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