A pivotal aspect of Levi’s D2C strategy lies in the expansion and enhancement of its loyalty program. In the third quarter alone, this program gained nearly 2 million members, bringing the total global membership to 28 million. This loyalty initiative has become integral to Levi’s D2C strategy, providing valuable data and insights into customer preferences and behaviors. This, in turn, enhances the overall shopping experience and encourages repeat business.
(Image Source)
GLOWhile many brands are finding success through retailer partnerships, Levi’s holds a distinctive perspective. Instead, the company is prioritizing its direct-to-consumer (D2C) strategy. According to Michelle Gass, president of Levi Strauss & Co., this approach has resulted in significant growth, with D2C revenue more than doubling over the past decade. Gass expressed confidence in achieving a mid-teens D2C growth rate target in the long run.
Gass emphasized, “With the strong momentum and consumer permission, now is the time to accelerate our transition to D2C, where we will evolve our culture and operating model, and our consumer centricity will drive every aspect of how we operate.”
A pivotal aspect of Levi’s D2C strategy lies in the expansion and enhancement of its loyalty program. In the third quarter alone, this program gained nearly 2 million members, bringing the total global membership to 28 million. This loyalty initiative has become integral to Levi’s D2C strategy, providing valuable data and insights into customer preferences and behaviors. This, in turn, enhances the overall shopping experience and encourages repeat business.
Conversely, Levi’s wholesale sector experienced a slowdown due to consumer caution in spending. This trend aligns with broader economic challenges faced by Americans, including concerns about student loan payments and other financial pressures.
Levi’s acknowledged the need to support their wholesale partners by ensuring they have the right product assortment, including lighter-weight denim, dresses, and tops.
In the third quarter, Levi’s reported $1.5 billion in net revenues, maintaining stability compared to the previous year on a reported basis, but showing a 2% decline in constant-currency terms from Q3 2022. The company experienced a surge in D2C net revenues by 14% on a reported basis and 13% on a constant-currency basis, driven by company-operated stores and eCommerce. Meanwhile, wholesale net revenues declined by 8% on a reported basis and 10% on a constant-currency basis.
Levi’s observed regional variations, with growth in D2C net revenues in the Americas, but a decline in wholesale. Europe reported modest declines, while Asia, particularly China, saw robust growth. Levi’s other brands, including Dockers and Beyond Yoga, also exhibited positive revenue trends.
Source: PYMNTS
read full article here
