31
Levi Strauss Europe, Middle East and North Africa Dirk Van Kemseke GfK Jaarcongres Fashion 2009 – April 1 2009

Levi Strauss

Embed Size (px)

Citation preview

Page 1: Levi Strauss

Levi Strauss Europe, Middle East and North Africa

Dirk Van Kemseke

GfK Jaarcongres Fashion 2009 – April 1 2009

Page 2: Levi Strauss

Agenda

• Levi Strauss EMEA

• GfK for the Levi’s® & Dockers® brand

• Honesty, or the modern interpretation of Authenticity…

• Cool Green is the New Black

Page 3: Levi Strauss

About Levi Strauss & Co

• Privately owned company founded in 1853

• Designs, manufactures and markets jeans and casual wear under three brands –Levi’s®, Dockers®, and Levi Strauss Signature®

• 4.5 billion pairs of Levi’s® jeans have been sold in over 110 countries

• 11,550 Employees Worldwide

• 3 Divisions:

– Americas (LSA)

– Europe (LSEMA)

– Asia Pacific and Southern Africa (APD)

• Sales in over 110 countries and 55,000 retail outlets

• Global net revenues fiscal year 2007: $ 4.4 billion

• Europe: Divisional headquarters in Brussels

• Europe: 650 Levi’s® stores (The Netehrlands: 15 Levi’s®, 9 Dockers® )

Page 4: Levi Strauss

[I:\401103\40110370\Pres\Equity Overview S05.ppt 4 ]

The youth of the mid nineties and today may not rememberLevi’s® ‘good old days’…

1985-1989 1990-1994 1995-1999 2000-2004 2005+

Age Then

AgeNow

17

27

17

22

17

18

17

32

17

37

Market

Lost Generation

Need to continually recruit youthNeed to continually recruit youth

Levi’s®TV Ads

Page 5: Levi Strauss

[I:\401103\40110370\Pres\Equity Overview S05.ppt 5 ]

Levi’s® gradually puts more focus on Retail Marketing & Digital Marketing

Page 6: Levi Strauss

[I:\401103\40110370\Pres\Equity Overview S05.ppt 6 ]

VIDEO BOMB

LeviLevi’’ss®® todaytoday……

Page 7: Levi Strauss

Retail is our Future

Page 8: Levi Strauss

Retail is our Future – Levi’s® Superpremium

Page 9: Levi Strauss

FAIRPLAY IN FASHION.

HONEST to YOURSELF

The modern interpretation of AUTENTICITY

•our Brand Values Proposition

•Our Marketing Campaign

HONEST TO SOCIETY

CORPORATE CITIZENSHIP

SUSTAINABILITY

Page 10: Levi Strauss

‘Authenticity’,

nowadays aka as ‘Honesty’…

Dirk Van Kemseke

Levi Strauss Europe, Middle East & North Africa

Page 11: Levi Strauss

AUTHENTICITY

• How can an apparel brand turn Authenticity into a USP ?

• What definition of Authenticity is the most engaging amongst youth ?

• What modern interpretations of Authenticity (attitudinal) are most relevant and can trigger brand consideration ?

Page 12: Levi Strauss

Esthetic Authenticity (old school) vs Attitudionalauthenticity (modern interpretation)

ESTHETIC authenticity

• the oldest (“Levi's® is the youngest oldest brand in the world”)

• the original• the first and genuine • ahead of times• pioneering• fresh ans unusual, novel (at the time)• the authority• serving to define or outline• the classic• iconic• who invented• craftsmanship• good quality• old-school 100% American• signature iconography (leather patch, back pocket arcuate

(‘eagle’) stitching, the red tab)• heritage / owning a certain look• different to other clothing brands• naturalness• unconventional (off kilter)• freedom of fashion, not tyranny of fashion• fashion with substance

EMOTIONAL/ATTITUDIONAL authenticity

• Integrity• Honesty/approachable: it does not pretend to be what it’s

not• Straightforward• always rooted in truth• responsible, accountable business practices (corporate

citizenship)• Remained true to its roots• Revealing your true self (and not worrying about what

other people think)• Off kilter (unconventional)• Being true to yourself • attitude, not clothes• rejection of status through badging• having substance and depth• the new cultural currency (opposite to material

possessions • freedom of thinking• challenging the status quo• unpretentious• rebellious• Transgression from the established• pushing the limits• fearless• provocative• courage• having a point of view

Page 13: Levi Strauss

13©In

Site

s C

on

su

ltin

g

RESULTS - InSites Consulting ForwaR&D Lab Project - Authenticity

“People increasingly see the world in terms of

real & fake

and want to buy something real from

someone genuine, not a fake from some

phony”

Source: ‘AUTHENTICITY: WHAT CONSUMERS REALLY WANT’ ( James H. Gilmore/B. Joseph Pine II)

Regarding honesty...

Page 14: Levi Strauss

Levi’s® is…

…a brand that does not pretend to be what it is not (honest to itself)

…a brand that is transgressor and a rebel because it believes that everybody has freedom to express their own individuality / creativity without being judged by the others

…a brand which focuses on an attitude, more than just on the clothes

…a brand that rejects status and badging (substance and depth),

…a brand of which wearers say that doing your own thing (and not worrying about what other people think) is really important (true to oneself)

…a brand that doesn’t take itself too serious

Page 15: Levi Strauss

What about competition ?

Reply, G-Star and Diesel are fashion transgressors and fashion rebellious too. However, Their values are more superficial and their main concern is to look cool in front of others without having atrue personality. Social success is very important to them and also what the others will think about them.

Page 16: Levi Strauss

The ‘Live Unbuttoned’ personal truth

This is the confidence and courage to be

yourself and to express yourself privately

and publicly.

Page 17: Levi Strauss

THE CAMPAIGN IDEA: LIVE UNBUTTONED …What it really means!

To live unbuttoned is to be completely yourself.

To live unbuttoned is to be uninhibited, unrestrained, unembarrassed.

It’s about throwing off the restraints of convention and doing what comes naturally.

Following your heart. Telling people what you really think. Opening up and letting it all out.

It’s about freedom.

Page 18: Levi Strauss

DEMONSTRATE REVELATION THROUGH LOCAL HEROESINVITE THE AUDIENCE TO DO THE SAMELEVERAGE SOCIAL CONNECTIONS TO DRIVE HONESTY

The interview launches. The hero answers to 5 questions. He reveals himself.

Page 19: Levi Strauss

Live Unbuttoned – Audiovisual Campaign

Movie…

Page 20: Levi Strauss

Cool Green is the New Black

Dirk Van Kemseke

Levi Strauss Europe, Middle East & North Africa

Page 21: Levi Strauss

“Our sustainability vision is big, broad and aspirational and it is tightly linked to our business objectives (best ROI, innovation) and brand positioning, being the Authentic brand”

“ We need to leverage brand “honesty” – an emerging platform for brand engagement”

John Anderson, CEO Levi Strauss & Co

Page 22: Levi Strauss

22©In

Site

s C

on

su

ltin

g

RESULTS - InSites Consulting ForwaR&D Lab Project - Authenticity

HONEST BRANDSHow should they be?

When talking about honest brands we again detect a broad spectrum

Upfront HONEST BRANDS ARE BRANDS THAT DO NOT LIE

However, honesty is more than that

In the older age groups honesty is also closely linked to CORPORATE SOCIAL

RESPONSIBILITY

To them honesty is also

No child labor

No animal tests

Being ecologically responsible

Being involved in charity

Admitting mistakes and talking about them

“Ik baseer me op het feit dat

er iets voor een goed doel

wordt gedaan”

Being honest as a brand is perceived as a hard job since you need to be consistent in everything you do

Page 23: Levi Strauss

[I:\401103\40110370\Pres\Equity Overview S05.ppt 23 ]

In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to address the HIV/AIDS epidemic, and has since contributed more than $37 million to HIV/AIDS services organizations in more than 40 countries

Page 24: Levi Strauss

• Noticed and talked about across a range of blogs(fashion, trend/design, magazines)…but either very factual or not commented upon very positively

• WHY?– It is seen as 'normal' for Levi's®: a mega-brand's obligation and responsibility ?

– Done a step too late vs. competitors ?

– Too basic an initiative: standard organic product without a strong style cues or a motivating story

– Done too seriously/earnestly, not adapting the approach to the world of fashion ?

What did we do already ? Consumer Feedback on eco intiatives…

Levi's® current eco strategy does not appear to have the desired cut through or positive halo affect to date. Worth revisiting the strategy to build a more coherent and engaging programme

across the mix

Page 25: Levi Strauss

Did you know 80% of the energy needed to wash your clothes is used while heating the water ?

Page 26: Levi Strauss

The Münster eco-storeA thirty-five percent (35%) lower energy consumption was achieved

compared with a regular Levi’s® store.

• Lighting: The biggest retail innovation for us comes from the lighting design .- Motion sensors in the changing rooms dim the lights when no one is present thereby saving energy.- Motion sensors in the store dim the ambient lighting in areas where no one is present

• Entrance door: Two (2) pairs of automatic sliding double doors were installed as a solution to leaving the doors open to attract consumers. It replaces an energy intensive and inefficient air curtain generally used to keep the temperature of the interior of the store separate from the exterior.

• Flooring in Changing Rooms Area: Cork flooring is used, which is a natural material that does notrequire the destruction of trees. The cork is lacquered with water-based lacquer.

• Windows in non-reflective double glass: Non-reflective glass allows a higher percentage of natural light to enter the store, thereby allowing the use of spots of a lower wattage in the windows. Double-glazing is effective for saving energy.

• Façade: No aluminum was used in the store. The façade is in wood, painted in black.

• Painting / Hangers / Consumer carrier Bag

Page 27: Levi Strauss

When & How to increase the impact ?“Cool Green is the New Black”

• Responsibility & sustainability has reached mass consciousness, but there is still a disconnect between corporate efforts a widespread shift in consumer behaviour

– Historically because the trade-offs for consuming “green” products (price, style, taste, convenience etc.) are generally too big

– Deeper Luxury: the Opportunity to be Aspirational

• This will change as consumers start to feel the impact of ignorance, ambivalence and denial. Eg. water scarcity in Spain & France, tornadoes, bug infestations, extreme weather variances caused by global warming

– A 2008 MLC study states that 84% have changed their consumption behaviour at least “a little bit”, 92% claim green issues influences their day to day purchase decisions, but only 16% actively seek out environmentally friendly goods

• As more & more businesses strive to exploit green opportunities in their categories, consumer cynicism is high

– Over 70% believe companies leverage green positioning either to improve public opinions (36%) or simply to sell more (35%)

– High degrees of scepticism and low levels of trust imply that retailers' strategies lack sincerity and credibility, which needs to be overcome by greater consistency, thoroughness and rigour in devising and applying strategies for change

Page 28: Levi Strauss

The luxury brand power to influence consumers

The Opportunity to be aspirationalLuxury brands have the power to influence consumer aspiration and behaviour by editing consumer choices through product design, distribution and marketing.. They have both the opportunity and the responsibility to promote sustainable consumption.

The New Luxury ConsumerMany luxury consumers are part of an affluent, global élite that is increasingly well educated and concerned about social and environmental issues. These consumers use luxury products as a symbol of success. The definition of success – and the way it is perceived by others – is changing.

The Democratisation of luxuryLuxury brands have become more accessible, makingit harder to appeal to consumers on the grounds ofexclusivity. Instead, their added value for consumerscould be derived from superior environmental andsocial performance, expressed through “deeper” brandvalues and more sustainable business practices.

Page 29: Levi Strauss

Our Vision

“We will build sustainability into everything we do, so that our profitable growth helps restore the environment.”

• We now have a global framework

• Each region will include sustainability in their SBP planning for FY ‘09-’11.

• We will reduce the amount of packaging on every garment which will save money and reduce waste

• We will reduce air travel, which will lessen our carbon footprint (and do videoconferencing…)

• We will change all care labels to read “wash in cold” instead of warm water, which will help consumers reduce the energy and climate impacts associated with the use and care of our products.

• Green Week

• Dedicated Sustainability intranet site

Page 30: Levi Strauss

The LS&CO. WayThe LS&CO. Way

“Ik wil dat mijn klanten onze T-shirts pas kopen als hun oudehelemaal versleten zijn” (Gorik Dirix, äleluja )

Page 31: Levi Strauss

Levi Strauss Europe, Middle East and North Africa

Dirk Van Kemseke

GfK Jaarcongres Fashion 2008 - 26 november 2008