Levi Strauss & Co, the trademark owner of Levi’s denim, has established its own operation in Thailand after a 25-year distribution contract with DKSH ended last month, allowing the brand to connect directly with Thai aficionados.
According to Sameer Koul, the company’s general manager for Southeast Asia, the business of Levi’s in Thailand would from now on be handled by LS&Co Thailand, the firm’s own subsidiary.
Thailand is the second country in the Southeast Asian market in which Levi’s has decided to run its own business 100%, following Singapore. This is a strategic move to accelerate its growth, reach a wider customer base and cope with the competitive environment.
“Thailand has a huge opportunity to grow our business due to a favorable customer demographic. Levi’s has very strong brand recognition among Thai fans. Moreover, Thai customers love to express themselves,” Mr Koul said.
According to Mr Koul, the company expects that running its own operation rather than it being run by a distributor would ensure the brand would directly reach generations of local customers, particularly those aged between 18-30.
Members of this age group typically buy 1.5-2 pairs of jeans per year, compared to an average of one pair per year among others not included in this group.
Product characteristics are also being adjusted while brick-and-mortar stores will be refurbished under a new store format known as “NextGen Indigo Stores”.
At present, there are eight NextGen Indigo Stores in Thailand including outlets at Siam Paragon, Emporium, Central Lat Phrao and Central Festival Chiang Mai.
At Levi’s Lat Phrao shop, customers are able to customize their own products in terms of design and decoration. The company also launched an inaugural Thai version of its website allowing consumers to access its products more easily.
Mr Koul said during 2019-2020, the global fashion industry faced a 20% decline in terms of sales due to the pandemic.
Nonetheless, Levi reported strong financial performance in 2021, with net revenue of US$5.8 billion, which was similar to the figure for 2019.
Of the total, 55% of revenue was from the international market, up from 49% in 2016.