Levi’s Finds D2C Business Provides Greater Consumer Trend Insights

Levi Strauss has found that selling through its own stores gives it greater insights into consumer trends.

The company’s D2C channels also allow it to test new products before making them available to wholesalers and reduce the uncertainty around dealing with wholesale customers like department stores, which have seen slower sales in recent years, the Wall Street Journal (WSJ) reported Monday (April 22).

Levi’s is making progress in its shift to a direct-to-consumer (D2C) model, according to the report. The company, which traditionally sold to wholesalers, raised its D2C revenue to 48% of its total revenue during the quarter ended Feb. 25

The company has also been adding new stores and updating existing ones, the report said. This year, it plans to add another 100 stores. At the same time, it’s investing in its online business and rewards program.

Levi’s said in 2022 that it aimed to have D2C account for more than 55% of its revenue by 2027, the report said.

The D2C business has also outpaced the rest of its business, according to the report. While the company’s overall sales were lower or flat in three of the past four quarters, its D2C business was up 8% in the most recent three-month period.

Levi’s has also made some other changes, the report said. It is investing more in its efforts to spot new trends, reducing the range of products and colors it stocks, and working to cut by half the amount of time it takes to bring new offerings to market.

The company is also working to expand its apparel offerings beyond denim jackets and jeans and to broaden its customer base to include more women and younger people, per the report. Recent product additions include skirts and dresses.

Having its own retail stores helps with these efforts because Levi’s can display its entire range of products and better gauge consumers’ reaction to new offerings, the report said.

One of the highlights of the company’s D2C strategy is the expansion and evolution of its loyalty program. By nurturing a community of loyalty program members, Levi’s has gained access to a wealth of data and insights into customer preferences and behaviors.

The company has also been growing its eCommerce business by double digits by improving search, navigation and filtering capabilities and upgrading its product imagery and videos.