Levi Strauss & Co president Michelle Gass said India is now the largest market for them within Asia and sixth largest globally. The San Francisco-based jeans maker, which opened its first door in the country three decades ago, said the country is the fastest-growing major economy in the world in 2023, and it expects significant growth in one of the most exciting consumer markets.
“The Levi’s brand has increased nearly 50% in this important market compared to pre-pandemic revenue levels, becoming our sixth largest country and now the largest in Asia,” said Gass during its earnings investor call. “One of the most exciting consumer markets, India is the fastest-growing major economy in the world in 2023, and with more than half the population under the age of 30, we see India as one of our significant growth opportunities for the company,”
Gass, a former Starbucks and Kohl’s executive, joined Levi’s this year and will take over from long-time CEO Chip Bergh in 2024. Levi’s popular for its 501 jeans or the leather patch showing two horses trying to pull apart a pair of pants, said India not only highlights its successful regional expansion playbook but also demonstrates its ability to deliver a true denim lifestyle offering.
“India is primarily a franchise market and the strong growth is largely a reflection of the conviction of our partners in the power of our brands. For example, during the pandemic, our franchisees doubled the Levi’s brand square footage in key malls across India to take advantage of the long-term opportunity they see,” added Gass. “In India, the team has done a great job curating a diverse product assortment across tops and bottoms, driven both by our global design engine as well as our local product capability.”
Over the past decade, it has also consolidated franchisees down to two dozen from over 80. It’s opened a few company-owned and operated shops that are significantly larger than the average 2,000 square foot store size. Levi’s sells more than three tops for every bottom in key markets worldwide. India is an exception, as people buy one bottom for every top on average. The company is trying to push more non-denim clothing and women’s apparel as it seeks to broaden its share of the consumer’s wardrobe.
The company posted a 58% year-on-year increase in net sales in India to Rs 1,154 crore in FY22, 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.
In addition, India is increasingly becoming a talent hub for the retailer globally. For instance, more than a year ago, Levi’s named Sanjeev Mohanty, managing director of South Asia-Middle East and Africa for Levi Strauss & Co, based out of India, as its managing director for the US and Canada. Harmit Singh, global chief financial and growth officer was also elevated and given additional roles in corporate strategy and global retail real estate.
