Levi's launches dENiZEN brand in Shanghai

“You’re not doing it right if you’re not in Asia,” seems to be the new fashion business model these days, and the 137-year-old American clothing maker Levi’s is no exception, launching its new line, dENiZEN (a combination of the words “denim” and “Zen” -- cute, kind of) in Shanghai yesterday. According to Terence Tsang, the head of dENiZEN, this was a first-ever product launch outside the United States for the American staple. 

Not only about Chinese consumers' dream's, dENiZEN also fulfills Levi's goals in the China market.

dENiZEN jeans sells will sell for US$40 to US$60 in China, versus the US$100-plus prices in the United States. This means less frills -- literally and figuratively -- on the line. And it will, they hope, pull China’s budget-conscious consumers outside of the country’s economically booming first-tier cities into the brand. Creating an interesting niche for itself, dENiZEN clothing will be more expensive than the average Chinese brand, but will still offer Western fashion at a price tag much lower than other major imported clothing brands. The line will be going register-to-register with established brands like H&M, Uniqlo and Zara, already in Shanghai. 

Aaron Boey, president for Levi Strauss’s Asia-Pacific division, told Jing Daily that the brand is geared towards China’s “new group of consumers” who are value-conscious yet still hung up on brand names -- especially international ones.

dENiZEN tries to attract the average Shanghai shopper using "ordinary people" as models.

Although Levi’s plan is to expand across China, with around 200 outlets around China by Spring Festival 2011, they chose to launch the line in Shanghai, a city known for it’s fashion-forward citizens, and abundant new college graduates looking for modern yet affordable clothing. dENiZEN’s next stops are Beijing and northern China before moving west.

“It’s a hugely significant market opportunity,” says Tsang to the Wall Street Journal. "We’re right between the premium and the masses.”

Levi’s isn't alone in trying to single out the Chinese market with dedicated lines. French luxury brand Hermes, one of the few luxury brands that is more or less China-free (their scarves are only produced in France), announced that it will launch a new China-only line called Shang Xia in September. In May 2010, Chanel launched a collection of China-inspired accessories.

Although they're trying to keep the first store opening date and location a mystery for now, we hear that the first clothes will be in Citi Plaza starting August 20, and then in Super Brand Mall and Raffle's City in September.