Project Research In A Saturated Denim Marketplace, What Scope Is There For Levi’s To Become an Innovative Consumer Brand?
Laura Morrissey Fashion Communication DE1113 BA Hons Fashion Communication Northumbria University
Introduction Design in brands infuses innovation with new meanings, usability and sustainability combined with emotional relationships between the consumers and the brand. Levi Strauss & Co is the original denim provider for the world, creating a product which serves a purpose of comfort and longevity, and in the process has become one of the most successful denim brands today and throughout history. This motion of change is globally recognised as a vital product in the fashion industry. Development in denim has extended with modern requirements and technology growth taking a basic
design with the height of innovation starting at the rivets designed to keep the denim bound together. Comparatively now using lasers and stone wash techniques to create beautiful, unique abrasions and effects. Personalisation and brand language is required from a modern brand and how this reaches the customer for maximum engagement is what separates a brand from a super brand.
“The key point around innovation is that fabric and product innovation is not enough for an apparel company anymore. Our strength and point of difference is our brand so we have to innovate in relevant ways like Digital, eCommerce, and Retail if we are going to stay ahead.” Appendix C Nic Versloot, Managing Director ASEA Levi Strauss & Co interview
Despite Levi’s being the historical innovators of its niche, the future of denim is quickly being intercepted by other denim brands who may not provide the levels of durability and longevity in their products, however their physiological intelligence excels. Social media, videos, events, celebrity endorsement, apps, discounts, brand membership, personalisation are all aspects of a successful super brand. They give the consumer so much to gain from simply buying one product that they are drawn to purchase again and again. Levi’s products are constantly developing against its competitors
and solving problems to make their products suitable for everyday occasions and activities. However, in an industry exploding with new, unique denim brands creating modern and exciting shopping experiences for consumers, how will Levi’s keep its name at the top of the denim game providing a powerful influence over the industry in the future?
methodology Both Primary and secondary research has been carried out in order to create a thorough and detailed study of the saturated denim market place and how Levi’s will stay innovative. Primary research includes: An interview with Nic Versloot, Managing Director ASEA Levi Strauss & Co Secondary research includes: Analysis of library texts, articles and case studies based on the denim industry and innovation. Furthermore, studies of texts detailing the making of a super brand and WGSN case studies on future denim. Online journals and articles with specific reference to the denim industry have also been studied.
chapter one: Levi’s brand pledge Recent years has seen a severe economic downturn in the apparel industry throughout most segments; however denim has regained its sales at a speeding rate compared to other areas of apparel. When Loeb Strauss ventured to San Francisco in 1853 to explore business opportunities in dry goods, the city was recognised as a place where people wanted to regenerate themselves and their lives. Changing his name to ‘Levi Strauss’ could have been an element of his transition to becoming a San Franciscan. Blue jeans have undoubtedly remained a pivotal fashion piece over centuries for its functions and
durability. In a modern market place, there is a much higher demand for a product, which should show how far the denim industry has come. “Throughout the industrialised world denim has become a symbol of the young, active, informal, American way of life. It is equally symbolic of America’s achievements in mass production, for denim of uniform quality and superior performance is turned out by the mile in some of America’s biggest and most modern mills.” Levi Strauss, (2015). Our Story- Levi Strauss. [online]
The history of Levi’s has informed the brands ethos until the current day and heritage is what the brand prides itself on. The brand embodies the hero’s and events of our time, inspiring people to transform their Levi’s into a symbol of historical movement and social success that has been led by its consumers. This movement is what the brand is still proud of today. Determination, loyalty and ambition pushes Levi’s customers to be the best they can be and the brand aims to reciprocate. After the ‘Denim Art Contest’ sponsored by Levi’s in 1973, the product was described as being a canvas for personal expression. As a brand that has created its success as a consistent provider of comfort and style, it is in its own right a super brand. Journalist Alex Riley explored the power of super brands in society as a novice fashion follower himself. This was an experiment to see how brands draw people in with emotive marketing and physical engagement. His research showed how even big luxury brands such as Burberry can suffer a loss due to their products being seen to be worn by the wrong people. The solution to this was to bring in new designer Christopher Bailey and build a strong online relationship with consumers. Levi’s has been on a journey for over one hundred years throughout various movements and as a leading denim brand can use this power to forecast the future.
“Throughout most of human history people use their dress to signal their success in life. In twentieth and twentyfirst centuries, what people started craving and needing was to be able to assert their own authenticity, in an ever more marketed, advertised and fake world. What mattered was to say “I’m real” and nothing says I’m real like the history of denim.” Secrets of Superbrands (Fashion) (2011) [TV programme] BBC Three.
Modern denim brands are expanding as the demands of consumers grow. In a world where iPhone’s are upgrading every year, brands need to provide their consumers with more than one product. The saturated denim market is catching up with the niche Levi’s has lead for hundreds of years and this could result in the brand not being so relevant. Intricate details on Levi’s products such as the small rivets designed to stop miners from suffering rips easily are features which still remain important in the denim industry. Innovation today requires a lot more technology and consideration of the consumer’s needs. Paul Dillinger, head of Global Product Innovation at Levi Strauss uses the laboratory in San Francisco to conduct experiments and research to create prototypes. Lynn Downey, Levi’s historian wrote a detailed timeline of how the brand has built a denim leadership for itself and how this product is more than a fashion item. (See appendix B) Levi’s has been worn by Cowboys, Miners, Workmen, and Hippies over the decades. The denim has transcended through history creating a trust between consumers and the brand. By the 1970’s, journalists were recognising the group of people who were becoming ‘Denim Heads’. This group of denim lovers are fully absorbed in the industry and are enthused at the new denim era which is now. “Jeans are more than a make. They are an established attitude about clothes and lifestyle.” Levi Strauss, (2015). Our Story – Levi Strauss. [online]
The brand has instant recognition from its red label for consumers, to connect to the quality denim which never goes out of style. The American, effortless cool lifestyle established brings desirability to the brand for both genders. The American youth are surrounded by brands that use sex appeal and glamour to engage them such as Abercrombie and Fitch. Levi’s use advertising to embrace their heritage, yet inspire the next generation. Their ‘Go Forth’ campaign and manifesto is relevant within the brand for the entire future of its operation. The young consumers are looking for a bright future and a role model and this manifesto piece brings optimism and positivity for consumers. “The changes we’re making will make us more competitive- both in our structure and in the market place – improving our agility and enabling us to focus on innovation, retail productivity, omni channel capabilities and an enhanced in-store consumer experience.” Levi Strauss, (2015). 2014 Annual Report- Levi Strauss. [online] Long term strategies for the brand over the last three years included driving profitable core business; expand the reach of the Levi’s conglomerate and leverage global scale to improve cost structure. CEO Chip Bergh put emphasis on the term innovation in his 2014 annual Levi Strauss & Co report. ‘Icons and Innovation’ is an insight into the new themes Levi’s is presenting to consumers such as ‘you wear jeans, but you live in Levi’s’ showing the cultural progression in the brand to become a lifestyle brand. The Levi’s Stadium has been extremely successful and
the 49ers jacket is the start of a new line of product inspired to enable fans to look good whilst supporting their team. Europe and Asia’s growth combined with ecommerce business growth has been a positive movement for Levi Strauss & Co towards the brands future to present consumers with products they can continue to love living in while they experience important moments in their lives.
chapter two: Levi’s and innovation Contemporary heritage brands such as Ralph Lauren use engaging endorsements to attract consumers to buy into the brand and this can be distracting from the product. The influx of products that are renewed each season give consumers more to invest in the brand, making it a desirable lifestyle to buy into. Levi’s relationship with consumers is developing online with campaigns such as #ladiesinlevi’s, however key target audiences are focused online and this is a space which can be an expanded communication platform to be targeted at the young demographic. Levi’s has already impacted the denim
market as a leader in its own niche, however small businesses are becoming strong competition with their innovative marketing methods and detail in production which engages consumers to buy into these brands. PR agency Exposure has been partnered with Levi’s for over fifteen years and has worked with the brand on projects such as ‘Levi’s Curve ID’. In celebration of the 140th anniversary of the 501 jean, Levi’s launched the ‘Shape not Size’ products and campaign. This was a successful product range which saw a one hundred per cent increase in sales of women’s Levi’s.
“The old theory of branding was summarised by Peter Doyle as: S = P x D x AV Strong brand = product benefits x distinct identity x added values� Grant, J. (2006). The Brand innovation manifesto. Chichester, West Sussex, England: John Wiley & Sons, Ltd. Page 25
In the late nineties there was a dip in the demands for Levi’s products, however their TV commercials regained public attention with two of the most popular being “Flat Eric” in 1999 and “Odyssey” in 2002. The success was awarded and they became identified as a cultural brand. At this point Levi’s were becoming increasingly relevant in the vintage American clothing trend. Second hand Levi’s were the height of fashion and the Launderette campaign with Nick Kamen brought sex appeal to the brand. TV advertisements have been a popular marketing method for Levi’s to drive its business. Failure to produce new ways to talk to the younger audience resulted in sales declining for eight consecutive years, ultimately taking $3 Billion in annual revenues.
The traditions are evident in the message being given through TV, however this platform is less relevant to the segments of the consumer market that look for conversation from a brand online. At the time of new TV campaigns, Kenny Wilson, brand president for Levi’s Europe said: “It demonstrates independence and freedom of thought. Young people appreciate the fact that it’s not the same as anything else on television. Levi’s is hoping the £21 million campaign will help reverse a sevenyear decline, which has seen its sales plummet by 42 per cent.” Grant, J. (2006). The Brand innovation manifesto. Chichester, West Sussex, England: John Wiley & Sons, Ltd. Page 42.
European brand president Kenny Wilson used a brave method of reaching out to younger audiences in order to regain focus on a classic product, the 501 jean. Through Shakespearean dialogue from A Midsummer Night’s Dream the combination of history and modern street behaviour was a tactical marketing technique to encourage confidence and individuality from Levi’s consumers. Innovation is generated through the production of sustainable value; this can be done by using existing technology in a new, exciting way to create a larger impact than the invention of new technology. In order for a brand to create change and improve the current situation, it must drive innovation into the future. Making products which are already out there is an option, however they must be newer and of much more value in comparison. The brands promise is where this method creates success in its delivery of these results in order to seal a strong relationship with consumers. Walter Landon, founder of International Strategic Branding Consultancy, Landor, complies with this strategic view to solve complex challenges. “’Simply put, a brand is a promise. By identifying and authenticating a product or service, it delivers a pledge of satisfaction and quality.’ ‘It’s the promise that makes a brand meaningful to the user and connects it to their values.” Abbing, Erik Roscam. Brand-Driven Innovation. Lausanne: AVA Pub. 2010. Print. Page 32.
Levi’s brand message has regained its focus towards the consumer again in the last twenty years whilst continuing to deliver high retail sales volumes. Authenticity is delivered in Levi’s brand ethos and this is a vital element of creating a successful super brand. The method in which authenticity is communicated determines the levels of success and this begins right as the manufacturing process. Levi’s Water<Less campaign and range of products is an innovative approach to using waterless technologies, and encouraging consumers to reflect this behaviour by only washing their jeans after at least ten wears. They have saved over one hundred and seventy two million litres of water so far and are working to become more economical in their production methods. Caring for current products and the consumer’s future creates a strong brand purpose and empathy which is accepted and admired by the millennial market. One of the most powerful voices a consumer can have today is online by liking, sharing, pinning and tweeting in order to be heard by the online community. There is a lack of self-confidence when purchasing in modern society. Consumer’s decisions when shopping are often influenced by people they do or do not know online. Social media sites displaying a product and an opinion can easily influence mass sales or a decline in a products success. This voice comes from people who can be thought of as fashion mentors who others look for to get approval before making a purchase.
This reinstates how brand endorsement will always be a vital element of a brands success and innovation beyond just the products. The styling and lifestyle is determined by what the brand publicises and what the fashion mentors of the world display to other consumers as a role model.
“The Live in Levi’s campaign is based on the key insight that “people wear jeans, but they live in Levi’s”. We have to bring to life the way all our fans live their lives and celebrate the moments they celebrate. This is a much more approachable campaign relevant to far more people than Go Forth. We are now targeting “style seekers” rather than “experimentals”. Appendix C Nic Versloot, Managing Director ASEA Levi Strauss & Co interview
Chiara Ferragni is currently the face of Levi’s 700 range and is leading the campaign #LadiesInLevi’s as an extension of the brand manifesto “People wear jeans, but they live in Levi’s”. Chiara has over five million Instagram followers and a huge fan base for her blog “The Blonde Salad”. Her opinions on fashion, travel and beauty is influential and her hash tag #TheBlondeSaladNeverStops proves her relevance and how fundamental she is in the fast paced blogging industry. Her success is built on her collaborations with the biggest fashion houses and her desirable lifestyle displayed online. This talent means her online voice is respected by consumers and makes her a smart ambassador for Levi’s.
chapter three: comparative denim brands Today, brands are offering more than just a product to their customers. They are offering a lifestyle and a relationship, which promises that they will be providing their customers with the best and the most desirable pieces. Leviâ&#x20AC;&#x2122;s is a niche brand with history telling its consumers that it is a reliable, durable denim provider. However, small denim businesses are becoming more aware of the modern demands and are developing new concepts, which make them stand out to other brands. Global denim retailers are growing through their use of more refined fits and technical manufacturing methods. Japan is inspiring the rest of the denim world with its beautiful, innovative store designs and personalised products. Their target audience is engaged by a genuine passion for the products manufacturing process.
Ooe Yofukuten & Co began making jeans after discovering an interest in vintage American clothes. The brand began from a family making jeans for friends and family and sharing images of the results on a blog. This lead to an interest from viewers asking for their own pairs of these jeans and in turn drove the beginnings of the business. At first no profit came from the products being hand made as the family only received enough money to cover the materials. They bravely tried selling the jeans at flea markets for the luxury price of one hundred bucks, compared to the ten bucks price tags on the other jeans being sold. They managed to sell their creations despite this. The brand now uses materials such as wool and is unique in its innovative tailored style and production using vintage
sewing machines for an authentic product. Marketing and digital output is still relevant in the distribution and success of this brand as a platform for displaying a talent and passion turned into a successful business. Selling a pair of jeans isn’t enough anymore. Modern denim brands are educating their customer about the jean-making process and giving them as much opportunity as possible to make the jeans personal using methods such as customisation. Diesel is an Italian company which began in 1978 by Renzo Rosso and today is globally recognised as a custom denim brand and overall, a lifestyle brand. Diesel offers clothes for men, women, children and in addition; fragrance, eyewear, underwear, footwear, leatherwear and sportswear. Diesel has used methods such as social consciousness as a theme in big campaigns such as ‘Global
Warming Ready’ using ironic styling, locations and sex appeal to create a sense of anti-establishment messaging. ‘Live Fast’ was another example of modern cultural referencing. Intelligent store merchandising techniques encourage consumers to want to engage with the staff. The artistic styling influenced by 1960’s rock and roll is reflective of Renzo Rosso’s core values to create clothes that he wanted to wear and would allow him to express himself in ways he felt other clothes would not. This innovative brand gained a huge following as an artistic lifestyle brand. The functional purpose of the brand heritage of Levi’s was to create comfortable clothes for miners however, Diesel differs by its creation of products which could be worn for consumers to express themselves, and speak the brand language.
Diesel’s ability to capture the young minds is through their innovative campaigns. ‘Be Stupid’ was inspired by Renzo Rosso’s success which all began from a crazy idea and developed into a global brand. The concept of sharing his crazy idea created fashion history and now is recognised as one of the world’s most successful brands. The philosophy behind the campaign creates a sense of flat hierarchy despite the brands products being priced towards a luxury consumer market. This aspect of promotion and marketing is purely about engaging with the customer and creating a two way dialogue. Diesel removes the obvious aims to just sell and gives consumers something to interact with. Through use of music, celebrities, advertisements and social media platforms, the brand creates a seemingly natural relationship by their ‘take a chance, why not?’ attitude.
Diesel’s luxury lifestyle and inspirational attitude reflects the substance of the brand experience and consequently exerts contagious ambition. “Smart had one idea and that idea was stupid”. This risk taking attitude creates a give and take relationship. The brand supports its consumers to be brave by sharing crazy new ideas, and the consumers support the brand in return by purchasing its products. This therefore creates a natural relationship. Diesel also has high success because it achieves high employee satisfaction by keeping staff up to date and creating a strong sense of identity and deeper understanding of the brand. Mark Zuckerberg, chief executive officer of Facebook sits with all of his employees in his head office in an open seating plan with no cubicles allowing ideas to be shared easily and built on. Angela Ahrendts powerful
creative influence over retail and online branding ability for Burberry and Apple is one of the most valued business minds of our time. She uses innovation and brand promise in new ways to engage customers by storytelling and using technology to pass information to consumers quickly and in a stimulating way. Martin Zad created an inventive collection for Levi’s ‘Made & Crafted’ inspired by Japanese architecture, to style Levi’s vintage achieve pieces. “Contrasting the rugged nature of the clothes with its delicate shapes and vibrant colours, the images speak of the likeness between the care and delicacy of tending to a garden, to the construction of the Levi’s work wear.” This balance of new and old is the flavour of innovation which Levi’s can use to engage new consumers as well as show current brand followers how denim is fashion, art and in the future of design. Dr Martens holds heritage at the centre of its core brand values and prides itself on durability and longevity like Levi’s. The shoes get better with age and are made with a history of influential subcultures and punk rock music. Throughout fashion movements these products have stayed relevant by the brands association with leading music festivals such as Glastonbury. Dr Martens boots are popular to be worn to festivals as they are fashionable, reliable footwear for bad weather conditions while
also holding brand value and representation of the event. Levi’s products have also been seen as a fashionable way to dress for music events and festivals. Personalised denim jackets and dyed or ripped shorts have been seen on thousands of music fans and this image keeps the brand relevant in its own niche.
conclusion: new era denim Modern denim brands are competing for the most advanced products to offer the communities in which they operate and trade to. Building long and loyal relationships begins with the core heritage of a brand and offers a brand promise to consumers. Globally, Levi’s has remained a leading denim brand in its own niche and produces products which get better with age and are unique to other denim products. Innovation is apparent in their production process, however retail distribution can be recognised as having a lack of innovative concept behind it. In comparison to Diesel’s conceptual marketing and brave attitude, Levi’s has a space to enhance its relationship with key target audiences. As a successful denim brand, this transition into a lifestyle brand much like its competitors would develop an epitomized brand and communications platform specifically targeted at the urban
demographic moving upwards. Primary research gathered from Levi Strauss & Co Managing Director ASEA Nicolas Versloot showed the cultural diversity that occurs within a brand as Asia has now developed its own confidence in its product demands rather than looking to the west for inspiration. (see appendix C) Levi’s aims to innovate through brand experience and achieving a strong knowledge of the segmented market and distribute correctly to where its consumers shop. Concept stores and pop-ups are engaging for denim fans as an exclusive and special experience when purchasing a product. The travelling trailer created by designer Hiroki Nakarmura featured an assortment of unique Japanese and vintage inspired denim which was
displayed uniquely and in selective places. Cheap Monday’s tenth birthday was celebrated by giving away one thousand pairs of jeans at ten stores in ten cities for only ten minutes. The London Cloth company distributes to unique denim brands such as Denham. The company has its own micro mill in East London to use vintage looms for weaving bespoke indigo wools for its subtle construction innovations. ‘Live in Levi’s’ has become a strong marketing concept for the brand as a platform for consumers to get involved with and use to communicate over social media. The endorsement of influential fashion mentor Chiara Ferragni has given Levi’s a new following as the power of the online voice engages customers into a sense of acceptance and community.
Other lifestyle brands such as Ralph Lauren and Abercrombie and Fitch have an identifiable consumer brand image and this builds success around the personality and desirability to hold a specific image by buying into the brand. Levi’s has established a sense of effortless cool over years with its style and design, however with new celebrity influences and innovative ambitions there is a blurred image of the modern day Levi’s brand consumer image. Globally differentiating, Levi Strauss & Co remains a historical leader of its denim segment for its durability and longevity. However, there is evidence through social media following statistics that this area of the brand is not as advanced as other super brands digitally and this method of communication could be the voice Levi’s requires in order to generate the next era of denim innovation.
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