NEWS FROM AROUND BATA WORLD WEEKLY DIGEST. Bata World Digest July 21, 2017 STORE. Bata Singapore Opens Glamorous New Store at VivoCity Mall

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1 WEEKLY STORE Bata Singapore Opens Glamorous New Store at VivoCity Mall On July 6, Bata Singapore officially reopened its renovated concept store at VivoCity, the largest shopping mall in the country. The store has been revamped in line with the modernized global direction of the company, with its Me & Comfortable with it manifesto, which strongly focuses on empowerment and confidence. MARKET TRENDS PRODUCT BATA IN THE NEWS #walkwithpower 2017: Discovering the World Through Influencers Bata Best Sellers: In Chile, a Timeless But Modern Boot Bata in the News: Discovering Bata s Social Media Strategy Bata Best Sellers: Through-and-Through Bata Shoe Is No. 1 for Colombian Students Europe Bata Group Africa Bata Czech Republic Introduces New, Improved Bata Club Summer Trend: FlipFlop Freedom A Success Story for BCP Zimbabwe Close to Home Perfect Look: What to Wear for a Weekend Getaway A Festive Day for Children of BCP Bangladesh School

2 STORE Bata Singapore Opens Glamorous New Store at VivoCity Mall On July 6, Bata Singapore officially reopened its renovated concept store at VivoCity, the largest shopping mall in the country. The store has been revamped in line with the modernized global direction of the company, with its Me & Comfortable with it manifesto, which strongly focuses on empo... The new Angela One Concept store, which features a more modern-looking, European style, boasts 241 square meters of space, offering a bright and fresh interior where shoppers can enjoy an improved shopping experience, while trying out the latest fashion styles. The VivoCity store also carries Bata s latest Insolia and Made-inItaly collections, which are both part of the brand s Spring/Summer 2017 collection. An inauguration event for the store, featuring a ribbon-cutting ceremony, took place on the opening day, with a crowd of people in attendance, including celebrities, influencers, media and partners, who were the first to catch a glimpse of the revamped shop. Bata Singapore has seen significant growth in 2017, with an increase of 170 percent in sales of both men s and women s collections, a 145-percent increase in average selling price of footwear and an increase of 135 percent in average ticket price compared to Pierluigi Pontecorvo, country manager of Bata Singapore, commented: We are embarking on a new journey with our people, the products, the new store direction and our communication to bring Bata to the next level. This new VivoCity store is a representation of the start of this journey towards something greater. He added: Our direction is aimed at creating a better shopping experience for our consumers, to make them feel comfortable knowing that there is no compromise when it comes to comfort and style.

3 MARKET TRENDS #walkwithpower 2017: Discovering the World Through Influencers #walkwithpower is back and stronger than ever. Following the success of Power s 2016 Walking campaign, it has started a new trip around the world to promote the 2017 Power Walking collection. This year, something new and exciting is in the works: discovering the world through influencers. #walkwithpower is an integrated marketing campaign that began July 3 on Facebook and Instagram and will last until Sept. 17. During this time, Power will showcase eight local influencers walking the cities and visiting the Bata stores of the most important markets in the new Power Walking collection. The selected markets are India, Pakistan, Bangladesh, Indonesia, Malaysia, Thailand, Perú and Chile. The digital campaign will focus on Instagram, Facebook and YouTube, with multiple online ads from Power and Bata regional teams linking to regional ecommerce sites. Local influencers will post at least five times on their Instagram feeds, showcasing Power Walking shoes to their hundreds of thousands of followers and referring them to Bata e-commerce sites. This is the first Power social media campaign in which one of the main objectives is to drive online sales. The 2017 #walkwithpower campaign includes in-store POP material highlighting Glide Steam, the latest Walking innovation, and explaining the benefits of Power s memory foam technology. Through this campaign, Power expects to increase brand awareness among its target consumers women between the ages of 25 and 35 and have an impact on both online and in-store sales. Social media influencers have gained a lot of power affecting people s purchase decisions in the past two years, and we believe that they are the right channel to reach our target consumer," said Josefa Wearmouth, marketing manager at Power. "We are confident that the use of influencers will not only elevate the brand but will also have a positive effect on our sales.

4 PRODUCT Bata Best Sellers: In Chile, a Timeless But Modern Boot A men s shoe called Icon a cool update on the classic Chelsea boot has stood out in Bata Chile s Fall/Winter 2017 collection. This shoe is part of the all-leather 1894 Collection. The 1894 concept rolled out in Chilean stores in March and conjures Bata s rich heritage: The company was founded by three Baťa siblings in Campaign artwork proclaims, Life Crafted. Bata: Making Shoes Since Icon s target is urban young people who are up-to-date on the latest fashion trends. For these consumers, Icon has it all. An important selling point is that the shoe is made of genuine suede. And while it is a timeless Chelsea a pull-on ankle boot with elastic gussets the upper is styled to be cool and modern. The Bata Chile team has sourced materials in Brazil in order to react to fast fashion and provide the latest trends in stores immediately. Image makers like Icon are keys to making the whole collection more attractive, and they represent how Bata is moving forward with trends, commented Matias León, men s collection manager for Bata Chile stores. Gigiola Casaretto, chief collection manager for Bata Chile stores, added, All of the inspiration for new products is due to the work that the categories team carries out day to day in order to research new tendencies in the market, preserve the essence of the Bata brand and make a difference for our products in the local market. Thank you to the whole categories team.

5 BATA IN THE NEWS Bata in the News: Discovering Bata s Social Media Strategy On July 13, Marketing magazine published an indepth article about Bata s new global marketing strategy, based on an interview with CMO Thomas A. Bata and his recent talk at a prominent social media conference. Marketing magazine is a leading source of advertising, marketing and media news in Asia, with editions for Singapore, Hong Kong and Malaysia. Read on for interesting nuggets from journalist Rezwana Manjur s article, Modernizing Bata s 123 year-old family business one step at a time. Thomas A. Bata is boldly overseeing and changing the course of 15 of the Bata brands. He said it was a huge opportunity to bring more swagger to the brand and, at a time when brands are trying to localize, he is looking to take the international brand, global. On stage during the Socialbakers Engage Prague 2017 conference, the chief marketing executive said, Being global and international are completely different. Today we are international and have a presence in 76 countries and have retail stores in those countries. But global brands are consistent. In a digital world where people can access content from anywhere in the world, you obviously have to be constant in your communication and send the same message, he said. A year ago the brand closely scrutinized its 220 million global customers. The team promptly realized its shoppers were techsavvy and connected to social media. Many were middle class, and 75 percent were women making decisions for their husbands and families. But the brand needed an iconic product and story. A challenge we had was that if you mention our brand, people say, Oh, shoes, and not much more than that, Thomas A. Bata said. We want to make comfort sexy. We wanted to show that you don t have to choose between looking good and feeling comfortable, he said, adding that in the modern world, a woman shouldn t have to choose one or the other. While the product team at Bata got busy, the marketing team dived deep into social. They decided to divide the various mediums and channels into ones that had equity and ones that had traffic conversion. Social media is global, and you can reach a huge target audience via a few channels. Traditional media has hundreds of media outlets and, as such, calculating ROI becomes more of a challenge, the CMO said. Today, the majority of Bata s content on social media is done locally, but in line with global standards and guidelines. About 30 percent of content is dictated by Global to allow for consistent brand messages and standards. Bata has also cut back significantly on traditional mediums, and data was key to get people on board. This doesn t mean the brand isn t keen on localizing its content. Currently, Bata works with numerous local influencers, which leads to better ROI for the brand. In April, Bata revamped its image with a massive global fashion show. Thousands of visitors from all over the world attended, including many celebrity guests from more than 20 countries, TV stars, models, editors from top media publications, and bloggers. Because its social media strategy was in place, Bata could also draw in people through its Facebook page. A total 3.3 million people followed the event through social media, live streaming and websites. This led to more than 35 million people interacting with the brand. But this is not the end of the road for the brand, said Thomas A. Bata. He hopes that by 2018, it will invest more on growing its following on Instagram and Facebook and encouraged the use of tools and technology to create change. Check out the video above for his full conference presentation.

6 CORPORATE Bata Czech Republic Introduces New, Improved Bata Club Bata Czech Republic launched its first loyalty scheme in 1999, and for long time it was the only such program in the shoe industry in the entire region. To celebrate its coming of age, it recently underwent a relaunch with a clear target: to provide even greater contribution to the business through... The Bata Club in the Czech Republic has over 1.5 million registered users, and more than 300,000 active members. The new club brings more emotion and passion to this community, along with a new visual style and Europe-wide logo. The new structure is based on points and status principles, meaning that club members collects points for every purchase, with one Euro spent equalling one point. By collecting points club members reach a certain status, which provides extra benefits like anniversary gifts, free delivery for all online orders, or special long-term discounts on all highest-tier purchases. Details are stored electronically, meaning that benefits can be applied immediately, and customers are able to check their club status online. Registration now takes place in real-time at cash desks in stores or on the web, and all that is needed is a name and , making the process simpler than ever. New members also receive a bonus in the form of gift points for registering, and also receive double points for all purchases of children's products. In addition, a new Platinum tier has been added, allowing the highest-spending club members to be given an extra level of benefits. In order to provide the most up-to-date features, the new Bata Club uses new system architecture with a new CRM platform provider. The same platform was selected for the whole of Europe, meaning that club members can collect points not only in the Czech Republic and Slovakia, but also in Italy and, eventually, all European countries where the loyalty program is running. Communication with club members takes the form of transactional mailing, a postpurchase thanking the consumer for their business and informing them about points collected, current status and vouchers available for their next purchase. In addition, club members also receive campaign s, featuring product offers based on their purchase history, enabling suggestions to be accurately tailored to each club member. Data is analyzed via a number of methods to provide precise segmentation, allowing for improved personalization of offers to club members. These include deterministic segmentation, where members are classified into different groups according to spending, frequency and recency, as well as cluster analysis, which groups consumers based on their behavioral profiles in terms of purchasing records.

7 MARKET TRENDS Summer Trend: Flip-Flop Freedom This summer, more than ever, is about casting aside restrictions and enjoying the warm weather. Flipflops are no exception, as the erstwhile super casual footwear has been embraced on catwalks and for city looks. The term flip-flop itself is fun to say it mimics the sound the sandals make when walking in them. They are also known as thongs or slops. In Kenya, flip-flops were called patapata when Bata became the first company to produce them there. Robust production continues today, and Bata s PataPata brand is well-known for fashion items like the Ashanti jewelry flip-flop. Flip-flops are a very simple type of footwear dating back to ancient times, the defining feature being a single strap that is anchored between the toes. In the 1960s they were linked to Californian beachwear, and their popularity took off. Those origins mean there have been very strict rules surrounding flip-flops. Conservatives will insist they are only to be worn on the beach, poolside or in the shower. Designer Tom Ford was quoted six years ago: Flip-flops and shorts in the city are never appropriate. Now, the fashion world has loosened up. The online fashion magazine Zoe explained, This summer 2017, be it in town or on vacation, beach sandals land in our daily wardrobe. Like Miu Miu, which proposed a real show of bathers, pool sandals have invaded the catwalk and have truly inspired creatives, turning these uncomplicated holiday shoes into a genuine essential for all fashionistas. Miu Miu certainly wasn t alone. Prada favored plastic flip-flops with oversized flowers. Dolce & Gabbana and Lanvin covered them in pearls and sequins, while Dior and Dries Van Noten went minimalist. Bottega Veneta and Tory Burch offered colorful versions, and Valentino classed them up with a hobnailed leather style. If you feel anxious about wearing flip-flops, match a classic Y-strap pair with a casual outfit, and make sure your feet look neat. And relax with the knowledge that these sandals are cool, trendy and versatile. When buying flip-flops, consider where you will wear them. If you re sticking to a beach look, you ll want materials that dry quickly like rubber and nylon, and outsoles with a good grip might be a good idea. If you know they aren t going near the water, leather is a great way to take them up a notch. If this is going to be your go-to shoe this summer, don t skimp on comfort. Make sure the toe post doesn t chafe, look for details like double stitching that speak to durability, and you may want a lightweight and closer-fitting molded model that doesn t actually do a full flip and flop as you walk. So set your feet free, and pair your flipflops with dresses, shorts or pants. And go ahead and wear them for a night out.

8 BCP A Success Story for BCP Zimbabwe Close to Home As one of its four main focal points, the Bata Children's Program (BCP) helps to provide education to children in the communities in which it is present. Recently, Prosper Bachi, Bata's very own country manager in Zambia, wrote to thank BCP for helping his son to achieve his dreams, after he graduat... Bachi's son, Julian Kudzai Bachi, (pictured above with his parents) grew up in Gweru, Zimbabwe, and his parents moved him to the Sarah Bata Primary School in the fourth grade. His family moved him to the new school as they were well aware of its excellent reputation for offering a great allround education having one of the best libraries in the country, thereby offering him the ability to read and to appreciate books. After completing his secondary school studies, Julian Bachi attended the University of Manitoba in Winnipeg, Canada, where he recently graduated with a degree in environmental science and sustainable buildings. His choice of degree was thanks to his former headmaster at the Sarah Bata Primary School, Nugget Manyima, who had passed on his passion for the subject to the boy, teaching the children about the importance of caring for the environment around them, another of the BCP's main focal points. Prosper Bachi, speaking about his son's achievements, commented: We as a family are very proud of the Bata family in terms of what they have given to us and also to the community. Bata will always be part of our life, and my son remains very proud of the education and the foundation he received from the Bata school. When he visits Gweru, he will definitely keep in touch with his former school, and encourage others to strive for a better life, which comes with a good education.

9 PRODUCT Bata Best Sellers: Through-and-Through Bata Shoe Is No. 1 for Colombian Students Bata Colombia produces a casual and comfy shoe that is highly popular with young students. It is a champion of the Verlon brand, the school shoe market leader in the country. The project, called Ilario, is made locally in Bata s Manisol factory in Manizales. This offers many advantages, including the ability to reorder stock and control quality standards. Ilario has been a best seller of every school season for the last six years. It was originally offered only in white, but given its success, for four years it has been available in black as well. These are the main two colors Colombian students wear. Ilario is sold through all of the local company s commercial channels, giving it maximum exposure: retail stores, wholesale, catalogue and export. The casual shoe is perfect to take children throughout their day, from the school commute to the classroom, to gym class and extracurricular activities. The simple design makes it suited to a variety of everyday circumstances. As of mid-july, 23,592 pairs had already sold this year. The article has a 58 percent margin. Ilario is a flagship product from the Bata Colombia school collection, commented collection manager Angela Maria Zuluaga. It is made at our own factory, and that gives this product added value not just for our customers but also for our sales staff, who are proud of our Verlon brand and our factory.

10 MARKET TRENDS Perfect Look: What to Wear for a Weekend Getaway A long weekend away can be the perfect antidote to a stressful, activity-filled lifestyle, and many people at this time of year are packing up and heading off for a short city break, poolside rendezvous or a mountain retreat. However, if all you have is hand luggage, you need to pack light, and Bata... The key to making the most of your luggage space in terms of your clothing options is to pick pieces that you can mix and match, reusing in different combinations and alternating accessories to create a variety of looks. Of course, it is also important to match your outfit to your surroundings, so if you are heading off to the beach, you will probably want to focus on comfort, packing colorful crop tops, loose-fitting trousers, cute sandals or flip flops and a sun hat to complete the look. In an article for Elle magazine, Daisy Melamed Sanders suggests a look for cooler evenings, writing: A flowy maxi dress topped off with a denim jacket will keep you warm while the sun sets. Slip-on sneakers let you navigate tricky terrain without sacrificing style. Alternatively, for a city break you will probably want to go for a more elegant look, while still choosing items that are comfortable enough to wear all day. A lightweight maxi dress is a great way to stay cool while still oozing style, and also takes up little of the precious room in your luggage. Pair this with a pair of flat shoes that will be kind to your feet during a long day exploring the city. A bag large enough store all your essentials for a day of sightseeing is also a must for this type of occasion. For a dressed-down version of this look, perhaps for a small-town weekend break or a trip to visit friends, try pairing a romper suit with a sexy pair of wedges and a pretty backpack to create the perfect look for a stroll around town, and that can also be worn to dinner in the evening by adding a lightweight jacket on top if needed. Browse the image gallery to take a look at a small selection of Bata products that are exactly what you need to create your perfect outfit when traveling light.

11 Powered by TCPDF ( BCP A Festive Day for Children of BCP Bangladesh School Volunteers from the Bata Children s Program (BCP) Bangladesh recently celebrated Eid al-fitr, the biggest holiday in the country, with young students from their adopted school. In the days leading up to the holiday, which began on June 25, BCP invited the children of the Mojar School in Dhaka to join them for an afternoon of fun at the head office of Bata Bangladesh. Around 30 enthusiastic volunteers including country manager Chitpan Kanhasiri and other members of senior management showed up for the second such celebration since adopting the school last year. As is customary in the local culture, the children were presented with new clothes, shoes and other accessories like watches and belts. The children accepted them with great happiness, and their teachers, who are deeply dedicated to them, were delighted to see the children enjoying the moment so much. Kanhasiri told the gathering, It gives me immense pleasure to celebrate this occasion with these children, who are our extended family members and future assets of our society. I urge all my colleagues at Bata Bangladesh to celebrate the occasion with underprivileged children who live near them, to bring smiles to the faces of thousands of such children.