Levi’s India changes marketing and pricing strategies
Levi’s India is changing the marketing strategies for its Denims and Non-Denim brands. On the one hand it is seeking to expand its presence in the Premium and Super-Premium segment by launching more products in this segment. On the other hand, it is seeking to strengthen its Value Brand – Signature. Launched last year and priced between Rs 599-Rs999(USD 15- USD 25) in small towns and upto Rs 1399(USD 35) in larger towns,Signature seeks to capture a large share of the Value segment of Branded Jeans – which is currently estimated at about 10 million units – by having more than 5000 sale points for the same throughout India (as against 1000 currently).
In the Premium segment the prices are in the range of Rs 2000-4000(USD 50-USD75), Super premium has price range of Rs 4000-6000(USD 75-100) and Connosieur segment is Rs 6000-12000(USD 150-300). Levi’s wants to increase its presence in these segments. It however does not want to be present in the Mid Price Segment ie Rs 1000-2000(USD 25-50) .Thus Levi’s India is following the International trends where Value and Premium segments are expected to do better than the mid priced segments. The Value offering of Signature is Levis’ take on the local Indian brands who are selling decent jeans in the range of Rs 600-Rs1200/ – but who do not have the brand value of Levi’s.
The estimates for the market of Premium and Super Premium denim in India are about 7 million and 3 million (though I need to verify the same) and offer substantial possibilities for growth for brands like Levi’s.However, the going will not be as smooth since Levi’s will not be able to offer great washes in its Signature line – and washes are one of the biggest factor for purchase of Jeans by the young.
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