Upbeat Bata plans expansion of store network in Thailand
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Bata (Thailand), a Switzerland-based global footwear manufacturer, has expressed its confidence in Thailand's economic potential with continuing plans to invest in the Kingdom.
The company announced plans to invest more than Bt100 million in Thailand next year of which Bt50 million will be allocated for the opening of 22 new stores, and Bt50 million to renovate 28 existing stores.
The expansion reflects the commitment and faith in the Thai economy at Bata’s headquarters in Switzerland. The company believes the plan to expand by opening more stores, renovating existing stores, and enhancing the Bata image as an international fashion brand with high-class store designs will improve its sales significantly in the next three years.
Currently, there are more than 280 Bata shops across Thailand.
Bata customers are mostly aged 30 years and above and are mostly family.
The expansion plan next year aims to penetrate the younger generation, mainly teenagers, as well as more premium customers by adding fashionable and premium products and through greater presence in the market. The company is targeting 10-per-cent year-on-year sales growth in 2015.
Carlos Garces, managing director of Bata (Thailand), affirmed that the Thai economy will gradually improve with the good signs seen in the third-quarter performance this year.
“Despite several challenges such as the political unrest, fire at its warehouse in June 2014, we still enjoyed sales growth of 8 per cent in the third quarter of this year compared to the same period last year following rebranding and new shop concepts that are modern and standardised throughout the world. Also in 2014, Bata has opened 26 new stores, exceeding its original plan for 20 stores. Thus, Bata is very confident that this year sales growth will exceed 4 per cent compared to last year. We have set a target to increase our sales by 10 per cent in 2015,” said Garces.
Anawat Sangkhasap, retail marketing manager, said that Bata products are divided into five key categories – ladies, comprising 38 per cent of sales; men 23 per cent; children 6 per cent; athletes 6 per cent; and other products, including other kinds of shoes, non-footwear, and accessories, accounting for 27 per cent of total business.
