Michelle Gass, chief executive of Levi Strauss & Co, said the denim maker‘s global operations should take a cue from the Indian business in terms of keeping speed, agility and execution of its retail strategy in a market, crucial to achieving its $10-billion annual revenue target, up from about $6 billion currently.
“Speed, decisiveness, agility, risk taking and making decisions, India does it really well. Every market has their own local product engine, but the bigger opportunity is operating like this speedy, agile retailer, and taking this culture of the Indian team and bringing that throughout the company is a great opportunity,” Gass told ET in an interview, adding that the Indian team is amongst the strongest it has globally.
“This is one of the most dynamic, exciting markets I have been to, and there’s so much happening. We have had strength in the market for some time, but they are constantly challenging themselves to be better and evolve and that’s what’s accelerating our growth here,” she said.
Gass, a former Starbucks and Kohl’s executive, joined Levi’s last year, and assumed charge from long-time CEO Chip Bergh earlier this year.
Overall retail sales growth rate in India across segments such as apparel, footwear and quick service restaurants (QSR) slowed to 4-7% year-on-year every month in FY24, reflecting comparatively weaker consumer sentiment.
As the world’s most populous nation, India is an attractive market for apparel brands, especially with youngsters increasingly embracing western-style clothing. But the market is also getting crowded as most global rivals – from Zara and H&M to Uniqlo and Gap – have set up shop in the country.
“There’s competition everywhere around the globe, and we have had competition in the past as well. As a retailer, it is all about execution and we don’t need a new strategy. We have got the formula right in India in terms of our approach to the consumer, our approach to the brand, our product assortment, and everything that goes in there. We are creating more separation and differentiation in the marketplace,” said Gass, 56, sporting all-Levi’s merchandise – a blue denim skirt paired with a black Made-in-India blouse. “If you think about this consumer market, just the number of consumers who are here that fit our target? They are youthful, they are optimistic, they are savvy.”
The company posted a 54% year-on-year increase in net sales in India at ₹1,781 crore in FY23, as per the latest available filing. However, unlike rivals that report retail sales, Levi’s revenues are not comparable because sales are accounted at wholesale prices to franchise partners.
Levi’s, popular for its 501 jeans, said it is investing in India to grow its leadership position in denim, and strengthen its franchise partnership. She didn’t elaborate on the investment plan.
Over the past decade, it consolidated its franchise network in India to 2 dozen from over 80.
“India is growing in double digits consistently. Consumers are young in India, they are also fashion forward and they get influenced with what’s happening in the West and as the economy grows, there is no reason why India should not grow. India was at the 10th spot not very long ago and its sixth today. So, it will continue to grow over time,” Harmit Singh, global chief financial and growth officer at Levi Strauss, said.
