Reliance Retail may step on Bata’s shoes

According to reports from The Economic Times, the ever expanding Reliance Retail may soon partner India’s oldest retailer, Bata. This tie-up means Bata showrooms (situated at primest of location across the counrty) will don Reliance’s footwear brands, and Bata’s shoes would be displayed on Reliance’s shelves.

If this tie-up materialises, it will be a win-win situation for both the players. Bata, which has been facing a tough time in India market will get to expand its reach and Reliance will get to sell a trusted footwear brand. A similar tie-up has been in effect between Biyani owned ‘Pantaloon’ and Liberty shoes, which has a brand format named ‘Shoe Factory’.

Bata is also know to have a substantial real estate bank, which Reliance may be eyeing and may be a part of its grand scheme of things. Importantly, Bata has its base in Batanagar, West Bengal, which is a politically sensitive state as Reliance is facing difficulties in its operations due to opposition from the Left parties. As such, with this Reliance may kickstart its operations in WB.

Also important is the fact that Bata is more targeted towards the urban middle class unlike other shoe chains which are upmarket like M&B, Shoe Factory, Nike, Adidas, Reebok and this augurs well for Reliance’s scheme of things.