Bata – A 126+ years old Brand that adopted Omnichannel Solutions

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Company Overview:

Bata came into existence when people had not seen anything like a World War. A company started by three siblings succeeded in becoming one of Europe’s leading shoe manufacturers in just a few decades due to smart entrepreneurship, mechanization, and competitive pricing. By the first World War, Bata was creating history with 5000 employees and 2 million sales per year. Unfortunately, Europe was a house divided in the first World War, making it difficult for Bata to get the materials it needed. But not even the crisis could mar Bata’s determination. They flourished through the ages with a “half-full” glass strategy powered by optimism & innovation. It was the first company to use the steam-driven machine for production, first to implement the pricing strategy of 9 and also first to advertise its product through magazines and video. Today after 126 years, Bata is still the World’s leading shoemaker by volume, designing stylish and comfortable footwear at surprisingly affordable prices. Bata is spread across 70+ countries currently with 23 factories, 40,000 employees, 5500 stores, 6 brands, and 1 million customers to take care of every day, and that makes us wonder: How are they managing their decade-old Legacy system and adapting to the changing customer needs.

Challenges faced:

While Bata’s reach is worldwide, their presence is local. Their unique international manufacturing structure allowed Bata to become a local heartland in every country. Simply because they understood the unique need and want of local customers. They have always been true to their motto:

Know your customers and to create the best possible products to meet their needs.

Their capability to imbibe the local flavour is so strong that as Indians we have all had that experience that customers were often convinced that the Czech shoemaker was a homegrown Indian company. Post-ecommerce, the overall scene started changing.

Bata Omnichannel Strategy

The familiar Brand started struggling to reconnect with the country’s millennials and was losing the connection they had built with their customers for over a century. As shopping became increasingly digital, Bata’s 5000+ stores across the globe were losing their relevance. They wanted to augment their website conversions and improve their sales across the globe once again. They realized the importance of unifying inventory across stores, sites, and warehouse networks. They needed their presence to be highlighted both online and in-store as they have always enjoyed for more than 120+ years. They needed an Omnichannel which will unite its global stores under a single platform.
In India, Bata faced another challenge. The lengthy product line combined with a large number of stores made it difficult to make all products, colours and sizes available in stocks at all selling points. This resulted in inefficient replenishment of stocks which in turn caused dissatisfaction and lower conversion rates.
But getting everyone on board into this social journey was not easy. They wanted a solution without replacing the existing Legacy System.

Solutions:

Bata adopted an Omnichannel Solution. It helped Bata to manage almost every phase of the shopping experience, from product discovery to fulfillment, directly from one single platform to improve the shopping experience. The overall engagement involved crucial features like Inbound and Outbound support with Omnichannel CRM, Logistics coordination connecting the entire retail hierarchy, technology-based fulfillment and digital team management training. For inefficiencies in replenishment, the newly implemented Omnichannel helped them to automate manual processes from Order to Delivery and centralise inventory for efficient fulfillment. Bata can now serve their faithful customers with an upgraded system where the products will be stocked everywhere and get it delivered to them or picked by from anywhere.

End Result:

After implementing the Omnichannel solution, Bata’s website has seen an overall increase in revenue by 4 to 5 times. 85% of the total website’s revenue is powered by Bata Omnichannel. The decision to go online or be omnipresent by Bata brought remarkable growth in their sales and more than 8.9 lac pairs of footwear were sold through online channels and achieved a turnover of Rs. 879 million in the FY 2017-2018 after the implementation of Omnichannel.
But even after all the milestones achieved, Bata still had limited control over the management Online stores. They wanted to offer a much wider range with all stocks available in any store in the country. In addition to that, both domestic and international competition increased with each passing day, changing customer behaviour and risk of theft of data remained concerns for the Brand. Bata realized they need a better omnichannel to accompany them in this fight to continue being the market leader as they can see the average age of the customers in the Bata stores is going down and engaging them across all touch-points is essential for recall, retention and growth.

How Eunimart will help:

The real question is how easy it will be to modernize a 125+ year Company to cope up with the millennials without hurting the core values which have made what Bata is today.
Eunimart will then be the ultimate choice. Eunimart uses Artificial Intelligence with years of experience in handling domestic and cross-border businesses to analyse a Company’s needs and provide a solution which will be as per the market needs but in sync with the Company’s values. Their proprietary AI-Suite can help to manage the entire global presence and operations of Bata on a single platform. The operations are made easy to monitor and control across all geographies in real-time and automated processes reduce management costs and ensure data-driven rapid growth in Sales. Eunimart’s Market Intelligence tool helps to identify the top products in every category, top marketplaces by category, top sellers, competitive products and as a result can guide to identify the best portfolio and the best markets to sell in. Product Intelligence can help the Brand to predict sales and decide upon competitive pricing to get a competitive edge both in Domestic and International Markets. Further, Machine Learning is used to analyse competition so that the Brand can always be ready for any kind of disruption and act as a proactive shield against drastic changes.
The Eunimart family has 100+ years of experience, 35+ top tech engineers and 25 Subject Matter Experts – they are the ones who make the impossible happen, just like the Bata team who literally created an indelible footprint in the sands of time through their journey and evolution for 126 years and surviving two World Wars, plagues and depressions coming back stronger every time.