In that era when everyone wore military coats or overalls, jeans showed the indelible vitality of young people. Surging and passionate.
Many of the important elements you see on jeans today can be said to have been led by Levi’s, not just in the United States, but also after entering China in the 1970s and 1980s. Jeans, which were labeled as capitalist, also became synonymous with fashion among young people at that time!
1. Levi’s: The Last Cowboy
Whether in the United States or around the world, There is no doubt that Levi’s and jeans are equal. Like Coca-Cola McDonald’s, it was once a symbol of American culture. It is said that when Einstein came to the United States to escape Nazi persecution, in order to integrate into society more quickly and become an American citizen, he bought a Levi’s jacket and even wore it in the April 1938 issue of Time magazine. In 2016, the dress was sold to Levi’s for $144,000 through Christie’s auction house. Later, they quickly mastered the code of wealth and launched a replica version of Einstein’s same leather jacket, which was sold out as soon as it came on the market.
This fashionable item that has lasted through the youth of several generations was born in a barbaric era. It was the distant 1848, when James Marshall discovered gold mines in the western United States. , countless people flocked to San Francisco in the hope of getting rich overnight, setting off the famous gold rush in American history. 20-year-old Levi Strauss was also one of them. After arriving here from Germany, he soon discovered that it was too dangerous to rob gold with this group of bandits, so this smart Jew started to do other things. Business.
He opened a store to sell daily necessities to gold diggers. Once he made a batch of overalls out of canvas. Because the material was particularly wear-resistant, the batch of goods was snapped up by the gold miners. , that was 1853, when people called these canvas pants Levi’s overalls. In order to prevent mosquitoes, he used indigo vegetable dye to color the pants. In order to better design the fit and make them more comfortable to wear, he used blue twill instead of canvas.
On May 20, 1873, in order to prevent the ore in the pocket from damaging the seams of the pocket, a tailor named Jacob Davis hammered brass rivets into the pocket. The copper rivets on the two corners of the pocket became the symbol of jeans. Levi took advantage of the situation and established his own brand Levi’s, and teamed up with Davis to obtain the patent for rivet overalls. In 1886, Levi’s patent for rivets expired, and the leather label still printed with two horses tearing jeans was replaced. Four years later, Levi’s began coding jeans, and 501 was the number of the world’s first pair of jeans.
2. Every 1,000 pairs of pants produced will be marked with R
Except for the early days In addition to rivets and leather labels, in order to better highlight Levi’s brand image in the market, Levi’s sales team began to add a red label with Levis written on the side of the back pocket of jeans in 1936. If you find a pair of pants with a capital E, then it is probably an antique.
The labels on some pockets are not Levis but R. This is because Levi’s OEM factory will mark it with R every time it produces 1,000 pairs of pants. Many dealers mark them with R. These pants are very expensive, but they are actually an IQ tax. During World War II, the U.S. government proposed the Materials Control Act, requiring many manufacturers to reduce metal and fabric in their products for frontline combat. During this period, Levi’s launched a streamlined version of 501 jeans, eliminating the Paris buttons and trousers used to adjust the elasticity. Bag stitching on the bag (restored after World War II).
After the end of World War II, the emergence of Western movies made Levi’s not only popular among workers, but also became a trendy brand pursued by young people. Throughout the 1930s and 1950s, with Levi’s huge advertising investment, jeans were stripped of their vulgar and obscene labels, and major hotels no longer refused guests wearing jeans. Coupled with the baby boom after World War II, Levi’s target consumer group increased sharply in the 1960s and 1970s. From 1966 to 1970, Levi’s revenue soared from 148 million to 328 million US dollars. In 1971, Levi’s raised US$50 million and successfully went public in one of the largest IPOs in US history at the time. The closing price on the first day was US$59, an increase of 25.5%.
After the successful listing, Levi’s began to actively expand. However, due to the lack of efficient integration capabilities, inventory accumulation was serious, and Levi’s ushered in the first time since the Great Depression. Quarterly profit loss. Coupled with the continuous revelations of illegal activities such as bribery and prohibiting retailers from selling products at discounts in the following years, Levi’s performance has further deteriorated.
3. Levi’s failed to keep up with the times
By 1984, Levi’s Annual profits fell by 82% compared with four years ago, and 14 factories and 8 overseas factories were closed. Another reason for such a serious decline in performance is that the baby boomers came of age in 1980. From this point on, for Levi’s, the number of new target consumer groups every year has actually been declining. . Moreover, after entering the 1980s, the average weight of American men of the same age was 6 kilograms heavier than in the 1950s, but Levi’s did not change the pattern of pants in time.
In 1985, Levi’s, which failed to keep up with the times, was privatized by the Hass family (after Levi’s death, the company was handed over to several nephews, also known as the Hass family) at a price of US$1.7 billion. This price was at that time It was welcomed by shareholders, but it also brought huge liabilities to the Haas family. Since then, Levi’s has begun positive adjustments and changes. Although the previous expansion caused inventory accumulation, Levi’s did not deny the globalization strategy, but paid more attention to overseas markets. At the same time, they sorted out the complex product line and devoted more energy to the main product 501 series.
In 1992, Levi’s overseas sales contributed 50% of the company’s total profits. In addition, Levi’s has begun to improve its brand image. They no longer place their main sales channels in mid- to low-end department stores, but choose high-end commercial centers where every inch of land is valuable. Under the decision to significantly increase selling prices, Levi’s profits rose from US$250 million to US$700 million from 1992 to 1995. Taking into account the rising weight of American men, Levi’s also launched the trendy brand Dockers. In 1996, Levi’s revenue reached US$7.1 billion, completing a bottoming out.
But the good times did not last long. Levi’s failed to become bigger and stronger at once, and they encountered new troubles. As we have mentioned many times recently when it comes to retail brands, the U.S. retail industry will continue to be sluggish after the 21st century. In 2009, retail sales in U.S. department stores reached a freezing point, which was an absolute disaster for Levi’s. 53% of their products were sold in shopping malls. In the last round of reforms, Levi’s managed to improve its image. After the 21st century, in order to expand its market share, they inexplicably launched a series of cheap products and sold them in Wal-Mart.
Judging from the results, this is a bad move. It has once again compromised the brand image that was finally established, and also lost its young audience. At the same time, he also offended a group of die-hard fans. The brand that represents the American spirit appears in cheap hypermarkets. This is really difficult for those cowboys over 50 who are still devoted to Levi’s to accept it. In addition, faced with the rise of fast fashion brands such as ZARA and Uniqlo, Levi’s was helpless and could only accuse the other parties of plagiarism. In 2010, it fell into bankruptcy crisis again.
4. After laying off 16,000 employees and moving 90% of the factories abroad
After closing dozens of factories, laying off 16,000 workers, and moving 90% of its factories abroad, Levi’s, which drastically cut costs, still failed to stop its decline. In 2010, its revenue fell to US$4.41 billion. The following year, Levi’s issued a job invitation to former P&G CEO Chip Bergh. Against the background of the overall shrinkage of the jeans market, the latter began drastic reforms. During the four-year adjustment period, Levi’s slowed down store openings and strengthened direct management. This not only caused the revenue of direct stores to rise sharply, but also established a set of standards for franchise stores.
From 2011 to 2018, the sales proportion of Levi’s directly-operated stores increased from 18% to 30%. In addition, Chipberg eliminated more than 300 redundant positions in the company and once again reduced labor costs. In terms of product structure, Levi’s began to target the women’s clothing and tops market. You must know that before this, Levi’s almost only sold pants. In 2011, pants products accounted for 86% of Levi’s sales, and the sales of men’s products accounted for 20%. 78%. In 2018, these two figures dropped to 74% and 69%. The opening of new markets has brought Levi’s profits year after year. In 2018, Levi’s operating revenue was US$5.58 billion, a year-on-year increase of 13.7%, the fastest growth in the past two decades.
On March 21, 2019, Levi’s completed its second public listing on the New York Stock Exchange. To celebrate this historic moment, traders on the New York Stock Exchange were allowed to wear casual clothes. Work. Thirty-five years after delisting, this cowboy who didn’t want to admit defeat came back.
However, for Levi’s, listing is just a new beginning. The global retail market is still fiercely competitive, and its pace in China does not seem to be going smoothly. . Levi’s is back, but it’s not the stubborn, stubborn cowboy who’s back. Judging from the feedback from consumers, they finally understand that times have changed. In the first three quarters of 2020, Levi’s revenue fell by 26.89% year-on-year. Although this was affected by the epidemic, it is still urgent for them to speed up their transformation. In particular, the growth of the U.S. market has long been sluggish. How to cater to the preferences of today’s young people, especially young female consumers, has become a problem that Levi’s needs to solve quickly.
Many of the important elements you see on jeans today can be said to have been led by Levi’s, not just in the United States. After entering China in the 1970s and 1980s, it was once Jeans, labeled as capitalist, also became synonymous with fashion among young people at that time. In that era when everyone wore military coats or overalls, jeans showed the indelible vitality of young people. Surging and passionate. Wanting to continue to be a classic of the times, this very abstract emotion may be something that Levi’s should not lose in its 147 years of development. </p
