Professional Documents
Culture Documents
Levi Strauss & Co. is one of the world’s largest brand-name apparel companies and a global
leader in jeanswear. The company designs and markets jeans, casual wear and related
accessories for men, women and children. It was founded in May 1853 by Levi Strauss. Levi
Strauss was born in Buttenheim, Bavaria, a province of Germany that is famous today as the
host of Munich’s Oktoberfest and Neuschwanstein Castle on February 26, 1829 to Hirsch
Strauss and his second wife, Rebecca Haas Strauss. His family practiced the Jewish faith.
Initially named Loeb, Levi had six siblings—one from his mother and the rest from his
father’s first marriage. Being a Jewish living in Bavaria wasn’t easy for Levi’s family. They
faced much religious discrimination. At sixteen years, his father succumbed to tuberculosis.
Together with his mother and two sisters, they moved to the United States. He was about
eighteen years. The family united with his two elder brothers Jonas and Louis Loeb, who
owned a NYC-based wholesale dry goods business called “J. Strauss Brother & Co.” Levi
soon began to learn and joined his half-brothers’ dry-goods business. Strauss, being a
business brain and seeing an opportunity for expansion, took advantage of the California
Gold Rush and in 1853, he headed west, moving to San Francisco to open a West Coast
branch of his brother’s dry goods wholesale business selling items like clothing and blankets
to general stores. As his business grew, Strauss made a name for himself as a well-respected
businessman. Meanwhile, Jacob Youphes, a professional tailor, was born in the city of Riga,
Latvia. He later changed his name to Jacob Davis. He also had a Jewish family lineage. At 23
years, he made it to the United States, settling in New York City. Here, he started his
tailoring business. As a tailor, Jacob made tents, wagon covers, and horse blankets for the
railway workers. Levi Strauss & Co. soon became his denim supplier. He bought his fabric
from Levi Strauss, who later became his partner Levi Strauss & Co. soon became his denim
supplier.
Although denim pants were already quite commonly worn at this point, they were not quite
on a par with what we now call blue jeans. After being asked to make a pair of pants that
would hold up better during normal wear and tear, Davis came up with the idea to incorporate
metal rivets into the parts of the pants most frequently strained. These new, reinforced pants
became popular so quickly that Davis resolved to take out a patent on the design, but he did
not have the capital to do so on his own. Instead, he reached out to Strauss with the intent of
forming a partnership, and the two soon joined forces to patent the idea. Their patent was
granted on May 20th, 1873, a day which is now known as the birthday of blue jeans. The
pants became popular with incredible speed, but for decades they were still referred to as
‘waist overalls’ or simply ‘overalls.’ It wasn’t until the 1960s that the name ‘blue jeans’
became widely used.
The patented rivet was later incorporated into the company’s jean design and advertisements.
Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold
miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim
overalls only began in the 1870s. In 1890, the rivet patent went into public domain, lot
numbers were assigned the products that were being manufactured, and “501” was used to
designate the famous copper-riveted waist overalls.
Modern jeans began to appear in the 1920s, but sales were largely confined to the working
people of the western United States, such as cowboys, lumberjacks, and railroad workers.
Levi’s jeans apparently were first introduced to the East during the dude ranch craze of the
1930s, when vacationing Easterners returned home with tales (and usually examples) of the
hard-wearing pants with rivets. Another boost came in World War II when blue jeans were
declared an essential commodity and were sold only to people engaged in defense work.
In the 1930s many women started wearing men’s 501® Jeans because they were tough
enough to withstand daily life on a ranch. In 1934, Lady Levi’s® – also called Lot 701 –
were created, giving women the same freedom offered to men in a style that was designed
just for them.
Between the 1950s and 1980s, Levi’s jeans became popular among a wide range of youth
subcultures, including greasers, mods, rockers, and hippies. Levi’s popular shrink-to-fit 501s
were sold in a unique sizing arrangement; the indicated size referred to the size of the jeans
prior to shrinking, and the shrinkage was substantial. The company still produces these
unshrunk, uniquely sized jeans. Although popular lore (abetted by company marketing) holds
that the original design remains unaltered, this is not the case: the crotch rivet and waist cinch
were removed during World War II to conform to War Production Board requirements to
conserve metal and were not replaced after the war. Additionally, the back pocket rivets,
which had been covered in denim since 1937, were removed completely in the 1950s due to
complaints they scratched furniture.
From the early 1960s through the mid-1970s, Levi Strauss experienced significant growth in
its business as the more casual look of the 1960s and 1970s ushered in the “blue jeans craze”
and served as a catalyst for the brand. Levi’s, under the leadership of Walter Haas, Peter Haas
Sr., Paul Glasco, and George P. Simpkins Sr. expanded the firm’s clothing line by adding
new fashions and models, including stone-washed jeans through the acquisition of Great
Western Garment Company (GWG), a Canadian clothing manufacturer. The acquisition led
to the introduction of the modern “stone washing” technique, still in use by Levi Strauss.
Simpkins is credited with the company’s record-paced expansion of its manufacturing
capacity from 16 plants to more than 63 plants in the United States from 1964 to 1974 and 23
overseas. Levi’s expansion under Simpkins was accomplished without a single unionized
employee as a result of Levi’s and the Haas family’s strong stance on human rights and
Simpkins’ use of “pay for performance” manufacturing from the sewing machine operator
level up. As a result, Levi’s plants were voted the highest performing, best organized, and
cleanest textile facilities of their time. From a company with fifteen salespeople, two plants,
and almost no business east of the Mississippi in 1946, the organization grew over thirty
years to include a sales force of more than 22,000, with 50 plants and offices in 35 countries.
In the 1980s, the company closed around 60 of its manufacturing plants because of financial
difficulties and strong competition.
The Dockers brand, launched in 1986 and which is sold largely through department store
chains, helped the company grow through the mid-1990s, as denim sales began to fade.
Dockers were introduced into Europe in 1996 and led by CEO Jorge Bardina. Levi Strauss
attempted to sell the Dockers division in 2004 to relieve part of the company’s $2.6 billion
outstanding debt.
By the 1990s, Levi’s faced competition from other brands and cheaper products from
overseas, and began accelerating the pace of its US factory-closures and its use of offshore
subcontracting agreements. In 1991, Levi Strauss became implicated in a scandal involving
pants made in the Northern Mariana Islands: some 3% of Levi’s jeans sold annually with the
Made in the USA label were shown to have been made by Chinese laborers under what the
United States Department of Labor called “slavelike” conditions. As of 2016, most Levi’s
jeans are made outside the US, though a few of the higher-end, more expensive styles are still
made in the US.
Cited for sub-minimum wages, seven-day work weeks with 12-hour shifts, poor living
conditions, and other indignities, Tan Holdings Corporation, Levi Strauss’ Marianas
subcontractor, paid what were then the largest fines in US labor history, distributing more
than $9 million in restitution to some 1,200 employees. Levi Strauss claimed no knowledge
of the offenses, severed ties to the Tan family, and instituted labor reforms and inspection
practices in its offshore facilities.
In 1991 an investigation revealed that some products that Levi Strauss had represented as
made in the United States were actually manufactured in the Northern Mariana Islands (a
United States commonwealth) by Chinese laborers working in illegal sweatshop conditions.
By 1992, foreign sales represented close to 40 percent of the company’s revenues, and over
50 percent of profits. Levi Strauss spent $230 million on advertising in 1992, in a campaign
to add glamour to its old stand-by.
In 1996 the company took on multibillion-dollar debt in February 1996 to help finance a
series of leveraged stock buyouts among family members. In June 1996, the company offered
to pay its workers an unusual dividend of up to $750 million in six years’ time, having halted
an employee-stock plan at the time of the internal family buyout. By 1996, Levi Strauss was
virtually free of debt, and the company announced it would undertake a second leveraged buy
out later in the year, to concentrate its stock in fewer hands.
The annual sales of the brand Increased in 1997 to reach $7.1 billion. In 2001 after the
winning bid, Levis celebrated its return with a reproduction of the ‘Nevada,’ complete with
the shopping and distressing of the original.
In 2002, Levi Strauss began a close business collaboration with Walmart, producing a special
line of “Signature” jeans and other clothes for exclusive sale in Walmart stores until 2006.
In 2010, the company partnered with Filson, an outdoor-goods manufacturer in Seattle, to
produce a high-end line of jackets and workwear.
As of 2016, Levi Strauss Signature jeans are sold in 110 countries. In 2016, the company
reported revenues of $4.6 billion. In 2017, Levi Strauss & Co. released a “smart jacket”, an
apparel they developed in partnership with Google. After two years of collaboration, the
result was a denim jacket set at $350.
In 2019, Levi’s became one of only two major clothing companies with commitments in line
with the Paris Agreement’s goal of limiting global average temperature increase to 1.5
degrees celsius.
In 2020, Levi Strauss & Co. are expected to have completely replaced chemical usage to
lasers in order to cut and design ripped parts of jeans. In December 2019, the Engage for
Good (formerly Cause Marketing Forum) organization awarded the company the Golden
Halo Award for 2020 for their advancements in corporate social impact.
On August 5, 2021, they announced the acquisition of Beyond Yoga, entering into the
activewear market. They expect the acquisition will contribute to more than $100 million to
net revenue per year.
Vision Statement
Levi’s vision statement is, “We are the embodiment of the energy and events of our times,
inspiring people with a pioneering spirit.”
The following are the main components of Levi’s vision statement:
Energy embodiment
Events
Inspiration
The Values
Levis values are the fundamental to the success, they are the foundation of the company,
define who they are and set them apart from competition they underlie their vision of the
future, their business strategies and decision actions and behavior, they live by them & they
consider these values as the heart of Levi Strauss & CO.
Empathy
Begins with listening. Paying close attention to the world around them, understanding,
appreciating and meeting the needs of those they serve including consumers, retail
customers, shareholders and each other employees. Empathy also means engagement
and compassion, giving back to the people they serve and communities they operate
in, is a big part of who they are.
Originality
As the makers and keepers of Levi Strauss legacy, they look at the world with fresh
eyes and use the power of ideas to improve everything they do across all dimensions
of the business from modest improvements to the to the total reinventions
Integrity
Include the willingness to do the right thing for the employee, brands, the company
and the society as a whole, it continues to anchor their beliefs and behaviors and it is
one of the reasons consumer trust their brands.
Courage
Is the willingness to challenge hierarchy, accepted practices and conventional
wisdom, courage includes truth telling and acting resolutely on their beliefs.
Current Strategy
The Company markets products in over 40 countries. As in the U.S., demand for jeans
outside the U.S. is affected by a variety of factors that vary in importance in different
countries, including socio-economic and political conditions such as consumer spending
rates, unemployment, fiscal policies and inflation. In many countries, jeans are generally
perceived as a fashion item rather than a basic, functional product and, like most apparel
items, are higher priced relative to the U.S. The non-U.S. jeans markets are more sensitive to
fashion trends than the U.S. market.
Additionally, the retail industry differs from country to country. In certain countries, the
Company’s primary retail customers are large “chain” retailers with centralized buying
power. In other countries, the retail industry is comprised of numerous smaller, less
centralized shops.
Strengths
The business went from strength to strength to become one of the twentieth century’s best-
known global brands. During the 1980s, the company branched out into a range of garments
including suits, before refocusing on one of its heritage products Levi 501s in the early
1990s. A TV commercial showing Nick Kamen stripping down to his boxer shorts in a
launderette boosted the sales of all jeans, not just of Levi 501 s and thousands of men
switched to wearing boxer shorts.
The Levi Company has always had a reputation for innovation, bright ideas, excitement and
enthusiasm. However, it has not always been so successful in maintaining the detailed
processes necessary to ensure continued product success – hence the need for effective brand
management. Brand management involves having the technical skills to create a successful
brand management plan, as well as good ideas.
Weakness
By the late 1990s, it was all too apparent that the brand was slipping and needed to be put
back on track. Since the 1960s, success had been based on the brand’s association with youth
culture. During the 1990s, this association began to lose some of its vitality. While sales of
the brand continued to grow, it began to suffer from declining equity. By this, we mean that
the perception of the brand in terms of the desired position was beginning to slip.
While in the 1980s Levi’s were seen as ‘cool, youthful, innovative and sexy’, market research
revealed that this was no longer the case by the late 1990’s. Brand managers at Levi’s
realized that they needed to revitalize the perception of the brand. The company had,
wrongly, been emphasizing its role in wholesale merchandising – i.e., selling millions of
pairs of blue Levi is to retailers and ensuring good sales volumes and profits for these
retailers. However, this focus tended to ignore the consumer.
Since the late 1990s, Levi’s brand managers have changed the emphasis to consumer-focused
brand management. Brand managers recognize that their responsibility is to deliver the image
of the brand both to consumers and to retailers, as well as ensuring high sales volumes and
achieving retailers’ financial goals.
The emphasis now is therefore less inward looking – e.g., ‘how many units have we sold?’
and more outward looking, e.g., ‘what do consumers see Levi’s as being?’
Levi’s Product Marketing Strategy
When it comes to Levi’s products, they are extremely comfortable and of great quality.
Through this, the company owns immense popularity in the market and has a huge customer
base with loyalty.
Levi’s offers such incredible products and services that they don’t look elsewhere for
purchasing. Its denim jeans are innovative, enough spacious for keeping the necessary stuff
and come with double layers for durability.
The most popular Levi’s product is its blue denim jeans, however, over the past few years,
other products are also gaining prominence.
Besides its fame for denim jeans, Levi’s provides a great range of products including skirts,
jeans, underwear, shirts, dresses, jumpsuits, belts, accessories, and many others.
Its denim jeans are further categorized in many designs such as Taper, Skinny, Boot cut,
Slim, Flare, Relaxed, Moms, and Big and tall. The most unique part is, it associates a three-
digit number with its jeans. Levi Strauss died on September 26, 1902, and was buried in the
Home of Peace Cemetery in Colma, California. He left his company to his four nephews,
Jacob, Sigmund, Louis, and Abraham Stern, the sons of his sister Fanny and her husband
David Stern. His estate was worth about $6 million (equivalent to $155 million in 2021).[1]
Sigmund's only child, Elise, married Walter A. Haas, the son of Abraham Haas, whose
descendants are the current owners of Levi Strauss & Co
References:
Avery Hartmans (Nov 22, 2022). How Levi's got its start making clothes for cowboys and
rose to become a Gen Z status symbol. https://www.businessinsider.com
Charlie Culverhouse (December 1, 2021). History of Levi's: The Everlasting Uniform of ‘The
Coll’. https://guap.co
Tailorbrands.com (November 20, 2021). https://www.tailorbrands.com
Zippia.com (September 9, 2022). Levi Strauss & Co. History. https://www.zippia.com
Kurt Snibbe (May 21,2018). Levi’s jeans: How they started, how they’re made and how
they’ve changed. mercurynews.com
Melvin Porter (November 11,2021). The History of Levi's Jeans. https://bellatory.com
Courtney Holcomb (February 6, 2020). A Brief History Of Levi's, The Original Blue
Jeans. https://theculturetrip.com
logos-world.net (March 24, 2023).
Levis Logo, symbol, meaning, history, PNG, brand. https://logos-world.net
highsnobiety.com (December 20, 2018).
Here's Everything You Need to Know About Levi's' Logos. https://www.highsnobiety.com
Submitted By:
Maricris Natividad
Melisa Padiclas
Jhovelle Saavedra
Jonabelle Valentin