Levi Strauss & Co is planning to continue its expansion in South Africa, the group revealed on Friday, despite already being able to claim a 27% share of the local denim market. Levi’s South Africa manufactures its clothing locally and also exports garments to the United States.
According to Levi’s South Africa managing director Mike Joubert, the company recorded a 36% year-on-year rise in sales for the first six months of 2004 and is currently trading 23% ahead of plan, despite increased competition.
Its market share is currently 12% ahead of its nearest competitor, according to the latest apparel tracking study.
“It’s a strong mix of both young and older consumers who are fuelling the sales boom and we want to grow that lead even more,” Joubert noted. “In response to this massive endorsement of the Levi’s brand, we have doubled our retail footprint in South Africa in the past year, increasing the number of Original Levi’s stores from six to 12.”
“We have also just opened our flagship new Levi’s store in Cavendish shopping centre in Cape Town and are further increasing our brand presence through Markhams, Edgars, Stuttafords, RJL and others.”
Joubert said that local consumers seem to have bucked the global trend where — especially in Europe and the US markets — competitor brands’ jeans have grabbed an increasing share of the market. But Levi’s South Africa is one of the best-performing regions for the brand in the world.
“In South Africa, it’s the quality and authenticity of our 150-year history which is adding to our brand’s appeal to the older generation. But it’s equally exciting to see young consumers in the 15 to 24 age group engaging with Levi’s in a big way.”
He further attributed the local operation’s success to the key people brought on board to improve customer focus and bring the brand closer to its key retailers, who have become Levi’s “strategic partners” and not just “resellers” of its products.
“We have also tightened our local factory and supply chain focus and have been able to supply both the local market as well as secure a strong export order to the US,” he added.
Levi’s has also lent its support to local music through its Original Music and Original Blues initiatives.
“We saw a gap,” Joubert explained, “with the escalation in pre-packaged, publicly created pop stars. People were ignoring the originals, the artists who make their own music, who have their own voice. The record companies seem to chase commercial success at the expense of developing original talent, which left an opportunity for us to seek out the freshest, most dynamic talent around and throw Levi’s full weight behind it.” — I-Net Bridge