Levi’s India plans to vacate the middle price segment and concentrate on the lower and the higher ends.Its Signature brand – which is the value offering – will see a further fall in price and start at Rs 900 instead of Rs 1000(USD 22 instead of USD 24 approx.). On the other hand, the premium segment will see an increase of about 15% in average pricing and increase to about Rs 2400(about USD 58). The report by Economic Times also mentions that in the next six months, the company will roll out its high-fashion, high-end brand Levi Rivet nationally.
The company is also planning to increase its adspend significantly during the next few months as it sees a slowdown and counts on its advertising to perk up the sales and take an increasing share in the 10 million value jeans and about 3 million premium jeans market in India.
Levi’s has been continously moving in the direction of vacating the mid-priced segement – as I mentioned in a previous post also and probably this is a sign of times to come for many large denim labels. The mid-priced segment of the Jeans is experiencing the miniumum growth and its share is being taken up by local brands who are more adaptable to local conditions (in India brands like Spykar,Killer etc)