Levi Strauss & Co was founded in 1853 by Levi Strauss in San Francisco during the California Gold Rush. It started as a dry goods business and is best known for inventing blue jeans in 1873. Today, Levi's is a global brand that employs over 16,000 people and sells jeans and other clothing in over 110 countries. While Levi's saw success in the 20th century, it has faced declining sales and profits in recent decades due to increased competition. To boost sales, Levi's has focused on expanding its product lines, improving store displays, and promoting sustainability initiatives.

1. Donna Moulton
Fashion Marketing
Professor Bloom
PH Company
Due: Oct 1st, 2015
Levi Strauss & Co
Levis Strauss & Co was started by Levi Strauss the inventor. Levi Strauss was
born in Buttenheim, Bavaria on febuary 1829 to his parents Hirsch Strauss and his
second wife Rebecca Hass Strauss. Levi was one 7 siblings. When he was 17 his
father passed off tuberculosis he and his three sisters immigrated to New York and
met up with his brothers. His two brothers owned a wholesale dry-goods business
named J. Strauss Brother & Co and taught Levi the trade. In 1853 Levi moved out
west to San Francisco when he heard news of the California Gold Rush. He soon
began his own dry-good business under his own name and served as the west coast
representative of his family’s business in New York. He soon changed the name of
his company to “Levi Strauss & Co”. In 1872 one of Levi’s customers sent him a letter
explaining a tailoring technique he wanted to patent but in order to do so he needed
a business partner to get the idea off the ground and in May of 1873 the iconic blue
riveted denim jeans were born. Levi continued producing his iconic denim jeans all
though out his business career and the company has lived on through generations of
his family. Today the company employs over 16,000 people worldwide, and has
branches in Asia, the Middle East, and Africa. Today the company still produces the
iconic 501 jeans that were designed in the 1890’s. In the 1920’s modern jeans were
mainly sold and worn by the working class and those living in the western United
States (cowboys, lumberjacks, and railroad workers). During WWII Levi Strauss &

2. Co saw a boost in sales when denim jeans were declared an essential and were sold
to defense workers. In the 1950’ s-1980 the iconic denim jeans became popular in
youth subculture, such as the greasers, mods, rockers and hippies. The company
continued to grow up and into the 90’s where they soon faced competition from
other brands and less expensive imported products. The company was never
publically traded and is privately held between indirect descendants and collateral
relatives of Levi Strauss. Since 2001 Levi Strauss & Co filed approximately 100
trademark infringement lawsuits against competitors, they successfully sued 6 well
know companies. Since the 90’s Levi Strauss has seen a decline in sales up until
around 2007 when they began to become profitable again. It’s been a slow and
steady incline in profits but the company still falls short of their competitors in
profit sales. In order to try to pick up sales and profits Levi Strauss has remodeled
their in store displays and turned them into denim jean bars where consumers can
sit and discover new styles with the help of Levi professionals.
Levi Strauss & Co products are sold in over 110 countries through a
combination of chain retailers, department stores, and online sites. They have a
global foot print of approximately 2,700 retail stores and shop-in-shop’s. They
manufacture denim jeans in about 108 sizes and 20 fabrics finishes, they also have 3
brands in their portfolio: Levi’s, Dockers, and Levi’s Strauss. The company mission
statement states, “The Mission of Levi Strauss & Co. is to sustain responsible
commercial success as a global marketing company of branded apparel. We must
balance goals of superior profitability and return on investment, leadership market

3. positions, and superior products and service. We will conduct our business ethically
and demonstrate leadership in satisfying our responsibilities to our communities
and to society. Our work environment will be safe and productive and characterized
by fair treatment, teamwork, open communications, personal accountability and
opportunities for growth and development.” To date they are very globally
consciences of the environment and have started initiatives to expand clothing
recycling efforts and water conservation efforts. The Levi Strauss & Co Leadership
team start with CEO Chip Bergh, Executive Vice President, Asia, Middle East and
Africa Roy Bagattini, Executive Vice President and President, The Dockers Brand
Lisa Collier, Executive Vice President and President, Europe Seth Ellison, Senior Vice
President and General Counsel Seth Jaffe, Executive Vice President, Chief Supply
Chain Officer and Chief Transformation Officer David Love, Senior Vice President
and Chief Communications Officer Kelly McGinnis, Executive Vice President and
President Americas Anne Rohosy, Executive Vice President and President of Global
Ecommerce Marc Rosen, Executive Vice President and Chief Financial Officer Harmit
Singh, and Chief Human Recourses Officer Elizabeth wood. Levi Strauss & Co’s target
demographic are the upper class, and the middle class. Their main emphasis is on
consumer demographic age groups of 13-24 although their product range has
products for consumers above 30 years of age. Levis strategy is to continue
maintaining long-term relationships with their consumers by designing denim
styles, shapes, and varying color shades and cloths to create mix and match items
and accessories to fit the current fashion styles. In the 1930’s denim jeans were
positioned as being worn by thee “American Cowboy” later on in culture denim

4. jeans shifted from being marketed for their durability of the fabric but to then
become marketed as a fashion item. Culturally in the 1950’s denim jeans became a
symbol of youth and rebellion.
The company’s main competitors are VF Corp, Gap Inc, and Inditex, here I
will only cover VF Corp. for stock comparisons VF Corp as of two days ago closed at
a low $68.03 and they have seen a shaky incline and decline in their stock prices
with a high of a high $77/$78 in April and mid July, As far as Levi Strauss & Co’s
stock prices go they aren’t publicly traded, only their Japanese affiliate is traded
publicly in Japan. Revenues for Levi Strauss & Co has seen a steady incline since
2011 from $4,610.2m to $4,754.0m in 2014, where as VF Corp’s revenues have been
significantly higher than Levis by more than double with revues of $10,879.9m in
2011, $11,419.6m in 2012, and $12,282.2m in 2014 with a profit margin of 8.5%
versus Levis profit margin of 2.2% for 2014. Levis in 2014 their quick ratio was
0.88>, current ratio was 1.88> and the net current assets % TA was 26.59>. VF
Corps quick ratio is 1.38> the current ratio is 2.58> and the net current assets % TA
was 25.71>. Over the 52 weeks Levis has not even come close to matching or
surpassing VF Corps numbers.
Levi Strauss & Co as a company really needs to work on making more profit
in this over saturated market in order to survive in the long run to stay in business,
if it wasn’t for The Dockers brand I believe that the companies profits wouldn’t be as
high as they are. With a market that is so saturated Levi Strauss really has to
distinguish themselves from the rest, with so many middle class consumers looking

5. for less expensive trendy brands over the upper class who are looking for the same
products but purchasing the Levi’s competitor brands they really need to continue
to appeal to their now niche market of global eco aware consumers by continuing to
emphases on their recycling program and expand their marketing to more television
stations, magazines and then build the brand through more social media
representation. They should also keep the denim bar concept but revamp the design
so it is more eco friendly with a modern looking, updating it to match their target
market and current season.