Don’t miss the latest developments in business and finance.

Levi's to launch women's innerwear

Image
Pradipta Mukherjee Kolkata
Last Updated : Jan 20 2013 | 8:02 PM IST

Jeans and casual wear manufacturer Levi Strauss (India) is looking to launch women’s innerwear and socks by the end of current year. The company is also eyeing the personal care segment and has plans to launch deodorants and other products to supplement its existing jeans wear range.

In addition, Levi Strauss may bring India slippers and sandals of R G Barry Corp, with which it recently signed a licensing agreement.

The company enjoys a 35 per cent share in the national premium jeans market, which is estimated at Rs 1,500 crore.

“We are looking at launching women’s innerwear by Diwali. Also, we will introduce socks in our stores. The range will be distributed by Gentex Apparel, which is our licensee in India,” said Shumone Chatterjee, managing director of Levi Strauss (India). “Focusing on innovation in the existing product categories and non-apparel products are important to grow our business. We are already the largest player in jeans and casual wear, so we have to think of other avenues to push growth.”

Levi Strauss & Co recently signed a licensing agreement with R G Barry Corp to make and market a new line of slippers and sandals. As part of the agreement, R G Barry has hired a sales and marketing veteran to oversee the Levi product line. Jeffrey Bua, a former senior vice-president at development firm Sports Casual International, is now brand president for the new line.

The company already sells accessories such as eyewear in India, along with its jeans and casual wear brands Levis (Rs 1,499-8,000), Dockers (Rs 1,800-3,000), and Signature (Rs 699-1,299).

More From This Section

According to analyst reports, global women’s innerwear market is estimated to be worth $30 billion, with a projected growth rate of 9 per cent over the next five years. Although the market for women’s innerwear has an ever increasing demand, much potential lies in Western Europe and North America, which together constitutes 65 per cent of the global market. Asian countries like India and China are emerging as prospective markets attracting international brands. Here, merchandise would be sold in more quantities at lower prices.

The appeal for women’s innerwear has undergone drastic changes. The market is now driven by brands that come up with innovative products. Renowned brands such as Calvin Klein, Lejaby, Rosy, Lise Carmel, and Victoria’s Secret dominate the market. For Levi Strauss, the brand stands for youth and relaxation.

“Although our core business will continue to be jeans wear and it will contribute the largest chunk of our revenues, we need to offer consumers the choice to buy complimentary products like accessories, footwear, and even innerwear to go with particular T-shirts,” said Chatterjee. “We will sell women’s innerwear in our stores. It will be priced in the premium range, but we are yet to work out the details.”

Globally, the women’s innerwear range begins at Rs 1,000 and goes as high as Rs 40,000. A few of the local brands in India, however, sell for as much as Rs 300 apiece.

“The fact that consumers buy clothes not because they need them is clear in terms of innerwear. Many women buy them because they prefer the style, or because it fits them under certain clothes. Today, the primary marketing issue in the intimate apparels business is the battle taking place between international brands and retailers’ own private labels. The main concern for both is to discover the emotional wants and choices of their consumers. A new innerwear player like Levis would be more of a complimentary brand, as it would continue to push its core jeans wear,” said an analyst.

As part of the diversification, Levi Strauss will make over its store designs and merchandise display. “We will reshuffle our merchandise display in stores. The look of the stores and décor will change to accommodate the changing consumer preferences. The stores will make use of technology to make purchases and decision-making easier for consumers,” Chatterjee said.

At present, there are 16 Dockers, 230 Levi’s and 130 Signature stores in the country.

For the first time, Levi Strauss has associated with a local festival, Poila Baisakh, or the Bengali New Year, which is on Tuesday. “Globally, we have been associated with such festivals as the Chinese New Year, but this is a first in India,” said Levi Strauss India marketing director Shyam Sukhramani.

Also Read

First Published: Apr 13 2009 | 12:16 AM IST

Next Story