The Bata Corporation (known as Bata, and in the Czech Republic and Slovakia, known as Baťa, ) is a multinational footwear, apparel and fashion accessories manufacturer and retailer of Moravian (Czech) origin, headquartered in Lausanne, Switzerland.
The corporation is one of the world's leading shoemakers by volume with 150 million pairs of shoes sold annually. It has a retail presence of over 5,300 shops in more than 70 countries across five continents and 21 production facilities in 18 countries. Bata is an employer to over 32,000 people globally.
A family-owned business for over 125 years, the company is organized into three business units: Bata, Bata Industrials (safety shoes) and AW Lab (sports style). Bata is a portfolio company with more than 20 brands and labels, such as Bata, North Star, Power, Bubblegummers, Weinbrenner, Sandak, and Toughees.
Origins and history
Foundation
The T. & A. Baťa Shoe Company was founded on 21 September 1894 in the Moravian town of Zlín, Austria-Hungary (today in the Czech Republic), by Tomáš Baťa, his brother Antonín and his sister Anna, whose family had been cobblers for generations. The company employed 10 full-time employees with a fixed work schedule and a regular weekly wage.
In the summer of 1895, Tomáš was facing financial difficulties. To overcome these setbacks, he decided to sew shoes from canvas instead of leather. This type of shoe became very popular and helped the company grow to 50 employees. Four years later, Baťa installed its first steam-driven machines, beginning a period of rapid modernisation. In 1904, Tomáš read a newspaper article about machines being made in the United States such as Jan Ernst Matzeliger's automatic laster. Therefore, he took three workers and journeyed to Lynn, a city outside Boston that was then the center of the world footwear industry, in order to study and understand the American system of mass production. After six months he returned to Zlín and he introduced mechanized production techniques that allowed the Baťa Shoe Company to become one of the first mass producers of shoes in Europe. Its first mass product, the "Baťovky," was a leather and textile shoe for working people that was notable for its simplicity, style, light weight and affordable price. Its success helped fuel the company's growth, and after Antonín's death in 1908, Tomáš brought two of his younger brothers, Jan and Bohuš, into the business. Initial export sales and the first ever sales agencies began in Germany in 1909, followed by the Balkans and the Middle East. Baťa shoes were considered to be excellent quality, and were available in more styles than had ever been offered before. By 1912, Baťa was employing 1500 full-time workers, plus another several hundred who worked out of their homes in neighbouring villages.
World War I
In 1914, with the outbreak of World War I, the company had a significant development due to military orders. From 1914 to 1918 the number of Baťa's employees increased ten times. The company opened its own stores in Zlín, Prague, Liberec, Vienna and Plzeň, among other towns.
In the global economic slump that followed World War I, the newly created country of Czechoslovakia was particularly hard hit. With its currency devalued by 75%, demand for products dropped, production was cut back, and unemployment was at an all-time high. Tomáš Baťa responded to the crisis by cutting the price of Bata shoes in half. The company's workers agreed to a temporary 40 percent reduction in wages; in turn, Baťa provided food, clothing, and other necessities at half-price. He also introduced one of the first profit-sharing initiatives, transforming all employees into associates with a shared interest in the company's success (today's equivalent of performance-based incentives and stock options).