A Pair Of Broken Pants Is Sold For 150 Thousand! Levi's Jeans Are Turning Over.

Where can I get a pair of pants that are so amazing?

Speaking of this company, you should be familiar with it -- Levi's Levi's, and this 150 thousand jeans have a loud name, Levi's 501.

It may be that many people have no fluctuations in their minds when they see these words. If brother knife tells you, is this jeans the same thing that Jobs wore every time he opened the apple conference? Marilyn, Monroe, often wore trousers that were also Levi's 501.

It is no exaggeration to say that when Levi's's first pair of jeans appeared, the car had not been invented, and Coca-Cola had not yet been born. The Levi's in 1996 was even more unmanned. When its sales volume reached 48 billion 100 million yuan that year, it was 96 years ago.

But since its debut, Levi's has gone through a trough of up to 20 years and almost been destroyed by UNIQLO. Until 2018, Levi's's sales exceeded 37 billion 800 million yuan, which is still the level of Levi's 20 years ago. Can 160 years of history Levi's be brilliant again?

One

From the originator of jeans to the verge of bankruptcy

The originator of jeans once came out of a 20 year loss. Now let's look at Levi's's Centennial brand ups and downs.

It is no exaggeration to say that the history of Levi's is the history of jeans. As long as Levi's is mentioned, no two American immigrants can be mentioned.

One of Levi's's two founders and founders is Levi Strauss from Germany.

In 1848, millions of people who had made dreams of getting rich went to the west to explore gold, but Strauss was different from those who pursued the gold rush. He did not go directly to the sand for gold, but from these gold prospectors.

He collected some abandoned tents and made trousers and sold them to gold rush workers. These trousers were more durable and durable than cotton trousers, so Strauss set up his own textile and clothing company.

The second founder is Jacob Davis. In 1873, Davies suggested to Strauss that adding a fillet pin to the corner of the jeans pocket would make the bag stronger and the appearance more fashionable. This marks the birth of the world's first jeans.

As the "originator" of jeans, Levi's symbolizes the spirit of American wildness, rebellion and American pioneers. It has been popular from the United States to the whole world through 1.5 centuries, and has become one of the most famous and widely imitated garments in the world.

Those who wear jeans are regarded as the gods of Levi's, and the 501 is the most classic model of Levi's. There's a saying. If you didn't cross 501, you didn't wear jeans. It is also rumoured that Levi's's trousers can circulate like money in the heroin market in Mexico.

When Nixon visited Russia in 1960s, he wore Levi's 501.

In early 1971, Levi's went public and raised 50 million dollars, which was one of the largest IPO at that time. By 1996, Levi's was even more unmanned, and its sales amounted to $7 billion 200 million in those days, which was stronger than Nike at that time. But after 1996, the form of Levi's went down sharply, and sales in the short span of 5 years were nearly cut. Nike also left it far behind, with sales of 33 billion US dollars, 7 times that of it.

In 2000, Levi's's share in the jeans market dropped from 31% to 14%, and was once on the verge of bankruptcy.

Two

　 Sales have been cut down! Arrogance has hurt Levi's.

What makes a top Cowboy brand keep falling behind?

Arrogance. Arrogance has made it lose its appeal to young people.

1. was kicked off the altar by UNIQLO and ZARA, and Levi's was only suing rivals.

Since 1990s, jeans are ubiquitous. From the mainstream denim brands such as CK and Diesec to luxury brands such as GUCCI and Chlo, they are all sharing the jeans market.

Besides, the fast fashion brands like UNIQLO, GAP and so on rely on the advantages of many styles and cost performance to kick Levi's down the altar. Levi's, which once defined jeans culture, has become increasingly remote from jeans.

Faced with these competitions, Levi's is doing nothing. Instead of thinking about innovation to deal with changes in the market, instead of repeatedly prosecuting competitors, even in 2007, the New York Times called "litigation leader", pointing out that it will put most of its energy in accusing the industry of plagiarism and maintaining its classic status.

Levi's began to lag behind in its confidence and arrogance toward its brand.

2. eat 20 years old book: "this brand is my grandpa is wearing!"

Since its establishment, people still can only say 501, 511 and other classical models.

According to Levi's's biggest garment supplier, he sent a Levi's's trousers to his nephew just a few years ago, but he got such an answer: "this brand is my grandfather is wearing!"

In the US, young consumers are also staying away from the brand. According to a survey, consumers of 18~34 age group have a declining desire for Levi's. Consumers over the age of 50 have become their biggest buyers. The aging of consumer groups is undoubtedly a dangerous signal for brands like Levi's.

In order to restore the loss of young customers, Levi's went wrong again.

In 2003, Levi's chose to list a series of cheap jeans at WAL-MART, Kmart and other supermarket outlets. The price was set at $20-30. Although the "low price + supermarket store" stimulated sales growth to a certain extent, it lowered its brand image, so that Levi's, which could go high end, became low. For a clothing brand, when it is no longer "fashionable", it is not far from death. And in China, Levi's has been criticized for its most expensive price, which is almost 400~1500.

There is a question about where the Levi's jeans are, and some people say, "it's in the country." This shows how unpopular Levi's is. So many heavy consumers mentioned that Levi's was very disdain:

Isn't Baleno America? Amazon sells US $20 and sells 800 in China? Is it to collect IQ tax?

Levi's can live to the present, relying on brand long halo for years to eat old books. As the saying goes, lean camels are bigger than horses, but consumers have long lost their attractiveness.

　 Three

Can Levi's win the hearts of young people again?

This stalemate was broken by CEO Berger, who took office in 2011.

Innovation is the biggest weapon for him to find market breakthroughs in desperation.

1. get rid of the title of "50+ uncle".

The first is the regular operation of the old brand rejuvenation, and the marketing innovation is achieved through joint name and celebrity endorsement. This kind of marketing may seem strange to everyone, but for Levi's, the old brand that has always relied on traditional marketing has changed a little.

In 2016, the super bowl was held in Levi's Stadium, becoming one of the most watched programs in the history of American TV. This marketing has made Levi's's pot bowl full. Levi's is also starting to work closely with new and young brands, such as Supreme, Jordan Brand and other brands. Takuya Kimura, Dou Jingtong and Cai Xukun are also invited to speak.

The innovation of various marketing forms made Levi's start to win the favor of young consumers and regain their freshmen. The average age of their customers dropped from 47 in 2011 to 34 in 2017. Levi's can be turned against the wind, getting rid of the title of "Uncle 50+ exclusive".

2. focus on female users.

In the past, compared to men's clothing business, Levi's's women's clothing business accounted for relatively few and developed slowly. Since the beginning of 16 years, Levi 's has begun to change its strategy and actively promote women's clothing business.

They spent two years visiting thousands of women in large cities of different ages, sizes and races, collecting their suggestions for jeans, and innovating them according to these needs. In 2018, the net income of Levi's's women's clothing business increased by 29%, reaching 11 billion. These are just the beginning. Innovation on the product is the root cause of this old brand problem.

3. knife on core products

In the past, the R & D center flew about 12 hours from the US headquarters.

How can a garment company rank the order of innovation?

Borg started directly from the core product. He set up the new R & D center at four blocks away from headquarters, where he established the Eureka innovation laboratory, which is mainly used for the development and testing of new processes and new ideas. R & D personnel are experimentation with different colors, patterns and chemical reagents every day. Under their exploration, in the past, a worker can produce 2~3 denim pants in one hour, and now can complete all the different processes in 90 seconds, which greatly improves the production efficiency and product category. They also designed jeans for men's cycling riders. When they were coated with metallic gloss on their trousers, they could reflect the car lights and enhance safety at night.

Through diversified marketing and product innovation, Levi's reshape its brand image. After 20 years of slump, in 2018, Levi's generated nearly 37 billion 800 million yuan in revenue, and in 2019, the scenery was on the market. Finally, it turned the tide of decline and returned to the normal development track.

Conclusion:

In fact, over the past 20 years, Levi's has relied on the brand aura, but it has been safe to escape. But it will not be so lucky for the next 10 years.

Not just Levi's, but this is actually a problem for all old brands. Nowadays, many old brands are struggling under the attack of new brands. For example, Quanjude and Tongrentang, how to find new market breakthroughs in the desperate situation, must be solved by them at the moment.

This time, Levi's got rid of its past superiority and got a breath of opportunity. Whether it can be brilliant again is not easy to say, but its change is worth affirming. This is a great inspiration to other brands that are still "seeking no mistake".

All along, innovation has entered, and conservative retreat is the rule of commercial competition. When Levi's is in transition, Berg has a phrase that he often talks about.

It is better to do the right thing and do not make the wrong decision lightly.