Here is another example of the value of making the right kinds of changes. This is crucial because so many companies make changes that are not a good fit and, consequently, can lead to financial difficulties.
My previous blog post discussed how important it is to get the changes right. I’m making that point again here by discussing the Levi’s example. The media recently reported that Levi’s is introducing a line of premium denim products at a much higher price point than the denim Levi’s has previously offered. This is discussed in the October 29, 2025 Wall Street Journal article “Levi’s Expands in Premium Denim” by Jennifer Williams.
The article reports that “Levi Strauss has its sights on both high-end and budget-conscious shoppers as it aims to sell more denim.” The article says, “The company is rolling out…jeans, jackets and more that can retail for more than $350.” The article also reports that “Levi’s aims to be more luxe while selling denim for as low as roughly $20 in mass-market stores.”
As I see it based upon my research into business success patterns, companies thrive when they build upon their strengths and they struggle when they move too far from those strengths. That’s why it is so important for companies to build upon those strengths when making changes in the kinds of products offered.
Levi’s needs to pay attention to its strengths as it strives to alter its product mix. In today’s economy, when so many low budget consumers have been hard hit by inflation, it is easy to see why moving upscale is seemingly attractive for Levi’s. But, the big question is: how well does going luxe fit with Levi’s strengths?
There are examples of other companies shifting more upscale after many years of focusing upon low budget markets. For instance, Wal-Mart appears to be doing this successfully. But, Wal-Mart moved only slightly upscale, in contrast to Levi’s, which seems to be making a much bigger upscale jump. And, according to my research, companies are more successful when they evolve gradually, rather than making a big revolutionary jump.
In Levi’s favor, however, is the fact that Levi’s has already been offering its upscale line in Japan. If its Japanese experience was adequate to develop strengths in serving luxury shoppers, and if there are enough similarities between Japanese and American luxury markets, then Levi’s may have what it takes to do well with its new luxury line in America. In other words, if these conditions occur, Levi’s Japan experience may make its new luxury line in the U.S. a less extreme jump.
It is beyond the scope of this blog post to predict how well Levi’s will do with its new luxury product line. The purpose here is point out factors that influence whether or not changes made by a business like Levi’s will succeed. This is ever so important because making the right kind of changes is essential for business success. And, the right kind of changes are generally those that build upon a company’s strengths.
