How Levi’s Is Succeeding In The Mall And At Boutiques

We’ve covered some of Levi’s moves lately – from the ‘Go Forth‘ campaign to the Curve ID line of jeans – due to their creativity and innovation. A recent article in the Wall Street Journal indicates that the company’s collective efforts (not just marketing & advertising) are contributing to its successful business performance; last week, the company reported earning $56 million during its first fiscal quarter, up 17% from a year earlier. Meanwhile, revenue rose 9% to $1.04 billion.

The WSJ piece covers some of the business decisions and potential drivers that have contributed to Levi’s improved global performance; we were particularly interested in the more visible moves which form the brand’s retail strategy. These include opening more high-end, concept-driven boutiques like the one on Regent Street in London, and distributing premium cords and denim label Made & Crafted via unconventional retailers like Opening Ceremony, J. Crew and even Barney’s New York. That said, expanding via the higher end of the spectrum didn’t stop Levi’s from simultaneously focusing on improving its more recognizable, affordable lines by adding trendier styles like skinny jeans – and in launching the still very approachable Curve ID line for women.

Maintaining a premium image with some more niche brands, while focusing on a more approachable positioning and product for the core customer base is not a simple task, but it appears to be one that Levi’s is managing cautiously by relying on a very targeted distribution strategy to accelerate its more premium (and pricey) products. The $58 jeans may not need to share rack space with the $198 (or higher) ones at Barney’s, for instance.

It’s also worth nothing that we have yet to see a campaign for the premium lines splashed across town as we have for the core brand with the ‘Go Forth’ campaign; this indicates that Levi’s marketing & advertising strategy for each of their lines aligns very strategically to match the reach – broad vs. targeted – of each brand. This barbell strategy of very selectively playing both ends of the spectrum is also less likely to alienate the audience and fan base that has responded to the ‘We Are All Workers‘ mantra – and correspondingly priced product range.

Wall Street Journal: “Levi’s Shoots for the High-End Hipster”