Levi&#39, S Jeans Sales Slash $2 Billion 200 Million, Yoga Pants Squeeze Away Jeans?

Last year

Female style

Consumption fell by 8%.

Sales have been flat with jeans.

Perhaps based on the results of this report, the cover story of the previous issue of Bloomberg detailed reports of Levi's, which is precarious under this trend.

Hui Guan

As a giant in the jeans industry, its annual sales of $7 billion from 20 years ago dropped to $4 billion 800 million now.

Meanwhile, Lululemon, whose brand history is only 17 years old, has gained a market value of $9 billion in sports and casual wear.

15 years ago, half of Levi 's revenue came from the largest ten customers in the United States, and most of these customers have already been lost, and department stores have been shutting down or restructuring. Retail dependence is no longer realistic.

At present, the sales of Levi 's 1/4 come from 550 stores in the world, and the online sales situation is not objective. It has increased by 6% in ten years.

Bloomberg's view is that because Levi 's is a private enterprise and does not need to report the operation to shareholders and the market in real time, it has a poor response to the market.

Obviously, it has missed the time node of great changes in the apparel market.

We are skeptical of this causal relationship.

According to Bloomberg, the Levi s technology team is developing new technology.

The hope is in the female market, the elastic fabric and the essence of nineteenth Century jeans.

"We don't want to make yoga pants. What we need to do is a more comfortable pair of jeans."

BartSights, senior director of Levi s technology innovation department, said.

The incumbent CEOChipBergh took office in 2011 and made a series of personnel changes to the company. 11 of the management were replaced by 9. It announced that it would cut the cost of $200 million by the end of 2016 and send executives to the world to conduct product research to find out exactly what the market needed.

"At present, the jeans we have are far from the needs of people in the market."

In 2013, Bergh launched the Levi 's revival plan.

He decided to start with the ladies jeans market.

Unlike most of the clothing brands in the market, Levi 's accounts for a very low proportion of women's market, only 23% - you know, Levi' s men's jeans account for 1/4 of global jeans sales, while women's jeans are only 5% - apparently women are still buying jeans, but not buying Levi 's'.

Bergh thought there was another opportunity.

In comparison, sports pants soared last year to 64%.

The blowout of the market has caused many retail media to start to talk about jeans. They believe that jeans have been abandoned forever.

But Bloomberg believes that the decline in sales attributed to the popularity of elastic yoga pants in recent two years is irrational. People's demand for elastic pants is more of a fashion Revolution: yoga pants are not only soft and comfortable, but can do the right thing in the right direction, and get the best balance between comfort and fashion.

We also doubt the conclusion that "Yoga Pants squeeze away jeans". A lot of new cowboy brands like ACNE and Frame have been well received in the market. They don't know the existence of yoga pants.

So the real crisis of Levi's jeans is probably outdated fashion and brand aging, so that I can update myself and do not need to mention yoga pants.

Workers use lasers to remove the thighs of the indigo jeans, so that the wearer looks slender.

The development of Levi s in women's jeans has dropped from 65 to 30 now (which is also a response to CEO's request for cost reduction). The fabric has not only added elastic components, but also studied how to restore the fabric after long term stress from the diving suit.

At the beginning of this month, Levi s released the latest series of women's skinny jeans series, which is a kind of sexy body with tight buttocks.

Before publication, the Levi s design team interviewed and tried in Asia, Europe and the US market to find out what jeans are most popular among female consumers, and what is more important than what they really need.

According to Bloomberg's survey of consumers, this new product seems to be acceptable.

A consumer thinks that Levi's will be considered next time when she needs a new pair of trousers, though she will not give up yoga pants.