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American denim giant Levi Strauss & Co is unwinding its aggressive India retail expansion, shuttering unviable stores and axing some jobs, as part of a restructuring plan to boost profits. Levi's, Reebok and Benetton have been the most ambitious foreign fashion brands, placing big bets on the India growth story.
The fully-owned Indian subsidiary of the San Francisco-based company is closing down the flagship large stores Levi's Square — located on some of India's busiest shopping streets — and halting expansion of the low-cost jeans brand Denizen, said multiple sources familiar with the development.
In the past decade, Levi's built a distribution strategy resembling an FMCG model — with multiple brands pushing market penetration, including EMI schemes for an expensive pair of jeans — fuelling a hunt for more retailing space. The low-cost brand Denizen buoyed the expansion plans as the denim major made a big push into emerging markets like India, China, Brazil and Russia.
SOURCE:http://timesofindia.indiatimes.com/business/india-business/Levis-scales-down-after-India-retail-rush/articleshow/16305803.cms
The fully-owned Indian subsidiary of the San Francisco-based company is closing down the flagship large stores Levi's Square — located on some of India's busiest shopping streets — and halting expansion of the low-cost jeans brand Denizen, said multiple sources familiar with the development.
In the past decade, Levi's built a distribution strategy resembling an FMCG model — with multiple brands pushing market penetration, including EMI schemes for an expensive pair of jeans — fuelling a hunt for more retailing space. The low-cost brand Denizen buoyed the expansion plans as the denim major made a big push into emerging markets like India, China, Brazil and Russia.
SOURCE:http://timesofindia.indiatimes.com/business/india-business/Levis-scales-down-after-India-retail-rush/articleshow/16305803.cms