What Apple can learn from Levis. Don’t be good be relevant: How the ‘Original Jean’ became uncool

An iconic brand loses value if it stops focusing on consumers’ needs and desires. Just look at Levi Strauss. In the 1950s James Dean and Marlon Brando made jeans cultural icons. Levi's products were transformed from workwear to symbols of rebellion, fashion and freedom. 

By the 1980s Levi's sold one in every two pairs of jeans. But by 2000 it had fallen to just over 10% and in 2011 a new CEO was drafted in to save the company:   

“...there is a big difference between the product we’ve got on the floor today and what the consumer is looking for. And we just flat-out missed it.’ Chip Burgh Levi’s CEO, 2014. 

The Levis example shows that brands need to remember:  people don’t just buy products, they buy what they do for them. Levi’s lost its relevance. What it was offering had stopped being a symbol of rebellion and individualism.

As the jeans market evolved, it lost sight of the needs of its customers, failing to understand the relevance and value embedded within its products.

·        It focused on features rather than real product benefits.

·        Influential consumers became increasingly interested in the growing number of higher-priced designer jeans that started to appear: Guess, Clavin Kein, Hilfiger, Diesel and Armani all provided more aspirational product lines. At the other end, less fashion-conscious consumers cared more about the price than the label.   

·        The rise of the jean culture within the adult population and the corporate world in the mid-late 90s created the perception that jeans were aimed at ageing parents with rather than their kids. 

·        Influencers started to experiment with new khaki, combat trousers and other materials, creating their own style, value and relevancy. So could another iconic brand fall into the same trap?

Apple maybe heading in the same direction. As smartphone ownership becomes universal, owning a handset is less relevant than what it enables. Just like jeans, what phone you use confirms status and identity amongst your peers.

Is Apple, like Levi’s before it, losing sight of what makes its products relevant to the people buying them?

There are some simple lessons that Apple can learn from:

·        Don’t create upgrade cycles based on incremental product features like number of pixels or the quality of display. DO focus on improving what people can do with the handset. It’s all about the software and ecosystem. One of Apple’s original strengths is now falling behind.

·        Redefine Apple’s audience and what is relevant to them. When 43% of US smartphones are iPhones you no longer own the niche, innovative or luxury position. The early adopters are looking to differentiate themselves and the rest of market doesn’t want to pay a premium for a me-too product.

·        Ensure your operational model supports the audiences you want to engage. Relevancy has trade-offs and it’s important to understand how these are reflected in your operations. The vertical structure Apple is adopting can drive greater efficiency and retains wealth within the group, but it is less suitable for a style led challenger and market disruptor. 

Apple’s currently sitting on a $268Bn cash pile and one of the world’s most valuable companies so it’s some way off pressing the panic button. But taking a lesson from Levi’s, and rediscovering its relevancy should be a priority.