NEWS FROM AROUND BATA WORLD WEEKLY DIGEST. Bata World Digest June 16, 2017 PRODUCT. A Chic Debut for Bata Bullets in Prague

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1 WEEKLY PRODUCT A Chic Debut for Bata Bullets in Prague The Czech team recently brought about a unique comeback of the legendary Bata Bullets in their country. The shoe was introduced with a limited edition and the involvement of local young designers and ambassadors including world-renowned designer Maxim Velčovský. The launch succeeded in turning heads in the sneaker community. PRODUCT MARKET TRENDS BATA IN THE NEWS Bata Best Sellers: A Stylish Loafer Penetrates the Italian Market Tomy Takkies Drives Talkability with Blogger Bata in the News: The Shoemaker with Thomas A. Bata Airs in India Bata Singapore Offers Customers Special Gift for Hari Raya Campaign Bata Bolivia Focuses on New Direction during Annual Sales Convention Bata Group South Asia Asia-Pacific Summer Trend: Mid Heels Are Back for Summer 2017 Bata in the News: Miss India Contestants Visit Viviana Mall Bata in the News: Top Fashion Magazine Praises Bata Renaissance PERSON OF THE WEEK: Meet Syed Zahidul Islam

2 PRODUCT A Chic Debut for Bata Bullets in Prague The Czech team recently brought about a unique comeback of the legendary Bata Bullets in their country. The shoe was introduced with a limited edition and the involvement of local young designers and ambassadors including world-renowned designer Maxim Velčovský. The launch succeeded in turning hea... It began with a competition for design school students, with the goal of attracting young customers and building on historical links between Bata and local art and design schools. Secondary school art and design students were given an opportunity to create their own visuals for the Bata Bullets story. Velčovský, who headlined the competition, attended the awards ceremony for the five winners. They received financial prizes, and their school was able to choose class materials directly from the factory in Dolní Němčí. We chose Maxim as one of the most influential contemporary Czech designers, a former student of the Secondary School of Applied Art, and also for his personal bond with the Bata company since his grandfather was a manager at Bata, explained marketing manager Ondrej Cedidla. Bata Bullets were officially launched in the Czech Republic on May 16 at an event at the Flagship store in Prague s Wenceslas Square that was attended by more than 30 journalists and bloggers. The students designs were on display on the store s third floor, where they remained until the exhibition was transferred to Bata s hometown of Zlin on June 14. The Bata Bullets limited edition will be sold at select Bata stores as well as through Footshop, the largest Czech sneaker retailer. The deal with Footshop was a major success for the Bata team and helped spread the word in the sneaker community that adores independent labels and vintage, limited and rare shoe editions. The launch achieved its overarching aim of attracting young people in their 20s and 30s who live in larger cities and are interested in design, music and the urban lifestyle. By choosing ambassadors who are close to the target group and by adopting an understandable and attractive tone in communications, the team was able to deliver the right message to the right audience.

3 PRODUCT Bata Best Sellers: A Stylish Loafer Penetrates the Italian Market A men s shoe named Pierce is making quite an impression for Bata Italy. A newcomer for this year s Spring/Summer season, Italian men are finding it the perfect modern loafer to wear to the office and even in their time off. The shoe exudes summer. Worn without socks, with its soft suede upper, comfy leather insole and extraordinarily light microcellular EVA foam outsole, it can effortlessly lighten the mood of any outfit. The target customer is a man who craves comfort but also wants to look up-to-date. It is a best seller because it has a nice design: an updated last with a thicker outsole, following new trends, explained Stefano Cerello, men s collection manager at Bata Italy. Moreover, it is very comfortable due to the micro outsole, which is very light, and a high quality upper in suede. The colors are nice, too, developed in light tones as the Spring/Summer season requires. The contrasting colors of the outsole are part of what gives the shoe its distinctive style and appeal. The gray model, for example, sports a contrasting dark blue and light brown outsole. Both the light blue and light gray models have sold well this spring, with a sell-out rate of around 50 percent. Pierce is made in Europe and is currently available in all Bata stores across Italy. It has been selected as one of the Icon styles of the season s men s collection, and the marketing department implemented magazine and social media advertising campaigns focused on this product. In stores, too, it has been given special prominence in window displays and other communication with the help of visual merchandising.

4 MARKET TRENDS Tomy Takkies Drives Talkability with Blogger Tomy Takkies renewed its partnership with a key influencer this spring, effectively building brand awareness in the premium market and driving talkability. Lee Fraser is a blogger based in Cape Town, South Africa who is also very active on Instagram. He covers men s fashion and lifestyle and has collaborated with brands including Cotton On, Markham, Hush Puppies, Dunns, Kurt Geiger and Spitz. On April 11, Fraser published a post proposing various outfits to pair with the latest Tomy Takkies collection. Tomy Takkies to me are extremely comfortable, stylish and very affordable, he wrote. I was honestly very impressed with the wide variety of styles they had this season. Fraser styled and photographed five looks with various Tomy Takkies. I was eager to get my hands on the black and white collection. For some drama, I even added printed ones in my favorites. The influencer also posted Tomy Takkies photos to Instagram, yielding an impressive 6,035 impressions. This campaign was incredibly successful in that it built the brand s Instagram following and, even more importantly, stimulated user-generated content, helping the brand achieve its goal of creating buzz. The partnership with Lee Fraser also led to unpaid mention and visuals in two provincial newspapers. The relationship proved once again how simple alignment with the right influencers can help change brand perception. Tomy has now been repositioned in the same league as other brands Fraser has partnered with, making it more relevant and aspirational. Fraser will include Tomy Takkies in four blog posts later this year, driving more traffic to the brand s social media platforms. Swastika Juggernath, marketing manager at Bata South Africa, commented, Forming relationships with bloggers and key opinion formers is a huge priority for us this year as we continue with aggressive PR to increase awareness across all our brands and retail chain.

5 BATA IN THE NEWS Bata in the News: The Shoemaker with Thomas A. Bata Airs in India During his recent visit to India, chief marketing officer Thomas A. Bata gave an exclusive interview to BTVi, also known as Bloomberg TV India, a top national business channel. BTVi dedicated a special half-hour segment called The Shoemaker to the interview. The relaxed interview was filmed in the inviting atmosphere of the Bata store on Bandra Hill Road in Mumbai. Thomas A. Bata discussed various aspects of the company s communications with the interviewer, Vikram Oza, a well-known face in India. The Shoemaker aired on May 31 and highlighted the journey of the youngest Thomas Bata and changes underway at Bata. The interview highlighted new products, how Bata is moving toward the premium category, the brand s latest campaign and growth in India. Thomas A. Bata discussed global markets and how Bata has always focused on the consumer experience. This is reflected in the strategy, and the way the brand is communicated to consumers has always been fine-tuned for local markets, he said. Now, Bata the Brand is owned not just by the teams in each country, but also by consumers, the CMO explained. Bata is a household name, with most Indians believing it originated in India, and this same ownership of the legacy is true in other countries around the world as well. When asked about the shift in brand image and changes in the product offer, Thomas A. Bata explained, We have always been clear about what the brand promise is. We promise to make great shoes accessible to our consumers. We do not discriminate and focus on only a premium range or only a mass range. Bata will always be a brand that has something for everyone. With the modern Indian consumers evolving tastes in fashion, we at Bata also have evolved our premium offerings in fashion to cater to aspirational urban women and youth of the country. We have also released a new TVC in the Indian market that rings true with our global Brand Manifesto: Me. And comfortable with it. Bata India is celebrating and embracing the uniqueness of women in this country and stands with them.

6 MARKET TRENDS Summer Trend: Mid Heels Are Back for Summer 2017 The mid-heel shoe, typically featuring a heel height of between one and three inches, was tremendously popular in the 1940s and 1950s, offering women a great balance between comfort and elegance. The style fell out of favor for many years, with women preferring high heels or flats, but this summer,... Many of the fashion world's top fashion houses including Gucci, Prada, Alexander Wang, Miu Miu and Jimmy Choo have been showing off the latest trend in their new collections, with designs spanning from retro and classic to modern and striking, and the flexibility of the mid-heel style allows it to be paired with a wide variety of outfits, depending on the occasion. Best of all, this style of heel particularly suits a sandal-type shoe, making the trend perfect for the summer months. The mid-heel shoe can be matched with a just-below-the-knee skirt, creating a demure look that is equally appropriate for the office or a relaxing afternoon with friends. Alternatively, add a pair of your favorite jeans to create an outfit that is comfortable, on-trend and fit for any informal occasion. Finally, for a night out, they can be paired with a short skirt to add a bit of zip to your outfit, and your feet will certainly thank you when you hit the dancefloor. Of course, Bata has already taken great steps in addressing the problem of uncomfortable heels with its Insolia range of shoes, featuring innovative technology that allows women to wear higher heels for longer periods of time, and in greater comfort. However, as most women agree, a woman can never have too many pairs of shoes, and so the return of the mid-heel style provides a great excuse to indulge in a little retail therapy. Mid heels are one of this summer's hottest trends, so why not add a pair or two to your collection and let your imagination run wild. Browse the gallery to have a look at some of the gorgeous mid-heel shoes from Bata's current summer collection, or head to your nearest Bata store to check them out for yourself.

7 BATA IN THE NEWS Bata in the News: Miss India Contestants Visit Viviana Mall On May 31, a group of contestants from the fbbcolorsfemina Miss India 2017 contest, winners from 30 states around the country, visited the Bata store in the Viviana shopping mall in Thane, in the Maharashtra district. They were joined by Thomas A. Bata and members of the Bata India team, and spent t... News of the event from the official press release was reported in a range of publications, including Outlook India, a major weekly magazine in the country. Below are the highlights of the article as it appeared on the magazine's website. The original version, as published, can be read here. Bata, the European footwear major that has recently launched several collections for both men and women upping the style quotient, is the official footwear partner for fbbcolorsfemina Miss India 2017 and will also be awarding the title Miss Rampwalk in this year s pageant finale. The fbbcolorsfemina Miss India 2017 contestants shared their personal styling tips and tricks, in a cozy gathering with the people present, where they gracefully helped capture the occasion with fun photos and videos with the customers. Very recently 10 State winners of fbbcolorsfemina Miss India 2017 from Jharkhand, Bihar, Meghalaya, Tripura, Andhra Pradesh, Kerala, Himachal Pradesh, Haryana, Tamil Nadu and Rajasthan also visited the Bata store at Hill Road, Bandra in Mumbai. Bata has held a unique place in the hearts of Indians for more than 85 years. Probably the only footwear brand that offers footwear and accessories for the entire family, Bata has redefined the modern footwear industry in India. It has established a leadership position in the industry and is the most trusted name in branded footwear. It sells over 50 million pairs of footwear every year and serves to over 120,000 customers almost every day. Rajeev Gopalakrishnan, President, South Asia, Bata Emerging Markets, commented in the official press release: "Miss India s legacy, year after year, reflects the changing trends and style of the modern Indian woman. We at Bata are always instep with changing times, and our partnership with the fbbcolorsfemina Miss India 2017 is a synergistic association." He added: "These girls are at the forefront of the style industry, and no one understands the imperative to be comfortable better than them, which is where Bata steps in. We are also very happy with the response from our young customers, especially on social media. On behalf of the Bata family, we wish the representatives of all 30 states the best in their upcoming event and future endeavors in representing their communities."

8 BATA IN THE NEWS Bata in the News: Top Fashion Magazine Praises Bata Renaissance In the June issue of Mega magazine, the number one fashion magazine in the Philippines, chief editor Suki Salvador (pictured above with Thomas A. Bata and Thomas G. Bata) penned a two-page feature, entitled "Be Comfortable with it," after attending the Bata Fashion Weekend in Prague. The article tra... After providing a detailed history of the company, Salvador describes his experience of attending Bata's first ever fashion weekend in Prague, in the Czech Republic. He explains how attending the Bata Fashion Weekend led him to discover a history so rich and impressive that you will want to own more than just a pair of Bata shoes, citing, among other examples, the company's involvement in sport, such as making shoes for Magic Johnson, and sponsoring the football World Cup in Mexico in The article also praises Bata's innovative approach to its runway shows during the Bata Fashion Weekend, which featured members of the public rather than professional models, during the launch of the company's new manifesto Me & Comfortable with it. Salvador writes: In clever fashion, the main event opened with models wearing a pair of Bata shoes from the Spring/Summer 2017 collection. On the runway, each model changed into a second pair of shoes that created a entirely different look. Models went from towering pumps to two-toned sneakers, ballet flats to pumps with pussy bow details, multistrapped heels to moccasins, while male models switched from boots to canvas sneakers. In closing his article, Salvador gives perhaps the strongest indication of how great an impression the Bata Fashion Weekend made on him and his views of Bata as a brand. In his final paragraph, he quotes the words of Roberto Longo, Bata's president of Asia Pacific, during his presentation of Angela, the company's target customer, where he stated: Our mission is to satisfy Angela today, and to make sexy comfortable and comfortable sexy. Salvador, after quoting the passionate speech from Longo, concludes: Clearly, there is a need to make room for shoes that are made with these principles in your closet. The full two-page feature is available to download as a PDF below.

9 CORPORATE Bata Singapore Offers Customers Special Gift for Hari Raya Campaign On June 12, Bata Singapore kicked off its latest Hari Raya campaign period, and once again it is looking to attract customers to its stores by offering an elegant and practical free gift that is perfect for the festive season. Following the success of its Hari Raya 2016 campaign, in which the company offered an exclusive gift to customers spending above a certain amount in its stores, Bata Singapore has brought back the popular stack-and-lock containers, this year with an all new packaging design. The gift features a set of three plastic storage containers with sealable lids, perfect for transporting food for work lunches or for festive parties. The visuals for the specially customized box were adapted from global campaign artwork, and feature iconic Singapore landmarks printed on them. Some of the buildings included are the Merlion, the Marina Bay Sands, Gardens by The Bay and the Singapore Flyer. Last year s gifts were fully-redeemed in less than two weeks, and the company expects to see the same level of interest this year, having increased the of quantity of the gifts available from 5,000 to 8,000 pieces. In addition, Bata Singapore has produced a set of green envelopes, which also feature the building designs, as the green envelope is traditionally used in the country during the Hari Raya period to give gifts of money to friends and relatives. Pierluigi Pontecorvo, country manager of Bata Singapore, commented: We are launching this Hari Raya campaign as part of our 'Happy Feet' initiative to increase footfall and invite our customers to come and shop with us. To support this, we are bringing back the gift with purchase, which is a set of lock-and-stack containers." He added: "The smallest details were not spared in curating the gifts, as we printed the iconic buildings of the beautiful Singapore skyline on the green packets. We truly believe this year s Hari Raya gift with purchase will boost to our sales, and will be aggressively redeemed in less than two weeks.

10 CORPORATE Bata Bolivia Focuses on New Direction during Annual Sales Convention Bata Bolivia recently held its annual COVEN sales convention for 2017, at the Regina convention center in Cochabamba. Held over two days, the event provided attendees with a presentation of Bata Bolivia's latest Autumn/Winter collection, along with recreational and training activities and insight in... This year's sales convention brought together store consignees from across the country, along with the entire commecial team, to present annual results, provide training on structural changes in the company s business, products and business objectives, as well as changes in the market in general. As one of the first activities of the convention, a visit to the factory was organized to give all store consignees the opportunity to learn about the footwear manufacturing processes, allowing them to have a better understanding of some of the key issues involved. Country manager Luis Ernesto Rojas then gave a detailed talk on the company's new strategy, and all those present also had the opportunity to learn about Bata's new target customer "Angela. In addition, two of the best motivational trainers in the country were invited to give a workshop called "The Chameleon Effect," which aims to provide tools to help staff adapt to the current changes that are occuring in the market. The event was not all work however, and there was plenty of opportunity for those in attendance to unwind with a variety of entertainment activities. These included several contests, an evening of entertainment featuring some of the country's typical dances, sports games between delegations and a gala party on the final day to close the convention. Rojas commented: The results of the sales convention are very effective, not only for the integration of the company, but also to raise awareness, at all levels, of the challenges we face each year and the actions and support we need to achieve them. Ramiro Orellana, retail sales manager, added: This type of activity allows us to align the goals of the company with all the people who work with us, generating a teamwork environment.

11 INTERVIEWS PERSON OF THE WEEK: Meet Syed Zahidul Islam Syed Zahidul Islam, assistant general manager of human resources at Bata Bangladesh, was recently recognized for his contributions to the company, which include playing a key role in managing industrial relations and creating a younger workforce. He shared his thoughts on success. Can you give us a brief overview of your career at Bata? I started my career in Bata Bangladesh as a junior officer in During my career spanning almost two decades, I have managed responsibilities in Payroll, Compliance, Factory Level HR, Employee Relations, Corporate HR and more. Currently, I am responsible for HR operations for departments including Marketing, Supply Chain, Corporate, the Bata Children s Program and Environmental Health and Safety. You have played a key role in managing industrial relations. What do you attribute this success to? Broadly, there are four key contributors to maintaining improved employee relations in Bata Bangladesh. First, having open, two-way communication. Second, exhibiting transparency and a neutral approach in dealing with people and their issues. regarding issues that could affect that and to help them to develop further. Implementation of all of these wouldn t have been possible without the active support of the workers representatives, my HR team and other members of the management team. You were instrumental in bringing down the average age of the factory workforce. What are the benefits of this? In order to retain a competitive edge in the market, it is mandatory to have an attractive collection for all age groups at competitive prices and top-quality merchandise presented to customers with passion. To produce shoes of the highest quality with enhanced productivity, it was necessary to hire more nimble people to replace an aging workforce. Consequently, the average age of factory workers has been reduced from a high of 48 to 36, so we now have a younger factory. What qualities do you think an HR manager must have? Empathizing with people and recognizing their efforts in the success of the business is another one. Apart from skills and knowledge of a sound HR system, a successful HR manager in Bata should have quite a few core competencies. Finally, in Bata Bangladesh, we care about our people s welfare, realizing the importance of their life outside of work, and to try to be flexible wherever possible These include a good understanding of the company s business parameters in order to align people and performance with those objectives. Also, you need to maintain a balance between having a friendly presence in the office, such as with an open door policy, and being able to take charge. It s essential to earn the trust of employees by being straightforward and listening to them with your full attention in order to counsel them on professional and even personal issues. And you can t be afraid to make tough decisions for the benefit of the organization. The HR department of a company serves as its conscience. HR managers need to set standards of ethics and behavior and make sure others follow them as well. You also facilitate communication between management and employees, so you must be able to manage conflict and diffuse tensions to ensure people work together. Finally, you have to be a leader who sees the big picture, focuses on people, progress and achievements, does the right thing, and encourages a rewarding culture. Describe a typical day in the office for you. My typical day starts by discussing with the HR team issues of the previous day and making an action plan for the day. This is in line with the overall strategy of Bata Bangladesh s HR team: Align company strategy with people and performance. My role here is planning to ensure execution of strategies and facilitating issues faced by other team members in their day-to-day activities. I also meet my various stakeholders and internal

12 Powered by TCPDF ( PERSON OF THE WEEK: MEET SYED ZAHIDUL ISLAM customers to understand their requirements and ensure smooth and effective operations. What do you see as your greatest achievement at Bata so far? Every successful individual knows that his or her achievement depends on a community of persons working together, as Paul Ryan said. My achievement is a collective effort of my team and my internal customers. My first and foremost achievement has been the ability to bring about a positive change in the mindset of people toward a performance-driven culture, also aligning them to understand and work for the accomplishment of company goals in the dynamic business environment of Bangladesh. My second accomplishment is to successfully build capabilities in my team and help them to take on higher positions of responsibility and a career path. Other accomplishments would include restructuring the payroll policy and automation of the payroll system. Can you share a tip for other Bata people around the world who deal with industrial relations? Empathize with people, get their confidence and maintain transparent and open communication among various members of the organization. Those are the keys to maintaining harmonious employee relations.