As Levi Strauss & Co. shifts to a direct-to-consumer-first model, the retailer is upgrading its website and product storytelling features. Its efforts up to now helped to drive a 19% increase in ecommerce revenue within the second quarter of 2024. During that quarter, Levi’s reports its DTC sales climbed by 11%, marking nine consecutive quarters of strong sales growth.
This week, the denim brand detailed the way it has improved its site experience. The corporate highlighted three key areas where it focused on boosting ecommerce growth:
- Revamped its rendering model to hurry up page loads and improve website positioning.
- Launched a brand new search solution to deliver more relevant results, helping consumers find and buy products faster.
- Redesigned site navigation to match customer expectations based on analytics and feedback.
“One in all the corporate’s key strategies is to be DTC-first, to not be confused with DTC-only,” a Levi Strauss & Co. spokesperson told Digital Commerce 360 by email.
In its fiscal second quarter, DTC sales made up 47% of Levi’s total sales, and the corporate now believes DTC can account for greater than half of its total net global revenues in the long run, with ecommerce as a key driver.
Levi Strauss & Co. is No. 162 in Digital Commerce 360’s Top 1000 rating of the biggest North American online retailers. The database categorizes Levi’s under Apparel & Accessories. Digital Commerce 360 projects Levi’s total ecommerce sales for 2024 to achieve $576.75 million, up from $556.11 million in 2023.
Levi & Strauss Co. web sales by yr
Levi’s website changes
Over the past yr, Levi’s switched to a hybrid rendering model. That meant combining its server side and client side to hurry up page loads and boost website positioning. Its website now loads only mandatory components, and a team updates the location twice every week as a substitute of each three weeks, improving site speed by over 40% and app launch time by 50%.
The change is important as more people shop online using their mobile phones. In Q4 2023, smartphones made up 78% of worldwide retail site traffic and two-thirds of all online orders, in line with a Red Stag Achievement report.
For search, Levi’s teamed up with a third-party vendor to launch a brand new solution. The corporate claims it was capable of drive a ten% improvement in its search-to-product rate because of this. Levi’s website navigation was revamped to raised match how customers shop, equivalent to grouping products by gender first, then category. Highlighting key product features like rise, fabric stretch, and leg opening has also boosted ecommerce sales. Moreover, Levi’s introduced denim lifestyle images for girls and dynamic “walk-on and walk-off” videos across its ecommerce channels, resulting in more items being added to shopping carts.
“Consumers must give you the chance to simply and quickly navigate the location with none frustrating delays,” the corporate stated. “And in online shopping, when consumers can’t feel and touch the product, we must do what we will to bring those products to life and provides our fans a greater sense of how a product will look and fit.”
DTC’s role in driving profitability for Levi & Strauss
In Levi’s second-quarter earnings call, president and CEO Michelle Gass said the corporate is “laser-focused” on boosting productivity and profitability across its DTC business. She noted improvements in all store metrics, because of higher units per transaction, higher conversion rates from recent product launches, and more.
“Our U.S. DTC business was up 12%, led by our mainline stores, and AURs and mainline were up low single digits as consumers gravitate toward our full-price premium products,” she noted.
While inflation has made consumers in the reduction of on non-essential spending, Levi’s highlighted its 170-year history, saying, “When times get tough, consumers shop with the brands they trust and love probably the most.”
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