Dear readers,

This is Ofir speaking.

Here is an advertising I have recently seen on my Facebook Wall :

" Levi’s suggested Publication
Exclusive offer on http://www.levi.com : 30% off and FREE shipping using this coupon code FF2013.
Enjoy and share with your friends! "

With the significant increase in e-commerce, a big company like Levi’s must regularly launch offers online through all kind of web advertising such as Facebook and Google ads.

Cheers,

Ofir

Sources : https://www.facebook.com/                                                        http://www.levi.com/

Dear readers,

This is Nicolas speaking.

In order to continue and finish the macro-environment analysis, started by Evariste with the PESTEL model, we will today, focus on the Porter’s model, and discover what are the forces that put the Denim industry under pressure.

• The threat of new entrants: Strong

In our opinion, the potential entry of new competitors, able to disrupt the market, is possible and can be seen as a strong pressure on the denim industry. Indeed, today the entry barriers seem lower and lower. New competitors won’t need either large and expensive production facilities or a strong distribution channel. As a matter of fact, new entrants are designing and producing their jeans directly in cooperation with their suppliers and they are selling them directly on the Internet. Thanks to this method, these new competitors are saving a lot of time and money, and are able to respond even faster to the customers’ changing demand. To better understand this point, an example is available here: http://www.businessweek.com/videos/2013-10-14/disrupting-the-denim-industry-20-at-a-time

• The threat of substitute products:  Medium

If we can’t deny that jeans remain very popular and are still very present in our wardrobes, it seems however, that the denim industry, has met for the last two years a slight slowdown, which hasn’t happened since the end the 90’s. Indeed, as precised by “les Echos”, the 455 millions pairs of jeans sold in Europe in 2012 represent a decrease 7,3% in volume but only 2,6% in value.
The reasons of this slowdown are various, but one of them is probably the increasing sales of trousers and leggings, considered as substitute products. The launch of printed denim could also be seen as a substitute product as it looks like more to a trousers than a blue jeans.

• The bargaining power of consumers: Strong

A popular well-know adage says, “The customer is king”. We can say that this adage is still very respected in the Denim industry, which leads us to think that the bargaining power of consumers is high. To make long story short, it is the responsibility of the companies to adapt to the customers’ demand and not to the customers to adapt to the companies’ offers. The example of Levis’ is extremely accurate to illustrate this point: strongly desired in the 1980’s and the beginning of 1990’s, Levi’s saw its sales decrease sharply namely because the products didn’t fit the customers’ expectations anymore.
Hence, with very low swapping costs (it doesn’t cost a dime to the customer to change from one brand to another), extremely standardized products (all the pairs of jeans are pretty much the same), and a large usage of the Internet to get information and to compare prices, we can say that the bargaining power of customers is reinforced.

However, it is important to mention that, due to the large number of customers and the lack of concentration of them, their impact on the industry is a bit tempered.

• The bargaining power of suppliers: Medium

At first sight, namely due to the cotton price increase, we could have thought that the bargaining power of suppliers was high, and so they could put a strong pressure on the industry. However, when a take a closer look, we can observe that today, the suppliers are dispersed, which make them weaker than before.
Indeed, the monopoly of Chinese suppliers is coming to end, and more and more denim companies are relying on “emerging” suppliers from Bangladesh, Vietnam, Pakistan, or Turkey. In the clothing industry, H&M has even decided to open its supply channel to Ethiopian suppliers, as it seems that the cost of production in Ethiopia is half the one in China. Thus, other companies of the Denim industry could follow this new orientation in the next few years.

• Legal constraints: Light

As already explained by Evariste in the previous article, the European Union Regulation of 18 December 2006, named “REACH” for Registration, Evaluation, Authorization and Restriction of Chemicals imposed to reduce drastically in every industry the use of chemical substances in order to protect both human health and the environment.

Beside this constraint, the legal impact on the industry remains pretty light.

As a conclusion, we hope this article gave you a better understanding of the Denim Industry macro environment and the different forces that are putting pressure on it.

Stay tuned for our next article, that will deal with Levi’s’ and Diesel brand values.

Cheers,

Nicolas

Sources:

http://www.xerfi.com/Etudes_sectorielles_non_imprimablesE/secteur700doc/pdf/2XDIS01-mytKYphE.pdf

http://www.denimsandjeans.com/denim-trends/printed-denim-trend-spring-summer-2012-2013/

http://www.businessweek.com/videos/2013-10-14/disrupting-the-denim-industry-20-at-a-time

http://www.lemonde.fr/economie/article/2013/08/20/l-asie-devient-trop-chere-pour-h-m-qui-se-tourne-vers-l-afrique_3463584_3234.html

http://en.wikipedia.org/wiki/Registration,_Evaluation,_Authorisation_and_Restriction_of_Chemicals

http://www.lesechos.fr/21/05/2013/lesechos.fr/0202776569717_les-ventes-de-jeans-reculent–une-premiere-en-dix-ans.htm

Dear Readers,

This is Evariste speaking.

I hope your are all fine in spite of this cold winter that is just really beginning !

Today, I am going to talk about this mysterious hashtag – #TRIBUTE – that made an appearance on Instagram the october 31st, 2013.

What does it mean ?

Shot and touched up with an iPhone

http://dieselreboot.tumblr.com/

Nicolas Formichetti, ex artistic adviser of Lady Gaga and current artistic director of Diesel, is launching his new collection, called Tribute. He bets on social networks to spread this news:

"I’m thinking to myself, how can I show this off in a new way? Well, maybe I can do something purely online. I want to get straight to the Diesel consumer; I want to be experimental", Nicolas Formichetti, artistic director, Diesel.

 

Diesel wants to change the way fashion brands communicate, they want to create a relationship management, speaking directly to the customer through the social media. The photos of the new collection Tribute have been taken and touched up thanks to iPhone apps: Glitch and Megaphoto. Hyper connected people definitely are the new target of Diesel.

Cheers,

Evariste.

Sources:
- http://www.darkplanneur.com/luxe/diesel-reboot-la-com-de-luxe
- http://www.docnews.fr/actualites/marque,diesel-tribute-par-ultranoir,30,19048.html

Dear readers,

This is Nicolas speaking.

Today, I wanted to talked to you about a particular event that is happening right now in the Levi’s’ flagship Store in Paris Champs-Elysées.
From the 21st of November to the 28th of December, the graphic designer Cléa Lala, rising name in the fashion industry for her embroideries creations, will collaborate with the Denim giant, in order to offer to Levi’s’ clients a special customization of their outfit.

Indeed, the clients will be able, for free, to come and buy an item in the Levi’s Store from the Champs-Elysées and customize it with a special embroidery. 

This collaboration can be seen as a co-branding, as in that case, each part benefits from the expertise of one another. If, of course, the young designer will benefit from the great visibility of Levi’s to increase her awareness, the latter will be able to offer customize, unique and tailor-made products to its clients. This will also be the occasion for Levi’s to reinforce its brand image among young trendsetters.
So if you want to wear an exclusive Levi’s outfit, go to the Champs-Elysées Levi’s flagship Store and get your own embroidery!!

Cheers,

Nicolas.

Sources:
http://www.meltyfashion.fr/clea-lala-x-levi-s-les-pieces-denim-personnalisees-en-edition-limitee-a229208.html
http://www.levi.com/FR/fr_FR/champs-elysees

Dear readers,

This is Alexia speaking.

Today, I would like to speak about Levi’s and its new Skateboarding Collection launched in August 2013. This new collection has been thinking for skaters. Levi’s decided to create superior quality and more confortable clothes, while keeping the brand codes.

I invit you to visit their trendy tumblr site http://levis-skateboarding.tumblr.com/ or check out this video presenting the new Levi’s collection https://www.youtube.com/watch?v=kcsd0FVHn54.

In order to promote its new collection, Levi’s went into partnership with the famous skater brand FTC and they organized in San Francisco the skate contest « For the Cash 3 ». The event was a success.

I let you enjoy the video of the event:

For Levis, it was an effective and brilliant way to promote the brand and its new Skateboarding Collection. Indeed, many skaters went to the show, and above all many pictures and video was relayed on social networks.

Cheers,

Alexia

Sources :

http://skateboarding.transworld.net/1000185902/web-videos/levis-x-ftc-cash-3/

http://www.grindtv.com/action-sports/skate/post/jack-fardell-wins-the-ftc-for-the-cash-3-contest-in-san-francisco/

http://www.levi.com/FR/fr_FR/collections-home/men/skateboarding

https://www.facebook.com/Levis?fref=ts

Dear Readers,

This is Ofir speaking.

Diesel and EDUN, a fairtrade clothing label in Africa, launched their collaboration in February 2013 with a 100% African range of Jeans and clothes.

Inspired by African creativity, the collection was not only designed entirely from raw materials from the African continent, but was also entirely produced in Africa, from the finest cotton in Uganda.

Renzo Rosso, founder of Diesel, said : "We have combined the skills of EDUN about trade in Africa, with our expertise and our influence to create something that has never been done before: a denim materials from African soil, made ​​entirely on the continent and distributed worldwide. Beyond this, the project is also an opportunity for us to show consumers and industry, it is in fact possible to exploit, produce and develop a sustainable business in Africa. "

This co-branding project can also be seen as a communicative strategy from Diesel to show all over the world that Diesel is a "sustainable brand" !

Cheers,

Ofir

Sources :http://www.diesel.com/diesel+edun/                      http://www.fashizblack.com/mode/news/diesel-edun-presentent-le-studio-africa/   http://www.puretrend.com/rubrique/actualites_r11/bono-s-associe-a-diesel-pour-une-collaboration-exceptionnelle-et-ecologique_a73660/1

Dear readers,

This is Alexia speaking.

Today, I’m going to talk about Levi’s and its partnership with Grazia for the launch of the Levi’s Revel® jeans.

At the end of October, Levi’s organized in 6 of its Parisian stores a special event with the Grazia magazine. The two brands offered a unique experience to consumers. By trying a Levi’s Revel® jean, women could enjoy a coaching session with a Grazia stylist. They enjoyed a total relooking session: new clothes, new make up, new hairstyle… Then a professional photographer photographed them.

Moreover, consumers who tried a Revel® jean had a chance to participate to the Grazia loterie. The first three winners selected by the Grazia-Levi’s jury won a professional shooting, and the publication of their portraits in Grazia magazine.

To go further, Levi’s decided to carry on this launch campaign: each Friday, in each Levi’s store, the first twenty Levi’s Revel® buyers will win a Grazia subscription.

But, what are these new Levi’s jeans?!

After years of development and tests, Levi’s launched a new inventive collection based on a patented technology. Levi’s used an innovative liquid shaping technology that controls the elasticity of denim. In this way, the Revel® jeans are adapted to each morphology and refine and lengthen women body. Many cuts and washed-out colors are available.

Check out this video of Levi’s Revel® jeans:

And if you want more details about these wonderful jeans, click on: http://www.levi.com/FR/fr_FR/revel

Cheers,

Alexia

Sources :

http://www.levi.com/FR/fr_FR/revel

http://www.grazia.fr/mode/tendances-mode/articles/un-rendez-vous-avec-levis-a-ne-pas-rater-568400

Dear readers,

This is Evariste speaking.

Today, my article will focus on the brand equity of Levi’s and Diesel.

Brand Equity is an idea that emerged in the 1980′s and that was  described and defined
by David Aaker, Vice Chairman of Prophet, in 1991.

The Brand Equity Outline:

Brand Loyalty advantages:
Reduced marketing costs
Trade leverage
Attracting new customers via awareness and reassurance
Time to respond to competitive threats

Brand Awareness advantages:
Anchor to which other associations can be attached
Familiarity which leads to liking
Visibility that helps gain consideration
Signal of substance/commitment

Brand Associations, including Perceived Quality advantages:
Help communicate information
Differentiate/Position
Reason-to-buy
Create positive attitude/feelings
Basis for extensions

Please watch the video to get an insight of what is the brand perception in consumers’ mind:

This video has been realized thanks to a questionnaire drawn up with Surveymonkey.com
Source:

http://www.prophet.com/blog/aakeronbrands/156-what-is-brand-equity-and-why-is-it-valuable

Dear readers,

This is Ofir speaking.

Let’s analyze and compare the advertising strategy of Levi’s and Diesel. Both have launched a lot of advertising campaigns which were usually very original and efficient. Generally speaking, we can notice that Levi’s is pretty conventional but sensual and is focused on its major product (the Jeans) whereas Diesel is totally unconventional and voluntarily provocative.

To better understand these differences let’s take two examples of advertising campaigns of Levis and Diesel.

In 2007, Levi’s launched its advertising campaign called "Dangerous Liaisons" in order to promote its new collection of jeans. It was created by the British advertising agency Bartle Bogle Hegarty (BBH). This 90 second TV advertising represents a couple undressing through the 1870s to 2007.

Here is the advertising you can find on YouTube :

Let’s describe the advertising. A young woman in her apartment is looking out the window. She seems to be waiting for someone or something. The decor and the environment (noise of horses) suggest that we are in the 19 century. A man knocks on the door when the background music starts: "Strange Love" by Little Annie Bandage. The man and the woman remove a layer of clothing that can be analyzed as being garments of the early twentieth century. He wears a khaki shirt and has shorter hair; she is wearing a blonde wig and a pink top. The next strip leads us to the 1960s with the long hair tendency. Then, on the bed, the man symbolizes the 1970s with a punk trend characterized by the colored hair of the young woman. Finally the strip peaked with the new 2007 range. As they reach the point of intimacy we hear police sirens in the background and we see the logo of Levi’s with the expression "From the original".

Through this very original and differentiating advertising, Levi’s wanted to show a balance between the extreme authenticity of its brand and a new style corresponding to each time.

Let’s present a Diesel advertising campaign entitled "Be stupid" launched in 2010. This multi-media campaign is far from being stupid! The identity of the brand is clearly expressed, and we found the very provocative, anti-conformist and sexy image.

In these ads, the agency Anomaly New York highlights the most ludicrous and surprising situations, immortalized by a few sentences such as "Smart May Have the brain, stupid Has the balls". The principle of the campaign is also included in a long spot you can find online.

Here are several pictures of this campaign.

This controversial campaign has also enabled the company to generate a marketing buzz and to create excitement around its brand while presenting the clothing collection. In this way, the jeans are not only a pair of banal jeans but a representation of a unique experience and style of life.

For this campaign, the target group is mostly young people between 15 and 35 years old, open-minded people and those who are willing to take risks in their lives by wearing Diesel clothing. Diesel has designed an advertising that does not discriminate any gender, religion or nationality.

In this advertising, Diesel want young people consider that wearing Diesel , they will be different , they will took risks and they will listen to their heart without worrying about social rules and thinking.

All in all, Diesel and Levi’s have both very original and strategic advertising campaigns with totally different techniques linked to their strategic brand management.

Cheers,

Ofir

Sources : http://publigeekaire.com/2010/01/diesel-be-stupid-des-pubs-pas-si-stupides/

http://laurencevallee.blogspot.fr/2012/10/be-stupid-diesel.html

http://www.youtube.com/watch?v=edR6OwWDQCs

http://theinspirationroom.com/daily/2007/levis-dangerous-liaisons/

Dear readers,

This is Alexia speaking.

Through this article, I’m going to present you in a synthetic way the products of Levi’s and Diesel brands.

Levi’s is a brand with a rich heritage. Levi’s is the pioneer of blue jeans. And these historical values are really present in its currents collections. Thus, you need to know the story of Levi’s products in order to well understand the Levi’s positioning. In this way, let me introduce the story of Levi’s products…

As Ofir said on his first post, Levi’s Strauss & Co launched in 1853, first created resistant trousers for a specific target: gold diggers during the period of the gold rush in the USA.
In 1872, Levi Strauss discovered a new material, which was more flexible but as resistant as before. This material is the denim (because of its origin: Nimes).
And the famous “blue jean” took its final form in 1873 when Levi Strauss and Jacob Davis co-patented the process of putting rivets in pants for strengthen pockets. The famous “blue jean” is born. And then, in 1890 this blue jean is called “501”.

The brand codes evolved too. In 1875, Levi Strauss & Co used orange topstitching threads. And, in 1886 the brand stamped the Two Horses logo on a leather tab.

The 501 jeans evolved year after year, while keeping its brand identity. In 1901, the 501 jeans were launched with a second back pocket. In the same way, in 1920’s, to be more fashionable, the belt loops are created. The 501 jeans started to be more and more popular.

In parallel, in 1909 Levi’s Strauss & Co launched new khaki pants, and coats. In 1912, LS&Co targeted kids by launching a full jumpsuit in denim called “Koveralls”. Then, in 1918, “Freedom-Alls” are created. These products (mix between pants and tunics) are launched for women in order to give them more movement freedom.

In 1928, Levi’s name is patented as a commercial brand, by LS&Co.

In 1934, first Levi’s jeans for women are created, called « Lady Levi’s ». This new product is more feminine and fashionable, while keeping many specific characteristics of the men 501 jeans.
Few years later, Levi’s appended a red tab on the right back pocket, in order to be different from competitors (1936).

In the 50’s, Levi’s jeans became really famous. Indeed, the biggest stars as Gary Cooper, Andy Warhol or Marylin Monroe wore them.
With such a success, LS&Co launched a denim collection for family in 1954, called “denim family”. In this way, denim entered the fashionable and casual universe.

In 1961, jeans cut are adjusted and become thinner. Levi’s launched for young men, a jean with pockets, which is not blue. It was called “white Levi’s” because people do not know how to call a blue jean that is not blue.

In the 60’s, pre-shrunk Levi’s jeans are launched: it is not necessary to soak jeans in hot water anymore! Moreover, in 1964, LS&Co patented the “Sta-Prest” process, which allowed creating permanent folds on pants and shirts. Furthermore, during this decade, hippies’ movement influenced Levi’s clothes: in term of colors, cuts and so on. And new coats, shirts and shorts are created.

Moreover, in 1967 the famous “Batwing” logo is created by Walter Landor & Associates.

Then in 1980-84, LS&Co launched cotton clothes for Olympic games players. And, in 1986, LS&Co introduced the Dockers brand and thus filled a niche in the making market with a hybrid pants (at the intersection of 501 jeans and suit).

Ten year laters, in 1996, the collection « Levi’s® Vintage Clothing » is launched. This limited collection faithfully reproduced the cuts, fabrics and features garments that have marked the history of Levi’s. This collection is now available in the Levi’s Parisian store.

In the 90’s, whereas teenagers show disenchantment for the brand, Levis launched a new collection in 1999 called “Engineered Jeans”, which was a success and allowed Levi’s to “restart”. The same year, the 501 jean is designated as the ‘Best Fashion Item of the 20th century "by Time magazine.

Moreover, in 2002, the « Signature » collection is conceived, in collaboration with Walmart. This collection, which targeting families, is available in retail store.

Levi’s entered in 2006 the organic market with 100% cotton jeans. Indeed, materials are originated from Turkey and are sustainable development oriented (506 and 540 products range).

Then, in 2010, the collection « Levi’s® Curve ID » targeting women, is created. This new process is really innovative and allows jean to fit closely women body.

In 2011, Levis launched a new process of production called “water less consumption”, by which water consumption is reduced by 96%. In this way, many products (13 millions in spring 12 collection) are produced by using this process and it allows to save 172 millions liters of water.
And the same year, Levi’s invented “Commuter” collection for bikers with efficient products.

Finally…In 2013, Levi’s go deeper in the sustainable development way. In fact, the brand created jeans with… garbage! A collection called “Waste Less”. An interesting way of creating clothes…

Moreover, as mentioned in one of my last posts, Levi’s created a new Skateboarding Collection in August 2013. Levi’s decided to create superior quality and more comfortable clothes, while keeping the brand codes.

And last but not least, as I explained in my last post, Levi’s launched few months ago, a new inventive collection called « Revel jeans » based on a patented technology. The brand used an innovative liquid shaping technology that controls the elasticity of denim. In this way, the Revel® jeans are adapted to each morphology and refine and lengthen women body.

In few words, Levi’s is targeting men, women and children. The brand offers a large choice of clothes: pants, coats, underwear, shoes, belts, hats, bags… with a large choice of colors, cuts, materials and so on.

Levi’s has a strong brand identity. It is evolving with fashion trends, while keeping its historical DNA. Indeed, the brand is enjoying a real historical know-how, and consumers can feel it through high-quality of products, and through the brand positioning displayed. Levi’s is an innovative brand, which conveys a sensual and modern image, but keeping a conservative image.

Please check out this video that sums up the historical approach of Levi’s products:

And obviously, I will post a new article about Diesel products, so… stay tuned !

Cheers,

Alexia

Sources:                                                                                                                                       - Images on video:                                                                    http://www.graphemes.com/fr/la-pause-design/le-detail-qui-tue

http://www.la-grande-maroquinerie.fr/marque/levi-s-58.php

http://www.levi.com/FR/fr_FR/women

http://www.modeenfants.fr/2009/08/levis-kidswear.html

http://mag.ceza.me/fashion/jeans-bio-levis-fashion-ecolo-206/

http://www.ohmyrobes.com/levis-curve-id-le-jean-de-la-discorde/

http://www.coloribus.com/adsarchive/prints/levis-engineered-jeans-boy-in-front-couple-shot-3094005/

http://www.levi.com/FR/fr_FR/about/history-heritage

http://stylecaster.com/10-moments-in-history-denim/

http://ilmondosottosopra.altervista.org/tutto-il-rosa-di-un-denim/

http://www.tendances-de-mode.com/2009/04/01/1283-levi-s

http://supertalk.superfuture.com/index.php/topic/54375-iconic-denim-photos/page-10#entry1842740

- Article :                                                                 http://www.levi.com/FR/fr_FR/about/history-heritage

http://fr.wikipedia.org/wiki/Levi_Strauss_%26_Co.

http://www.glamourparis.com/mode/les-marques-cool/articles/levis-le-jeans-de-toutes-les-generations-a-l-histoire-legendaire-1/9008

http://www.puretrend.com/marque/levi-s_b1426

http://www.levi.com/FR/fr_FR/

http://www.lexpress.fr/styles/mode/le-jean-501-de-levi-s-fete-ses-140-ans_1260547.html

http://www.youtube.com/user/levis

Dear readers,

This is Ofir speaking.

After analyzing the advertising strategy of Levis and Diesel in my previous article which is one of the major traditional media, let’s focus today on other forms of communication made by the two brands.

Both Levi’s and Diesel have launched several events to promote their respective brands. For instance, in 1973, Levi’s launched the Levi’s ® Denim Art Contest and invited consumers to send photos of their jeans and jackets decorated. A jury met to award the prize. In 1975, the winners were touring American folk art museums. This example of event is a significant non-media communication in order to involve customers and reinforce brand awareness.

As for Diesel, every year in Milan and Berlin, a facade located in a public space is offered for the creativity of the contest winner of the "Diesel Wall Award". Through this operation, Diesel installs contemporary art in the street and allows young artists to exhibit on a very large support. This event is a strategic non-media communication which aims to show the customers that Diesel is "more than a business" and it is a human company that helps people to become artists.

To promote their brands, Levi’s and Diesel have also launched several street marketing operations. In 2011, Levi’s deployed through the Red agency a promotional event around its Levi’s Curve ID range. During April 2011, women of seven cities in France could take part in an animation of street marketing called "safari fit" : they were invited to take their measurements in a special cabin. Then, they could go to the store to try the Levi’s Curve ID adapted to their morphology. A fashion designer issued them a sketch of their new silhouette. This was the second collaboration of the brand with the Red agency, after the inauguration in 2009 of the Woman Levi’s Store of Paris.

As a part of its campaign "Be Stupid" (I already present the advertising campaign in my previous article), Diesel launched a very original street marketing operation in Geneva and Zurich. Large blocks of ice formed "Be Stupid" and enclosed jeans and other clothing. A sign stated that people who managed to break the ice and bring the product to the Diesel store could exchange it against a real one ! Here is the video of the operation you can find on YouTube :

These events of Diesel and Levi’s are just examples of the large number of non-media communication operations they launched every year all over the world and are a part of their strategic brand management.

Cheers,

Ofir

Sources : http://www.levi.com/FR/fr_FR/about/history-heritage

http://www.marketing-alternatif.com/2006/07/05/diesel-wall-award/

http://www.strategies.fr/actualites/marques/160671W/levi-s-lance-une-operation-de-street-marketing-avec-rouge.html

http://vincentmorin.blogspot.fr/2010/04/blocs-de-glace-diesel-be-stupid.html

http://www.youtube.com/watch?v=4SbKY_Ml2G4

Dear Readers,

This is Alexia speaking.

In my last post, I presented you the story of Levi’s products. Now, I’m going to talk about Diesel products.

Diesel is an Italian brand launched in 1978 by Renzo Rosso. At the beginning, the brand sold casual clothes for men and women, more especially jeans. In 1982, Diesel changed its logo: a Mohican head with the tag “Only the Brave”. This logo gave to the brand a rebellious image.

The brand is the first one to launch a new jean concept: the « used jeans ». Indeed, Diesel is offering jeans, which are paradoxically used and at the same time high-quality. In the same way, Diesel created jeans with original colors by mixing cotton and other materials as lycra.

In 1990, Diesel launched a Kid Collection and it created a large range of accessories: sunglasses, bags and so on.

In 1992, the brand appended a new distinctive sign to its jeans: a tab on the right pocket.

Moreover, in 2001, Diesel launched a limited and premium collection: Diesel Denim Gallery. And in 2005, Diesel showed off for the first time its collection to the NY Fashion Week.

Diesel managed to develop its brand by doing co-branding and collaborations. In 2006, Diesel kept diversifying: the brand launched a jewels collection; and it teamed-up with the American group Fossil for the launch of watches. In the same way, in 2007 Diesel did co-branding with L’Oréal and launched “Fuel for Life” perfumes. The same year, Diesel launched a swimsuit and an underwear collection thanks to the co-branding with Industries Maast. Moreoever, John Galliano associated with Diesel to launch a Kids collection called “Les Jardins d’Avron”, planned for 2008-2009. Otherwise, at the end of 2007, Diesel created a new premium collection “Diesel Black Gold”. This collection offered high-quality products as silk or cashmere materials.

In 2008, Diesel followed the sustainable development trends and created organic cotton jeans.

Then, Diesel launched a co-branding with Adidas in order to attract young and sport consumers, and thus created a sportswear collection: “Adidas Originals Denim by Diesel”. The same year, a new women fragrance is launched: “Fuel for Life Unlimited”. And the brand is keeping develop its jewels range. In fact, in 2008 Diesel created a new collection with Ugo Cacciatori and Fossil.

Moreover, in 2009, Diesel diversified again and entered the interior design market thanks to the collaboration with Zucchi. The same year, the brand launched as well furniture and lighting. Furthermore, Diesel decided the same year to design the new Fiat 500 car. Indeed, the brand designed the passenger compartment. This limited collection is called “Fiat 500 by Diesel”. Then, Diesel launched in 2009 a new fragrance for men, called « Only the Brave ». Diesel offered to consumers the possibility of customizing the packaging perfumes.

In 2013, Diesel keeps to be innovative and unconventional. The brand develops a women collection, which fits women body: « Skinzee » collection. The brand launched a sportswear collection, by introducing an hybrid denim (mix jersey and denim): « Jogg Jeans ». The brand uses a patented technique that makes it look like denim on the outside and like sweatpants on the inside. Furthermore, the brand tries to be different from competitors and tries to innovate through temporarily partnerships. For instance, as Evariste explained on his article, Diesel launched in 2013 a collection in collaboration with Nicola Formichetti: « Diesel Tribute ». In the same way, Diesel decided to do a co-branding with Edun, in order to create a collection 100% made in Africa; that is to say by using African raw materials and by creating clothes directly on the African continent.

In few words, Diesel is a young and fashionable brand. Diesel is playing on innovative, sexual and provocative image. And, by targeting young people (18-35 years old), the brand is offering two types of ranges: affordable collections and more sophisticated and elitist collections.

The strategy of Diesel is different from Levi’s. In contrary to Levi’s, the brand takes risks and develops its brand through many diversifications. Diesel wants to be a precursor and an innovative brand. Diesel does not follow fashion trends but it creates it own style… because Diesel consumers are different, atypical, and rebels!

And unlike Levi’s, Diesel is evolving in recent years into the world of premium casual wear, becoming a true alternative to the established luxury market.

Cheers,

Alexia

Sources:

http://www.plurielles.fr/mode/tout-sur-la-marque-diesel-histoire-produits-wcod393443.html

http://www.diesel.com/

http://fr.wikipedia.org/wiki/Diesel_(entreprise)

http://www.puretrend.com/marque/diesel_b1290#histoire

http://www.trenditude.fr/-Diesel-.html#biographie

http://www.so-trendy.fr/diesel/

http://www.gralon.net/articles/commerce-et-societe/mode-et-beaute/article-diesel–l-empire-du-blue-jeans-960.htm

Dear readers,

This is Guillaume Speaking,

This article is aimed to analyze the main price positioning differences between Diesel and Levi’s. Since their creation, those two major brands engaged a significant different approach regarding their price strategies. The figure below will help you to clearly differentiate their positioning:

- Levi’s has a clear price "Differentiation strategy" by targeting a broad range of customers with a price premium. Through our blog, you’ve had the opportunity to discover how Levi’s has achieved uniqueness along several dimensions such has brand history or quality and how it  allowed the brand to keep a price premium despite their large customers target. Jeans’ prices vary mainly between 50€ and 150€.

- Diesel such as Levi’s, has also a differentiation strategy approach but  can be more specifically called "Differentiation Focus Strategy". Price positioning is even higher than Levi’s one with jean’s prices going from 150€ to 250€. On the other hand, you’ve been able to see through our posts that all their products were tailored regarding the distinct needs of that specific customers segment. This premium price is used for customers that demand top quality.

This article was the last of the Chapter 1 on "Brands and their universes, Chapter 2 will then emphasize "The tools used to connect with the consumer".

Cheers,

Guillaume

Sources:

http://www.levi.com/FR/fr_FR/

http://store.diesel.com/fr

http://thehospitalityblog.ecornell.com/price-positioning-strategies/

Dear readers,

This is Guillaume speaking,

In order to demonstrate the saturation of the Denim Market, I decided through this article to present you 5 Denim companies that can be qualified of being part of the Diesel and Levi’s main competitors. Elements of positioning , strategy issues and main brand characteristics will be developed.

The figure below (also named the "Bowman’s Strategy Clock")  emphasize their specific positioning on the Denim Market and assess them regarding 2 main criteria "Perceived Added Value" and "Price":

- Rica Lewis: Created in 1928 in Marseille and precursor of using super markets as a main distribution channel in 1988. Today the company is ranked at the first position of the french mass-retail market. The brand makes very casual and simple jeans at a cheap price (in average 30€). Their core value is to be close and accessible for all.

- Wrangler: Created in 1897 and initially made for workers or soldiers, this American brand belongs now to the VF Corporation which also owns Lee, The North Face or Timberland. Wrangler has a s strong brand image referring to rodeo and cow-boys. Their collections reflect an "adrenalin-fuelled" and a "rugged" attitude to life with casual models. Being part of US market leaders, Wrangler’s jeans average price is around 70€.

- Gap: Since its creation in1969, customers have looked to Gap for updated casual clothing and accessories that help them express their own personal sense of style. Such as H&M or Zara, the US company has become a cultural icon by offering clothing and accessories rooted in cool, confident and casual style to customers around the world. Average price is approximately 80€.

- Pepe Jeans: Launched in 1973, the British company has quickly and successfully achieved to establish itself as a key Denim market leader. Pepe Jeans is a global, fashion brand targeting mainly 18-25 years old customers. Average jeans price is 100€.

- Replay: Created in 1978 by Claudio Buziol, Renzo Rosso’s best friend, Replay had a successful trajectory by focusing on innovative and top quality jeans. Clearly similar to Diesel, this Italian brand has revolutionized the Denim market thank’s to innovative new cuts, huge attention to details and style. Average Price is 150€

Many other brands could have been chosen for this main competitors’ analysis, but I tried as much as possible to take relevant market leaders that had a different distinct positioning regarding their target and their price strategy. The aim was clearly to give you a quick insight of the market competition and to present other brands that leaded Diesel and Levi’s to react and to adapt their strategy through time.

Cheers,

Guillaume

Sources:

http://shop.replay.it/fr/Replay/FW13/Homme

http://www.sojeans.fr/homme/jeans/replay

http://www.gap.com

http://fr.wikipedia.org/wiki/Gap_(entreprise)

http://fr.wikipedia.org/wiki/Pepe_Jeans

http://www.pepejeans.com/fr_fr/home/history.html

http://www.wrangler-europe.com/inside

http://www.jumpassociates.com/wrangler-rides-with-american-cowboys.html

http://fr.wikipedia.org/wiki/Rica_Lewis

http://www.ricalewis.com/histoire-de-marque

Dear Readers,

This is Alexia speaking.

Today, I’m going to talk about the distribution strategy of Diesel and Levi’s.

Diesel has established a click and mortar strategy. Indeed, these brand products are sold through stores and websites. In this way, Diesel is a brand sold in the whole world. It is distributed in more than 5 000 point of sales whose 300 Diesel stores. Indeed, the brand is sold in its own stores and in multi-brands stores through corners as the Printemps store or the Galerie Lafayette store in Paris.

In France, Diesel is distributed in about thirty stores. And within Paris, there are 11 stores, which sold Diesel products. The flagship store is located at Etienne Marcel Street. There are two other Diesel stores at Opera place and in Le Marais district.

And, as I said above, Diesel products are also sold on the Internet. Indeed, Diesel gets its own retail website and the brand is also sold through other websites as Zalando or Asos.

The distribution strategy of Diesel is really elaborated. Each Diesel stores uses the brand codes. The stores are decorated with precious materials; rooms are large; and the store design is uncluttered. The atmosphere is cozy and comfortable.

Diesel opened up also real concept stores as in Tokyo in 2010. The concept store, as a conventional store, distributes Diesel products, but it also includes a café, a bar, an art gallery and many other items. This concept store has also a “Diesel Farm” in which are sold Italian wines, olive oils and other products. And last but not least… there is also a Diesel Lottery where visitors can win special Diesel items.

But the most important things I want to talk are the animations in store. Indeed, Diesel got brilliant ideas: in 2010, the brand launched the “Diesel cam” campaign in its Madrid store. Thus, the brand put some camera in the store connected to Facebook. And in this way, consumers can take some pictures of them and post it on Facebook.

During the following year, the brand launched a new interactive campaign in the same store. But this time, consumers use their smartphones. In fact, Diesel put some QR codes in the store, and consumers could flash it, and post pictures of their preferred Diesel products on Facebook.

These two interactive campaigns were a success. They created a buzz, and above all it allowed the brand to collect information about its consumers and to create a big database.

And last but not least, this is another example of a brilliant store animation. In 2009, Diesel made an interactive window for its new collection “Destroyed”, in its flagship store in Berlin. The brand launched it during the Berlin Fashion Week in order to create a real buzz and to attract many national and international passers-by. Shoppers could control the weather via a video game linked to Diesel Window, and thus could destroy object within the window. It was a success too. Indeed, consumers liked it: there was a high entertainment value and visual fun factor. Moreover, it allowed the brand to make people speak about it and so to create a buzz. This campaign was so a success that it earned a first place award in this year’s VMSD International Visual Competition.

In few words, Diesel is in total adequacy with its positioning. The brand conveys an atypical and provocative image while using the codes of top-of-range brands.

Levi’s has also established a click and mortar strategy. Indeed the brand is available in stores, and on the Internet. Levi’s clothing is sold in more than 110 countries. The brand owns more than 500 stores in the whole world. As Diesel, Levi’s products are sold in their own stores, and in multi-brands stores as BHV or the Printemps in Paris. Regarding the Internet, Levi’s is sold through its own website and through other websites as Asos for instance.

The Levi’s stores use the codes of the brand. Design is contemporary, raw and industrials. Materials used are wood, aluminum and so on. Colors used are warm. Rooms are large. Finally, it allows creating a warm and cozy atmosphere.

The European Levi’s flagship is located in the Champ Elysées. This store was launched in 2012 and was designed by REV Architecture. The design of this spectacular store is vintage and industrial. Levi’s wants it to be first of all “a place” before being a shop. Indeed, the concept of this store is based on consumers’ experience: “a discovery”, “a road trip” at the heart of Levi’s brand.

Moreover, Levi’s opened in many countries several concept stores, as for instance in Tokyo. This concept store was created around the heritage and the values of the brand. The store is designed with raw materials. As the flagship, the store looks like vintage, industrial and cozy at the same time.

Regarding the animations in stores, Levi’s offers to consumers a different experience from Diesel animations. Indeed, the brand creates, in four of its shops, a ‘tailor shops’ where consumers can alter and customize their Levi’s clothes. In this way, in its European flagship, consumers can ask Cléa Lala, a Parisian designer, to customize their preferred Levi’s clothes. If you want more details, please read Nicolas’s article.

By the way, Levi’s is currently displaying a new promotional campaign on the Levi’s website. In December (from 4^th to 19^th December), you get an evasion kit (including a denim bag, a travel pillow…) for a purchase of more than 150 euros. For more details, please click on this link.

Finally, Diesel and Levi’s are using the same strategy distribution. Indeed, they are using several channels in order to distribute their products: their own stores, authorized retailers, and the Internet. Through these channels, the two brands manage to convey their history and their brand codes. In this way, we can clearly differentiate their two different brand concepts through design, animations in store and so on. Diesel is clearly more based on provocation, innovation and interactivity with consumers, while Levi’s is more based on its history and the safe bet of its products.

Cheers,

Alexia

Sources:

http://retaildesignblog.net/2011/08/01/levi%E2%80%99s-xx-concept-store-tokyo/
http://retaildesignblog.net/tag/levis/
http://www.strategies.fr/etudes-tendances/tendances/199797W/2-7-4351/magasin-connecte-pour-shopper-branche.html
http://www.lsa-conso.fr/les-nouvelles-pratiques-de-l-animation,122312
http://www.pagesmode.com/diesel
http://www.lautremedia.com/medias-sociaux/facebook/le-digital-revolutionne-nos-habitudes-de-shopping/
http://archives-lepost.huffingtonpost.fr/article/2011/06/01/2511952_buzz-marketing-diesel-et-fullsix-like-offrir-des-experiences-avec-des-qr-code-sociaux.html
http://www.youtube.com/watch?v=4OZmbBPym1k
http://jedblogk.blogspot.fr/2010/05/diesel-cam-miroir-interactif.html
http://www.youtube.com/watch?v=_P-zA90yI64
http://www.cartonmagazine.com/mode/mode-news/3640/diesel-sinvite-dans-le-marais
http://www.retail-square.com/fr/shops/diesel-0
http://www.retail-square.com/fr/node/2037
http://www.youtube.com/watch?v=wT2zyT5eJIU#t=75
http://www.sportswearnet.com/businessnews/pages/protected/DIESEL-OPENS-NEW-STORE-IN-PARIS_5073.html
http://retaildesignblog.net/2012/02/21/diesel-black-gold-store-by-ryan-korban-new-york/
http://www.freshnessmag.com/2009/02/18/diesel-diesel-planet-flagship/
http://scienceofthetime.com/2012/07/19/diesel-interactive-window/
http://vmsd.com/content/diesel-s-interactive-window
http://www.archidesignclub.com/magazine/rubriques/interieur/44438-rev-architecture-boutique-levi-s

Dear Readers,

This is Nicolas speaking.

You will find below my explanation on the 4C’s of positioning concerning Levi’s and Diesel in a podcast format.

You can see the written version by clicking on the parrot !

Cheers,

Nicolas

Source: Primary data from our survey and the Brand Equity article.

Dear readers,

This is Alexia, Nicolas and Evariste speaking.

The end of the blog is near, and it is now time to study the points of difference and the points of parity of Diesel and Levi’s compared to their competitors.

In order to make this analysis, we decided to take into account the jeans manufacturers as the competitive frame of reference. Thus, we compared Levi’s and Diesel to the other most famous brands: GAP, Lee Cooper and Pepe Jeans

Please take a look at the following pictures:

As a conclusion, we can say that Diesel enjoys more points of difference than Levi’s, which means that it is more differentiated from the other denim brands.
We think that it can be explained by the fact that Levi’s is THE denim brand. It has been  influencing other brands for decades, which implies a kind of standardization of its products.

Cheers,

Alexia, Nicolas, Evariste

Sources:

All our previous articles !

Dear readers,

This is the Denim Team.

Here is our final and conclusive article.

Thanks to our questionnaire, and all our previous researches, we have been able to build a brand resonance pyramid for each of our now beloved brands: Levi’s and Diesel.

Filling this pyramid allows us to summarize all answers that Levi’s and Diesel give to their customers expectations.

"The concept behind the Brand Equity Model (summed-up thanks to the pyramid) is simple: in order to build a strong brand, you must shape how customers think and feel about your product. You have to build the right type of experiences around your brand, so that customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it".

Cheers,

The Denim Team,
Alexia, Evariste, Guillaume, Nicolas and Ofir.

Sources:

http://fmcg-marketing.blogspot.fr/2007/10/brand-resonance-pyramid.html