Levi's bets on premium amidst asia slowdown

The denim maker leans on heritage and premiumisation to win cautious East Asia Pacific shoppers.

Levi Strauss & Co. is betting on premiumisation and brand heritage to sustain growth across East Asia Pacific, even as macroeconomic pressure makes shoppers more careful with discretionary spending.

The region has become both the company's fastest testing ground and one of its toughest proving points. "EAP is one of the most exciting places in the world to learn from and to build from," said Vicky Skelton, Managing Director for East Asia Pacific at Levi Strauss & Co., pointing to expanding middle classes and brand-conscious consumers.

That confidence is backed by results, with net revenues in Asia up 12% in the second quarter on double-digit growth across direct-to-consumer and wholesale.

But the momentum comes with caution. Skelton acknowledged that consumers are growing more prudent, yet argued the climate favours trusted names. "In periods of uncertainty, people, consumers, also tend to gravitate to the brands that they know, they trust, and they believe will deliver lasting value," she said, noting Levi’s 170 years of heritage and credibility. She framed the pressure plainly: "the biggest challenge that we have is also our biggest opportunity."

Central to the strategy is premiumisation, which Skelton insists is broader than pricing. "It's not simply about price; it's about raising and elevating the overall standard of the Levi's experience," she said. Japan anchors that push as "our north star when it comes to premiumisation," led by Blue Tab and Levi's Vintage Clothing.

Women's wear is another runway, having grown 11% in the second quarter, alongside a shift towards head-to-toe lifestyle categories such as outerwear and accessories.

For value-conscious shoppers, Skelton drew a firm line: "Value doesn't mean cheap; it means worth it."