Bata Kenya says it does not need to get into a race to the bottom on prices even as low-cost rivals try to chip into the market share it has defended for decades using discounts.
The shoemaker, which has been in the country for over 80 years, will instead ride on its brand equity to defend its market while relying on franchising to win new consumers in new urban and peri-urban areas.
Bata Kenya managing director Benson Okumu said in an interview that while most of the competition is being launched at the price-sensitive bottom of the pyramid, the firm’s selling points will be “quality, durability and value for money.”
“We have refused to be dragged into price wars. The competitors will come and probably say they are cheaper, but we have maintained that we have to keep the right product that is value for money to the customer. When our promise to our customer stays, they stay with us,” said Mr Okumu.
He said Bata has seen competition from other manufacturers, importers and mitumba shoes sellers, but that will not tempt Bata to tweak its focus.
“We cannot compromise our products by trying to offer a cheaper product. We will ensure that at whatever level of pyramid we are, we only have a product that subscribes to the quality, durability and standards of Bata.
"We will not look at the price of competitors and then substitute our quality for theirs to be at that price point,” said Mr Okumu.
Bata has, however, been using discounts to drive sales in the face of inflationary pressure that has hurt the purchasing power of many consumers.
The firm has been expanding its footprint in Kenya and stocking its outlets with new shoes and accessories in line with the global strategy of “honouring the past while shaping the future.”
Bata opened this year with 117 stores in Kenya and has launched more, taking the number to 126. It also set up new depots in Embu and Mombasa to take the count from 18 to 20 as it seeks to grow the wholesale market.
In addition, Bata is now setting up new stores via a domestic franchising model as it seeks to grow without a huge capital outlay.
This is also being complemented by online stores to tap into the growing e-commerce market in Kenya.
“We are spreading our stores to ensure we are in all the relevant semi-urban and urban areas, and we are doing it with partners who want to join us under domestic franchising,” said Mr Okumu.
“Our stores are now segregated into what we call store profile classification, which is grouped in terms of product proposition and pricing. So not all our stores have the same product. We look at the profile of a place to know what to put in the store to resonate with the consumers in that area,” said Mr Okumu.
Mr Okumu said sales momentum had been hurt by floods and protests during the first half of the year but recovery has now set in. He expects the fourth quarter to get even better, helped by end-year holiday festivities.
