Leading a 170-year-old company into the digital age is no easy task. As the retail world adapts to artificial intelligence developments, changing global trends and the rapid expansion of online shopping, Levi Strauss & Co. must adapt as well. We sat down with Levi Strauss & Co.’s new chief digital officer, Jason Gowans, to see how this looks at the company.
After six months in your new position, we know you must be very busy. What is the biggest task you have to deal with at the moment?
It’s been a busy few months. My main goal is still to get to know the ins and outs of LS&Co. As you can imagine, there is a lot to learn about a 170 year old company. And becoming familiar with every detail, no matter how small, is the key to my second goal: modernizing the company from the inside out. It is a great honor to come on board with such a respected heritage brand and we want to ensure we make all digital transitions with intent and care.
Tell us more about it. Nowadays you hear a lot about digital transformation – how does it look at LS&Co. Today from?
That’s a good question, and the answer is very complex. As a company, we are in the unique position of having operated on a wholesale model since the 1850’s. That means rethinking old processes and mindsets when moving from wholesale to direct selling, and that starts with focusing on the consumer.
Because I am responsible for achieving our goals as the first Chief Digital Officer ever, we have developed a three-pronged approach that allows us to push technological boundaries without sacrificing the quality we are known for. First we focus on the basics, second we develop the range and third we create a unique digital showcase experience.
Can you briefly explain what each of these steps looks like?
In any case. As I said, step one is all about the basics. This means we have a strong focus on enhanced discovery and search capabilities to provide more personalized content and offers on our website and app. I am wholeheartedly behind the innovative digital transformation, but my priority is to ensure that our technology is as good as possible for dealing with customers on a daily basis – from product exploration to order processing and building a robust review database.
In the next phase, we are concentrating on expanding our range, differentiating ourselves more and entering into exciting collaborations. We want to make sure our collections are easily accessible both online and in stores. That’s why we’re working to expand the selection and make it easier for customers to find the size and fit they want. We also place more value on transparency. Today we may have different price points for similar products, but it is not clear to the consumer why that is. We strive to involve the consumer in our decision-making processes and make it clear to them where their money is going at every step.
While much of our work is directed towards the future, in the third phase we return to our roots. As we work to bring our online shopping experience to life, we aim to infuse it with the spirit and hospitality of a Levi’s® in-store shopping experience. Even when customers shop online, we want them to receive the personal, first-class treatment they have come to expect in-store. To achieve this, we combine data, insights and new technologies to create an integrated omnichannel experience.
This is a big task for your team. Does artificial intelligence play a role in streamlining this process?
In any case. In the past few years we have made tremendous strides by starting to experiment with and leverage new digital capabilities, AI and machine learning. Now we’re ready to expand our efforts to enable better customer experiences and increase profitability through digital technology.
Leveraging data and AI has played an important role in streamlining promotions and improving our inventory management. We may be in the denim business, but having access to cutting-edge AI technology brings us closer to working and looking more like a tech company.
Finally, what would you say, what are your main goals as Chief Digital Officer and how do you intend to achieve those goals?
We definitely have some ambitious, concrete goals ahead of us. Looking ahead to our digital transformation, we aim to triple e-commerce sales and grow our DTC business to 55% of global sales. Also, we hope to grow net sales from $9 billion to $10 billion at 6-8% annual growth.
But what we really want is a better shopping experience for our customers, which has a knock-on effect. We believe our modernization efforts will result in increases in customer satisfaction, sales, average order value and frequency of purchase, which LS&Co. will help to continue to grow and prosper in the next 170 years of our existence.