Global markets can learn from Indian operations’ decisiveness and agility: Michelle Gass

Michelle GassCEO of Levi Strauss & Co, he said denim manufacturer‘s global operations It should follow the example of Indian companies in terms of maintaining speed, agility and execution of its operations. retail strategy In a marketcrucial to achieving its annual revenue target of $10 billion, up from $6 billion currently.

“Speed, decisiveness, agility, risk-taking and decision-making are things that India has mastered very well. Every market has its own local product engine, but the biggest opportunity is to operate as this agile, fast-paced retailer, and taking this culture of the Indian team and taking it across the company is a huge opportunity,” Gass told ET in an interview, adding that the Indian team is one of the strongest he has globally.

“This is one of the most dynamic and exciting markets I’ve ever been in, and there’s a lot of movement. We’ve had strength in the market for some time, but they’re constantly challenging themselves to be better and evolve, and that’s what’s accelerating our growth here,” he said.

Gass, a former Starbucks and Kohl’s executive, joined Levi’s last year and took over from veteran CEO Chip Bergh earlier this year.

The overall growth rate of retail sales in India across segments such as apparel, footwear and quick service restaurants (QSR) decelerated to 4-7% YoY each month in FY24, reflecting comparatively weaker consumer sentiment.

As the most populous nation in the world, India is an attractive market for clothing brandsespecially as young people increasingly embrace Western-style clothing. But the market is also becoming saturated, with most global rivals, from Zara and H&M to Uniqlo and Gap, setting up shop in the country. “There is competition everywhere in the world, and we have had competition in the past as well. As a retailer, it’s all about execution and we don’t need a new strategy. We have the right formula in India in terms of our approach to the consumer, our approach to the brand, our product assortment and everything that goes in there. We are creating more separation and differentiation in the market,” said Gass, 56, sporting all-Levi’s products — a blue denim skirt paired with a black Made in India blouse. “If you think about it, it’s very important for people to feel comfortable in the clothes.” consumer market“Just the number of consumers who are here who fit our target? They are young, they are optimistic, they are smart.” The company posted a 54% year-on-year rise in net sales in India to ₹1,781 crore in FY23, as per the latest available filing. However, unlike rivals that report retail sales, Levi’s revenue is not comparable because sales are booked at wholesale prices to franchise partners.

Levi’s, known for its 501 jeans, said it is investing in India to increase its leadership position in the jeans segment and strengthen its partnership with franchisees. It did not elaborate on the investment plan.

Over the past decade, it has consolidated its franchise network in India from more than 80 to two dozen.

“India is growing at double-digit rates consistently. Consumers in India are young, they are also fashion-forward and influenced by what is happening in the West, and as the economy grows, there is no reason why India should not grow. India was ranked 10th not long ago and is now ranked 6th. So it will continue to grow over time,” said Harmit Singh, Chief Financial Officer and Global Growth Officer, Levi Strauss.