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The world’s largest and best-known jeans company, Levi Strauss & Co has announced it had filed for an initial public offering on Wednesday, February 13th, 2019.
Levi Strauss & Co accounted for 5% of the global jeans market in 2018. Its brand portfolio consists of the eponymous Levi’s, Dockers, Signature by Levi Strauss & Co and Denizen brands. The company is present worldwide through a broad distribution network.
Despite its market leadership in the jeans category, it has not been easy for the company to sustain its consistent growth over the last few years. The company’s core product category, jeans, remained flat globally over 2013-2018. The jeans market faced challenges such as shifting consumer preference, the increasing adoption of athletic leggings as daywear, the emergence of fast-fashion brands, and a challenging wholesale environment in its home market of the US.
Under such a challenging environment, innovation has taken center stage for Levi Strauss & Co. With the launch of Levi’s Eureka Innovation Lab, the company has developed innovative fabric compositions and produced technically advanced products. Innovation is a key component of the company’s long-term strategy and will continue to be one of its strengths.
Also, Levi Strauss & Co has invested in developing an omnichannel operation, leveraging its own-brand stores and e-commerce platforms to best cater to how, when, and where consumers are shopping today. The company has also been active in digital marketing, utilizing social platforms to engage customers, showcase new products, and gather feedback. These actions will play a key role in ensuring the company remains relevant to today’s influential young consumers.
The global jeans market is expected to grow, with a CAGR of 2% at constant 2018 prices over the 2018-2023 period. Levi Strauss & Co will aim to maintain its market growth in its top markets including the US, France, Germany, Mexico and the United Kingdom. Also, the company will expand its presence in key emerging markets such as China, India and Brazil. The company will also further strengthen its product mix by not only maintaining its strong market presence in its core category of men’s jeans but also exploring and investing in additional product categories within both menswear and womenswear.