zepto in December 2024 and launching its direct-to-consumer app in 2023, which now drives 14% of sales. However, analysts at Sunrise Gilt Securities warn that the pace of transformation may be insufficient given accelerating competition.
