EconomyFinancialLevi's 501: the 149-year-old jeans that want to dress...

Levi's 501: the 149-year-old jeans that want to dress Generation Z

Levi’s 501 turned 149 years old and wants to keep his joviality. The iconic jeans that have become a fashion icon arose more as a work garment. But the brand has managed to stand out in the market by adapting to changes in fashion styles and, for now, it has its sights on Generation Z, young people born between 1994 and 2010, and who are characterized as consumers concerned about sustainability. .

One of the great bets of Levi`s Strauss is the adoption of sustainable production processes, while the fashion industry has been pointed out as one of the most polluting. The fashion industry generates between 8% and 10% of global carbon emissions, according to a report by the United Nations (UN).

To reduce its environmental impact, in 2011 Levi’s Straus launched the Water<Less initiative, which consists of reducing water consumption in its productions. So far, 75 million Levi’s garments have been manufactured under this initiative, which represents a saving of more than 880 million liters of water in the jean washing process and more than 16 million liters of water that were reused, according to company data.

The company, which is headquartered in the city of San Francisco, this year presented a variant of the 501 model made with recycled and renewable raw materials, from textile waste. Levi’s uses fewer chemicals that do not have an environmental impact during the production of their clothing, thereby reducing the environmental impact of the materials they use during the manufacturing process.

Karen Riley, Global CMO of Levi’s comments that to close the circle in sustainability, the company recurrently analyzes its production processes to explore new techniques, such as those that use less water. “We are constantly looking for new fabric technologies, such as organic cotton, to ensure we have sustainable products that last a long time and have little environmental impact,” he adds.

However, the challenge has been the cost of inputs, because some raw materials, such as organic cotton and other textile fibers, have a higher price. According to Riley, the company has tried not to pass on these costs to the consumer, while focusing its efforts on innovation.

Levi’s more expensive?

The company, like others in the world and various industries, has not been able to overcome the problems in the supply chains that have affected the distribution of all kinds of products around the world since last year and that have made the movement of goods more expensive. .

The marketing director of Levi’s comments that the company has been looking for a way to absorb the increase in these costs, but they have not been able to avoid adjusting some price increases, without this having a negative impact on their sales. In its financial report for the first quarter of 2020, the company reported that supply chain constraints affected net income by approximately $60 million.

“Due to the premium nature and quality of the product, we have not seen any pushback from our consumers. Like other brands facing these challenges, we are constantly looking for other ways to innovate internally so that we can minimize the impact.”

Levi Straus, which also owns the Dockers brand, in the first quarter of the year recorded a 22% growth in revenue to 1,592 million dollars. For this year, the company expects to grow its sales between 11 and 13%.

Levi's 501: the 149-year-old jeans that want to dress Generation Z

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