Levi Strauss CEO Chip Bergh, after successfully launching the company at New York Stock Exchange on Thursday, has shared company’s growth strategy by targeting the female customers to boost jeans sales.
Levi Strauss has been creating the denim wave for it’s believe of denim’s sustainability for the longer term, Bergh told CNBC’s “Squawk Ally” on Thursday morning.
Retail strategies of the company have been working properly, he added. Company’s effort to broaden its reach has resulted in the expansion of denim brand into the T-shirts and women’s wear while to the last year’s total revenue of $5.6 billion, the men’s wear business accounted for $4 billion.
Increasing trend among women, of shifting towards leggings and yoga pants, has raised the need for companies to redesign their denim products to gain their market share from that segment and Levi Strauss is also looking to avail that opportunity to improve its market share.
Levi Strauss clearly understood the message of women wearing tights that they want a comfortable as well as stretchable material to dress up, Bergh said, who also described the athleisure as a throwdown moment for the company.
As the women’s market is now the major growth segment in the denim market, so Levi Strauss is redeveloping its jeans for the same, he added.
Company, recognizing it as a major driver for growth, is now focusing more on the online market as company’s one third of the total sales come from the purchases made online, Bergh said.
Currently only 3 percent of its total sales come from growing Chinese market therefore company is also increased its efforts to excel in the international markets.
Besides increasing its online presence, Levi Strauss is also focusing to further expand its footprints by opening new stores as well as making efforts to increase its wholesale relationships.