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Bata Shoes (Retailing Industry) - Essay Example

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Bata Shoes (Retailing Industry)

A number of lower and middle price footwear business experienced the risk of collapse. Few number of large scale specialists in fashion and premium players were able to survive the trembled economic condition. In the coming future there would be certain factors which could affect the footwear industry. Venture capitalists have been the key driver in the growth of the footwear industry. However, due to the financial turmoil the venture capital sector was not able to offer any lucrative prospectus. That is why even the footwear industry had to bear a stalled growth in the last few years. During the global recession, the consumers had been very much selective about their spending. They would polish their old shoes rather than buying some new shoes. UK footwear industry also experienced less profitability due to the depreciation of Sterling against the US Dollar (Verdict, 2009). They were operating on low operating margins as low consumer confidence made it quite difficult for the retailers to offer higher price to the customers. Now that UK is reviving from the trembled situation, one can expect a revival for the footwear industry.
In the mid nineties, the demand in the footwear industry had seen a downturn. However, between 1996 and 1999, only the leather footwear industry saw a growth of nine percent. The demand for the footwear have been rising since then; the reasons are many including increased population, enhanced standard of living and continual increase in the shopping spree of the tourists. However, due to the financial downturn, consumers started looking for bargains and at the same time tourist spending was reduced to bare minimum. As a consequence the footwear industry saw a drop in sales in the last two years. With the economy recovering, the show retailers expect the shoe retail industry to rebound this year. The revival is indicated by the recovery in the local shopping sectors. The process ...Show more


Bata was no exception to it. However, the organisation was able to revamp its retail management facilities by focussing on the consumers’ demands. Bata has…
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Bata Shoes (Retailing Industry) essay example
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