Levis Apparel Case Study

1. Retail Business Environment

The US apparel industry is large, mature, and highly fragmented. This industry has stretched the boundaries of its creativity and imagination in finding new ways to increase selling opportunities and achieve competitive edge globally. The global economic downturn has had a severe effect over the apparel industry, but the denim market has regained its pace relatively faster as compared to other apparel segments. Denim jeans have become a necessity and wardrobe staple as it offers comfort and a longer life span compared to other types of apparel. Jeans can be worn on different kinds of social and even official occasions. Over the years, denim has revealed its capability to overcome age and gender barriers.

The

During the past several years, we have experienced significant changes in senior management. The success of business depends on ability to attract and retain qualified and effective senior management.

Environmental and Economic Factors affecting the Industry in Which Levis Strauss operates. Its revenues are influenced by economic conditions that impact consumer spending. Apparel is a cyclical industry that is dependent upon the overall level of consumer spending. Its wholesale customers anticipate and respond to adverse changes in economic conditions and uncertainty by reducing inventories and canceling orders. Its brand-dedicated stores are also affected by these conditions which may lead to a decline in consumer traffic to, and spending in, these stores. As a result, factors that diminish consumer spending and confidence in any of the markets in which we compete, particularly deterioration in general economic conditions, volatility in investment returns, high levels and fear of unemployment, increases in energy costs or interest rates,

It is characterized by low barriers to entry, brands targeted at specific consumer segments, many regional and local competitors, and an increasing number of global competitors. Principal competitive factors include: • developing products with relevant fits, finishes, fabrics, style and performance features; • maintaining favorable brand recognition and appeal through strong and effective marketing; • anticipating and responding to changing consumer demands in a timely manner; • securing desirable retail locations and presenting products effectively at retail; • providing sufficient wholesale distribution, visibility and availability, and presenting products effectively at wholesale; • delivering compelling value for the price; and • generating competitive economics for wholesale customers, including retailers, franchisees, and