Levi Strauss and World

Levi Strauss and World
From Denim a Rainbow of Possibilities

Tuesday, August 31, 2010

Levi's Craft Of Music Sessions (From Clashmusic.com)

Regents Street, London

Now here’s a novel idea, a gig in a clothes shop. So, in the denim cave that is the Levi flagship store on Regent Street sits a solitary black piano which is fenced in by a small cluster of people attending what is the first of 6 nights showcasing artists that are specifically known for their own individual approach to song-writing.

Shopper’s mill up and down the street pressing their faces to the window as a tall man dressed in what appears to be a black robe approaches the piano. Looking like a Gaelic mad genius a broad smile stretched across his bearded face and with wild hair tucked behind his ears he warmly greets the crowd and shakes everyone by the hand in the front row and introduces himself. This is ‘Chilly’ Gonzales. Taking a seat he edges himself forward and with eyes closed dramatically dances his fingers across the keys switching between foreboding drama and delicate introspection. The hushed crowd that have gathered around quietly watch him play his first two songs, instrumentals taken from the album ‘Solo Piano’ before he stops and begins to interact with his public. With a personality that could fill a room ten times this size he bounces off of the intimacy of the setting.
Asking those watching if they like rap music is met with an uncertain silence, as was the question of who doesn’t like rap music. He then puts his view across that it’s the only true ‘new’ music of the last 30 years and that you owe it to yourself to find something in it that you do like. And then if you still don’t you are in fact, a racist. He is of course joking, but its this that gets the crowd involved and relaxed. More an entertainer than a standard artists he crack more than a few jokes, with some sending chuckles around the room, others; specifically about anuses, not so much. This minor digression leads him into his next song where he proceeds to perform a very pronounced rap song he wrote himself over the tinkling of piano melodies.

Another pause in the music makes way for the reason he confesses to doing the show. An opportunity to talk. He spends large parts of the show explaining how he creates his music, what inspires him, how he approaches song writing, “capitalist revenge fantasies” and being Lenny Kravitz. Nothing but warm and charming he takes the opportunity to relieve a member of the crowd of his shoes and wear them himself so he can quite literally “be in the audiences shoes”. Another grin stretches across his face.

Questions and answers are traded with the crowd and then he invites Anita Blay, aka Cocknbullkid to join him. Bright red lipstick and dressed in black the London songstress joins Gonzales to play a selection of songs they have collaborated on including the emotional ’Asthma Attack’ to which her voice belts out and carries itself across the room, a birthday dedication and an uplifting cover of Diana Ross’s ‘Touch Me In The Morning’. So there you a have it, a night that was somewhat surreal and not a little random, but you know what? It worked well and there's five more to come. Brace for fun and intrigue.


Words by Lee Puddefoot

Monday, August 30, 2010

Levi's and Macy's

Most merchandise is not made in the U.S.A. Levi's are made in the Dominican Republic, China, Egypt, Mexico and Guam. And because they're made in so many places, the fits are all different. You can try on four of the same model, same size, and they will all fit differently. Some men don't want to try anything on. "I know what size I wear. Give me a 34/32." They think they're a certain size, and then they have to go up a size. And they just can't believe it.

Most of MACY's Levi's customers come from overseas -  a lot of French, Germans, English and Aussies. And they buy because the price here is so much cheaper than overseas. A plain 501 with the button fly cost $135 in Australia two years ago. Right now they're on sale here for $36.99. Wouldn't you buy it?

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/30/DD131F2JKC.DTL#ixzz0y5fCgUmC

Thursday, August 26, 2010

Prices rise on Cotton 'the Moral fabric '

"[Based on what] our customer research indicated, it was difficult to miss what was going on in the market," says Michael Kobori, vp of social and environmental sustainability for Levi's, which introduced its "Eco" jeans -- made from 100 percent organic and recycled cotton -- four years ago.

First there's the Byzantine issue of sourcing enough organic cotton when most of the world's cotton farmers still use chemical fertilizers and pesticide. Then there's the cost of organic cotton, which is moderately higher. Because, as Basson says, "you're going to pay about 20 percent premium just on the yarn," brands are faced with the Hobson's choice of either raising retail prices or cutting into their profit margins -- neither a very attractive option during these price-sensitive times.The key, Basson says, "is volume and price. The consumer will pay a little more, but not a lot more. There's always a balance between what the customer will pay to support something they believe in." Adds Levi's' Kobori: "Organic cotton does cost more, but consumers are willing to pay for it if we deliver on expectations of style and quality."





Levi's embrace of organic fiber is adjunct to a broader eco-friendly initiative that includes "Better Cotton," sold via in-store marketing components such as window displays and care tags that advise consumers to wash their jeans in cold water, line dry them and donate old pairs to charity to keep them out of landfills. "Communicating what Better Cotton is and how it's sustainable is very important," Kobori says.

The immediate problem is that the price of all cotton has risen significantly in the recent past and Levi's must consider hiking its prices in markets like India and China. At present, the firm sells its Levi's brand of jeans priced within the range of Rs 1,799 and Rs 4,000. Price of standard cotton variety hit an all time high this week at Rs 34,000 per candy. One candy equals to 355 kg of cotton. In October 2009, price of cotton stood at Rs 23,000 per candy.

The company said it expects to make India one of its top 10 markets in the next five years. "India is one of the fastest growing market for us. It is one of the top 18 focused markets for us and it will be among the top 10 ten markets in the next five years," Levi Strauss & Co President & Chief Executive Officer John Anderson said. The company said it is betting big on the EMI programme launched last year for buying its jeans. "It is an innovative scheme which was launched specially for the Indian market. It is doing very well and we will continue it," Anderson said.

Wednesday, August 25, 2010

As recounted in a Wall Street Journal piece earlier this year, it’s been 17 years since Levis, in 1993, ‘declared it would end relationships with contractors in China’ over a human rights issues. Back then, Levi's chairman and CEO Robert Haas reportedly decided to withdraw its operations from the country after a report on 40 countries determined that China and Burma were the only two engaging in major human rights violations.




But despite this past falling out, according to the Associated Press, Levi's already has an ‘avid following in China,’ and in fact also has clothing and shoes sales that ‘have outpaced pricey Japan, accounting for more than a third for all of Asia.’

Taken from The Diplomat written by Ulara Nakagawa

Sunday, August 22, 2010

Saturday, August 21, 2010

Friday, August 20, 2010

Thursday, August 19, 2010

Leviskate

OK, its a bit of a stretch and not exactly prounounced the same way as the Levi brand but it is a natural fit the the Levi's target market!

EARN Receives Levi Strauss Foundation Funding, Appoints Communications Fellow

SAN FRANCISCO, Aug 19, 2010 (BUSINESS WIRE) -- --Community Organizer and Advocate Matt Silva to Build Awareness Around EARN's Proven Prosperity-Building Strategies

EARN, the nation's leading provider of microsavings for low-income workers, has received a $100,000 grant from the Levi Strauss Foundation to identify, document, and share real stories of low-income people overcoming financial barriers and achieving prosperity. Using a portion of that funding, EARN has welcomed Matt Silva as its new Levi Strauss Fellow for Nonprofit Communications. Experienced in community outreach and online technology, Silva will be working to communicate the impact of the award-winning organization's work through the exceptional stories of EARN Savers -- people who are changing the future for their families through their involvement with EARN. The project's goal is to illuminate a proven path to prosperity for millions of low-income American families and for policy leaders nationwide.

"We are very grateful to the Levi Strauss Foundation for their continued support of EARN over the years, and thrilled to welcome Matt aboard," said EARN President and CEO Ben Mangan. "EARN is deeply committed to documenting the impact of our work on people's lives. Sharing these stories will advance EARN's mission by giving hope and powerful examples to millions of low-income families across America."

"We are so proud to work with EARN. The Levi Strauss Foundation was there at the beginning when EARN got its start in 2001, and we haven't looked back," said Daniel Jae-Won Lee, executive director of the Levi Strauss Foundation. "Over the past ten years, we have worked together to support asset building through social and economic solutions that create new cycles of prosperity for low-wage earners. EARN's clients are living proof that assets can be leveraged to create opportunities and long-term economic stability. By reaching out to EARN's clients, the Levi Strauss Fellow will identify their powerful success stories to spread the word and spur others to embrace savings as a powerful tool in the fight against poverty."

Levi Strauss has been an instrumental long-term partner ever since EARN's founding in 2001. Their support of EARN is rooted in Levi's strong and deep commitment to asset building: helping low-wage workers build wealth and invest in life-changing assets such as saving for college, purchasing first homes, or starting small businesses. Over the years, Levi Strauss funding has enabled EARN to expand its core services and to become a nationwide leader in asset-building policy -- and now, to dramatically grow its communications work.

In his role as EARN's Levi Strauss Fellow, Matt Silva brings significant experience in advocacy outreach and communications. Most recently, Silva served as the Outreach Coordinator at the San Francisco Neighborhood Parks Council, a citywide park advocacy organization focused on improving the overall health of San Francisco's 230 public parks. Prior to working with the Neighborhood Parks Council, Silva worked as a community organizer for an affordable housing developer in Boston and before that with homelessness advocacy organizations in his hometown of Providence, Rhode Island. Silva, who holds an A.B. in Sociology from Brown University, helped co-found Providence's street newspaper, called Street Sights.

EARN's Levi Strauss Foundation funding follows closely upon announcements of the receipt of a $125,000 grant from the Silicon Valley Community Foundation and $500,000 in funding from the Ford Foundation.

About the Levi Strauss Foundation
The Levi Strauss Foundation aspires to be the embodiment of the energy and events of our time. We seek to actively drive pioneering change by funding programs that push the frontiers of possibility around the world. Visit http://www.levistrauss.com/about/foundations/levi-strauss-foundation to learn more.

About EARN

EARN is an award-winning California-based nonprofit that gives low-income workers the power to create economic prosperity for their families for generations to come. Since 2001, EARN has helped tens of thousands of low-wage families through innovative financial products including matched savings accounts, checking accounts for the unbanked, micro-loans, and money management coaching. EARN's powerful combination of lasting assets and financial know-how enables families to build wealth and achieve life-changing goals such as saving for college, purchasing first homes, or starting small businesses. Through its policy and research arm, EARN evaluates its impact and reports on new data regularly, sharing lessons learned and best practices in order to transform the financial services landscape and to champion effective public policies. EARN's ultimate vision is that millions of well-informed, low-income American families will achieve financial success through proven strategies, fair public policy, and their own hard work. Visit www.earn.org or follow us at http://twitter.com/Earn and http://facebook.com/EarnOrg.

SOURCE: EARN

Wednesday, August 18, 2010

Levis launches new global brand - in Shanghai

Strauss & Co. launched a new global brand in Shanghai on Wednesday. The new brand is aimed at young consumers in emerging markets, starting with China, Singapore and South Korea. These Levis products will aim at a broader segment of Chinese consumers than traditional Levis, which sell for over $100 in the upscale malls along Shanghai's tony Nanjing Rd. shopping strip. "In the last few years we seen a new group of consumers," said Aaron Boey, president for Levi Strauss's Asia-Pacific division. "Many of them want stylish clothes but at accessible prices," he said. Levi is calling the new brand "dENIZEN." The Levis brand enjoys an avid following in China, among a relatively limited number well-off younger shoppers, some of whom are collectors.
"Some people favor the classics, such as No. 501; others look for different designs and some are obsessed with Levis' cowboy spirit or the history behind the brand," said Christina Wong, managing editor of INSTYLE magazine in Shanghai. San Francisco, California-based Levi Strauss is keen to expand its base in one of the world's biggest consumer markets, where sales of apparel and footwear hit $169 billion last year, according to a report by Bank of America-Merrill Lynch, and growing at a healthy double-digit pace.

Levi Strauss, which retreated from the China market for a time in the mid-1990s citing concerns over labor rights, now has hundreds of outlets in China and plans to open up to 1,000 by 2015.The company, which also sells Dockers pants and Signature brand products, is honing its focus on China's emerging middle class — a popular strategy in the recession-stricken age of less-is-more in more mature Western markets.

The new label Levis jeans will sell for the equivalent of $40 to $60 — a range likely to suit the relatively young 20-40 age range that dominates China's spending on clothing and accessories.

The first dENIZEN shop will open later this month in Shanghai.

Tuesday, August 17, 2010

How to wear denin this fall

Top-to-toe denim is the freshest way to wear denim this season. But make sure you have different shades of light and dark denim for your shirt and your jeans, avoid the mistake of wearing matching denim. Double up with fantastic Levi’s denim shirts in various fits and washes that will look sharp over a pair of classic Levi’s jeans. To make a statement, can choose one of Levi’s cool graphic style t-shirts; from retro inspired Americana prints to rebellious rock ‘n’ roll themes or slogans.




For the classic jeans look, go for the ultimate regular fit, straight leg, Levi’s 501 jeans. These are tailored in an ‘anti-fit’ pattern, where the back rise is cut in a straight line, which gives the classic 501 jeans silhouette. Levi’s 501 jeans are manufactured shrink-to-fit, so they’re cut and sewn before washing to obtain the desired end result, then finally pre-shrunk to making finding the perfect size in store or online easy. The more 501’s are worn, the better they fit. Levi’s jeans are truly the original and authentic jeans, often imitated but never bettered.

Monday, August 16, 2010

The Cotton industry and Levi's

Cotton may climb to the highest price since 1995 as rising demand in emerging markets for everything from shirts to bed sheets forces textile makers to restock inventories that are the tightest in 13 years.


Export sales by the U.S., the largest shipper, are off to their fastest start since 1993 as apparel demand in China, the biggest consumer, increased 24 percent, government data show. Cotton may advance 13 percent to a 15-year high of 94.9 cents a pound before new supplies are harvested in October, according to 17 analysts surveyed by Bloomberg on Aug. 12 and Aug. 13.

The commodity is projected to extend its gains because demand is growing in Asia’s developing nations, even as signs emerge that the U.S. economic recovery may slow. While the rally is enriching some cotton investors, it’s also boosting costs for Levi Strauss & Co. and Hanesbrands Inc., the maker of Hanes underwear and the Wonderbra. The last time cotton traded above 90 cents a pound, in 2008, some merchants including Paul Reinhart Inc. were forced into bankruptcy.

“Global consumption is exploding,” said Ron Lawson, a managing director at Logic Advisors, a commodity consultant in Sonoma, California. “We just can’t get enough cotton in place to meet the growing demand.”

Cotton for December delivery on ICE Futures U.S. in New York reached 85.71 cents on Aug. 13, the highest level since April 28. The 31 percent gain in the 12 months through Aug. 13 was the third-biggest in the Reuters/Jefferies CRB Index of 19 commodities, trailing the 64 percent jump in hogs and the 44 percent surge for wheat. The Standard & Poor’s 500 Index of U.S. equities rose 6.6 percent during the same period.

Production Deficit

Production by the world’s cotton farmers will fail to keep up with demand for a fifth straight year, according to the U.S. Department of Agriculture. That’s eroded inventories that merchants were reluctant to expand during the past two years.

U.S. stockpiles totaled 3.1 million bales at the end of the marketing year on July 31, the lowest level since 1996, USDA data show. Supplies in warehouses monitored by ICE have plummeted 98 percent since the end of May to 25,504 bales as of Aug. 12. A bale weighs about 480 pounds (218 kilograms).

Global demand probably will grow 2.7 percent this year to 120.87 million bales as China boosts imports by 14 percent to 12.5 million bales and Pakistan’s surge 53 percent, the USDA said Aug. 12.

U.S. export sales of upland cotton, the most common variety it grows, totaled 5.41 million running bales for the marketing year that began Aug. 1, more than twice as much as a year earlier and the most since 1993, according to USDA data as of Aug. 5. A running bale weighs 500 pounds, or 227 kilograms.

Shrinking Supply

Worldwide stockpiles will drop 4.1 percent to 45.61 million bales, or about 38 percent of demand, the lowest ratio since 1994, data from the USDA show.

“During the recession, everyone got rid of inventories,” Logic Advisors’ Lawson said. “Yarns, woven goods, textiles, clothing, you name it. There was tremendous purging, and now everyone is trying to rebuild inventories.”

Stockpiles are slipping as emerging-market economies expand at more than twice the pace of the U.S. and six times the rate of the euro zone. India will grow 9.4 percent this year and China’s gross domestic product will increase 10.5 percent, the Washington-based International Monetary Fund forecast on July 7.

Indian Clothing Demand

India’s Arvind Ltd., the world’s biggest maker of denim and a supplier to U.S. clothing companies including VF Corp. and Levi Strauss, says its sales will rise about 23 percent to 40 billion rupees ($855 million) in the year to March.

“I see good times for textiles in India,” Sanjay Lalbhai, a managing director at Ahmedabad-based Arvind, said on Aug. 12. “The middle class is growing. They have started spending more money on grooming better and on wardrobe. Things are changing and this trend will continue for another 20 years.”

Mill use in India, the world’s second-largest cotton consumer, will increase about 8.9 percent in the year ending Sept. 30 to 20.7 million bales, the Cotton Advisory Board said on July 30 in Mumbai. An Indian bale weighs 170 kilograms. Total demand will rise 26 percent to 33.3 million, it said.

Retail sales of garments, footwear, hats and knitwear in China jumped to 38.8 billion yuan ($5.7 billion) in July, bringing the total to 314.1 billion yuan for the first seven months of the year, the Beijing-based National Bureau of Statistics said Aug. 11. Both the monthly and the annual figure represented a 24 percent climb from a year earlier.

"Strong’ Harvest Expected
A “strong” cotton crop in this month and September may curb the rally in cotton, according to Eric C. Wiseman, the chief executive officer at Greensboro, North Carolina-based VF Corp., the maker of Lee and Wrangler brand jeans.

The global harvest is expected to jump 14 percent to 116.85 million bales in the year that began Aug. 1, the most in three years and the biggest increase since 2005-2006, the USDA estimates. U.S. output will surge 52 percent to 18.53 million bales, with the bulk of the harvest starting in October, the department said.

“The August and September cotton crop is expected to be strong,” Wiseman said on a July 22 conference call. “That could provide some relief next year.”

The new crop will be reaching the market amid growing signs that the U.S.’s recovery from the longest recession since the Great Depression is deteriorating.

Economic Outlook
U.S. unemployment claims unexpectedly rose in the first week of August and sales at U.S. retailers increased less than forecast last month, reports showed last week. The Federal Reserve said on Aug. 10 that the pace of recovery will probably be “more modest” than forecast.

“When you look at the world economy and you look at all of what’s happening, you wonder if you’re going to see the demand for cotton as strong as some people say,” said Sid Love, the president of Joe Kropf & Sid Love Consulting Services LLC, a commodity adviser in Overland Park, Kansas. “You need food, but you don’t necessarily need new clothes. You can use 1-year-old, 2-year-old clothes and make do.”

Cotton prices may remain “historically high” until at least the U.S. harvest, said Cliff White, a senior vice president at Singapore-based Olam International Ltd., the world’s third-biggest cotton trader, behind Cordova, Tennessee- based Allenberg Cotton Co. and Minnetonka, Minnesota-based Cargill Inc.

Crop Damage

Floods and landslides during the past two months have destroyed crops in China, which grows almost a third of the world’s cotton. Output may drop 5 percent to 10 percent, said Li Qiang, the managing director at Shanghai JC Intelligence Co.

In Pakistan, the fourth-largest grower and importer, the deadliest floods in decades destroyed 30 percent of its cotton crop, according to Khursheed Ahmed Khan Kanjo, president of the Kissan Board of Pakistan.

Higher cotton costs are squeezing clothing makers, who have passed along some of the expense to consumers.
Winston-Salem, North Carolina-based Hanesbrands will spend $33 million more on the fiber this year than in 2009, as the per-pound costs rises to 79 cents in the fourth quarter from 61 cents in the second quarter, Chief Financial Officer E. Lee Wyatt Jr. said on a July 21 conference call.
“It’s a pressure on the business,” John Anderson, the chief executive officer of San Francisco-based jeans maker Levi Strauss, said July 13 on a conference call with analysts. “We have already taken some price increases for the second half of this year.”

Bankrupt Merchant
The last time prices topped 90 cents was more than two years ago. Paul Reinhart Inc., one of the biggest U.S. cotton merchants, filed for bankruptcy in October 2008 after losses tied to volatility in the futures market. In March 2008, cotton touched a 12-year high of 92.86 cents before plunging to 39.23 cents by November.
"Supplies of cotton are at all-time lows,” Hanesbrands Chief Executive Officer Richard A. Noll said on the company’s July 21 conference call. “While I can’t predict the price of cotton on any given day, I do think over time, long term, you’re going to see the price of cotton continue to rise.”

To contact the reporters on this story: Jennifer A. Johnson in Chicago at Jjohnson133@bloomberg.net; Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net.

Saturday, August 14, 2010

We are all Workers

Levi's effort marks new steps toward post-advertising by both a very traditional brand and its formerly very traditional ad agency, Weiden and Kennedy. In its most recent quarterly earnings call with analysts, Levi's attributed its recently increasing sales--up 8% worldwide--to higher-quality, better-designed jeans.

They now have a high-quality, more engaging advertising--specifically a series of mini-documentaries about the efforts to save Braddock, PA, a rusted and debilitated steel town on Pittsburgh's edge that is fighting for survival. The documentary series is one of the big new initiatives in the jeans-maker's "Go Forth" ad campaign, now entering its second year.
Ad and promotion spending was up nearly a fifth for the second quarter and almost a third for the first half of this year. Most of the $32 million in increased spend (from $97.9 million in first-half 2009 to $129.6 million in the same period this year) has been lavished on marketing for Levi's and Dockers in the US, the company reported.
Part of that extra $32 million went to fund journalism. Levi's, partnering with IFC and the Sundance Channel, is creating filmed reports on the efforts to turn around the failing community of Braddock. The mini-documentaries, which presumably will be cut into a feature-length documentary one day, are being parceled out on Levi's brand website in roughly 4-6-minute segments. The resulting series, thus far, represents a kind of community journalism that rarely gets done in these hard times for the news business. So Levi's efforts are notable as a rare example of a brand reporting the news.

Saturday, August 7, 2010

Levi's and JC Penny offer $50,000 scholarship

The Levi's(R) Brand and JCPenney Team up to Offer Two $50,000 College Scholarships During Second Annual Tuition Sweepstakes


Posted on: Fri, 06 Aug 2010 17:05:00 EDT

SAN FRANCISCO, Aug 06, 2010 /PRNewswire via COMTEX/ --

The Levi's(R) Brand and JCPenney are partnering for the second consecutive year to offer two college scholarship packages of $50,000 each during the companies' tuition sweepstakes. The scholarships are fully transferable enabling the winner to choose who receives the scholarship. Winners can choose to use the scholarship for themselves, their friends, their children or even their grandkids.

The Levi's(R) brand and JCPenney created this tuition campaign to specifically support access to higher education and to increase opportunities for lifetime success. College costs continue to rise, with both public and private colleges over the past 20 years regularly posting tuition increases well above inflation rates. At the same time, college degrees are becoming ever more desirable, and both parents and kids see a degree as a clear path to financial independence and success.

The tuition sweepstakes begins on July 21, 2010 and ends on September 6, 2010. Anyone over the age of 13 is encouraged to enter by texting "TUITION" to 45481, visiting www.LevisTuition.com or going to the JCPenney Facebook page at www.facebook.com/JCPenney.

The two grand-prize scholarship winners will each receive a fully transferable deposit of $50,000 to a 529 account, an educational savings plan that helps families set aside funds. Scholarship winners will also receive an additional $20,000 to cover any taxes incurred.

Visit www.LevisTuition.com for more information.

Wednesday, August 4, 2010

Levi's Tactics of the Past Reviewed- with outcomes

In the 1980s things began to change for Levi Strauss and company. Growth slowed in the aged 12-24 primary market. Levis decided to expand product lines as sales of 501s declined. They produced corduroy pants and more stylized denim pants for men, women and children. They produced ‘action suits’, blazers, sportswear, and thousand of different articles of clothing for families including maternity wear. At this point they also considered acquisitions as a strategy to provide further growth. In 1979, they acquired Koracorp Industries for $185 million to enhance its women’s wear division. Koracorp included Koret women’s wear, Pyer-Rolnick hats, Oxford men’s suits, and a European based children’s clothing division. Levis also bought Pesitol hats, Rainfair Industrial clothing, Frank Shorter running gear. In addition it established several licensing agreements which allowed the Levis labels to be used on shoes and socks, and with the designers Perry Ellis, Alexander Jullian, and Andre Fezza for a more upscale market segment. Now Levi Strauss was in a position to meet the demand of almost any market need.


Unfortunately the customers did not see it that way. In spite of the diversification and even with a hugely expanded advertising budget which increased to $100 million in 1978, the company’s sales declined every year from 1980 to 1983 with a net income decline of 76%. In 1981, Robert Grohman took over as chief executive officer (CEO), marking the first time the company was led by someone without ties to the Strauss family.

In 1983, Levis began selling in Sears and JCPenney but the net result was not positive beyond the first year. They had simply diversified too much. They no longer had a clear and distinctive identity. The decision was made to focus on core products and to improve retail relationships which had suffered from too little attention and quality issues. Grohman could not turn the company around, and Robert Haas, son of Walter Haas Jr., took control in 1984. In October of 1984, Tom Tusher was named Executive VP and CEO. He nixed a potential deal to expand into Wal-Mart and Kmart in favour of focusing on existing distributors. He directed focus onto preservation of the ‘important values and traditions’. Jeans and corduroys created two thirds of their revenue and thus they were to be re-emphasized. This is an important choice that many companies today are just beginning to imitate. The company was directed to grow from the bottom line through efficiencies, market penetration, and cost savings.

In mid 1985, the LS&Co. lost $114 million. It was taken private through the largest ever leveraged buyout valued at $1.65 billion. Almost immediately, licensing agreements were cancelled with Perry Ellis and Andrew Fezza. Noncore businesses were sold to pay down debt. These included: Rainfair in 1984, Resistol in 1985, and Oxford, Frank Shorter and Koret of North America in 1987. (It should be noted that somehow LS&Co. missed a huge opportunity and trend in the Frank Shorter Company. The man who established this company was an utter icon in the running industry. I believe that if they had any of the talent or vision that Nike demonstrated in this period they could have made this into a multimillion dollar business). In addition, 40 factories were closed and 12,000 employees were let go by 1986. Even with all these changes market forces were against them. Consumer tastes had changed and competition increased. Designers like Calvin Klein, Bill Blass, and Gloria Vanderbilt usurped Levis place as the fashion icons. Levis had not kept pace with the consumer demands and missed the trends toward bleached, faded or ‘washed’ denim.
 
The article posted below indicates that Levi's has decided to reattempt these previously failed tactics in diversification. Will it work? Never say never but.....................

Levi's recycles old tactics

Levi's ® Brand and Filson® Partner to Introduce 'Levi's® Workwear by Filson®'


New Collection of Workwear-Inspired Men's Apparel and Accessories, Made in the USA

SAN FRANCISCO, Aug. 3 /PRNewswire/ -- This week, the Levi's® brand announces a new design partnership and exclusive menswear collection with Seattle-based outdoors outfitter Filson®. The new collection marries the uncompromised craftsmanship, rich history and pioneering spirit shared by the two apparel leaders. The Levi's® Workwear by Filson® range spotlights the blue-jean inventor's iconic workwear origins and silhouettes, while utilizing Filson's® superior manufacturing techniques, signature fabrications and iconic styles. This exclusive collection of built-to-last, highly functional men's apparel and accessories carries the lifetime guarantee associated with both partners involved and will be sold in select Levi's® and Filson® retail stores and on www.levi.com and www.filson.com beginning this August 2010.



Levi's® Workwear by Filson® includes durable outdoor clothing made from only the finest and sturdiest materials including oil finish Tin Cloth, Rugged Twill, Genuine Bridle Leather, brass hardware and rigid denims. The miners, loggers, cowboys and mariners who pioneered the American frontier demanded clothing that was as tough as they were. Whether they were building, exploring, or searching for gold, men of every trade relied on outfitters that sold quality goods, made strong for the work of the day. So it's no surprise that quality, craftsmanship and attention to detail have been – and continue to be – paramount to Levi's® and Filson® clothing.



"Levi's® and Filson's® celebrated workwear products helped equip the pioneers who built America, and continue to be embraced today by the new American pioneers who are reshaping the landscape of America," said Carl Chiara, director of Men's and Women's Brand Concepts for the Levi's® Brand, the Americas. "The Levi's® brand has been renowned for its artisanship, quality and reliability since inventing the blue jean in 1873 and our partnership with Filson® is a natural, authentic extension of these trailblazing brand values."



"The Filson® and Levi's® brands have made quality products for well over 100 years that, in essence, have stood the test of time because of their original iconic designs and sturdy materials," said Bill Kulczycki, CEO of Filson. "The Levi's® and Filson® Workwear collaboration celebrates each brand's hallmark qualities and the fact that both have been handed down through generations. This collection – made in Seattle, Washington – presents the best of the best from the Levi's® and Filson® brands, reinforcing their relevance in a time when consumers' emotional connection to brands is paramount."

Levi's® Workwear by Filson® is a carefully crafted assortment of quality menswear, where key silhouettes from one brand are cut from celebrated textiles synonymous with the collaborative partner. For example, the line features the original Levi's® Trucker Jacket made with Filson's sturdy oil finish Tin Cloth; the Filson® Cruiser Jacket cut in Levi's® iconic rigid denim; the first ever, fully functional denim shooting shirt; a rigid denim and wool cap; and a selection of bags – two tote styles and a small duffle – built to withstand heavy use. Each product was meticulously crafted by skilled workers in C.C. Filson's factory in Seattle, Washington. Arriving in Levi's® and Filson® retail stores and on levi.com in August, the collection will range in price from $50 to $228.

The Levi's® Workwear by Filson® collection is the latest endeavor in an ongoing series of special Levi's® products and styles that are constructed, finished and manufactured in the United States, using imported materials. Previous Levi's® Made in the USA lines include collaborative limited-edition collections developed with Brooks Brothers, Opening Ceremony, Robert Geller and Engineered Garments.

Monday, August 2, 2010

Levi’s Cinema Tour: Famous Films in Famous Cities

Levi’s is inviting American consumers to watch of movies in the open air within the period of August 6—27. The famed jeans maker has teamed up with the Alamo Drafthouse (an American cinema chain) and Gowalla (a social network) to arrange cinematic trips, “Rolling Roadshow,” across the country and give Americans an opportunity to watch iconic movies outdoors. The new initiative comes as a part of the massive “We Are All Workers” campaign, launched earlier this summer.

The program includes 9 movies, and each of them will be screened on the location where it was initially filmed or set. The list of films, which will be shown for free, include “On The Waterfront” (Hoboken, NJ), “The Blues Brothers” (Joliet, Illinois “Jackie Brown” (Torrance, CA), “Robocop” (Detroit), ),”There Will Be Blood” (Bakersfield, CA), the first three “Rocky” films (Philadelphia), “Dirty Harry” (San Francisco),”Convoy” and “Red Dawn” (Las Vegas), and “The Godfather II” (New York, NY). The brand will also arrange a number of related events at each of the locations to celebrate the Levi’s dedication to common people. Those, who want to join in, are invited to the Levi’s Facebook page and the Gowalla brand’s feed, where they will be able to confirm participation and lean more about the events. The first 50 users, who will ‘follow the trips’, will receive the tickets.