| Type | Private |
|---|---|
| Industry | Clothing |
| Founded | 1853 |
| Founder(s) | Levi Strauss |
| Headquarters | San Francisco, California, U.S. |
| Number of locations | 470 company-operated stores[1] |
| Area served | Worldwide |
| Key people | Richard L. Kauffman Chairman of the Board R. John Anderson, President and CEO |
| Products | Jeans |
| Revenue | US$ 4.4 billion (FY 2010) |
| Operating income | US$ 381 million (FY 2010) |
| Net income | US$ 157 million (FY 2010) |
| Total equity | - $1.59 billion USD (2010) |
| Owner(s) | Descendants of Levi Strauss |
| Employees | 16,200 (FY 2010) |
| Website | Levi Strauss Homepage |
| References: Levi Strauss & Co.: Images of America, by Lynn Downey | |
Levi Strauss & Co. (LS&CO) ( /ˌliːvaɪ ˈstrɔːs/) is a privately held American clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came from Buttenheim, Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. In 1873 Levi Strauss and tailor Jacob Davis received a U.S. Patent to make the first riveted men's work pants out of denim: the first blue jeans. The company briefly experimented (in the 1970s) with a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss's four nephews.
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Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based in Singapore. The company employs a staff of approximately 10,500 people worldwide. The core Levi's was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion.[2]
From the early 1960s through the mid 1970s, Levi Strauss experienced explosive 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 Jr., Peter Haas, Ed Combs, and Mel Bacharach , expanded the firm's clothing line by adding new fashions and models, including stone-washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian clothing manufacturer, and introducing Permanant Press trousers under the Sta-prest name.
The company experienced rapid expansion of its manufacturing capacity from fewer than 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25 overseas. Levi's' factory expansion was accomplished without a single unionized employee. The use of "pay for performance" manufacturing at the sewing machine operator level up. As a result, Levi's' plants were perhaps the highest performing, best organized and cleanest textile facilities of their time. Levi's even piped in massive amounts of air conditioning for the comfort of Levi's workers into its press plants, which were known in the industry to be notoriously hot.
2004 saw a sharp decline of GWG in the face of global outsourcing, so the company was closed and the Edmonton manufacturing plant shut down.[3] The Dockers brand, launched in 1986[4] 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 1993. Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of the company's $2 billion outstanding debt.[5]
Launched in 2003, Levi Strauss Signature features jeanswear and casualwear.[6] In November 2007, Levi's released a mobile phone in co-operation with ModeLabs. Many of the phone's cosmetic attributes are customisable at the point of purchase.
Jacob Davis, a Jewish emigrant from Latvia, was a tailor who frequently purchased bolts of cloth made from hemp from Levi Strauss & Co.'s wholesale house. After one of Davis' customers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocket corners and at the base of the button fly. Davis did not have the required money to purchase a patent, so he wrote to Strauss suggesting that they go into business together. After Levi accepted Jacob's offer, on May 20, 1873, the two men received U.S. Patent 139,121 from the United States Patent and Trademark Office. 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. The company then created their first pair of Levis 501 Jeans in the 1890s, a style that went on to become the worlds best selling item of clothing.[7]
Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He next moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street.
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. From a company with fifteen salespeople, two plants, and almost no business east of the Mississippi in 1946, the organization grew in thirty years to include a sales force of more than 22,000, with 50 plants and offices in 35 countries.[8]
In the 1950s and 1960s, Levi's jeans became popular among a wide range of youth subcultures, including greasers, mods, rockers, hippies and skinheads. 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, and they are still Levi's number one selling product. Although popular lore (abetted by company marketing) holds that the original design remains unaltered, this is not the case: the company's president got too close to a campfire, and the rivet at the bottom of the crotch conducted the fire's heat too well; the offending rivet, which is depicted in old advertisements, was removed.[9]
By the 1990s, the brand was facing 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 faced a scandal involving pants made in the Northern Mariana Islands, where 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. Today, Levi's jeans are made overseas.
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 U.S. labor history, distributing more than $9 million in restitution to some 1,200 employees.[10][11][12] Levi Strauss claimed no knowledge of the offenses, then severed ties to the Tan family and instituted labor reforms and inspection practices in its offshore facilities.
The activist group Fuerza Unida (United Force) was formed following the January 1990 closure of a plant in San Antonio, Texas, in which 1,150 seamstresses, some of whom had worked for Levi Strauss for decades, saw their jobs exported to Costa Rica.[13] During the mid- and late-1990s, Fuerza Unida picketed the Levi Strauss headquarters in San Francisco and staged hunger strikes and sit-ins in protest of the company's labor policies.[14][15][16]
The company took on multi-billion dollar debt in February 1996 to help finance a series of leveraged stock buyouts among family members. Shares in Levi Strauss stock are not publicly traded; the firm is today owned almost entirely by indirect descendants and relatives of Levi Strauss, whose four nephews inherited the San Francisco dry goods firm after their uncle's death in 1902.[17] The corporation's bonds are traded publicly, as are shares of the company's Japanese affiliate, Levi Strauss Japan K.K.
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. However, the company failed to make cash flow targets, and no worker dividends were paid.[18] In 2002, Levi Strauss began a close business collaboration with Wal-Mart, producing a special line of "Signature" jeans and other clothes for exclusive sale in Wal-Mart stores until 2006.[19] Levi Strauss Signature jeans can now be purchased at several stores in the US, Canada, India, Pakistan and Japan.
According to the New York Times, Levi Strauss leads the apparel industry in trademark infringement cases, filing nearly 100 lawsuits against competitors since 2001. Most cases center on the alleged imitation of Levi's back pocket double arc stitching pattern (U.S. trademark #1,139,254), which Levi filed for trademark in 1978.[20] Levi's has successfully sued Guess?, Polo Ralph Lauren, Esprit Holdings, Zegna, Zumiez and Lucky Brand Jeans, among other companies.[21]
By 2007, Levi Strauss was again said to be profitable after declining sales in nine of the previous ten years.[22] Its total annual sales, of just over $4 billion, were $3 billion less than during its peak performance in the mid 1990s.[23] After more than two decades of family ownership, rumors of a possible public stock offering were floated in the media in July 2007.[24] In 2009, it was noted in the media for selling Jeans on interest-free credit, due to the global recession.[25][26]
Levi's marketing style has often made use of old recordings of popular music in television commercials, ranging from traditional pop to punk rock. Notable examples include Ben E King ("Stand By Me"), Percy Sledge ("When a Man Loves a Woman"), Eddie Cochran ("C'mon Everybody!"), Marc Bolan ("20th Century Boy"), Screamin' Jay Hawkins ("Heart Attack & Vine"), The Clash ("Should I Stay or Should I Go?"), as well as lesser known material, such as "Falling Elevators" and "The City Sleeps" by MC 900 Ft. Jesus and "Flat Beat" and "Monday Massacre" by Mr. Oizo. And in India August 2007 the “Fit to die for” advertisement campaign run with Deepika Padukone also attracts the brand lover.[27]
Many of these songs were re-released by their record labels as a tie-in with the ad campaigns, resulting in increased popularity and sales of the recordings and the creation of iconic visual associations with the music, such as the use of a topless male model wearing jeans underwater in the 1986 adverts featuring "Wonderful World" and "Mad about the Boy" and the puppet, Flat Eric, in the ads featuring music by Mr. Oizo.
| Song title | Artist | Original recording | Year of Levi's advert | UK chart | US chart |
|---|---|---|---|---|---|
| "Wonderful World" | Sam Cooke | 1960 | 1986 | 2 | |
| "I Heard It Through the Grapevine" | Marvin Gaye | 1968 | 1986 | 8 | |
| "Stand by Me" | Ben E. King | 1961 | 1987 | 1 | |
| "When a Man Loves a Woman" | Percy Sledge | 1966 | 1987 | 2 | |
| "C'mon Everybody" | Eddie Cochran | 1958 | 1988 | 14 | |
| "The Joker" | Steve Miller Band | 1973 | 1990 | 1 | |
| "Should I Stay or Should I Go" | The Clash | 1982 | 1991 | 1 | |
| "20th Century Boy" | T. Rex | 1973 | 1991 | 13 | |
| "Mad about the Boy" | Dinah Washington | 1952 | 1992 | ||
| "Inside" | Stiltskin | 1994 | 1994 | 1 | |
| "Turn On, Tune In, Cop Out" | Freak Power | 1993 | 1995 | 3 | |
| "Boombastic" | Shaggy | 1995 | 1995 | 1 | |
| "Spaceman" | Babylon Zoo | 1995 | 1996 | 1 | |
| "Underwater Love" | Smoke City | 1997 | 1997 | 4 | |
| "A Nanny in Manhattan" | Lilys | 1996 | 1998 | 16 | |
| "Whine and Grine" | Prince Buster | 1967 | 1998 | 21 | |
| "Flat Beat" | Mr. Oizo | 1999 | 1999 | 1 | |
| "Background Blues" | Otto Sieben | 1999 | 1999 | ||
| "Before You Leave" | Pepe Deluxé | 2001 | 2001 | 20 | |
| "Crazy Beat" | Blur | 2003 | 2003 | 18 |
During the launch of Levi's Curve ID jeans, Levi launched a 5 week integrated marketing campaign that touched on experiential marketing, social media and outdoor events in shopping malls and city centres throughout the UK.
Brand ambassadors for Levi's encouraged women to find their perfect curve jeans shape in-store for the chance to win a £1000 Levi's shopping spree. The idea behind the campaign was to drive long-term engagement with the brand.[28]
In 2011, Levis was listed in The Brand Trust Report published by Trust Research Advisory. This list includes the most trusted brands in India.