Levi 'S Cowboy Market Shrank By 5%

ChipBergh spent $220 million last year to buy the naming right of San Francisco gymnasium for 20 years, renamed Levisstadium, which is the venue for the Super Bowl in 2016. San Francisco is Levi 's The birthplace of Bergh wants Levi 's to be reborn here. He is the global CEO of LeviStrauss (Levi 's).

When Bergh recently interviewed, he talked about his own impression that Levi 's was a large company with annual sales of 10 billion dollars, but when he entered the company in September 2011, he found that he was not half as impressed as he was. Only then did he realize what kind of situation he was facing.

Levi 's has been in the past for a long time. cowboy The pronoun of 501 took it to the golden age of 1990s. So far, the highest record of Levi 's still stayed in 1996, and sales of US $7 billion 100 million were even higher than that of Nike ($6 billion 400 million).

But by 2001, sales had dropped to only $4 billion 250 million, and Nike has reached an astonishing $20 billion 800 million. Up to now, over the past decade, the revenue of Levi 's has been $about 4000000000. According to Euromonitor's report, the market share of Levi 's in the world dropped from 7.2% in 2004 to 5.3% in 2013, and dropped from 14.4% to 12.5% in Levi's largest s market.

It can be said that after entering the twenty-first Century, Levi 's bid farewell to its era.

Consumers have more choices. For example, the high-end brand 7ForAllMankind was founded in 2000, and TrueReligion became a new entry into the market in 2002. Although Levi 's is still a Cowboy brand with big market share, its curve has been declining, while the Inditex of fast fashion Zara's parent company, and PVH with CKJeans, TommyHIlfiger and other brands has been rising. Levi' s's biggest competitor, namely, Lee, Wrangler and other Cowboy brand parent group, has also maintained a stable state.

That is to say, high-end jeans such as 7ForAllMankind and CKJeans, and fast fashion become the new favorites of young people. Low-end Lee and so on have robbed some of their original market.

Old Levi's has entered. Be lost Status. What is even more tragic is that in 2012, Levi 's first retired from Fortune 500 list.

ChipBergh worked in Procter & Gamble for 28 years, and turned Gillette into a brand worth 2 billion dollars. Just like what Lei Fuli has done now after he has re written his P & G, Bergh's first step is also a cost reduction plan.

First, the 2012 loss of Denizen brand Asian business was cut. It needs to be explained that Levi 's now has 4 brands, in addition to Levi' s brand, as well as Dockers, Denizen and Signature, but Levi 's brand contributes 84% of sales.

Then 20% lay off, and the first abolition is 800 non retail and non productive jobs in the US and Asia, which can save 75 million to 100 million dollars a year.

"In the next 12 to 18 months, we will continue to implement this cost reduction plan." Levi 's global CMOJenniferSey told reporters. By 2015, the global supplier of Levi 's will also be cut by half in order to shorten the lengthy supply chain.

You may not know that Levi s's Innovation Center was originally built in Turkey's jor Lu, 6000 miles away from Levi 's's design team in San Francisco. Whenever they have new ideas about tailoring or cloth, the first thing to do is to get to jair Lu by plane or express the samples. "We may spend more money on FedEx and air tickets than the design itself." Bergh was so joking in his recent interview with fortune magazine.

This may be one of the reasons why the Levi s design team missed the key trend designs of women's color jeans and finely tailored men's jeans. Levi 's relies heavily on its past classic products, such as 501, motorcycle cowboy jackets. "If you go to see other Cowboy brand design teams, they have gone to the outside world, see the fashion trend, and then put inspiration on clothing. For Levi 's, they immersed themselves in the company's archives and looked at those old Western jeans and trousers. A former Levi s executive revealed.

"In fact, I think the biggest problem facing Levi s is how to return to fashion from classics." He Huiling, international managing director of brand consulting company, told reporters.

ChipBergh is working hard to make Levi s a new trend setter.

He cancelled the "hard" innovation center in his view, and re established the Eureka innovation laboratory -- only a few blocks away from Levi 's headquarters. In the Eureka lab, a team of 30 people called "technology design experts" came in and out everyday, from producing idea to designing boards, not more than 24 hours. The latest achievement in this lab is the development of a new material of jeans, which looks like an ordinary pair of jeans during the day. The magic is that it will give metallic luster in the evening and is not yet listed.

Bergh hopes that this innovative laboratory can enhance the speed and capability of Levi 's product innovation, and will play a significant role in the next 1 to 2 years.

In terms of product innovation, according to Adage, Bergh appointed KarynHillman chief product officer last year, the first time in the history of Levi s. Hillman previously worked in CalvinKleinJeans and fast fashion GAP. Levi 's also set up the position of chief buyer Officer (chiefmerchandisingofficer), also the first time in Levi' s history. "Chief product officer and chief buyer officer are two very important posts in fashion brands, which shows the importance of Levi s now for products." He Huiling said.

At the same time, Levi 's also hopes to save brand decline by advertising and marketing. They launched the global brand remodeling advertising campaign "LiveinLevi s" this year, with a budget of US $100 million. According to data from Kantar, a media investment management company under WPP, the annual advertising cost of Levi 's2013 in the US market is only $26 million 700 thousand. "We will use the most platforms to reach the largest number of consumers." Sey told reporters, "because Levi 's is for everyone."

Bergh says, "we are a very democratic brand. From billionaires in Silicon Valley to school teachers, plumbers, cowboys, miners, we can wear our clothes.

Sey once worked in Levi 's from 2003 to 2008, rejoined in August last year and held the position of global CMO, and this position has been vacant since its job hopping from RebeccaVanDyck2012 to Facebook. "When I came back to Levi s again, I was looking for what we were good at and what we needed to change."

2 months later, Sey ended its cooperation with the advertising creative company Wieden&Kennedy5 and rediscovered the advertising company FCB that had worked for 68 years (1930-1998). After that, Levi 's began to frequently replace its agents, including Foote, Cone& Belding, TBWA/Chiat/Day and so on.

The advertising theme of "LiveinLevi s" is the result of the joint discussion between the marketing team led by Sey and FCB. "LiveinLevi s" rooted in products, it is actually inspired by brand fans. Sey said that they have invested a lot in the past year to understand the global consumers. In the process, most of them are touched by some fans' stories about themselves and their favorite one or a series of cowboys. For example, some people wear a 501 tour around the world, and some people have worn jeans for more than 20 years. This is also an important reason why they decide to focus on products instead of brands. At the same time, they point to a popular market.

In this way, the "LiveinLevi 's" global advertising theme has replaced the original "GoForth" which lasted for 5 years. "GoForth" mainly conveys brand spirit and individualism. Sey said, the message we want to convey this time is that everyone can enjoy the fun of wearing Levi 's.

"We discussed at that time that" GoForth "was a bit too artistic, and needed to make some adjustments in the tone so that everyone could feel the openness of the brand. Because if you want to become popular and popular, you have to walk from the coffeehouse to Madison Park, not too distant and tolerant. But we must not lose our standard. "FCB chief creative officer is also the director of this Levi 's creative director," said EricSpringer. So in July 1st, the actors and models were not professional, but they seemed to be full of fun when they were on the "global LiveinLevi" s, justdon tborethem tborethem. When a boy hurried to the bus, he took off the wet Khaki Shorts directly and then stretched out to the window to let the wind blow dry.

This is also the first change in the marketing strategy of Levi s. Emphasizing the overall sense of brand has always been the marketing strategy of Levi 's, and products are only subsidiary. For example, in the "GoForth" advertising film, there are few products in the lens, and the trademark "Brown" sign of Levi s jeans is flashing across. The highlight of the dialogue is "Pioneer". The atmosphere of the whole movie is a mysterious tension with adventure.

In LiveinLevi 's, the background music is easy to move, and the focus of rapid switching is product, such as Levi' s classic 501, which is like a splash of mud on buses in the rainy days, quarrels between men and women, or