Levi Strauss & Co delivered impressive results in the Asian market in the July-September quarter, boasting an 18 percent surge in revenue. This growth was driven significantly by the Levi's brand's performance in India, underscoring India's emergence as an important region of growth opportunities for the company.
This remarkable growth was further complemented by a significant expansion in the company's operating margin in Asia, which saw a notable increase of 330 basis points, reaching 12.3 percent.
Levi Strauss & Co's top executives, President Michelle Gass and Chief Financial and Growth Officer Harmit Singh, underscored the brand's exceptional performance in Asia, with a particular focus on the pivotal markets of India, China, and Japan.
Gass highlighted India's significance as a rapidly growing economy, with over half of its population under the age of 30. He emphasized that India has become one of the company's major growth opportunities, showcasing the success of Levi's regional expansion strategy and the appeal of its denim lifestyle offering.
In India, Levi's has experienced remarkable growth, with a nearly 50 percent increase in revenue compared to pre-pandemic levels. India has now become Levi's sixth-largest country market and the largest in Asia. The growth in India is primarily attributed to the commitment and conviction of Levi's franchise partners in the country.
During the pandemic, Levi's franchisees expanded the brand's presence by doubling the square footage in key malls across India, capitalizing on the long-term potential they see in the market. Gass also noted that Indian consumers view Levi's not just as a denim brand but as a comprehensive lifestyle brand.
Levi's success in India is further driven by a diverse product assortment across tops and bottoms, a strong emphasis on local product capabilities, and global design influence. The company's local collaborations and brand-building efforts, including its partnership with Bollywood superstar Deepika Padukone as a brand ambassador since 2021, have resonated well with the Indian audience.
Harmeet Singh also mentioned Levi's plans to expand its presence in emerging markets with a similar brand-building strategy. In terms of financial performance, Levi's reported robust growth in Asia, with an 18 percent increase in revenue. The company's operating margin in Asia expanded by 330 basis points to 12.3 percent, driven by strong leverage.
Overall, Levi's strategic focus on India and other emerging markets in Asia has proven to be a successful growth strategy, positioning the brand as a top choice among consumers in these regions.
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