Will India live in Levi’s again?

Globally, Chip Bergh, president and CEO of San Francisco-based Levi Strauss & Co., is harping on “Live in Levi’s”, a brand strategy that wants to conjure up blue-collar chic nostalgia for Americans. In India, this strategy needs to be more nuanced. “Owning a pair of Levi’s meant a lot in terms of the aspiration certain segments of Indians always had for America,” says brand consultant Harish Bijoor. But with the influx of many American brands, that aspiration has been diluted, he adds. “Levi’s needs to rekindle that affection and nostalgia.”

Sure, many people buy the brand for the vibe of Americana associated with it. But there are millions of new buyers who may not have the same appreciation of the brand’s history. For them, factors other than nostalgia are important. Levi’s India managing director Sanjay Purohit understands those factors best. Quite like Bergh, a 28-year veteran of P&G who turned around its Gillette Fusion brand, Purohit is not exactly an apparel guy. He has moved across industries (food, paints, luggage) over a career spanning 25 years.

According to Purohit, India is fertile ground for brands, and Levi’s wants to have more of that “first-pair-of-denim” action. “Take, for instance, many young women here for whom a pair of denims would be the first Western wear,” he says. This is in the context of a country where there are still colleges that have, rather inexplicably, banned students, particularly girls, from wearing jeans. The reason, says Santosh Desai, CEO of Future Brands, is that denim is viewed as a shortcut to modernity and cues rebellion.

Also helping growth is the evolution of work wear. With relatively new industries employing thousands of youngsters, and the culture of starting up gaining traction, formal dressing here has given way to a casual culture, which, Desai says, “is intended to communicate that work is not a burden”. Levi’s recently launched its Commuter line, which it had introduced in Europe to cater to the increasing number of cyclists in the continent. Globally, Levi’s has been targeted at bikers and train travellers.

In India, Levi Strauss has sharpened its focus on its biggest brand, Levi’s. Unlike most markets, there is no Dockers, Signature or Denizen—all Levi Strauss products—available in the 375 branded stores or 700-plus multi-brand outlets.
It is a brave call, considering most brands try to fill all price points in markets like India. Lee, for instance, has Vans and Wrangler in addition to the mother brand.

Purohit claims the strategy is working. For the first time in the 20 years that Levi’s has been in India, it reported a net profit of Rs 49 crore for FY14, against Rs 161 crore loss the previous year. “Focus is an underrated quality,” he says. Purohit, however, has been quick to clarify that Levi’s has been “profitable at the operating level” for the last 10 years.

Purohit has the credentials to turn the tide. During his previous stint at Cadbury, he successfully took on India’s almost infinite range of sweets and won, transforming chocolate from a primarily Western snack to something as acceptable as laddoos during festive occasions. He also steered Cadbury through a tough period in the mid-2000s when worms were found in some bars of the popular Dairy Milk chocolate.

The original blue jeans turned 141 this May. It has a far shorter history in India. But Purohit and Levi’s hope the denim brand will become part of the country’s fabric over the next few decades.