Even established world-class brands need the input of extensive marketing expertise and profound market insights to achieve significant growth in sales volumes and market shares and to expand geographic coverage in mature markets.
DKSH has been working with world-famous US jeans company Levi’s® (annual global turnover USD 5 billion) for more that 22 years. And still, DKSH is the sole franchisee and distributor of Levi’s® products in this market. The services we provide run across the entire value chain, from sales and marketing to distribution and manufacturing.
Although Levi’s® has been growing continuously in the last decade the company faces several challenges in South East Asia’s most important market. Political instability, fierce competition in the fashion apparel market and the rising price of cotton made 2010 a challenging year for Levi’s® Thailand.
Determined to help Levi’s® expand its market share and ensure that their world-famous brands delight not only men but also women as well as young and rural people, DKSH convinced Levi’s® to tackle the challenges by launching three innovative and successful campaigns.
The first and biggest campaign was the Swap Jeans promotion which aimed at all target groups. For this promotion customers were able to exchange any pair (any brand) of jeans for a 1000 Thai Baht (around 20 Euros) discount when buying a pair of Levi’s® jeans worth more than 2500 Thai Baht (54 Euros) or a pair of jeans with other Levi’s® products worth more than 2500 Thai Baht (around 60 Euros). All swapped jeans were donated for a good cause to various charities and environmental conservation foundations in Thailand.
The second campaign was the launch of the Levi's Global Curve ID. This launch has introduced a new and innovative way to buy jeans. Women of all shapes and sizes were measured for their curve type and fitted with either Bold Curve, Demi Curve or Slight Curve. This new way of buying jeans was received exceptionally well by women all over the country excited to find out what curve they are.
The third campaign was the nationwide search of the Levi's 501 man. This campaign drew men from all four major provinces to compete for becoming the provincial representative of Levi’s 501. The competition has brought Levi’s to a new marketing territory since we actually went on a roadshow to all four major provinces, where previously, marketing efforts were be based solely in Bangkok. The winner of each province has become a representative for Levi's and all of them have now ventured into a successful model career. Two of them even started with acting. The aim of this third campaign was to penetrate the youth as well as rural markets.
All three campaigns proved to be very successful in the Thai market. August and September, when the Swap Jeans promotion took place, were the two most successful months ever recorded for Levi’s in Thailand. Sales has increased nationwide and finally more than 150,000 pairs of jeans were exchanged.
The Levi’s® Global Curve ID jeans allows Levi's to maintain its market shares in an extremely fierce women’s market. Furthermore, the new way to purchase jeans seems to be a huge success, too. 2011 looks to be an exciting year for Levi’s® in this market. And finally, the search for the Levi's 501 man lead to sales growth of more than 20% and this success seems to be continuing in 2011 with double-digit growth in the first quarter.
Market Expansion Services at work: for significantly higher sales and market shares
Drawing on our extensive experience in the market, entrepreneurial approach and passion to help our business partners succeed, the DKSH Thailand team has achieved significant improvement in sales figures and market shares for Levi’s® and further strengthened the company as the authority in jeans wear, for men and women.