Levi Strauss & Co. has been working towards expanding its direct-to-consumer (DTC) channel and increasing its e-commerce sales. The company’s goal is to have DTC account for 55% of total revenue and triple its e-commerce sales 2027. In the first half of 2023, DTC accounted for a record-breaking 44% of Levi’s total sales. The growth in DTC is mainly attributed to the increase in e-commerce sales, as well as full-price and outlet stores.
To further grow the segment, Levi’s recently appointed Jason Gowans as its first Chief Digital Officer. Gowans, who joined the company from Nordstrom, is responsible for spearheading digital efforts for both e-commerce and digital go-to-market. In an interview, Gowans discussed his strategy for getting more consumers to think of Levi’s for online and in-app shopping.
The first focus is on the fundamentals of being an excellent online retailer. This includes improving the discovery experience, evaluating and buying products, and ensuring efficient fulfillment. The second opportunity is to evolve the assortment improving the in-stock experience, expanding the choice count and selection for customers, and offering differentiation. The third opportunity is to create a digital flagship experience amplifying the mobile traffic, leveraging the loyalty program, and encouraging omnichannel shopping.
Levi’s has taken steps towards achieving these goals. For the fundamentals, they have introduced new size and fit guides, denim education guides, and stylist videos on product detail pages. They are also working on expanding beyond denim into other categories like tops, outerwear, and non-denim bottoms. The company aims to provide product recommendations for outfits and help customers style their items.
As for the metaverse, Levi’s is open to exploring it if it enhances the consumer experience. Their current focus, however, is on strengthening the fundamentals and becoming the best omnichannel retailer.
– “Levi’s Chief Digital Officer on amplifying the brand’s omnichannel, in-app experiences” – Modern Retail
– “Levi Strauss Reports Second Quarter 2023 Results” – Levi Strauss & Co.