Levi’s expansion strategy in Asia doesn’t look like it’s slowing down anytime soon. The global denim brand recently opened its largest brick and mortar location in India’s Bangalore. Designed in the style of its NextGen store model, it is set to redefine the Levi’s experience for Indian shoppers. According to Amisha Jain, senior vice president and managing director of SAMEA Levi Strauss & Co, 2023 began on a high note for the company as it collaborated with the first edition of
of the global music festival, Lollapalooza India.
In line with the brand’s 170-year-old history of being at the centre of culture, Levi’s offered attendees of the festival a canvas for self-expression as they customised their favourite pieces at the Levi’s Tailorshop.
“This year also marks the 150th anniversary of our iconic and well-loved Levi’s 501 jean and we’re gearing up for the anniversary celebrations on May 20,” she told Inside Retail.
She said that March was a particularly exciting month as its new campaign went live on 3rd March featuring Deepika Padukone wearing the iconic Levi’s 501 jean.
Another milestone
According to Jain, the opening of its latest store in Bangalore is another ‘proofpoint’ of its direct-to-consumer strategy and another opportunity to deliver memorable brand experiences to consumers in an immersive manner.
“We’ve observed shifts in consumer behaviour against the backdrop of an evolving retail landscape, and as a brand, Levi’s continues to prioritise how we deliver our iconic products and brand experience in an impactful way,” she said.
She also reiterated that this store ‘reflects the significance of India as a priority market’ for the company as it continues to scale up its investments in the region. Considering the country’s large population, she believes that there is definitely untapped potential.
The Indian marketplace
In the company’s recent first quarter earnings announcement, Levi’s shared that its operations in India continued to see very strong growth, with gains across channels, including ‘strong sell through’ at wholesale points of sale.
“The country’s growing median income earners and robust economy make it an increasingly attractive market for retailers,” Jain explained.
In line with being a DTC first company, Jain said the company is expanding its retail footprint in India to help capture a new generation of lifelong Levi’s fans.
“We have also opened a global capability centre in Bangalore that has over 200 people largely made up of engineers, providing real expertise through technology with things like AI, ensuring that we grow our direct-to-consumer business,” she added.
As digital is on a high-growth trajectory in India, Jain said the company launched Levi.in as part of its continued efforts to support digital transformation efforts and deliver a more DTC-focused omni-channel experience.
Noticeable trends
According to Jain, the consumer mindset is now changing from being price conscious to performance conscious. She said consumers want to invest in products that are fashionable, but at the same time also functional and enduring in their relevance.
“We have also seen a continued acceleration of the casualisation trend across the world. Consumers are also embracing a sportier athleisure look especially for women, and this has become one of the fastest-growing categories,” she pointed out.
From a product perspective, the company has launched Levi’s Gold Tab that includes sportier pieces like tank tops, joggers and leggings, and has been employing production techniques that use far less water than traditional methods.
Jain added that its Gen Z and Millennial demographics are shopping in a more hybrid manner, blending the physical and digital worlds to find inspiration, discover new trends and share their feedback.
Future-proofing is key
In order to counter the sometimes dire economic predictions of the global retail market, Levi’s is looking to focus on operational efficiency and agility, according to Jain.
She explained that the company has invested heavily in its supply chain and logistics capabilities to navigate market disruptions effectively. Its ‘global capability centre’ in Bangalore is dedicated to design and innovation with the aim of enabling the 170-year-old business to be more flexible and responsive.
“One of our key strengths is our diversified business model, which allows us to balance our physical retail presence with our growing e-commerce platform. This provides us with flexibility in responding to changes in consumer behaviour and market conditions,” she added.
Ultimately, Jain stated that geographic diversification is a key component of its growth strategy. Investing in emerging markets like India and Southeast Asia will continue as it sees significant potential for growth.