Levi's loses market, revenues fall by 35 percent
12 Feb 2014
Levi’s has witnessed a sharp decline in revenues and demand in India last fiscal,the brand seems to be on a downward journey in the country. The company’s revenues witnessed a steep fall of 35 percent at Rs 484 crores after pulling off its mass brand Denizen in India.
“Price rises coupled with low consumer sentiment thus impacted demand in the marketplace resulting in higher inventories. Additional costs had to be incurred on discounting during the end-of-season sale and on consumer promotions to stimulate demand, significantly impacting profitability of the company. Similar trends were observed across all key listed apparel brands,” the company has said in a filing with the Registrar of Companies.
Levi's enjoyed leadership status with almost double the size of its nearest rival until last year. In FY12, it had reported sales of Rs 741 crores against Benetton's Rs 430 crores. However, at a time when leading global brands are lining up to enter the lucrative Indian market, Levi’s pulled shutters on many of its stores while also phasing out a few brands like Dockers, Sykes, Signature and Denizen in the country.
The US-based brand has accepted the slow business in the Indian market in its latest annual report. “In Asia, revenues declined due to stiff economic headwinds in key markets of China and India, and the exit of the Denizen brand. We’ll continue to focus on key emerging markets, focusing on getting our business back on track in China and India,” the company said.