X-RAY China: Old Levi’s Launches New Jeans Brand in China

Earlier this year Levi’s, the iconic American brand announced it is going to launch a new global brand in China. This is the first time the company had launched a brand outside the US, which highlights the importance of China to the company.

Despite Levis Strauss & Co. having a 150 year history, Levi’s has only been in China for the last ten years. Previously it pulled out its China operations and manufacturing in 1993 due ‘pervasive violation of human rights’ by its factory contractors making its garments. Since its return it has built a strong reputation and now has over 500 stores on the mainland.

The brand is well known in China as being fashionable and premium, but is also seen by many as being too expensive. So this new sub brand will help to grow its market share, as an entry point to the brand. This diffusion strategy is more common among the high end fashion brands, which Giorgio Armani was a pioneers of in the 80s.

Realising the market for couture fashion was shrinking Giorgio Armani, began creating a number of lower priced diffusion lines, to extend the brand to a wider market. The brand now stretches from the topline Giorgio Armani and Armani Collezioni, down thorough to Emporio Armani, Armani AX and lastly Armani Jeans.

Media magazine recently ran a story about Levi’s; Will Levi’s new global brand prove a good fit in China? As part of that piece, I was interviewed by journalistic Kenny Lim, on my thoughts.

“This new offering could work for Levi’s, as a lot more consumers are likely to get to know the brand now. In terms of strategy and the rollout, it must make a very clear distinction between its main and secondary brand.

The sub-brand must have a unique look and feel and consumers need to be able to see the difference, so this has to be supported by clear communications. In terms of a brand launch, there cannot be a better time than summer – as messages of vibrancy and youthful exuberance can be conveyed and is suited for the new brand.

The new line can’t just be a cheaper version of Levi’s but yet it must still reflect the overall heritage of the brand.”

A handful of other consultants were also interviewed and added some smart comments to the debate. You can read their responses and the full story here.

One big questions to be answered, is how the new brand will fit with the current brand lines of Levi’s® (est. 1873), Dockers® (est. 1986) and Signature by Levi Strauss & Co.™ (est. 2003). Also how will they brand it; using the Levi’s name, in part or full; or create a new name and identity?

Interestingly, the red and white Levi’s ‘bat wing’ logo that the brand currently uses, was designed in 1969 by Walter Landor the founder on my company Landor.

When Levi Strauss & Co. executives wanted a new garment label for their blue jeans in 1969, they came to Walter Landor, whose designers developed the distinctive red-and-white “batwing” to be placed on back pockets. The red shield mimicked the pocket’s stitch pattern and incorporated the Levi’s lettering. This was among the first designs to mix capital and lowercase letters throughout a single logo.

In the 1950s, blue jeans were a symbol of rebellion against society, which is very similar to how they were viewed in China in the early 80s. Nowadays, they have become a mainstream garment and a staple item in everyone’s wardrobes. However, I predict the new Levi’s brand might echo its rebel roots, to help differentiate itself and better connect with the urban youth in China...X-RAY China

X-RAY China: Chinese Brands Dominate In Asia

BrandZ Top 100 Most Valuable Brands 2010 was released yesterday. The survey asks over 1.5m consumers and professionals across 31 countries to compare 50,000+ brands from different industry sectors. Produced by Millward Brown Optimor, it measure and ranks the top brands in the world across category and region.

The survey has been running since 2006 and is now in its fifth year. Not surprisingly, the top ten brands today have performed been pretty consistently over the years. Although they jostle each other for position they remain with a few exceptions the same brands from five years ago.

What is interesting is to see the rise of China brands and how they have been increasing in brand value and position. In 2006 Asia was dominated by Japanese brand, with only one Chinese brand in the top ten. Today four of the top five brands in Asia are now from China, and India now has one brand in the top ten. Continue reading @ X-RAY China:

X-RAY China: BMW Brings Joy To China

Photos: Ray Ally

BMW has just launched its new global advertising campaign called ‘Joy’ in China. The launch coincides with last weeks, Shanghai Grand Prix and the opening yesterday of the 11th Beijing International Auto Show.

The campaign has been localised for the China market and the word Joy has been translated into the Chinese word Yue 悦. It expresses not only the feeling of joy, but also the action of giving joy. It is not an everyday word, but a high level translation that would be used in written Chinese. Consequently, it is a word that can be found in the ancient writings of Confucius.

This ad feature BMW’s latest green hybrid concept car. It uses new ActiveHybrid technology with innovative electric storage technology, lightweight engineering and consistently optimised aerodynamics. Which all means it can accelerate from zero to 100km/h in only 4.8 seconds.

However, just as striking is the use of Chinese culture, calligraphy, painting and Peking Opera masks to customise the brand image to a local market. The use of masks in theatre dates back many centuries in China. The different colours and patterns of the opera masks are used to communicate the actor’s character, so each colour has a specific meaning.



In this ad the blue, black and white of the opera mask not only matches the colour scheme of the car but also BMW’s corporate logo colours. In Chinese Opera masks the colours blue and black communicate strength, boldness and fierceness, so a good fit for BMW’s image in China.

The Joy campaign kicked of last year in Europe and America as a way to enhance the brands reputation and create a more emotional connection with its consumers. You can watch the full the Joy video, as well as other great videos on BMW Web TV.

China is now the largest and most important market for cars in the world. And although the China market is still immature, consumers are already saturated with car brands, models and options. So brands like BMW know that differentiating themselves in this market is critical for success and this new campaign will help sharpen its position.

Chinese auto brands can learn a lot from BMW, who know that emotional factors are as important if not more important than the rational factors. And that standing for one brand idea in the consumers mind is better than try to be all things to everybody. However, that focus on your brand positioning takes courage and a single-minded determination to drive home a multi-faceted brand experience. The copy on BMW’s latest ad says it the best:

Joy. On the back of this three-letter word we built a company. We do not build cars. We are the creators of emotions. We are the Joy of Driving. Innovation is our backbone, but Joy is in our heart. We will not stray from our three-letter purpose. We will push it, test it, break it–and then build it again. More efficient, more dynamic. And while others try to promise everything, we promise one. The very personal, cherished and human of all emotions. This is the story of BMW. This is the story of Joy.

At this weeks Beijing International Auto Show, BMW will be showcasing one world premier and nine new models will be making their Asian debut. Including, the new long wheelbase BMW 5, which has been specially developed for the China market, where consumers demand a bigger car with more legroom.

Last year BMW sold over 90,000 cars, making China its fourth largest market in the world. However, with its new line up of cars and a stronger brand positioning it expects to reach over 100,000 this year. So BMW is not just selling more cars, but building the brand and creating an emotional connection through joy to drivers in China.
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X-RAY China