Levi’s, Lee, Wrangler, Celio are some of the well-known global brands known for their denim products but another common thread among these brands is their growing footprint in India. These and some other brands are not only strongly present in India but also geared up for growth in the Indian market. They are increasing their store count in India, opening flagship stores and constantly offering more and more range of products. And all this underlines the growing thrust of the Indian market for global denim brands.
In 2022 financial year, US-based global apparel brand Levi’s® reported a 58 per cent year-on-year net sales increase to Rs. 1,154 crore in wholesale sales to franchise partners. Levi’s has over 400 retail locations in the country across more than 150 cities, including mainline and outlet stores. Just a few days back, it opened Asia’s biggest store in Bengaluru as the brand is focused on its direct-to-consumer strategy and expansion focus. It has also opened a global capability centre in Bengaluru that contains over 200 people largely made up of engineers, providing real expertise and enabling growth through technology—with things like AI, ensuring that they grow the direct-to-consumer business.
All these show how India is a priority growth market for Levi Strauss & Co. Hiren Gor, Senior Director, Retail India, Levi Strauss & Co. shared with Apparel Resources, “We have seen a rise in positive consumer sentiment about owning and buying our denim over the past year, driven by our strong brand equity, innovative product offerings and digital transformation initiatives. Looking ahead at the next 2-3 years, we anticipate continued growth in the denim segment, as consumers are increasingly prioritising comfort and versatility in their clothing choices. We are investing in new product categories and in our digital footprint to meet the evolving needs of our consumers.”
In India, the company continues to accelerate investment in stores and online to create an integrated omnichannel shopping experience and expand its retail footprint in key destinations where consumers like to shop as part of its DTC focus. “We are expanding our retail footprint to bring the fullest expression of our brand to our consumers and to help create the next generation of lifelong Levi’s® fans,” said Hiren.
Similarly, US-based Lee and Wrangler (Kontoor Brands) is also on a growth track in India. Ace Turtle has long-term licenses for Lee and Wrangler in India and select South Asian markets. It has grown by about 100 per cent in FY ’23 and planning on sustaining growth close to 100 per cent in the current fiscal year as well. The brand has a clear focus on the Indian middle-class as Nitin Chhabra, CEO, Ace Turtle believes that this segment represents a significant market opportunity.
“As of now, Ace Turtle operates 31 stores for Lee in India and is planning to add an additional 50 stores during the current financial year. Similarly, we have strong growth plans for Wrangler as well,” he further shared.
Ace Turtle has also launched Lee®’s first flagship store recently in Bengaluru.
Not only are US-based brands enjoying growth in India but also brands like Celio from France are very optimistic about their growth in India. In terms of overall offering, Celio includes a reasonable size of jeans and India is its second-biggest market in terms of stores after France. Moving forward, it will have more focus on India and that too on retail as well as the sourcing front. The retailer will increase its merchandise sourcing from India five times in the next two years and will also increase its retail presence by adding 15-20 stores annually. As of now, Celio has 70 standalone stores and 680 point-of-sale centres in India.
| Pepe Jeans has grown in India at 50 per cent CAGR for the last two years and is looking to growing at 30 per cent CAGR for the next three years. |
Marc Grosman, Founder and Global CEO of the company, said that retail in India is much more organised, consumers are highly educated and the demand for fashion has increased a lot.
The retailer also plans to take product designs and know-how from India to other countries, just like the typical jeans which have the capacity to endure harsh weather.
“India, with its warm weather, developed a type of jeans which is very light. This is an idea from India that we are taking to Europe. It’s a clear example of innovation coming from India going to Europe,” says Marc.
Global denim giants serving the Indian consumers in the best possible way
As a strategy to target the youth, Levi’s hired Deepika Padukone as the brand’s global ambassador but there are many other steps Levi’s and other jeans brands are taking to increase their market share. Indeed, overseas brands are on their toes to serve the Indian consumers best, be it in terms of the product or store experience and any other allied aspects. At the newly opened Levi’s store in Bengaluru, there is the Levi’s® Tailor Shop helmed by skilled tailoring professionals, which seeks to give consumers an opportunity to personalise their purchases especially with self-expression being key for today’s consumers. In addition, customers can further customise their Levi’s® apparel through embroidery, patches, pins and more.
Sharing about initiatives to understand consumers, Nitin said that Ace Turtle has an online channel, where the data comes back. That’s how the model is designed and this data then goes to the design and manufacturing unit. So, the entire supply chain and the front end are linked with consumer behaviour. As per Nitin, this model has worked out better than he had envisaged and the brand is doing better now than when it was at its peak.
| One of the reasons that global brands are having more thrust on India is that the western world is a little tight with higher inflation and issues like high energy prices etc., so they are having a prolonged focus on India, its consumers, the economy as well as apparel growth. And they are expecting good growth in India just like Levi’s which believes in continuing to grow in low double digits, which is really remarkable when things are slowing down in the western world. |
Ace Turtle is experimenting with a wider assortment of products that target consumers across mid-to-high-level price points. This year, it is also adding new products at both the top and lower ends of the price line to expand the pricing assortment.
It has also incorporated innovative in-store features, such as Electronic Shelf Labels and Smart Mirrors to enhance the shopping experience for customers and provide personalised recommendations.
“When it comes to the global denim market, industry experts predict that it will reach US $ 87.4 billion by 2027, with an expected CAGR of 4.7 per cent. Despite the growth rate not meeting expectations, the Indian denim sector stands out with an average CAGR of 8 per cent to 9 per cent in recent years, projecting a potential value of Rs. 91,894 crore by 2028. Thus the strong demand in India will support the future growth of the denim industry,” concluded Nitin.
