Levi Strauss Europe, Middle East and North Africa

Dirk Van Kemseke GfK Jaarcongres Fashion 2009 April 1 2009

Agenda Levi Strauss EMEA GfK for the Levis & Dockers brand Honesty, or the modern interpretation of Authenticity Cool Green is the New Black

About Levi Strauss & Co

Privately owned company founded in 1853 Designs, manufactures and markets jeans and casual wear under three brands Levis, Dockers, and Levi Strauss Signature 4.5 billion pairs of Levis jeans have been sold in over 110 countries 11,550 Employees Worldwide 3 Divisions:
Americas (LSA) Europe (LSEMA) Asia Pacific and Southern Africa (APD)

Sales in over 110 countries and 55,000 retail outlets Global net revenues fiscal year 2007: $ 4.4 billion Europe: Divisional headquarters in Brussels Europe: 650 Levis stores (The Netehrlands: 15 Levis, 9 Dockers )

The youth of the mid nineties and today may not remember Levis good old days
Lost Generation 1985-1989 1990-1994 1995-1999 2000-2004 2005+

Levis TV Ads

Market

Age Then Age Now

17 37

17 32

17 27

17 22

17 18

Need to continually recruit youth

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Levis gradually puts more focus on Retail Marketing & Digital Marketing

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Levis today

VIDEO BOMB

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Retail is our Future

Retail is our Future Levis Superpremium

FAIRPLAY IN FASHION.

HONEST to YOURSELF The modern interpretation of AUTENTICITY our Brand Values Proposition Our Marketing Campaign

HONEST TO SOCIETY CORPORATE CITIZENSHIP SUSTAINABILITY

Authenticity, nowadays aka as Honesty

Dirk Van Kemseke

Levi Strauss Europe, Middle East & North Africa

AUTHENTICITY

How can an apparel brand turn Authenticity into a USP ? What definition of Authenticity is the most engaging amongst youth ? What modern interpretations of Authenticity (attitudinal) are most relevant and can trigger brand consideration ?

Esthetic Authenticity (old school) vs Attitudional authenticity (modern interpretation)

ESTHETIC authenticity
the oldest (Levi's is the youngest oldest brand in the world) the original the first and genuine ahead of times pioneering fresh ans unusual, novel (at the time) the authority serving to define or outline the classic iconic who invented craftsmanship good quality old-school 100% American signature iconography (leather patch, back pocket arcuate (eagle) stitching, the red tab) heritage / owning a certain look different to other clothing brands naturalness unconventional (off kilter) freedom of fashion, not tyranny of fashion fashion with substance

EMOTIONAL/ATTITUDIONAL authenticity
Integrity Honesty/approachable: it does not pretend to be what its not Straightforward always rooted in truth responsible, accountable business practices (corporate citizenship) Remained true to its roots Revealing your true self (and not worrying about what other people think) Off kilter (unconventional) Being true to yourself attitude, not clothes rejection of status through badging having substance and depth the new cultural currency (opposite to material possessions freedom of thinking challenging the status quo unpretentious rebellious Transgression from the established pushing the limits fearless provocative courage having a point of view

Regarding honesty...

People increasingly see the world in terms of real & fake and want to buy something real from someone genuine, not a fake from some phony

InSites Consulting

Source: AUTHENTICITY: WHAT CONSUMERS REALLY WANT ( James H. Gilmore/B. Joseph Pine II)

RESULTS - InSites Consulting ForwaR&D Lab Project - Authenticity

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Levis is

a brand that does not pretend to be what it is not (honest to itself) a brand that is transgressor and a rebel because it believes that everybody has freedom to express their own individuality / creativity without being judged by the others a brand which focuses on an attitude, more than just on the clothes a brand that rejects status and badging (substance and depth), a brand of which wearers say that doing your own thing (and not worrying about what other people think) is really important (true to oneself) a brand that doesnt take itself too serious

What about competition ?

Reply, G-Star and Diesel are fashion transgressors and fashion rebellious too. However, Their values are more superficial and their main concern is to look cool in front of others without having a true personality. Social success is very important to them and also what the others will think about them.

The Live Unbuttoned personal truth

This is the confidence and courage to be yourself and to express yourself privately and publicly.

THE CAMPAIGN IDEA: LIVE UNBUTTONED What it really means!

To live unbuttoned is to be completely yourself. To live unbuttoned is to be uninhibited, unrestrained, unembarrassed. Its about throwing off the restraints of convention and doing what comes naturally. Following your heart. Telling people what you really think. Opening up and letting it all out. Its about freedom.

DEMONSTRATE REVELATION THROUGH LOCAL HEROES INVITE THE AUDIENCE TO DO THE SAME LEVERAGE SOCIAL CONNECTIONS TO DRIVE HONESTY

The interview launches. The hero answers to 5 questions. He reveals himself.

Live Unbuttoned Audiovisual Campaign

Movie

Cool Green is the New Black

Dirk Van Kemseke

Levi Strauss Europe, Middle East & North Africa

Our sustainability vision is big, broad and aspirational and it is tightly linked to our business objectives (best ROI, innovation) and brand positioning, being the Authentic brand We need to leverage brand honesty an emerging platform for brand engagement

John Anderson, CEO Levi Strauss & Co

HONEST BRANDS How should they be?

When talking about honest brands we again detect a broad spectrum Upfront HONEST BRANDS ARE BRANDS THAT DO NOT LIE However, honesty is more than that In the older age groups honesty is also closely linked to CORPORATE SOCIAL RESPONSIBILITY To them honesty is also
No child labor No animal tests Being ecologically responsible Being involved in charity Admitting mistakes and talking about them

Ik baseer me op het feit dat er iets voor een goed doel wordt gedaan

Being honest as a brand is perceived as a hard job since you need to be consistent in everything you do

InSites Consulting

RESULTS - InSites Consulting ForwaR&D Lab Project - Authenticity

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In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to address the HIV/AIDS epidemic, and has since contributed more than $37 million to HIV/AIDS services organizations in more than 40 countries

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What did we do already ? Consumer Feedback on eco intiatives

Noticed and talked about across a range of blogs (fashion, trend/design, magazines)but either very factual or not commented upon very positively WHY? It is seen as 'normal' for Levi's: a mega-brand's obligation and responsibility ? Done a step too late vs. competitors ? Too basic an initiative: standard organic product without a strong style cues or a motivating story Done too seriously/earnestly, not adapting the approach to the world of fashion ? Levi's current eco strategy does not appear to have the desired cut through or positive halo affect to date. Worth revisiting the strategy to build a more coherent and engaging programme across the mix

Did you know 80% of the energy needed to wash your clothes is used while heating the water ?

The Mnster eco-store

A thirty-five percent (35%) lower energy consumption was achieved compared with a regular Levis store.
Lighting: The biggest retail innovation for us comes from the lighting design .
Motion sensors in the changing rooms dim the lights when no one is present thereby saving energy. Motion sensors in the store dim the ambient lighting in areas where no one is present

Entrance door: Two (2) pairs of automatic sliding double doors were installed as a solution to leaving the doors open to attract consumers. It replaces an energy intensive and inefficient air curtain generally used to keep the temperature of the interior of the store separate from the exterior. Flooring in Changing Rooms Area: Cork flooring is used, which is a natural material that does not require the destruction of trees. The cork is lacquered with water-based lacquer. Windows in non-reflective double glass: Non-reflective glass allows a higher percentage of natural light to enter the store, thereby allowing the use of spots of a lower wattage in the windows. Doubleglazing is effective for saving energy. Faade: No aluminum was used in the store. The faade is in wood, painted in black. Painting / Hangers / Consumer carrier Bag

When & How to increase the impact ? Cool Green is the New Black
Responsibility & sustainability has reached mass consciousness, but there is still a disconnect between corporate efforts a widespread shift in consumer behaviour
Historically because the trade-offs for consuming green products (price, style, taste, convenience etc.) are generally too big Deeper Luxury: the Opportunity to be Aspirational

This will change as consumers start to feel the impact of ignorance, ambivalence and denial. Eg. water scarcity in Spain & France, tornadoes, bug infestations, extreme weather variances caused by global warming
A 2008 MLC study states that 84% have changed their consumption behaviour at least a little bit, 92% claim green issues influences their day to day purchase decisions, but only 16% actively seek out environmentally friendly goods

As more & more businesses strive to exploit green opportunities in their categories, consumer cynicism is high
Over 70% believe companies leverage green positioning either to improve public opinions (36%) or simply to sell more (35%) High degrees of scepticism and low levels of trust imply that retailers' strategies lack sincerity and credibility, which needs to be overcome by greater consistency, thoroughness and rigour in devising and applying strategies for change

The luxury brand power to influence consumers

The Opportunity to be aspirational Luxury brands have the power to influence consumer aspiration and behaviour by editing consumer choices through product design, distribution and marketing.. They have both the opportunity and the responsibility to promote sustainable consumption. The New Luxury Consumer Many luxury consumers are part of an affluent, global lite that is increasingly well educated and concerned about social and environmental issues. These consumers use luxury products as a symbol of success. The definition of success and the way it is perceived by others is changing. The Democratisation of luxury Luxury brands have become more accessible, making it harder to appeal to consumers on the grounds of exclusivity. Instead, their added value for consumers could be derived from superior environmental and social performance, expressed through deeper brand values and more sustainable business practices.

Our Vision
We

will build sustainability into everything we do, so that our profitable growth helps restore the environment.

We now have a global framework Each region will include sustainability in their SBP planning for FY 09-11. We will reduce the amount of packaging on every garment which will save money and reduce waste We will reduce air travel, which will lessen our carbon footprint (and do videoconferencing) We will change all care labels to read wash in cold instead of warm water, which will help consumers reduce the energy and climate impacts associated with the use and care of our products. Green Week Dedicated Sustainability intranet site

Ik wil dat mijn klanten onze T-shirts pas kopen als hun oude helemaal versleten zijn (Gorik Dirix, leluja )

The LS&CO. Way

Levi Strauss Europe, Middle East and North Africa

Dirk Van Kemseke GfK Jaarcongres Fashion 2008 - 26 november 2008