Buying shoes from the streets has become cheaper for average income earners
Nyasha Chingono Business Correspondent
GWERU-BASED shoe manufacturer Bata has bemoaned the influx of shoe vendors who have become an instant hit on the streets selling cheap shoes saying the company was taken off guard and forced to remodel its business strategy. “We have seen the mushrooming of these side walk peddlers which suddenly became overnight competitors. It was a completely different world and market that we woke up to realise,” said Bata managing director Mr Ronjoy Sengputa.
He said the influx of the informal sector shook Bata’s market during the January to March period and the company is still adapting to the change.
“We are fighting an unknown war that does not belong to us. We never imagined that one day we would compete with the side walk peddlers, but we here today trying to adapt to the informal market and competing against shoe vendors,” said Mr Sengputa.
At a time most Zimbabweans have low disposable income, buying shoes from the streets has become cheaper for average income earners.
To counter growing competition, Bata has responded by reducing prices of leather, canvass and Tommy tennis shoes.
“The company has also reduced production of leather shoes to eliminate cases of non performing inventory.
“We have reduced the production of leather shoes because they are flooding the market. We will reconsider our strategy if the environment changes,” said Mr Sengupta.
Side-walk shoe peddlers have become an instant hit in major cities like Gweru, Harare and Bulawayo among other cities selling shoes as cheap as $15, posing a great threat to shoe retailers.
Shoe peddlers sell cheap imported shoes from countries like Mozambique and South Africa.
“In January we were exposed to this notorious development in the marketplace. We were completely taken off guard. But then it took us three months to adapt and make sure we continued with a sustainable strategy that will bring results,” he said.
He said Bata is still adapting to the current market trends where the informal sector has become a major competitor.
Bata also indicated that most wholesalers had neglected their traditional role of selling in bulk and were now playing the role of retailers a move that has sown discord in the marketplace.
“Because of the influx of these peddlers, wholesalers suddenly are now acting like retailers. The wholesalers are selling in ones and twos thereby challenging directly our retailers,” Mr Sengputa said.
However, the company’s leather shoe market has expanded into Latin America where orders have already been delivered to Chile, Bolivia and Peru. Bata exports grew by 10 percent in 2014 from 20 percent in 2013, earning the company $2 million.
The Gweru-based shoe manufacturer is also exporting Tommy tennis shoes to South Africa.