Publicly listed footwear maker PT Sepatu Bata (Bata Indonesia) has allocated Rp 70 billion (US$7.46 million) for its corporate actions this year in the hopes of retaining its seven percent share in the local footwear market amid fierce competition from Chinese imports.
Merchandising Director Anita R.N. Gunawan said Tuesday the actions, which include improving production, brand and design management, would allow the company to compete with imports from China, which she said had caused a slowdown in the Indonesian footwear industry over the past ten years.
She said among the strategic programs was a plan to establish a shoe innovation center (SIC), which would be the first in Asia and the fifth in the world.
"The SIC will provide Bata Indonesia with technology, manufacturing methods, production processes, innovative designs and information on material usage."
To improve operations, Bata Indonesia is set to relocate its plant from Jakarta to Purwakarta in West Java.
"To secure the Bata brand, we will renew the trade mark license agreement... which will reduce the business risks of Bata Indonesia," Anita said.
The new agreement, she said, would provide the company with exclusivity for a minimum of 10 years to use the brand name "Bata" in connection with all business activities.
Company sales director Ibnu Baskoro said in carrying out the strategic programs, the company was optimistic it could increase annual sales and net profit.
Last year, it boosted its net profit by 71 percent to Rp 35 billion from Rp 20 billion.
The company's sales increased by 15 percent to 12 million pairs of shoes last year, 90 percent sold domestically and the rest under its sister companies in Thailand, Singapore, Malaysia, Switzerland, Jordan and other companies in European countries. (dia)