“It is really a shift from selling what we make to making what we sell,” Rosen said. “That is turning our total business inside out and transforming the way we operate.”
Rosen anticipates changes in four key areas as the company evolves to offer more customized product:
- Product Development: Rather than having to creating a finished product that requires the company to make advanced decisions about where consumer trends are heading, it can defer the decision on how to finish a product until later. “It’s really a transformation from finished goods to a blank canvas,” Rosen said.
- Store Experience: Customization will be available to all via levis.com, and that experience will be reflected in the brand's retail stores as well. The tailor shop for alterations that had once been in the back corner is moving to the center of the store to create a new hub of collaboration. The tailor will inspire shoppers, with additional help from stylists. “Our stores will really transform from being a product showroom to being a collaboration studio," Rosen said.
- Supply Chain: The distribution center now stores a base product, with the finished product actually being made on-site, adding manufacturing to the traditional pick-pack-ship model. That requires employees with a new skills set.
- Marketing: Rather than promoting and clearing product on which the company made early bets — and may have been wrong — Levi's is moving to inspiring consumers with what they can create, with social media at the center and visual search critical to the experience.
Understanding what consumers made, what inspires them and what they want to make next deepens the connection between consumer and brand and will let Levi's lean in to AI to offer an even more personalized shopping experience “It’s our denim and it’s their design. It will give us a whole new level of opportunity,” Rosen said.