Levi's Achieves Robust Growth in Asian Markets Driven by India's Emergence as a Key Growth Center

09 Oct, 2023

Levi's Achieves Robust Growth in Asian Markets Driven by India's Emergence as a Key Growth Center

In the July-September quarter, Levi Strauss & Co showcased remarkable success in the Asian market, recording an impressive 18% surge in revenue. This significant growth can be largely attributed to the exceptional performance of the Levi's brand in India, solidifying India's position as a pivotal region of growth opportunities for the company.

What further accentuated this outstanding growth was a substantial expansion in the company's operating margin in the Asian market, with a notable increase of 330 basis points, reaching an impressive 12.3%.

Top executives at Levi Strauss & Co, including President Michelle Gass and Chief Financial and Growth Officer Harmit Singh, commended the brand's exceptional performance in Asia, with a special emphasis on the key markets of India, China, and Japan.

Gass underlined the significance of India as a rapidly growing economy, with over half of its population under the age of 30. He stressed that India has emerged as one of the company's major growth prospects, showcasing the triumph of Levi's regional expansion strategy and the widespread appeal of its denim lifestyle offerings.

In India, Levi's has experienced extraordinary growth, witnessing a nearly 50% increase in revenue compared to pre-pandemic levels. India has now ascended to become Levi's sixth-largest country market and the largest in Asia. The surge in India's success can be primarily attributed to the unwavering commitment and conviction of Levi's franchise partners in the country.

During the pandemic, Levi's franchisees strategically expanded the brand's presence by doubling the square footage in key malls across India, capitalizing on the immense long-term potential they envision in the Indian market. Gass also noted that Indian consumers perceive Levi's not merely as a denim brand but as a comprehensive lifestyle brand.

Levi's success story in India is further propelled by a diverse product range encompassing tops and bottoms, a strong focus on local product capabilities, and global design influence. The company's local collaborations and brand-building endeavors, including its partnership with Bollywood superstar Deepika Padukone as a brand ambassador since 2021, have resonated exceptionally well with the Indian audience.

Harmit Singh also outlined Levi's plans to replicate its successful brand-building strategy in emerging markets. From a financial perspective, Levi's reported robust growth in Asia, with an impressive 18% increase in revenue. The company's operating margin in Asia expanded by 330 basis points to reach 12.3%, driven by strong leverage.

Overall, Levi's strategic emphasis on India and other emerging markets in Asia has proven to be a triumphant growth strategy, solidifying the brand's position as a top choice among consumers in these thriving regions.