Price of Jeans in 2008

13/06/08

The expansion of choice - in respect to jeans - has increased rapidly during the past two decades. Previously consumers had a two way choice; pick the original manufacturers: Levi, Lee and Wrangler; or buy from department store: like Bhs, who sold their own brand jeans, which rarely fit well or looked stylish.

The problem was that the manufacturer's had a virtual monopoly. They could pick their approved stores, and set their price unhindered. The manufacturers knew that most fashion savvy consumers would not be seen dead in a store brand pair of jeans.

Luckily - for consumers - a revolution in casual clothing took place in the 1990s. Major fashion houses like Armani and Calvin Klein found a demand for 'designer jeans', and were soon started charging £80 and above for their wares. Then some economic alternatives surfaced, brands like Brooker began offering Levi look-a-likes for a faction of the cost.

The waters were stirred even further, when UK supermarkets began challenging the pricing monopoly Levi had. Importing jeans from middle men in America, supermakets were able to undercut the recommended retail price by up to 50%. Eventually Tesco lost a three year legal battle with Levi in 2001. The court ruling decreed that Tesco did not have the right to import Levi 501 jeans from America.

At the time, Tesco were selling a pair of 501 Levi jeans for £27.99. This was 40% lower than Levi were selling their 501 jeans at approved outlets in the UK. Levi believed that having their jeans sold next to groceries cheapened the appeal of their brand; an argument upheld by the courts.

Tesco did continue to sell Levi jeans. They were able to import from Europe (because of the law of the common market), and this was cheaper than buying direct from Levi UK. The downside was that Tesco could have lowered their price even further, if they were allowed to source their jeans from either Asia or America.