Bata India investors don’t seem to be too impressed with the company’s newly struck deal with Authentic Brands Group, the parent company of the chic lifestyle brand Nine West, to bring the brand’s footwear and accessories to Indian consumers.
What Happened? The company’s Board of Directors greenlit the partnership, granting Bata India the rights to produce, promote, and sell Nine West products throughout its extensive network of stores in India.
The company announced this new venture in a regulatory filing, stating, “Bata India will hold the rights to manufacture, market, and distribute Nine West shoes and accessories across India through its stores.”
This move is one of Bata India’s many strategic partnerships. Its own brand, North Star, has flourished, witnessing a growth of 1.15 times year-on-year as of June 2023.
As India’s leading retailer in both revenue and store count, Bata India continues to expand its footprint. In 2022, Authentic Brands Group, the new partner, made headlines by acquiring the iconic sportswear brand Reebok from Adidas.
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For the fiscal year 2023, Bata India reported impressive revenues of ₹3,451 crore. The company boasts four manufacturing plants and a retail empire of over 2,050 stores across the nation, selling 48.46 million pairs of footwear in the last fiscal year alone.
Nine West stands as a high-end label known for its stylish footwear, handbags, and watches. Bata India’s strategy leans towards casualization and premiumization, with Nine West joining a portfolio of upscale brands like Hush Puppies, Marie Claire, and Red Label.
Price Action: Bata India shares were trading 1.15% lower at ₹1,543.00 on Tuesday morning, shortly after market open.
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