Flavia Ana M. Guez
International American University
MKT 500: Marketing Management
Prof. Dr. Janice M. Spangenburg
May 07, 2015
The Global Blue Jeans Market
The global blue jeans market is a complex market attracting customers through products that offer better fit, superior style, durable quality, and most of the times an affordable or reasonable price tag. Moreover, the implication of lifestyle factors and fashion trends along with celebrity spokespeople in the marketing strategies of blue jeans prove to be a success every time and contribute significantly to market growth.
The blue jeans market is a very diversified and quite fragmented industry with an impressive number of companies targeting a myriad of consumers, weather they are mainstream or niche.
The blue jeans market incorporates a concentration of players, both large and small, and the competition is without doubt fierce.
According to the euromonitor.com, Levi Strauss is on the first position in the top of blue jeans brands. Close to a tie, the first runner up is VF Corp.
Leader and Runner-up
Both VF Corp and Levi Strauss maintain leading positions with a current value share of 12% each. Nevertheless, in 2014, Levi Strauss recorded a 7% value decline while VF Corp maintained a static value growth. Apparently, there is an unfavorable trend in jeans sales especially in the women`s wear category. Therefore, many of the blue jeans marketers have been affected by this decline in sales.
Divide and conquer When it comes to market segmentation in the blue jeans industry, we are facing three major segments: men`s wear, woman`s wear and children`s wear. In addition to this, the most important sub-segments are premium, luxury, value and mass. Research shows that the largest segment for jeans is the mass market and that the industry is dominated by women`s wear.
Staying strong During the last few years, many new brands have entered the market, primarily driven by demographic factors. The blue jeans started as functional apparel and developed to the point where denim was a fashion icon and statement. During the baby boomers generation, denim sales were rising and the efforts needed for sales were minimal. Things started to change with Gen X and Gen Y is turning to be a real challenge for the blue jeans marketers. Gen Y people share ever-changing tastes and demand a well-proportioned mix of looks, comfort and price when it comes to apparel purchases. New trends and fashion movements such as the yoga wear or ath-casual style.
Keeping up with the change
For the past years, one of the blue jeans market leaders Levi Strauss has been facing a growth stall. Being a long and successful premium brand backfired on Levis Strauss as they ignored newcomers, low cost rivals and especially major shifts in customer preferences. Levi Strauss missed the rise of house brands and luxury designer jeans. This caused their market share to drop in narrower customer segments.
Levi Strauss is one of the market leaders in denim apparel industry but still, the sharp competition between rivals touches them as well. Some of Levi Strauss` competitors have better strategized marketing and broader