Sarah Duxbury
San Francisco Business Times
Now that $200 jeans seem as commonplace as $5 lattes, Levi's, the granddaddy of denim, is changing its lineup.
Two new lines, Capital E and Levi's Red, will hit shelves next spring, furthering the company's representation at all price levels. Previously, Levi's had two offerings: traditional Red Tab, which sold for $40 and up, and premium denim, which sold for $110 to $180.
Come 2006, the premium category will be replaced by Capital E, a super-premium line which starts at $140 for a pair of jeans and climbs as high as $350. Some of the most popular premium fits will be incorporated in the new line, but Capital E will involve luxury details like turquoise on the buttons and extensive hand-finishing. It will take 15 people to make one pair of Capital E jeans, an added cost reflected by the high sticker price.
Amy Gemellaro, a company spokeswoman, said that the move to ultra-premium is Levi's way of staying at the forefront of the denim world. Capital E will retail in high-end department stores like Neiman Marcus and Barney's, as well as some trend-setting boutiques.
But the company will not forget the upper-middle. Next week it will announce the introduction of Levi's Red, which will sell in better department stores like Nordstrom and Bloomingdale's for $50 to $80.
The more populist Red Tab line, long Levi's bread and butter, remains the biggest part of the company's business and will continue as before. Many elements introduced in premium lines eventually find their way to Red Tab products.
"We talk about being the inventor of the (denim) category, and this is about having the best range out there," Gemellaro said, noting that Levi's products will now range from $40 to $500 for vintage reproductions. "The idea is to make sure we deliver across all categories of denim."
Through a separate division, Levi Strauss & Co. also sells a discount Signature brand at mass retailers like Wal-Mart.
Levi Strauss & Co. has reported four consecutive quarters with increased income, signaling that denim's originator retains relevance. For the third quarter ended Aug. 28, Levi Strauss & Co. reported both sales and revenue growth, in part driven by the success of the Levi's brand in the United States.
"We want to make sure we reach all customers," Gemellaro said of the Levi's brand's new three-tiered strategy, adding that the two new lines will hopefully raise both revenue and Levi's profile in the marketplace.
That is just plain profligate to spend that much on a pair of jeans. I guess, however, if there is a buyer, there will always be a someone to manufacture it.
ReplyDeleteMy other thought is, are these jeans made in the USA? For that price they had better be. ;)
I don't think Levi's does any jeans in the US anymore. They held up a lot better back when they were made here. Now they're almost tissue-like. The last few I've bought at Wal-Mart because the Red Tabs aren't much better than the cheaper Signature.
ReplyDeleteI never understood the appeal of overpriced jeans. I've tried them out of curiousity before (nothing that expensive thankfully), and a lot of them look pretty good, but $350 is way too much for jeans, period.
I've only started buying my kids brand new jeans from the store. What store? Walmart of course. Before that, we'd go to a thrift store and buy some. If they were going to wear out the knees in their jeans in a month...I'd rather they do it in a pair of $5 dollar jeans from the thrift store than a pair of 10-20 dollar pair bought new. Since they no longer wear out their knees...most of their jeans now are brand new...though we still keep our eyes open when we go to the thrift store. One can never have to many "already worn in" jeans. (and funny thing, Walmart and other places now sell "worn out" jeans as a fashion statement.)
ReplyDeleteIt's smart to try to save money when you can on kids clothes. I know as kids my brother and I were hard on our jeans and Mom used to get our Toughskins from the Sears Surplus Store and Wranglers from Blue Bell Factory Outlet in Greensboro.
ReplyDeleteLuckily, patches were in for kids clothes back in the day, so mom would sew patches on our worn out pairs (ar the knees of course LOL) and we would use them for play clothes or days at school when we knew we would be outside.
These days, you can get decent pairs of kids jeans even at places like Dollar General for $5-10, along with Wal-Mart and the thrift store.
I totally don't understand the parents who'll put literally hundreds of dollars into "designer" clothes for their kids. My cousin has an infant she dresses in Tommy Hilfiger, Roca Wear, and Air Jordans. The little baby doesn't care what she has on, and the clothes are way too high for a family at that income level (Mommy works at KFC)...the ugliness of marketing rears its head once again, I guess.