Berlin, Aug 22 (DPA) Levi Strauss' 501 jeans, the self-appointed original blue jean, robust and indestructible, became the epitome of the denim trend that started more than 40 years ago. But the western look of the American cowboy is passe. The blue jean market, once the strongest revenue-producing segments of the fashion industry, has been transformed.
Small labels are pushing into the shops, giving jeans a touch of luxury and uniqueness -- fresh, unconventional and cool.
In order to keep pace, the established brands grouped around Levis need a new strategy.
It's been a long time since Levi's jeans commercials held a cult status around the world. A glimpse of the tanned muscular stomach of a guy in the laundromat, the slow unbuttoning of a fly on 501 jeans -- blue jean advertisements once were miniature works of art sensually filmed by Hollywood directors. But now the veteran brands Levi Strauss, Wrangler and Lee appear to have lost their sex appeal.
The companies are noticing it in their profits. Levi Strauss recorded a loss of $4 million in the second quarter of the business year. Revenue is sinking dramatically. At the beginning of the year earnings already had slipped by half. Wrangler and Lee, which belong to the US apparel company VF Corporation, saw revenue sink in the second quarter.
The jeans market desperately needs a 'dose of excitement', said analyst Katrin Magnussen of the US market research institute Mintel. Particularly in an economic crisis, customers need an incentive.
'This currently is being created either by designer jeans or by inexpensive jeans available at warehouse-style stores,' Magnussen said. Brands like Levi's, Wrangler, Lee and Diesel occupy the middle of the market and therefore lose out.
'They have to create more excitement over their brands,' Magnussen said. They can either start making cheaper products, which risks devaluing their names, or start selling premium products, which could mean they lose their core customers.
'The big brands are tired,' said Patrick Kuhnert of Fourteen Ounce, an affiliate of a Berlin fashion trade show organiser. 'Diesel, Reply and Levi's are having problems with their standing,' he said.
Trend-setters currently aren't buying 501 jeans.