The local company Apex Footwear is gradually overtaking the multinational company Bata in the domestic shoe market, with Apex now holding a major share of the country’s shoe sales.
Apex’s business has now grown to nearly three times that of Bata, according to an analysis of the financial reports of the both companies for the latest July–September quarter of the current year.
During the July–September quarter, Apex Footwear generated Tk 48.4 billion in revenue, outpacing Bata Shoes’ Tk 18.4 billion by Tk 30 billion, making its business nearly three times larger than the multinational competitor’s.
By the third quarter (July–September), the situation had completely reversed, with Apex Footwear earning Tk 25 million in profit while Bata Shoes suffered nearly Tk 145 million in losses.
Analysis of the financial reports shows that the main reason Bata lagged behind Apex in profit during the July–September quarter was higher expenses in administration, marketing, sales, and supply. During this period, Bata Shoes spent over Tk 790.5 million on administration, marketing, and supply against Tk 18.4 billion in revenue, while Apex allocated Tk 820 million for the same purposes against Tk 48.4 billion.
According to the financial reports, in July–September of the current year, Bata Shoes spent Tk 11.3 billion on production of goods against a revenue of Tk 18.4 billion. That is, 61 per cent of the company’s revenue was spent on production. For Apex, the production cost was Tk 35.3 billion against revenue of Tk 48.4 billion from selling shoes and other products. That is, 73 per cent of the company’s revenue was spent on production. Although Apex Footwear faced higher production costs, it still earned more profit than Bata, because of lower administrative and marketing costs.
When asked about income and profit, Syed Nasim Manzur, managing director (MD) of Apex Footwear, told Prothom Alo, “In the first quarter, we made more profit than Bata. Whether this trend will continue in the future, it is too early to say.”
Pointing out that their sales growth in the last quarter was largely due to the ‘Founders Day’ sale on 26 September, he said, “The special discounts offered on this occasion received an incredible response, resulting in business exceeding our targets in September. The benefits of this were reflected in the quarter.”
“In addition, we have increased the use of technology to reduce operating costs and greatly improved productivity. At the same time, we have invested in human resources, the benefits of which are also showing in business,” he added.
He expressed, “We believe that without investment in human resources, good business is difficult. Our employees are our main driving force.”
“We also pay much more attention to product design, pricing, and marketing, considering the preferences and purchasing power of people of all ages,” he added.
Currently, Apex and Bata dominate in local shoe markets. Apex had long overtaken the multinational Bata in shoe market revenue. However, until now, Apex was behind Bata in profit. Bata Shoes aligns its financial year with the calendar year (January–December), while Apex aligns its financial year with the fiscal year (July–June).
Accordingly, Apex’s latest fiscal year was 2024–25. In that fiscal year, Apex Footwear posted Tk 17.73 billion in revenue. At the end of the last fiscal year, Apex’s post-tax profit was nearly Tk 13.5 billion. Bata Shoes, in 2024, posted a revenue of Tk 927 million and recorded over Tk 295 million profit at the end of the year.
Reviewing the full-year financial reports of the two companies also shows that Apex Footwear recorded Tk 8.46 billion more than Bata in revenue but lagged behind in profit due to higher production costs.
In the 2024–25 fiscal year, Apex spent Tk 71 to produce goods for every Tk 100 of revenue, whereas Bata spent Tk 53 to earn the same Tk 100 revenue.