Levi Strauss in India*

Details

Case Code : CLSDM013
Publication date : 2005
Subject : Sales and Distribution
Industry : Textiles and Branded Apparels
Length : 03 Pages
Price : Rs. 100

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Key words:

Levi Strauss, Dockers, Wrangler, Wholly Owned Subsidiary, Sub-Contract, Manufacturing, Youth, Price, Weekender, Shoppers' Stop

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet examines the obstacles encountered by the world famous jeans maker Levi Strauss in its operations in India. It talks about the impact of government regulations on the company's entry strategies. It describes the sourcing, pricing, and distribution strategies followed by Levi Strauss and their impact on its business. It also describes how the company gradually extended its product portfolio in India.

Issues: » Entry barriers to international business » Impact of customer perception on pricing strategies » Importance of diversification for growth Introduction San Francisco-based Levi Strauss & Co., was founded in 1853 by Bavarian immigrant Levi Strauss. The company was the inventor of blue jeans and was one of the most famous jeans, sportswear, and casual wear manufacturers in the world.

Its brands -- Levi's, Dockers, and Levi's Strauss Signature -- were a rage among the youth across the globe. The company sold its products in more than 110 countries. It entered India in 1994...

Questions for Discussion:

1. Levi had to face many difficulties when it entered the Indian markets in 1994. Highlight the barriers encountered by the denim giant during its early days.

2. The success of any multinational brand lies in customizing and overcoming cultural barriers in a particular country. How far was Levi able to leverage on this factor in gaining a presence in India?