As American denim giant Levi Strauss & Co aims to grow its global business to $10 billion from $6.2 billion, president and CEO Michelle Gass claims that she has set her sights on India, one of the top six markets for the inventor of blue jeans, to drive growth.
Looking at the opportunity that the 170-year-old company's largest market in Asia provides, Gass, who took over the corner office last year, has flown down most of the company's leadership team, including chief financial and growth officer Harmit Singh, a graduate of Delhi's Shri Ram College of Commerce, to visit its fastest growing market
India, which has a big cohort of youthful customers always seeking new fashions, making it any fashion brand's nirvana, would contribute a "disproportionate" share (greater than other countries) to the company's growth, Gass told TOI during her first visit to the nation as CEO.
"In India, we are doing an excellent job implementing the playbook. We've distinguished ourselves from the competitors. So, how quickly can we grow? Because the more we expand, the more separation we will create. India is important to achieving our aims. In an interview, Gass stated that the customer in this market represents the acme of our target client, both demographically and psychographically.
Under Gass, Levi's is shifting its growth strategy away from attracting more males to its classic jeans and khakis and toward achieving a better gender balance. While winning the denim game, particularly in the bottoms market, remains the focus, the company also wants to give its clients "a lot more". The company is expanding its collection of shirts. "The idea is for a shopper to find the right pair of clothing to go with their denim bottoms," according to Gass.
India, where buyers currently spend more than one top for every one bottom compared to three bottoms for one top in other regions, provides a larger opportunity for the brand to urge customers to buy beyond its jeans.
Furthermore, there is a potential to increase the adoption of denim clothing because the penetration of denim skirts and dresses in the country is rather low. These two articles summarize the brand's wider worldwide strategy of "owning the denim lifestyle," which is projected to fuel growth over the next decade.
"...owning the denim lifestyle... is perhaps the most important area we focused on. It isn't only about increasing the shirts business; it's about living the denim lifestyle from head to toe, including denim attire," Gass explained.
In India, expanding the selection for women beyond jeans and boosting their retail space is paying off. "In India, 20% of our business used to be from the women segment; now it's 30%," said chief finance and growth officer Harmit Singh, adding that Indian consumers are far more confident than their Western counterparts and spend more.
