Bata Shoe Limited, the country's largest shoe manufacturer, will start marketing world famous Nike shoes and sportswear next month as it aims to grab a slice of the fast-growing branded footwear market, a company official said Wednesday.
Nike has already made Bata the licensee for Bangladesh, allowing the multinational shoe company to market its products all over the country.
"Initially, we will market Nike products including shoes, apparel and lifestyle items in five of our top stores located in posh areas of capital Dhaka," said a senior Bata Shoe company official on condition of anonymity.
"There is a growing demand for high-end footwear and sport shoes among a fast-growing upper segment of the society. Our target is to grab the market with the world's best footwear brand, Nike," he said.
"There is a craze for Nike keds among university students, athletes and joggers. They wouldn't care for price as long as they get the genuine Nike products," he said, adding the price would start from Tk3000 a pair.
Nike had tried to sell its products through licensee shops in the country, but it failed to make any impact mostly due to presence of fake Nike shoes in Dhaka and Chittagong.
The deal with Bata will allow Nike to market its products in every major towns and cities. But in the first phase, Bata will sell the expensive shoes only in the major shops in Dhaka and Chittagong.
Bangladesh's footwear market is relatively small compared to its large population. It was worth over Tk 18 billion last year.
But industry insiders said the market has been growing over 20 per cent annually in the recent years, with branded shoes among the fastest growing segments.
Bata has over 238 retail outlets across the country and hundreds of registered wholesale dealers and licensee shops. Last year, it sold over 30 million pairs of shoes with a turnover of over Tk 4.69 billion.
But market analysts said the company has been facing a stiff competition in the fastest growing market of branded shoes, where Apex Adelchi and some Indian brands have emerged as the dominant players.
The company introduced Reebok shoes five years back, but failed to make a headway. Bata has also been marketing Power brand of footwear through its stores, but the it could never become popular among the upper class.
Apex Adelchi chief Syed Nasim Manzur welcomed the tie-up between Nike and Bata, saying it will widen options for the consumers.
"It's good for the market. There is a room for two or three more players in Bangladeshi market," said Manzur.
Manzur said shoes that Nike sells have around one-two per cent of the total footwear market, but it is getting popular among the upper middle class and rich people.
However, he raised doubts whether the highly priced Nike shoes could challenge his company's market share.
"First of all, we don't operate in the same categories. And secondly, the market for Nike shoes is confined in Dhaka, Chittagong and Sylhet. And thirdly, the duty structure of such shoes would make it very pricey in the country," he added. Web: http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=33241
Nike is the most popular brand in the American, even the whole world. It offers all the athletic shoes, clothe, watch and all the things you will wear in a sport. Almost every American will have at least one or two pairs of Nike shoes, which we can see how popular the company is and how well the qualities of their products are. Nike inc. contains three other famous brands, which are Jordan Brand, Nike Golf and ACG (All Conditions Gear). Jordan Brand focuses on high-performance sports apparel, footwear and accessories for men, women and children. This brand was under Nike before which called Air Jordan, but in 1997 it becomes partner with Nike by the most popular basketball player in the world Michael Jordan. Nike Golf become independent business in 1999, it...