In the winter of 2015, Li Yangyang landed in Boston, as a fashion trendsetter at that time, she carried a Chanel chain bag, wore Levi's jeans, and posted a check-in ** in the circle of friends, which attracted praise again and again. Now, almost ten years later, she suddenly realized that this was actually the last appearance of Levi's jeans in her circle of friends. When Li Yangyang was in college, there was a small piece of Levi's jeans with a red flag on his butt pocket, which was a symbol of gold and fashion among college students. If someone can wear Levi's jeans every season, then this person can even be said to be a top-level presence in the courtship food chain of college. A consumer revealed that when she went to school, she carried a plastic bag of Jeanswest to the bathhouse, which was still very foreign. Just like today's young people carry the bag of the overlord tea girl and disguise themselves as dior to go shopping. More than a decade ago, Levi's, known as the "originator" of jeans, was regarded as a classic symbol of American culture, along with Coca-Cola, Ray-Ban glasses, and Harley-Davidson motorcycles. Many years ago, Steve Jobs wore Levi's classic 501 jeans at the Apple conference, setting off a classic combination of sweater + jeans in the field of technology; Edison Chen and Jay Chou are both the image spokespersons of Levi, and Edison Chen also wrote Levi into the lyrics: "But there are still people who doubt that I can't do business, I'm helping Levi."'s do the design. From the U.S. to China, Levi's has sparked a jeans craze around the world. According to Levi's regional manager's recollection of the city, 17 years ago, Levi's offline store was very efficient, a counter with only a few display boards, a monthly revenue of 400,000 yuan, if calculated according to a 800 yuan **, this total area may be less than 20 square meters, a month can sell 500 Levi's jeans. 
Thanks to the strong brand effect, Levi's even single-handedly led the rise of the "cattle breeder". "Raising cows" is a way to make jeans fit your body as closely as possible, so as to reduce the frequency of cleaning, and take care of them carefully, so that the jeans can be worn over the years and maintain the prototype. "Raising cattle" has once become a young person's attitude to life, and some "cattle raising" enthusiasts think that the process of "raising cattle" can be "addictive", because "a pair of jeans can accompany you for a long time, recording every bit of your habits and every trace of activity." However, the wheels of the times are rolling forward, Jobs has settled in the ground, Edison Chen is also quickly lonely, Li Yangyang, who has bought more than a dozen pairs of Levi's jeans, has forgotten when he stopped buying this brand. "I used to like the red flag so much, but now I think the red flag is so earthy. She complained. Li Yangyang is still a loyal jeans lover, and among the nearly 30 pairs of jeans she often wears, there are high-end brands like Diesel and fast fashion brands like Zara and Uniqlo, but Levi's is no longer visible. The red flag soil, outdated version, and tight and uncomfortable wear have all become the reasons why Li Yangyang no longer buys Levi. In the eyes of many Gen Z consumers, Levi's, like Boy London and Giordano, has become the tears of the times. "Levi's has been mixed like real Weis", some consumers hate Levi's iron but not steel. Not only that, Levi's voice among young people is also gradually losing, in its official ** store, someone bought a pair of jeans numbered 541, and commented, "I bought it for my father, it was very comfortable to wear." "Levi's market in China is also gradually shrinking. At its peak in 2010, Levi's had more than 500 stores in China's first- and second-tier cities, and now, Levi's has just over 300 stores nationwide. Levi's performance is also continuing to be sluggish. Recently, Levi's latest financial report for fiscal year 2023 showed that net revenue in the fourth quarter was 16$400 million, up 3% year-over-year, below analysts' expectations of 16$600 million. Net income increased from 1$50.6 billion fell to 126.8 billion US dollars, down 158%。Judging from its full-year results, Levi's revenue for fiscal year 2023 is 61$7.9 billion, almost standing still; Net profit fell by 56% year-on-year14% for 2$500 million. In 2019, after a lot of hardships, Levi's, which was relisted in the United States, also shrank a lot, and its share price was 28 at its peak$72, compared to only $17 on February 16$86. "The mid-to-high-end denim market is facing a two-sided hijacking", Fabio Adami Dalla Val, manager of the denim industry, said in an interview that he believes that the mid-range denim market is about to disappear, on the one hand, high-end luxury brands are constantly bringing high-end quality assurance, creative vitality and cultural experience to the denim market; On the other hand, fast fashion brands are pressing fast, and under the left and right of the two, "the mid-range denim market is about to disappear." ”
Uniqlo's "299 yuan denim god pants", Zara's jeans that can be bought for one or two hundred yuan, and the attack of fast fashion brands on the denim category have made Levi lose the power to fight back. The slow and high speed of the new product also left Levi behind after eating the first fruits of cowboy fever. "Consumers don't abandon you after they have a good reason," says Jory Van Den Berg, a Fortune 500 marketing consultant, of the decline of the Reebok, Converse and Levi's brands. "From leading the trend before, now becoming a trend outcast. Levi's, which once represented the distinctive attitude of young people, has also entered a period of brand aging. "Levi's fall behind is mainly related to the deviation of consumption trends," Wang Chan, the person in charge of a brand collection store, told the city, "After the turmoil in the past few years, consumers' life trajectories have been forced to change, and consumption habits have also been affected. "Frankly speaking, denim fabrics are not popular among young people," she says, "loose, comfortable stretch fabrics have become the focus of major fashion brands at the moment." "Whether it is the crocs cave shoes that became popular last year, or lululemon, Arc'teryx, and Decathlon, the footwear and clothing brands whose performance has been rising against the trend in recent years are all labeled as comfortable, sports, and outdoor. Searching for the above brands on Xiaohongshu, the number of related notes and discussions far exceeds Levi's, of which lululemon has the highest number of notes, at 750,000, while Levi's, which has been established far more than lululemon, has only 130,000 notes. It is worth noting that at the same time that Levi's net profit was cut in half, lululemon's net profit increased by nearly 20% to 8$8.1 billion. In order to improve profits, Levi's announced that it will lay off 10% to 15% of its global workforce in the first half of 2024. Levi's currently employs around 20,000 people worldwide and the restructuring plan is expected to result in cost savings of $100 million in fiscal 2024. Along with the resolute layoffs, Levi's has also changed the head, and in 2024 there will be a new head - 55-year-old Michelle Gas. The newly appointed female head has a very illustrious resume. After graduating from the University of Washington, she first went to Procter & Gamble, which specializes in brand marketing, and then moved to Starbucks, where she stayed for 17 years. A few years ago, Gass moved to Cole, a leading department store in the United States, and during her tenure, she facilitated the transaction of beauty collection store Sephora to Cole Department Store, and doubled the company's e-commerce business. Considering her past experience, it is not difficult to see that Gass is a seasonally savvy marketing veteran, and when she insisted on launching a pumpkin-flavored latte that no one recognizes, she believed that brands should have the ability to set trends, rather than simply follow them. Inviting Garth to take charge can also see Levi's intention to blow the tide storm again. At the NRF 2024 conference in January this year, Gass mentioned the future development plan for Levi's, the core of which is to develop a diversification strategy to "make Levi's more than just a jeans store". She also mentioned that in the future, the category will be extended to dresses, jackets and other collections. In fact, before Gas's arrival, Levi was not without diversity considerations. In 2011, Levi tried to shift his focus to **; In 2022, Levi's will enter the field of yoga wear and launch a sub-brand beyond yoga, but it is difficult to turn around, and Levi's, who has lost its first-mover advantage, will be difficult to stand out in the subdivided category. In addition, Gass has also set its growth sights on the Asian market, betting on China, India, Thailand and other countries, believing that the Asian market is "full of opportunities". 
It is worth mentioning that in the face of the attack of the low-price mentality of fast fashion brands, Levi's still adheres to the mid-to-high-end pricing strategy. At the Q3 meeting, Levi's CFO Singh said that while revenue growth has returned after the wholesale terminal in the Americas market will be lowered by 5%-6%, "we don't plan to cut prices further." "Levi's core product, 501 jeans, has been in the 1,000-yuan belt since it was launched, and it has also adhered to the first-class strategy. However, compared with the unique brand style of Coca-Cola's strong ** chain and Harley-Davidson motorcycles, Levi's does not have a solid brand moat in terms of brand design and fabric cut. From the perspective of market trends, denim fabrics have also become a future under the trend of sports fever. Take Black Peony, the largest denim production factory in China, as an example. In recent years, the proportion of the textile industry in the revenue composition of black peony has gradually decreased, and in 2022, the revenue of black peony textile will only account for 6% of the total revenue47%, when it was first listed 20 years ago, the textile business was still the main revenue of Black Peony**. Moreover, in the context of relatively sluggish global consumption, whether Levi's, who does not reduce prices, still has the charm to attract young people, is another matter. After all, a pair of jeans for 1,000 yuan is still not the mainstream of consumption, as someone commented, "I buy ten pairs of jeans for 1,000 yuan, isn't it fragrant to wear them?" (The names of the interviewees have been changed).
Author |Edited by Zhang Jikang |Chen Fang operation |Liu Shan.