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Friday, January 1, 1999

Levi Strauss makes local base a hub for Saarc operations 

K Baburajan  
BANGALORE, DEC 31: The $6.9 billion Levi Strauss & Co has decided to headquarter its Saarc marketing operations in India. Kicking off its South Asian offensive, Levi Strauss India Ltd unveiled a slew of products in Sri Lanka, Bangladesh and Nepal last month.

Levi Strauss India country manager CS Suryanarayanan told The Financial Express that the decision to kick off Saarc operations from India comes in the wake of the significant changes in the worldwide strategies of Levi Strauss & Co.

"Since our Singapore outfit mainly promotes and designs apparel for the western consumers, the parent company felt that the operations in Sri Lanka should be anchored from India, where the dress culture and pricing strategies are almost similar to the neighbouring countries. Under the new game plan, the company would initially extend its Indian products in these three countries," he added.

In Bangladesh, the company is looking at opening an exclusive showroom for which Levi Strauss will sign an agreement shortly.In Nepal, a tourist-driven market, the company will have a one-stop-shop in Kathmandu, while more than five retail outlets in Sri Lanka will offer Levi's brand of apparel.

Though no market estimates about the total apparel business in the burgeoning Saarc countries are available, the company is looking at substantial growth in these countries, especially in Sri Lanka where Levi's brands are already available through exports from the company's Singapore outfit.

Having achieved a growth rate of 15 per cent (in terms of both volume and value of business) from its domestic operations for the fiscal year ending November 30, 1998, the company is now planning to enhance the number of showrooms in the country.

"We expect a 15 per cent rise in our distribution network which currently stands at 70 outlets. During 1996-97 it was about 46. Last year the company opened retail outlets in Ahmedabad and Baroda along with adding more showrooms in Chennai," he said.

Suryanarayanan claimed that the company would achieveabout 25 per cent growth next year. "The recent `easy-to-get-in' campaigns have improved its total business, especially during the last three months - September, October and November. As compared to the sales achieved during the corresponding period last year we grew at a rate of 35 per cent. We would continue to support the campaign in the short term," he added.

It is planning to unveil some new products next year. The focus would be on customers who will be offered more value-added services. On offer is the extension of women's category and the launch of apparels in denim and non-denim range encompassing new fits, fabrics and finishes.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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