American Brand Cowboy Levi'S Marketing Strategy

China has not only 1 billion 300 million potential customers, but also the fastest growing middle class in the world, and the Chinese government is trying to encourage them to increase their spending.

New global brands

For these consumers, the price of jeans that Levi's sells in China is too high.

The price of tannin town (Denizen) will be lower than that of other Levi's brands, but it is 10% to 15% more expensive than local brands.

TerenceTsang said customers will pay premium for trousers produced by companies that have such a rich tradition of cowboy clothing.

But new jeans don't just cater to Chinese consumers on price.

TerenceTsang says Denizen will also compete on the version - a problem that Chinese people often encounter when buying American jeans.

{page_break}

Lei Xiaoshan, ShaunRein of ChinaMarketResearchGroup, said: "Chinese consumers complain that, compared to ordinary Americans, their crotch is narrower, their buttocks are smaller and their legs are shorter."

Tannin town (Denizen) may reflect the trend beyond jeans: multinational consumer goods companies are increasingly required to enter the low-end market.

These companies have been selling high end brands to Chinese consumers who are obsessed with brand names to get huge profits.

Adidas (Adidas) recently said it would launch cheaper products for China's "rich poor" and expand in small cities in China.

Chinese and foreign consumer company executives like to quote a creative report from McKinsey, which predicts that by 2025, the number of Chinese urban residents will reach 1 billion.

Pay attention to the needs of these people - it may decide what consumers in other parts of the world want to buy.