Last week, American denim giant Levi’s unveiled its largest store in Southeast Asia in the heart of Kuala Lumpur – a key move in the next phase of its direct-to-customer (DTC) strategy for the Asia-Pacific region. The grand opening garnered significant attention from local media, drawing in the country’s influencers and denim enthusiasts. Since early this year, Levi’s has swiftly rolled out its Indigo store concept across major Asian locations, including Thailand, Indonesia,
Last week, American denim giant Levi’s unveiled its largest store in Southeast Asia in the heart of Kuala Lumpur – a key move in the next phase of its direct-to-customer (DTC) strategy for the Asia-Pacific region. The grand opening garnered significant attention from local media, drawing in the country’s influencers and denim enthusiasts.Since early this year, Levi’s has swiftly rolled out its Indigo store concept across major Asian locations, including Thailand, Indonesia, Singapore, and Japan.Levi’s Suria KLCC storeLocated inside the Suria KLCC mall, the store occupies a 393-square-metre space, surpassing Levi’s CentralWorld in Bangkok as the largest store in Southeast Asia.“It was already a prominent store for us, probably our number one in Malaysia, and now it’s likely to be one of our top stores in Southeast Asia,” Nuholt Huisamen, MD and senior VP for East Asia Pacific at Levi Strauss & Co, told Inside Retail.The executive elaborated on the strategic reasoning behind the expanded store size, noting that the company is diversifying its product range to position itself as a lifestyle brand, transcending its traditional image as solely a US denim label. This strategic shift necessitates additional floor space to effectively showcase the broader array of products and new collections.“The increased space is crucial because denim is a size-intensive category. You need ample room to showcase different denim fits and sizes,” he said. “To position ourselves as a denim lifestyle brand, we must display a variety of tops and products for women across different price segments. So space, I believe, is the primary factor allowing us to truly embody a denim lifestyle brand,” Huisamen said.Like other flagship stores in Asia, Levi’s Suria KLCC features a tailor shop offering customisation options such as patches and embroidery, as well as alteration services for leg lengths and sizes.“It’s a special service that sets us apart,” Huisamen said.Throughout the store, several areas were intentionally designed as Instagram-worthy spots to enhance customers’ overall experience.“You’ll find lounge areas where customers can relax and engage with the space,” he added.“When we redesigned fitting rooms, we recognised that consumers often like to take photos of themselves in their outfits and share them with friends. So instead of creating neutral, plain-looking spaces, we’ve designed an environment where customers can style themselves and showcase their outfits more effectively.”Adapting to tropical climatesWhile the new concept certainly brings a fresh impression to younger customers, another notable factor is the brand’s innovative fabric technologies. In Southeast Asia’s predominantly hot climate, denim is often less favoured by customers who perceive it as a rough and heavy fabric.“We recognised this a few years ago and developed a range called ‘Performance Cool’,” Huisamen said. “This technology within the fabric is moisture-wicking and keeps your body cool. It’s a product range we’ve created to show Southeast Asian consumers that denim doesn’t have to be warm and heavy – it can be cooling. This innovation allows people to choose denim as a comfortable option.“From an innovation and technology perspective, that’s one way we’ve adapted. We’ve grown this range significantly – it started with just a few bottoms and is now a substantial part of our core bottoms range. We’ve also expanded it to tops and other parts of the assortment.”According to the company, the Performance Cool product line accounts for about 20 per cent of its business and is expected to be a far more prominent part of Levi’s assortment going forward.Following the Performance Cool line, the company is also focusing on lightweight fabric technology.“In our upcoming season, we’re going to emphasise lighter fabrics, especially for womenswear, with more drapey bottoms. You’ll see some examples in the store already. These lighter-weight fabrics should be cooler as well,” he added.“We’re also introducing more linen shirts. There are some examples in the current season, but starting next January, this trend will be more pronounced.”Huisamen said the lightweight fabric will give a sense of lightness and coolness.“The Performance Cool range has been around for quite a while, and we want to move it more into a style aspect rather than a purely performance-focused one. However, it’s going to serve the same purpose.”Evolving trends in denimAccording to Huisamen, the current denim market in the region is undergoing a significant shift.“We’re seeing a trend towards looser, baggier fits for both men and women. If you think back, slimmer, tapered fits were trendy for a long time, but now there’s a big move towards baggier and looser styles,” he said.“This shift provides a great opportunity for us to re-engage with consumers who are looking to buy into this new trend.”Huisamen added the change in denim preference is part of the broader casualisation trend.“Look around at what used to be called the workspace or professional environment, people are wearing jeans to work now. This continues to provide us with growth opportunities.”“I’d say denim is going through a nice phase right now. In the US, you’ll find our products in what we call tier three or entry-level retailers. But if you go to Japan, you’ll find an extremely elevated denim experience. That’s where we differentiate ourselves in Asia, particularly in Japan.”The executive said the trend of more elevated denim is driving growth through the brand’s ‘Made in Japan’ capsules not just in Japan but across Southeast Asia.“It’s one of our fastest-growing segments within the brand,” he added.