Levis Failure

can Levi’s be trendy again?

Levi’s Profile

(a) Customers
● The majority of Levi’s customers are male, the split has remained relatively constant over time (over the last 10 years the split has been 73%-27%)
● Regionally, America is biggest Levi’s customer. However, its dominance has decreased over time. In the 90s, two thirds of Levi’s sales were made in America. This figure has now dropped to 57%. The biggest growth market for Levi’s is Asia, in the last 10 years it has gained over 10 percentage points and is now sitting at around 16%.
● Levis main customer base ranges from 25-35, this is substantially older than what it was a decade ago.  

(b) Company
● The company was founded in 1853 and is still controlled by relatives of the original founder, Levi Strauss and has three geographic regions: Levi Strauss Americas, Levi Strauss Europe, Middle East and Africa and Asia Pacific Division.
● Levi Strauss currently outsources 95% of their manufacturing, very little is done in the US, despite the brand being closing associated with American culture.
● Its peak performance was achieved in the mid 1990s, when Levis 501s were almost synonymous with denim jeans. After 1996, sales began to decrease and Levis made almost no profit in 1999 and 2002, and suffered a net loss in 2003. Since then their sales have been increasing again but net income has never regained.  
● The company underwent massive restructuring in the late 1990s, shutting down factories and letting go of thousands of employees.
● The company has been in a constant state of restructuring and change for the last decade, as recently as 2011 they lost revenue as a result of implementing a new enterprise resource planning system.
● At present, Levi’s denim offer includes collections for the three price ranges (premium, medium, affordable). Their newest collections include - Water