Levi Strauss Expands in China After Asia Revenue Rises 10 per Cent

US apparel retailer Levi Strauss & Co plans fresh capital investment and new store openings across China, moving against broader retail headwinds as multinational rivals shutter underperforming outlets. The San Francisco-based group is expanding its network after steady demand from younger consumers.

Asian net revenues rose 10 per cent year on year in the third quarter, representing a third consecutive period of double-digit expansion for the territory. Markets outside North America now account for more than 60 per cent of total global business, though regional management still classifies Asia as a small contributor with long-term expansion potential.

Executive vice-president and chief commercial officer Gianluca Flore confirmed that mainland operations have improved markedly over the past 12 months, allowing the company to reset commercial targets. “We are going to be able to see China become a much bigger portion of our business globally,” Flore said. “I’m aware of other brands, even luxury brands, that are reducing [their footprint]. I’m personally and professionally bullish on China.”

Flore added that Levi’s remains a relatively small brand insulated from direct macroeconomic shifts, noting he expects China’s broader consumer environment will eventually improve.

Tier-One Hubs and Franchises

Levi Strauss is directing direct capital expenditure toward first-tier metropolitan hubs while partnering with local operators to scale franchise locations. Core demand centers on fashion-conscious consumers aged 20 to 30, prompting regional merchandising teams to adapt global assortments.

“Within the global assortment, we have some fine tuning, some nuances that we bring to the products in certain cases,” Flore said. “We are really open, and we try … To be flexible and agile to adapt to that nuance.”

Execution risks remain centered on product responsiveness and inventory control. Wang Tianshi, an analyst at Shanghai-based LeadLeo Research Institute, noted that foreign operators must flatten operational hierarchies to navigate rapid consumption shifts.

“Merchandising must cater closely to local niche preferences in China, reduce standard global sourcing and expand locally developed products,” Wang said. “Only by keeping pace with China’s fast-shifting consumption trends can foreign retailers turn their brand equity into sustainable competitive advantages.”

Earlier Footprint Moves

The push follows targeted brick-and-mortar marketing pilots across key regional shopping corridors. In September, Levi’s opened a pop-up store at Leighton Centre in Hong Kong’s Causeway Bay district to show localized assortments ahead of broader regional store rollout initiatives.