For much of American history, people have been wearing some version of Levi’s. To last that long, a brand needs to show some flexibility and capacity to go with the flow. And so perhaps it should come as no surprise that Levi’s is adapting its retailing operations to reflect and keep pace with contemporary trends, reflecting its determination to stay relevant for several more generations of denim wearers.
In a relatively simple way, Levi’s determined to increase its online and digital capabilities. Thus it recently devoted more effort and resources to its website, leading to a 25 percent increase in sales through this channel in the first few months of 2021. With this increase, it has better balanced sales, such that 10 percent of overall sales now arrive online.
More broadly though, this effort reflects part of Levi’s drive to create closer links with consumers by achieving omnichannel status. It still sells jeans to wholesalers for them to ship to various retail outlets, so shoppers at department stores still can grab a pair of 501s. But such indirect channels are a less prominent focus, while connecting directly with consumers is the priority.
In addition to its website, Levi’s thus is building its store and shipping capacity. It plans to add about 40 conventional stores and 200 outlet locations throughout the United States in coming years. In support of those operations, it has effectively developed the ability to promise two-day shipping, including shipping from the store to customers’ homes. It also is testing more in-store features that consumers might appreciate, such as contactless returns and checkouts.
Although the company acknowledges it is really just getting started, it regards omnichannel operations as the way forward. Its app is designed primarily to link off- and online operations to ensure customers can buy how and where they want, but the company also recently added an artificial intelligence–enabled recommendation service, based on people’s past purchase and browsing patterns.
Levi’s has a long and well-known history; it seems that today, it is seeking to ensure that its future path remains just as well-established.
Discussion Questions:
- What other uses and capabilities might Levi’s add to its app or website to enhance its omnichannel status?
- How could Levi’s integrate social media, as another element of its omnichannel efforts?
Source: George Anderson, “Is Levi’s Poised to Become a Consumer-Direct Powerhouse?” Retail Wire, April 9, 2021