New cuts, colours for jeans: Lady Levi.

Denim and jeans are far from exiting the UK fashion scene, with a clutch of new opportunities to give the market added impetus.

Bootcut, slim-fit, easy-fit, stretch, dark denim, dirty denim, whiskers, mud-washed, sand-blasted, over-dyes and resin baking are just some of the styling and finishing options helping to breathe new life into the classic five-pocket jeans. In fact, reinventions via fits, washes, colours, finishes and construction contributed to a 40% rise in UK jeans sales, according to Mintel's 2003 report on the jeans market.

Despite a slowdown in the women's jeans market at the end of 2003, James Hobbs, business group director at TNS Fashion Trak, says that sales are "beginning to take off again, with 10% growth in the latest 24 weeks."

One of the most fiercely contested niches at the moment seems to be the youth market, where moderately priced lines offer the contemporary shopper a designer fashion hit at a price point that won't break the bank.

Malcolm Newbery, author of a new report published by just-style.com covering the global market review of the denim and jeanswear industries, with forecasts to 2010, makes the point that: "there is after all, only so much you can do with a pair of trousers with a back-yoke construction in terms of make-up."

Indigo chambray jeans from Next.

Improved appearance of jeans.

But he also says that as far as production and supply into the fashion jeanswear segment is concerned, Hong Kong and mainland China companies have a strong competitive edge, particularly in styles that involve "anything complicated like fashion embroidery or decorative stitching and finishing."

A glance at the UK high street just now shows how designers and manufacturers are trying to improve upon the classic jeans style.

Denim washes are getting darker or more colourful with shades of pink and pastels deemed hot for summer 2004; sportswear silhouettes like drawstring waists are cropping up on denim products; legs range from wide 70s styles to slim cargo-pants, tight pencil cuts and capris; and there are the more utilitarian buckle-back workwear looks, twisted seams and flap back pockets. New fabric technology also means materials are getting lighter yet have the same strength as much heavier weight fabrics.

The names have it for jeans

Marks & Spencer's new per una dué line being launched in May 2004 is targeting the late teens to early 30s female. Its harder-edged, funky fashion items will include skinny jeans, and each collection will have an eight-week lifespan.

Levi Strauss is segmenting its whole range "to develop products aimed at specific consumer groups with particular retailers in mind," explains Rosanna Iacono, head of Levi's women's wear division. As part of this, its new Lady Levi's concept range targets teenage girls with a denim hipster jean in bright lipstick colours, skirts, capri style pants and oversized zip pants. Fabrics include stretch and non-stretch 10/11 oz denim with yellow and pink signature stitching, and the range will retail at US$54 to US$79.

M&S per una black, seamed jeans.

Levi's Red Tab for girls.

However, James Hobbs cautions that: "we're still seeing growth for boys' jeans, but the girls' market has slowed and declines after rapid growth peaking early in 2002." Fashion Trak estimates the girls' jeans market was worth US$197 million in the year to February 2004, while boys, at US$173 million, is up 12% on the previous year.

Wrangler brings back hot pants.

Lee's new X-Line jeans range hopes to appeal to the young male mind with exaggerated heritage details like oversized embroidery on the back pockets, vintage style doughnut buttons, green rivets and green selvedge. X-Line includes four styles of men's jeans priced between US$37 and US$44.

Likewise, Wrangler's latest collection, which is being stocked by D2 and Top Shop, is another heritage line-up with wholesale prices ranging from US$33 to US$43. Styling details take in antique copper rivets, worn vintage denim finishes and deep rich indigo shades. Finishing touches include pocket bag wear lines, zip fly creasing and abrasion. There are also girls' hot-pants and mini skirts.

Levi Strauss has also reworked its best-selling 501 jean with 'anti-fit' minimal shaping which harks back to the garment's original workwear heritage. And for autumn/winter 2004, it is rolling out Levi's Collection, a premium-pitched addition to the Red Tab range that hopes to drum up demand through limited addition pieces like a higher-waisted, straight-leg, black jean.

Jeans market polarisation leads to state of flux

Wrangler in the hunt for market share.

This flurry of activity at the younger fashion-oriented end of the market is helping to mask the fact that the jeanswear sector overall is in a state of flux, according to industry observers.

James Hobbs of TNS Fashion Trak believes the threats include the growing dominance of private label jeans, particularly in the women's market; and the rise of the discount sector, which now makes up nearly a third of the market by volume.

"The jeans market - especially for women - has seen a shift towards retailer own brands, with true brands struggling to get space in store," Hobbs says. "So a lot depends on how much space retailers give to denim in the coming months. The trend to retailer brands has seen, for women, the US$55 to US$74 price point become much more important."

Mintel's research shows that Levi's remains the leading UK jeans brand with a 15% market share and, bearing out own-brand strength, Marks & Spencer follows in second place with a 9% share. The next two biggest brand rivals are Lee and Wrangler, both owned by US clothing giant VF Corporation.

Significantly, Levi Strauss and VF Corp have both suffered from declining sales in recent years, despite the overall growth in the market - Levis' sales have steadily fallen from a 1996 peak of US$7.1 billion while VF's domestic jeans sales were down 7% last year.

Levi Strauss: lower growth.

Levi's Anti-Fit.

Malcolm Newbery agrees. "The big supermarkets are definitely taking market share at the budget value price points," he says. "Higher up the scale, a retailer own brand finds it hard to compete with the 'must have' fashion label of the season. Polarisation from the middle to both low value prices and high aspirational brands appears to be the fashion."

Mintel also cites market polarisation - growth at both the low and premium-priced ends of the trade - as having a huge impact on jeans sales. Fashion Trak's figures for the year to February 2004 show the value of the women's jeans market has grown 5% while the volume is up 8% - which translates into more jeans sold at lower prices.

Supermarkets snap up denim's volume sales

Most famously, at the bottom end of the market, UK supermarket group Tesco is selling jeans for just US$7. This compares to premium labels like Seven for All Mankind, Citizens of Humanity, Diesel, True Religion, Big Star, Joie and Habitual which fall into the US$231 to US$333 price bracket.

The big risk for jeanswear companies is getting caught somewhere in the middle.

Levis: rolling out new line.

George jeans for devotees.

Recent moves by Levi Strauss to claim a slice of the mass market shows how important it is to have a foot in this camp. Following the launch of its low cost Signature line at Wal-Mart stores in the US last year, Levi's is rolling out the US$46 jeans range in the UK through the Asda supermarket chain and is trialling the brand at Tesco.

Price points for the Signature range compare with New Look (men's wear fashion jeans start at US$33), H&M (US$37), Next (US$50), and M&S (US$59).

Looking ahead, James Hobbs believes that: "given the rapid growth seen from 2000-2002 in women's jeans, I would expect steady rather than rapid growth in the UK market for 2004. The men's market is now smaller than the women's market in cash and volume terms and is struggling a little."

from special correspondent Leonie Barrie, London

Contacts:
just-style.com: http://www.just-style.com
Levi Strauss: http://www.eu.levi.com/index.jsp
Marks & Spencer: http://www.marksandspencer.com/
Mintel: http://www.mintel.com/
TNS Fashion Trak: http://www.tns-global.com
Wrangler: http://www.wrangler-europe.com/eu/home.html