By JOHN K. SMITHThe Wall Street “The Big Short” authorJohn K. Smith, an author and columnist forThe Wall St. Journal, has penned an article titled “Why you should stop thinking about Levi’s.”
In the article, Smith states that, “Forget the factory.
The only way to understand Levi’s is to look at it as an opportunity.”
As the factory that makes Levi’s clothing, the clothing, and accessories is located in New Jersey, Smith notes that Levi’s apparel has become synonymous with quality.
“At Levi’s, quality means being able to find the perfect fit for every customer,” Smith states.
“And this is why we’ve seen a number of new Levi’s products go on to become very successful, with brands like Gucci and Gap now competing on a global level.”
In other words, quality is good.
It is an important part of a brand’s success.
However, Smith warns against the way that Levi Strauss and Co. manufactures Levi’s jeans.
According to Smith, the company has “a habit of making cheap, cheap jeans.”
“It is a shame because the brand’s jeans are really great,” he states.
The article goes on to explain how, “Levi’s denim has become so popular that they’re actually the most popular brand on the planet, with more than 1 billion pairs produced each year.”
“The brand’s popularity is an opportunity to make the world’s best jeans for the world,” Smith continues.
“If you’re an American, that means Levi’s can be a brand that you’re going to buy for your life.”
But as Smith writes, “If Levi’s really cares about quality and innovation, it shouldn’t make its jeans cheap.
It should be making the jeans it produces more affordable.”
What can Levi’s do to change the way it manufactures its jeans?
In his article, he notes that, “[Levi] has been making better jeans for many years, but that’s not what has kept its brand from becoming a global phenomenon.”
“For instance, Levi’s denim is actually made from the finest, most durable fabrics, and its new manufacturing facility in New Zealand is an example of what that means,” Smith notes.
“The factory produces the jeans in New Hampshire, and the jeans that are made there are made by Levi Strauss.
If you’re a Levi’s customer, you can be confident that you’ll get the best quality jeans from Levi’s in the world.”
In addition, Smith points out that Levi has also invested in new production facilities in China, Korea, Japan, and India.
These factories, he continues, “are all designed to increase the number of jobs that Levi will be able to produce in the U.S. and elsewhere.”
“This investment will create thousands of new jobs and make Levi’s a global brand,” Smith concludes.
“But don’t let that deter you from shopping for jeans.
If it makes you feel better, take a second look at the jeans.”
Source The Wall St., The Journal of Business & Finance, John K. Smith, ‘Why you shouldn’t stop thinking of Levi’s,’ The Wall Journal, September 24, 2018, https://blogs.wsj.com/investor/2017/09/24/why-you-should-take-a-look-at-levi-s-new-30-billion-factory-in-new.html#.