Levi Strauss & Co. Targets Blue-Collar Market with New Workwear Line
While Levi Strauss & Co. has been capitalizing on the western style trend with its fashion-forward collections, the company has also been quietly working on functional staples for real cowboys. The San Francisco-based company, known for its high-end products such as crystal-studded jackets and denim corsets, is now rolling out new products aimed at blue-collar shoppers who have been instrumental in making Levi a household name for affordable workwear.
In 2022, Levi set an ambitious goal of hitting $10 billion in annual revenue. Despite the challenges faced by specialty retailers, Levi’s shares have seen a significant increase of over 23%. The company has been able to drive sales, which have been up on a year-over-year basis for the past five straight quarters. However, it still has a long way to go to reach its revenue goal, with a shortfall of over $3.5 billion.
A New Focus on Blue-Collar Men
As part of its push to reach $10 billion in revenue, under the leadership of CEO Michelle Gass, Levi has identified blue-collar men in rural areas as its next big customer opportunity. The brand, which was launched in the 19th century as a line of workwear catering to miners and ranchers, has seen smaller competitors such as Ariat, Carhartt, and Wrangler become the go-tos for this demographic. According to a recent analysis by the Center for American Progress, approximately 93 million Americans, or about 61% of the labor force in 2023, were considered working class.
Anthony Scholl, head of US western accounts, notes that the market for blue-collar workers is vast, encompassing not just cowboys but also electricians, plumbers, farmers, and ranchers. “This is a major market share opportunity for Levi,” he says. To appeal to this customer profile, Levi has released two new cuts, the western boot cut and western straight, which are designed to fit over work boots. The jeans will be priced at $59, approximately $10 below most of its other core styles, and below similar products from competitors Wrangler and Ariat.
Expanding Distribution and Marketing Efforts
To capture shoppers looking for workwear, Levi is expanding its distribution channels, bringing its full assortment to the majority of Boot Barn stores, where it previously only sold about 10% of its products. The brand will also be sold at Cavender’s, a Texas-born western retailer. Additionally, Levi is sponsoring rodeos and plans to increase its presence at Cowboy Christmas, a trade show held annually in Las Vegas. The company has also launched a new men’s campaign featuring country and hip-hop singer Shaboozey and chef and actor Matty Matheson.
Even the Levi leadership team is getting into the spirit of the launch, with CEO Michelle Gass picking up a pair of red cowboy boots from a Boot Barn during a recent meeting in Dallas. “This is the core of our business,” she says of the men’s category. With its new workwear line and expanded distribution channels, Levi is poised to tap into the vast and underserved blue-collar market.
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