BEHIND THE MOST PROLIFIC DENIM BRAND IN HISTORY - COMPANY HISTORY - LEADERSHIP STYLE - IMPACT ON THE MARKET - FINANCES - FUTURE DIRECTION - OUR PREDICTION
COMPANY HISTORY
COMPANY HISTORY » First brand to invent blue jeans » Founded by Levis Strauss in 1853 » Moved to San Francisco to import fine dry goods to small general stores » In 1873 the first blue jean was born and called ‘XX’ » Most of the jeans were sold to Sailors and men with rigorous occupations » In 1908 the Two Horse trademark was registered and Levis went global » In 1928 they registered their brand name ‘Levi’s’
LEVI’S LOVERS » In 1930 cowboys wore Levi’s jeans, elevating them to a certain standard » Loved by American blue-collars » In 1935 the first pair of jeans for women were made called: Lady’s Levi’s » Between the 50’s and 80’s Levis became a craze among a wide range of youth (height of growth in the product life cycle phase) » There was a growth in the business as the more casual look of the ‘blue jeans craze’ » Levi’s become a symbol of freedom and independence
COMPANY HISTORY » In 1954 the Levi’s Denim Family was launched » In 1980 they made clothing for for athletes at the Olympics games » In 1999 named the Fashion Item of the Century by Time Magazine » Continues to be one of the most succesful denim brands around the globe
LEADERSHIP MANAGEMENT & STYLE
A BRIEF CEO HISTORY
H t r e b 0 o R 00 to 0-2 s 0 s u 18
a
r t S
p
i h C
COMPLACENCY
B
h g er
n o c
INNOVATION
s s a
Lo st CE foc us O An un de de rso r n
ta
s e k
l o tr
CHIP BERGH
» 2011 CEO Chip Bergh steps in » Targets flawed top, middle and lower management, revamping the brand, and to repay the company’s accumulated debt » Bergh traveled and questioned employees worldwide, “What three things have to change at this company?” and “What one thing do you want me to change?” » Incorporates Denim Bars, “Live in Levi’s” campaign, and a more youthful unkempt look » “$4.8 billion in sales and nearly $2 billion in debt. By the second quarter of 2014, that debt was down more than $500 million”
PROFITS THROUGH PRINCIPLES
Levi’s has always supported causes that were pertinent to buyers and employees.
WATER<LESS
BETTER COTTON INITATIVE
GENDER EQUALITY
EMPATHY ORIGINALITY INTEGRITY COURAGE
COMPANYâ&#x20AC;&#x2122;S IMPACT ON MARKET, INDUSTRY, & COMMUNITY
TARGET MARKET » Millennials, mainly focusing on ages 18-28, of middle to upper middle class status » Levi & Strauss Co. focuses on the main psychographic of sustainability and it is a massive aspect of their Corporate Social Responsibility » One of the more common ways to see Levi’s advertisements’ in 2017 is through social media advertising
Âť Progressive and invasive approach when it comes to environmental scanning Âť The technological component of Leviâ&#x20AC;&#x2122;s manufacturing management is one aspect that goes into their ability to mass customize so many different kinds of jeans for a reasonable price
FINANCES
BUSINESS DIVIDENDS
85%
10%
5%
FINANCES 2016 Fiscal Year Revenue
Free Cash Flow of
$4.6 Billion $160 Million up
2% from 2015
(used most often for contigency budgets)
STATISTICS 2016 SUSTAINABILITY PREDICTION: 35% GLOBAL PRODUCT VOLUME 17% GLOBAL COTTON PROCUREMENT 90,000 WORKERS WORLDWIDE
2016 SUSTAINABILITY RESULTS: 40% GLOBAL PRODUCT VOLUME 21% GLOBAL COTTON PROCUREMENT 100,000 WORKERS WORLDWIDE
FUTURE DIRECTION & FORECAST
REDEFINING SUSTAINABILITY “Changing the way people think about clothes.” » Goals of gaining shared values between consumer and brand » Encourage buying for lasting periods rather than trends and seasons
“We’re choosing not to participate in the fashion cycle. Instead, we’re choosing to cultivate long-term relationships with the consumer and deliver against their needs.” PAUL DILINGER HEAD OF GLOBAL INNOVATION
STAYING TRUE » Increasing transparency in supply chain process » Maintaining a fit portfolio and consistent product availability to ensure success » Utilizing technology to provide innovation in denim and finding performance in garments
FORECASTING PROFIT:
Net Revenue grew 4% from Feb 2016 to Feb 2017 Prediction: grow 1.25% each quarter to end at 5% increase by Feb 2018
2017 SUSTAINABILITY & EMPLOYMENT PREDICTION: 55% GLOBAL PRODUCT VOLUME 30% GLOBAL COTTON PROCUREMENT 150,000 WORKERS WORLDWIDE
2018 SUSTAINABILITY & EMPLOYMENT PREDICTION: 65% GLOBAL PRODUCT VOLUME 35% GLOBAL COTTON PROCUREMENT 200,000 WORKERS WORLDWIDE
INVEST OR AVOID?
CITATIONS 2016 Annual Report. (n.d.). Retrieved May, 2017, from http://le vistrauss.com/investors/annual-reports/2016-annual-report/ Annual Reports. (n.d.). Retrieved May 2017, from http://levistrauss.com/investors/ annual-reports/ Levi Strauss & Co. (n.d.). Retrieved May 28, 2017, from http://www.levistrauss.com/ Segran, E. (2017, March 08). Leviâ&#x20AC;&#x2122;s Is Radically Redefining Sustainability. Retrieved May 2017, from https://www.fastcompany.com/3067895/levis-is-radically-redefining-sustainability