How to get a Franchise of Levi’s Store? Investment Required, Profit Margin
About Brand Levi’s - How it started?
On May 20, 1873, the world marked a historic day. It was the day when the invention of blue jeans was done by Levi Strauss and Jacob Davis. To date, blue jeans have not gone out of fashion it is still trendy. Levi Strauss was a dry goods merchant who came to San Francisco in 1853. He came to open a West Coast branch of his brothers’ New York wholesale dry goods business.
Over the next two decades, Levi built a well-developed business in San Francisco and was a well-respected businessman. Now, one of Levi’s customers was a tailor named Jacob Davis.
One day local labor asked Jacob to make a strong pair of pants for her husband. Jacob thought of many ways how to strengthen a pant. He then came up with the idea to put metal rivets at points of strain, for example in pocket corners and the base of the button fly. This idea was an instant hit and Jacob thought to take out a patent on the process. It was then, Jacob needed a business partner to help the project continue its motion.
Read More: Best Clothing Franchise List in India
The only thought that came to Jacob’s mind was Levi Strauss, for whom he purchased to make the riveted pants. After getting all the patents and all the processes done, formal blue jeans were sold in the market and it marked history in the world. Slowly, over the years, the company made bicycle pants, pants for women, pants for the young generation, and many more. Interestingly, Levi Straus & Co. registered the name Levi’s in 1928 as a trademark.
Levi’s Franchise in India
Levi’s entered India as a leading international premium denimwear manufacturer. It started its operation in India by forming a wholly-owned subsidiary under Levi Strauss India Limited back in 1994. Ever since Levi’s is operating in the Indian market quite well and has made a very strong presence all across the country & among the clothing brands in India.
Soon after entering India, the company became an instant hit through the quality of its products sold. It was considered the most trusted, stylist, up-to-date, and iconic brand in the Indian denim wear segment. The products sold by this company became quite famous among the Indian youth. They loved the design and quality of the product and that attracted a whole lot of youths in the market.
Today, across the country, Levi’s has opened up 250+ exclusive stores in more than 200 towns. The three reasons for their success in India and around the world were aspiration, innovation, and pricing. The company positioned their price quite well despite entering the Indian market as a premium segment company.
The head office of Levi Strauss India Limited is located in Bangalore, Karnataka, India.
Levi's Franchise Cost - How much is the franchise cost of Levi’s?
Partnering up with a highly reputed apparel company like Levi’s will require a huge capital. One must have proper and enough capital to open Levi’s franchise in India. This is because, Levi’s has not only made a strong presence in India and its home country but, in several different countries as well. Thousands of products are sent worldwide from their home country because of its high demand.
If you go through the official website of the company you will get hundreds of products sold by the company. It’s obvious if you are willing to open Levi’s franchise or a showroom in your location you will be dealing with hundreds of products daily. Some of the necessary franchise costs of Levi’s are the following:-
- Security fees- Rs 5 to Rs 10 lakhs
- Shop and godown cost required- Rs 10 to Rs 15 lakhs
- Other necessary charges- Rs 2 to Rs 3 lakhs
These are some of the basic franchise costs that one will require to make if they are planning to open Levi’s franchise or showroom in India.
Total Investment Required to Build a Levi’s Franchise Store
Now, the total investment required to open Levi’s franchise in India ranges between Rs 35 lakhs to Rs 50 lakhs. Now, the total investment depends on the area you are opening in. If you are planning to open in a lesser area then the total investment would go less. The total investment cost also depends on the market area of your franchise and state. Make sure everything is perfect before you open Levi’s franchise in India.
Now, within this investment, all the other necessary charges are included, for example, security fees, agreement fees, clothing charges, and many more. Yes, when you open Levi’s store or franchise you will need to deal with almost every product and the latest product sold by the company.
Is such a huge investment worth it?
Partnering up with a well-reputed company is surely a not big mistake. Levi’s has gained huge popularity ever since it was established in the world. Today, the company has a rich history and a great background story of what it has achieved today. The achievements Levi’s has received are surely worth every penny.
Joining such a business would surely not be a bad investment. You get the best products in the apparel industry from the company, a strong customer base, a strong presence across the globe, 24/7 support from the company, professional training offered to the franchise owner and staff members, and many more.
Other than these benefits, you get a good profit margin from the company. The profit margin of this company is something that attracts people from the market. You can earn lakhs of rupees a month if the sale is good.
What is the procedure to get Levi’s franchise?
Levi’s does not have a formal application page for all franchise-seekers. The procedure to get Levi’s franchise is very easy. But, one must know that, though the company has opened up thousands of franchises or outlets all across the country and globe, you should not expect a soon reply from the officials. Yes, getting Levi’s franchise is not very easy so make sure you follow all the requirements, terms, and conditions properly and strictly.
Now, here is the process to get Levi’s franchise in India:-
- Make sure to visit the official website of the company (as per the country as well) or simply click on this https://www.levi.in/
- After you visit the official website of the company, it will lead you to the official page
- At the top right side of the same page, you will see a ‘help’ section that needs to be clicked
- After you click on that it will lead you to a new page of the company where you need to find the ‘contact us’ option
- After you find the option make sure to click on it then an official toll-free number will be given
- Use that number to call the official team of the company and ask all the queries you have regarding your franchise
- You can also visit the ‘cart’ section to get all the contact details of Levi’s
Now if you are willing to open Levi’s retailer then mail your complete new account application to [email protected]
Average Profit Margin on Levi’s Products
Most Levi’s products offer a minimal profit margin after they are sold to customers. They have different profit margins for different products sold by the franchise or showroom. So, the profit margin for each product is not fixed, you will expect a different profit rate for each product.
There is no official profit margin mentioned by the officials. But, the average profit margin of opening an apparel store in India ranges between 25-60%. Yes, you could expect a profit margin within this range after opening Levi’s franchise or a showroom in India.
Pros and Cons of Levi's Franchise
| Pros | Cons |
| No cost for research and development | Very Huge Investment Required |
| Cost-effective growth | Loss of ownership and control over the franchise or showroom |
| Motivation and incentive | Confidentiality |
| Advertising | Flexibility |
| No cost on research and development | Need to pay a royalty every month |
| Premium Brand | Target Customer Base is Relatively Low |
Eligibility Criteria and Requirements for a Levi’s Franchise
Here are the eligibility criteria and requirements for Levi’s franchise in India:-
- Must be at least 21 years old and not below that
- Must have a little experience related to the field
- Must not have a criminal background or is ongoing a criminal activity
Requirements for a Levi's Franchise
- Space required - 200-300 square feet for showroom and godown- 300 to 500 square feet
- Documents required- Aadhar card, PAN Card, Voter ID Card, Passport size photographs, proper bank account details, financial documents, Trade License, GST Certificate, GST Number, and many more
- Investment required- Rs 35-50 lakhs