shoe fit or not ?

Bata and Servis have been household names for over five decades, dominating Pakistan’s shoe market until the 90s. The turning point came with the import of branded and unbranded footwear, as well as with the start-up manufacturing of shoes and sandals for women by small, local shoemakers.

For the first time, Bata and Servis had competition and along with that came the realisation that they needed to adapt to this changed environment. Bata (a foreign company) brought in brands from its own international markets (such as Marie Claire, Bubblegummers and Weinbrenner etc.) and adapted the designs for wear in Pakistan, whereas locally owned Servis signed agreements with big names such as ECCO, Hush Puppies and Nike.
According to the Pakistan Footwear Manufacturers Association, the local shoe market is worth 100 billion rupees, of which 80% is made up of unbranded manufacturers and international brands, while Bata and Servis account for 20%. About 225 million pairs of shoes are produced in Pakistan every year and unsurprisingly, 75% of the sales revenue is generated by women’s shoes.
In spite of all these measures, Bata and Servis understand that there will be plenty of challenges in the future. A factor to be considered is the influx of more international brands, which will provide serious competition particularly in the top tiers (where Bata and Servis hope to draw their margins from). Secondly, as Abd points out, both Bata and Servis will have to manage a dual market.

But most importantly (and both companies agree on this), the biggest challenge will be to remain relevant in a discerning market. In spite of all these measures, Bata and Servis understand that there will be plenty of challenges in the future. A factor to be considered is the influx of more international brands, which will provide serious competition particularly in the top tiers (where Bata and Servis hope to draw their margins from). Secondly, as Abd points out, both Bata and Servis will have to manage a dual market.
But most importantly (and both companies agree on this), the biggest challenge will be to remain relevant in a discerning market.