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Levi Strauss sells in 110 countries around the world, in more than 50,000 outlets. Fifty-five per cent of its revenues come from the Americas, the largest market being the United States. Levi generates 28% of its turnover in Europe and 16% in Asia.
Euromonitor predicts that the compound annual growth rate will be only 1% between 2018 and 2023, while domestic sales of jeans are expected to increase overall in the coming years. This is an improvement over the 2.3% decline recorded between 2013 and 2018. Globally, the market research firm expects global jeans sales will increase by 2, 1% between 2018 and 2023, a little slower than the 3.3% recorded between 2013 and 2018.
According to Bernstein's badyst, Jamie Merriman, jeans sales rose 3.5%, or 3.5% less than the growth rate of all clothing. According to Bernstein's research, consumers are buying less "premium" and "super premium" denim than mid-priced or lower-priced jeans. Although Levi sells in a wide price range, most of its goods fall below what are considered higher price points.
Sales of premium jeans were affected by the rise of Athleisure.
"In recent years, many women have opted for a more comfortable and less expensive yoga pants, instead of buying brand new jeans," said Deborah Weinswig, CEO of Coresight Research, in a note to his clients.
Over the last five years, Nike, Adidas, Lululemon, Under Armor and Athleta have gained market share in the United States as Levi, True Religion, Gap, Crew, Banana Republic and Ralph Lauren have lost ground. field, according to Bernstein.
According to Bernstein's research, about two-thirds of premium denim – and over 70% of super premium denim – are purchased. Data suggests that these same women have replaced their jeans with athleisure in recent years, but the trend may be changing.
According to the NPD report on the future of clothing, women's jeans are expected to resurface in 2019, as "forward-thinking and social buyers will be the main investors in women's jeans while" They are looking for alternatives comparable to their sportswear ".
The growth of athletics was probably a lesser pressure point for Levi because the category of his men is much larger than that of his women. The men's business generated $ 4 billion of the $ 5.6 billion Levi's business figure in 2018, more than 70%. The denim maker said its men's jeans business represented the top share of the retail sales market in the United States, France, Mexico and the United Kingdom, which are four of the top five markets.
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