Levi Shifts On-line Strategy - Brief Article

Firm Lets JCPenney, Macy's Sell Its Products Via Web

Levi Strauss & Co. has called it quits to selling merchandise on its own Web sites, and has moved instead to allow two of its customers, JCPenney Co. and Macy's, to sell its products via their Web sites.

The decision comes after a year in which Levi had prohibited its larger retailers from selling its goods on the Web.

Speaking with Bobbin, Jeff Beckman, senior manager of communications for Levi, said the move came on the heels of a new strategic direction for the company, which involves a renewed focus on working hand-in-hand with retailers to meet consumer needs. Calling its own flagship e-commerce initiative "unprofitable," Levi is looking to shift the responsibility for on-line sales to its retail customers.

"One of the things we learned this past year was what it takes to truly have a world-class e-commerce site, both in terms of money and time," Beckman emphasized. "Although the [Levi] sites have been successful and produced strong sales, the costs remain high. It's simply not affordable for us right now. We say this realizing that some of the retailers run really terrific, top-notch e-commerce sites. And these sites have the full capacity to fully meet the needs of our consumers while representing the product well."

The news has raised a few eyebrows in the apparel industry, especially as other major branded players struggle to identify Web selling and marketing strategies that won't drain their bottom lines and strain relationships with retail customers. Beckman contended that Levi's new strategic direction will allow the firm to concentrate on using its successful dockers.com, levi.com and slates.com sites as a way to engage consumers through ground-breaking marketing initiatives.

"Our products are not leaving the Net," he emphasized. "We're just changing the availability of the products. In the past year, we have enjoyed enormous growth in our Web sites, and we are committed to maintaining the best and most innovative marketing Web sites."

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