The American apparel brand Levi’s has announced the launch of a new global brand in China this fall. During its ten years in China, this is the first time Levi’s had launched a brand outside the US, signaling the importance of the Chinese market for the company. (See our previous post on Hermes launching a brand for China.)

Levi’s now has opened 501 stores in the world’s most populous country and built a strong reputation among Chinese consumers as being fashionable and premium. However, it is seen by many as too expensive. Levi’s is now attempting to build their brand image by introducing the new China-focused brand with an “affordable” price-- a pair of jeans under the new brand is likely to cost about US$50. According to Levi’s, the new brand is designed to appeal to the rapidly growing market of upwardly mobile, youthful consumers, who are educated and around 18 to 28 years old. This market segment covets fashionable jeans, but may not be able to afford jeans in the high end of the market.

Levi’s has not yet disclosed the name of the brand. Will it use the Levi’s name, in part or full, or create a new name and identity? This is an important consideration because how to position the flagship brand and the sub-brand is essential to the final success of this launch. Even with the attractiveness of the emerging ‘middle class’ population in China, it is too risky for Levi’s to dilute their global brand image for a local opportunity.

Another question is how to get consumers to accept the new brand, especially those who have admiration of Western fashion and trends. One effective way would be to make a very clear distinction between its main and secondary brand through effective brand naming and communication.

What is the sub-brand’s positioning? What kind of brand identity would it like to create? What messages will the brand deliver and how? We will have to wait for the brand launch to see how Levi’s addresses these important questions.