The Levi’s brand has experienced a nearly 50 per cent increase in this crucial market, surpassing pre-pandemic revenue levels.
Michelle Gass, President, Levi Strauss & Co, announced that India has become the largest market for the San Francisco-based jeans maker within Asia and the sixth largest globally. She mentioned that Levi’s, which established its first store in the country three decades ago, anticipates substantial growth in India in 2023. India is the world’s fastest-growing major economy and one of the most dynamic consumer markets, with over half of its population under 30.
Gass stated, “The Levi’s brand has experienced a nearly 50% increase in this crucial market, surpassing pre-pandemic revenue levels. India now stands as our sixth largest country and the largest in Asia.” She made this statement during the company’s earnings call. Gass, who previously worked at Starbucks and Kohl’s, joined Levi’s this year and is set to assume the position of CEO from longtime CEO Chip Bergh in 2024.
Levi’s, renowned for its 501 jeans and the iconic leather patch featuring two horses attempting to pull apart a pair of pants, revealed that India not only exemplifies its successful regional expansion strategy but also showcases its ability to offer an authentic denim lifestyle.
Gass emphasised, “India primarily operates on a franchise model, and the impressive growth is a testament to the confidence our partners have in our brands.” She further explained, “For instance, during the pandemic, our franchisees expanded the Levi’s brand presence in key malls across India, doubling the square footage, seizing the long-term opportunities they envisage. The Indian team has done an exceptional job curating a diverse product range, including tops and bottoms, driven by our global design expertise and local product capabilities.”
Over the past decade, Levi’s has reduced its number of franchisees in India from over 80 to just two dozen. Additionally, the company has established a few larger company-owned stores, which are significantly bigger than the average 2,000 square foot store size.
While Levi’s typically sells three bottoms for every top in major markets globally, India deviates from this trend, with an average purchase ratio of one bottom for every top. The company is actively promoting non-denim clothing and women’s apparel to expand its presence in consumers’ wardrobes.