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· Posted on
February 21, 2024

Levi's is dancing all the way to the bank thanks to a renewed focus on its brick and mortar stores

The maker of your fave 501s is thriving thanks to a direct-to-consumer model.

What's the key learning?

  • A direct-to-consumer model is when brands sell to consumers through their own channels.
  • Selling products directly enables brands to charge a whole lot more.

👉 Background: Things didn't look so good for poor denim lords Levi's during COVID when we swapped our jeans for trackies and physical stores had to shut shop.

👉 What happened: Levi's decided to double down on its direct-to-consumer strategy, focusing on its online channels and building a whole heap of new, upgraded physical retail locations.

👉 What else: Lo and the behold...the tables have turned in Levi's favour in a big way! Revenue rose 22%, with the company drawing in a massive US$1.6 billion for the first quarter this year.

🔔 What's the key learning?

💡A direct-to-consumer business model is when brands sell to consumers through their own channels, rather than a retail partner like DJs, Myer or General Pants.

💡When a company goes through a retail partner, they're usually 'wholesaling' their products at a discounted price.

💡When it sells products directly to the consumer...it can charge a whole lot more. Hellooo big profit margins! 🤑🤑🤑

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