The Canadian tuxedo refers to the risky but sometimes fabulous fashion choice to put denim on top of denim. Not everyone can pull it off. But Levi-Strauss is determined to make it easier for consumers to deck themselves in denim, which should also make it easier for the company to outfit itself as profitable to its shareholders.

Let’s start with a little history and linguistics lesson though. Levi’s is a classic American brand, so why would denim be a Canadian tuxedo? According to legend, the well-known, beloved singer Bing Crosby arrived at a luxury Vancouver hotel in 1951, outfitted in jeans and a denim shirt. At the time, such casual dress was considered unacceptable, and the hotel refused to check him in—an event akin to, say, turning away Béyonce for wearing flipflops. The incident made the news, and Levi’s quickly stepped in to take advantage of the marketing opportunity by crafting a custom-made, tuxedo-styled denim outfit for Crosby.

Since that time, various other musicians (and others) have tried the denim-on-denim look, with varying degrees of success. Marvin Gaye was often pictured recording in jeans and a chambray shirt, looking impossibly cool; Justin Timberlake and Britney Spears might still not have lived down their complete denim fashion fiasco at the 2001 American Music Awards.

As this brief summary indicates though, the look keeps coming back, and that’s because denim is easy, comfortable, and appealing to so many consumers. For them, Levi’s is determined to be not only the original jean company but the only source for their outfits. To achieve that goal, it is placing a greater emphasis on its retail strategy and undertaking a substantial refresh of multiple elements of its 7Ps, especially the products, place, process, and presentation.

In terms of products, whereas Levi’s has long relied on the incomparable reputation and awareness of its jeans, it increasingly is developing complementary offerings, including shirts and jackets, but also hats, cross-body bags, jumpsuits, and shoes. At the same time, it is prioritizing its higher-quality lines. Because a good pair of jeans can last many years, Levi’s hopes to encourage people to visit stores and buy more frequently by offering them items that need to be replaced more often.

The places they visit also represent key considerations for Levi’s. In the past, the company relied on department stores as the main locations for customers to find its jeans. Its individual retail strategy was relatively underdeveloped as a result. But as it has seen increasing sales through its direct-to-consumer channels, both digital and offline, Levi’s is explicitly seeking to build its retail abilities and increase the proportion of clothing it sells in its own stores. For example, whereas only 42 percent of revenue comes through Levi’s-owned channels today, it plans to increase that level to 55 percent in the next few years.

Such a shift also requires rethinking the process and the presentation of those products in stores. In the past, jeans would leave production facilities folded, reflecting the way that the primary sales channel (department stores) would display them. But in the effort to expand sales through its own retail channels, Levi’s has altered its process, such that the jeans and other apparel get boxed up in the way they will be displayed at its physical locations. Store personnel can whisk new shipments immediately onto the sales floor, without having to refold the items. They also know to dress mannequins and window displays using the latest fashions, to help demonstrate to consumers how a complete denim style can work.

Thus, the altered product line is reflected in the brand’s retail presentation, reflecting an explicit assertion by the company’s chief executive: “When you’re building stores, when you’re creating an e-commerce site, the consumer wants to explore and shop more than just for a pair of jeans.” But do they want a tuxedo?

Discussion Questions

1. How could Levi’s apply the 7Ps framework to inform its continued efforts to reinvent its retail strategy?
2. What are the benefits to Levi’s of moving more of its sales to owned channels, and away from department stores? What are some of the risks?

Sources: Jordyn Holman, “Levi’s Wants You to Rethink Your Denim Shopping,” The New York Times, February 27, 2024; Jason Diamond, “Now Is the Time to Embrace the Canadian Tuxedo,” GQ, March 18, 2022; Mekita Rivas, “The History of the Canadian Tuxedo, Explained,” Bustle, February 20, 2024