A PROJECT REPORT ON LEVI

BUSNIESS ANALYTICS

SUBMITTED BY,

TOM SABY
MBA T4 ( BATCH A)

(2018-20)
SUBMITTED ON,
24-09-2019

To
MR.SARATH P
(ASSISTANT PROFESSOR, MBA Department)

SAINTGITS INSTITUTE OF MANAGEMENT

Kottukulam Hills, Pathamuttom P.O, Kottayam 686532
September 2019
COMPANY PROFILE:

 Type : Private
 Industry : Clothing
 Founded : May 1, 1853
 Founder : Levi Strauss
 Headquarters : San Francisco, California, U.S.A
 Number of locations : 2,800 company-operated stores
 Area served : Worldwide
 Key people : CEO Chip Bergh
CFO Harmit Singh
 Products : Apparels
 Brands : Levi's, Dockers, Denizen, Signature by Levi Strauss & Co.

Levi Strauss, the creator of the quintessential American piece of clothing, was born in
Buttenheim, Bavaria on February 26, 1829 to Hirsch Strauss and his second spouse, Rebecca
Haas Strauss; Levi had three elder brothers and three elder sisters. Two years after his dad
surrendered to tuberculosis in 1846, Levi and his sisters emigrated to New York, where they
were met by his two more established siblings who possessed a NYC-based discount dry
products business called "J. Strauss Sibling and Co." Levi before long started to take in the
exchange himself.

May 20 1873 marked as the birth of the Blue Jeans it was on that day that Levi Strauss and
Jacob David Obtained a U.S patent on the process of putting rivet’s in men’s work pants for
the very first time. A rivet is a permanent mechanical fastener.

Levi Strauss, a Bavarian- dry products dealer, came to San Francisco in 1853 at 24 years old
to open a West Coast branch of his siblings New York dry merchandise business. Throughout
the following 20 years, he incorporated his business with an extremely fruitful task,
becoming famous as an all-around regarded businessperson, as well as a neighbourhood
giver. One of Levi Strauss’ clients was a tailor named Jacob Davis.

One day the spouse of a neighbourhood worker solicited Jacob to make a jean for her better
half that wouldn't break apart. Jacob attempted to think about an approach to fortify his pants
and thought of the plan to put metal bolts at points of strain, similar to take corners and the
base of the catch fly. These bolted jeans were a moment hit. Jacob immediately chose to take
out a patent on the procedure, yet required a colleague to help take care of business. He
quickly thought of Levi Strauss, from whom he had acquired the fabric to make his bolted
jeans.

Davis kept in touch with Levi to propose that the two men hold the patent together. Levi,
being a shrewd specialist, saw the potential for this new item, and consented to Jacob's
proposition. The two men got patent #139,121 from the U.S. Patent and Trademark Office on
May 20, 1873.

Before long, the first bolted attire was made and sold. They made their first pants out of
denim — the conventional texture for men's workwear. Inside a brief span, the jean was a
true-blue achievement. At that time, they were called waist overalls till 1960.In 1960 baby
boomers adopted the name “Jeans”.

Levi Strauss & Co considers May 20, 1873 as the “birth date” of the blue jeans, Even though
Denim pants because although denim pants had been there for many years as a work wear, It
was the thought of placing rivets in denim pants for the first time lead to the creation of what
we now call as jeans.

NATURE OF BUSINESS :

MISSION
Levi’s mission statement is“ To sustain responsible commercial success as a global marketing
company of branded apparel.”

VISION
Levi’s vision statement is, “We are the embodiment of the energy and events of our times,
inspiring people with a pioneering spirit.”

Levis is a Private company focusing on the manufacture of Apparels for all age groups.Levis
has now emerged as one of the top Multi national company in Apparel Business .In 1985, as
Levi Strauss & Co. continued to restructure and cut back, the company was taken private in a
leveraged buyout for $1.45 billion by the Haas family, descendants of its founders and long-
time company leaders. Several other officers and directors also were members of the buy out
group, Levi Strauss Associates Inc. The following year the company introduced a successful
upscale men's pants line, Dockers, and, with increasing demand around the world for U.S.
jeans, and with the addition of innovative finishes, such as bleaching or stone-washing, 1990
sales reached $4 billion.

Dockers was one of the most successful brand launches in the history of the American
apparel industry. The cotton pants appealed to older customers, whose expanding waistlines
didn't fit into traditional jeans any more. Sales of Dockers alone came to $1 billion by 1994,
and Dockers represented almost 30 percent of Levi's domestic sales. However, this was only
one part of the success of the newly private company. CEO Haas, along with Thomas Tusher,
head of Levi's foreign operations, transformed the company's overseas markets.

In the 1980s, Levi's had diversified its product in Europe into dozens of unrelated lines.
Foreign operations accounted for only 23 percent of sales in 1984. Tusher and Haas moved to
concentrate foreign sales on the classic 501 jeans, and positioned the pants as a high-priced,
prestige product. The company began selling its jeans at posh boutiques in Europe and Japan,
at prices more than double the U.S. price. By 1992, foreign sales represented close to 40
percent of the company's revenues, and over 50 percent of profits

INDUSTRY PROFILE:

Clothing industry or Apparel industry summarizes the types of trade and industry along the
production and life chain of clothing and garments, starting with the textile
industry (producers of cotton, wool, fur, and synthetic fibre) via fashion industry to fashion
retailers up to trade with second-hand clothes and textile recycling. The producing sectors
build upon a wealth of clothing technology some of which, like the loom, the cotton gin, and
the sewing machine heralded industrialization not only of the previous
textile manufacturing practices.Levis is one of the Largest Manufacturers of Apparels, so it is
a Brand which holds strong position in Indian Apparel Industry.
Textile and clothing sector is one of the oldest industries in India. According to the
Indian Brand Equity Foundation (IBEF), “The close linkage of the textile indust ry to
agriculture (for raw materials such as cotton) and the ancient culture and traditions of
the country in terms of textiles make the Indian textiles sector unique in comparison to
the industries of other countries”.

The Indian textile industry is estimated around 108 billion dollar and expected to reach
223 billion dollar by 2021. The industry also employs over 45 million people directly
to 60 million people indirectly. The Indian Textile Industry contributes approximately
5 per cent to India’s gross domestic product (GDP), and 14 per cent to overall Index of
Industrial Production (IIP). The textile industry is also one of the largest contributor to
India’s export with approximately 13.5 percent of total export amounting 42.24 billion
dollars.

Brands like Levis, Benetton, Zodiac, Z3, Zara, Vero Moda, Calvin Klein, Diesel and
Tommy Hilfiger have experienced good sales growth in the country, while names like
Zara, Armani, Forever21 or Uniqlo appeal to the Indian audiences, attracting higher
per square foot sales compared to the departmental or hypermarket stores.

On the other hand, Indian companies like the Arvind group, Madura Fashion and
Lifestyle, Raymond Apparel, Trent Retail, Reliance Retail and Future Group has
launched their own fashion labels.

PORTERS FIVE FORCE ANALYSIS:

Porter's Five Forces Framework is a tool for analyzing competition of a business. It draws
from industrial organization economics to derive five forces that determine the competitive
intensity and, therefore, the attractiveness of an industry in terms of its profitability

1. Threat of New Entrants:

Effect (Positive if reduces the
S.No. Forces threat, negative if increases Overall
threat)
Supply-side economies of scale of large
1 Positive
retailers
 Low switching costs due to strength of
2 Negative
apparel manufacturers
Challenges in establishment of
3 distribution channels due to high cost Positive
of prime real estate

2. Bargaining Power of Buyers

Effect (Positive if increases
S.No. Forces the power, negative if Overall
decreases the power)
Buyer to supplier ratio is low. So,
1 retailers can leverage their size to Positive
source from multiple suppliers
Purchase volumes are large. So,
2 Positive High
retailers have power over suppliers
Threat of backward integration is high
3 especially in case of foreign players as Positive
it will help them cut costs

3. Bargaining Power of Suppliers

Effect (Positive if increases
S.No. Forces the power, negative if Overall
decreases the power)
Large number of small suppliers;
1 Neutral
Limited number of large suppliers
Low production volumes due to high
2 Negative Medium
fragmentation
Ambition of large suppliers of forward
3 Positive
integration into retail

4. Threat of substitutes
S.No. Forces Effect (Positive if reduces the Overall
 threat, negative if increases
threat)
High availability of substitutes in
1 various forms (ex: low-cost custom Negative
High
made clothing)
2 Low switching costs to the consumer Negative

5. Rivalry among existing competitors

Effect (Positive if increases
Forces rivalry, negative if decreases Overall
rivalry)
Increased opportunities with rapid
1 Negative
growth
High concentration in unorganized
2 Positive Medium
sector; Growth in organized sector
Limited product differences per
3 Positive
segment but is increasing

STAKEHOLDERS

SHAREHOLDERS
 Price (T.Rowe) Associates Inc

 Vanguard Group, Inc. (The)

 Wells Fargo & Company

 Franklin Resources, Inc

BOARD OF DIRECTORS
 Chip bergh.
 Roy Bagattini.
 Chris Clark.
 Seth Elison

SUBSIDIARY COMPANIES
 Denizen
 Dockers
 Signature
 Levis

FINANCIAL ANALYTICS PART OF COMPANY

Laser Technology : Levi Strauss will roll out a new laser-based manufacturing process ,
with the aim of both speeding production and reducing its use of hazardous chemicals. The
iconic US firm, which last year sold $5 billion worth of denim apparel, has been working
closely with the Spanish firm Jeanologia. The Valencia-based company has pioneered the use
of advanced technologies in clothes manufacturing, with a laser production facility in
Barcelona and an ozone production center in Turkey. Levi Strauss CEO Chip Bergh added
that the laser approach reduces the current 18-20 process steps required to finish a pair of
jeans off to just three, while digital imaging techniques could now be used in place of
chemicals to produce distressed or faded patterns.

Use And Reuse : Levis Strauss and Co is focusing on sustainable activitiesLevi strauss & co.
+ evrnu create first pair of jeans from post-consumer cotton waste. Levi Strauss & Co. has
partnered with textile technology startup Evrnu™, SPC to create the world’s first jean – in
the form of pair of Levi’s® 511® jeans – using five discarded cotton T-shirts to make new
fiber. The cutting-edge method not only converts consumer waste into renewable fiber, it
also uses 98 percent less water than virgin cotton products, according to Evrnu data.
Although some virgin cotton was used, this represents a huge breakthrough in recycling
technology.

Water Less Jeans: In 2017, levis upped their game by making 55% of all Levi’s ® jeans with
Water<Less® practices. But that’s not enough. Water scarcity is becoming one of the world’s
greatest challenges. So we invited 20 competitors to our Eureka Innovation Lab and shared
all of our water-saving practices with them. We open-sourced
our Water<Less® innovation for others in an effort to learn and improve. Together, we can
shift the industry by using less water and making a positive global impact.It is another
sustainable innovation by minimising wastage of water.

Project FLX: Levi’s is showcasing the abilities of its digitized denim finish program, Project
F.L.X., with a pop-up customization studio in Los Angeles.Project F.L.X. uses the latest
advances in laser-powered technology by Jeanologia to digitize the design and development
of denim finishing. From rips, fades and distressing, to wash and whiskering, Project F.L.X.
allows Levi’s fans to create a truly unique pair of vintage-looking jeans.

Levis Eureka Labs : Levi’s Eureka Lab is, as its name suggests, committed to research and
development for the privately held company, which counted $4.9 billion in revenue in 2017
and leads the world in jean sales. Indeed, much of the denim on display in the lab is in the
form of prototypes for styles not yet in market. But the latest innovation to emerge from this
facility isn’t a clever take on cut or color (though fashion mavens, it’s worth noting that the
wide leg is back in style). It’s an entirely new operating model that further automates the
jean-making process by eliminating many manual techniques and dramatically reducing the
number of chemicals necessary to create the faded and worn finishes that many denim-
wearers love. The key tools to this process? Software and lasers. The result: A complete
overhaul in the way Levi designs, makes, and sells its signature stuff.