LS&Co. Unzipped
Nov 11 2010
Pants Without Borders?
Say, you run a business that involves moving goods – clothes, perhaps – from one country to another. And say, the various countries your goods pass through impose tariffs that keep changing, making it difficult for you to keep track.
Are you paying too much? Too little?
And what if those and other countries had customs procedures and complicated rules that were difficult to figure out, requiring you to spend tremendous time and money trying to keep up with changes and, at the same time, worried that you’re at risk of slipping up and running afoul of local law?
In very simple terms, that’s what Levi Strauss & Co. and other companies face throughout the Asia Pacific region: trade barriers such as a lack of transparency in trade and customs.
That’s why I’m attending the Asia Pacific Economic Cooperation (APEC) CEO Summit this week in Yokohama, Japan. I’m here on behalf of Levi Strauss & Co., meeting with my counterparts from other companies to determine what can be done to increase tariff and customs transparency and lower other trade barriers to get things done. There’s power in numbers, right?
This isn’t just about our bottom line. It’s also about jobs – in APEC countries and beyond.
Think about it. Levi Strauss & Co. markets its products in many APEC countries – Australia, Canada, China, Japan, Korea, Mexico, and Russia. On top of that, many of the countries where our products are made – including Indonesia, the Philippines and Vietnam – are also members of APEC.
The easier it is to do business in these countries, moving our products from one place to the next, the more business we can do – creating and keeping jobs in all of these places…and beyond! And if it costs less to do business in APEC member countries, we can keep our product costs down.
We’re working with other companies, non-governmental organizations and governments to increase the transparency involved in moving products in and out of the APEC countries. Our goal is a universal, up-to-date APEC-wide database of customs procedures, tariff rates and rules of origin for all 21 APEC economies. And I’m proud to say Levi Strauss & Co. is leading the way to make this a reality. Soon!
If you’re not directly involved in the work, it can seem like pretty dry stuff. But if the work we’re doing here in Yokohama this week – and elsewhere throughout the year – pays off, it’ll have a direct impact on your favorite Levi’s®, Dockers® and Denizen™ product.
If it’s easier for us to get everything from raw materials to the finished product from country A to country B and, ultimately, to your favorite store, we’ll be able to make sure you get the best possible product at the lowest possible price. And economies around the world will benefit.
Posted By: Laurie Goldman, Senior Manager, LS&Co. Worldwide Government Affairs and Public Policy |
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Yvonne (not verified) - Jul 20 2012
I bought a used pair of Levis on e-bay. The Made in South Africa tag was displayed. Do you have Levis sewn in South Africa?
Editor's note: Yes, we do work with factories in South Africa. In fact, you can find a list of all of the factories with whom we work, around the world, here.
JC (not verified) - Jan 21 2012
Dismayed as the others leaving comments on here, £70 pair of Levi's, bought at a Levi's store, hadn't bought any for several years ("my trusty Levi's"), now discovered they are not made in the US, not even in Ireland (where they used to be) - but Pakistan, and I can tell already the quality ain't there...why don't you charge your customers the £10 they are no doubt actually worth (qualitywise anyway) - very disappointed....
Ghufran Ahmed Bala (not verified) - Jul 13 2011
@ Rodney, Liz & Kathe Comment. Please allow my comments to be published. I was searching management of LEVIS in Pakistan and tried the search engine on LEVIS international website. I was shocked to see (though I shouldn’t be) what I found. Dear Rodney, Liz & Kathe, Pakistanis are suffering from this terrorism even more than US. The whole nation and country should not be blamed because of few culprits. As a Pakistani, I would like to comment that this is the same Pakistan that helped US soldiers, sons of many mothers, in Somalia. This was the same Pakistan that provided assistance to US in disintegrating your old rival USSR. This is the same Pakistan who has lost thousands of Pakistani solders, sons of mothers, in fighting terrorism. The labor who manufactures these jeans are not terrorist or supporters of terrorists. They are peace loving people with families, moral values and respect just like you. As far as training camps & OBL is concern, please be informed that many areas of Pak-Afghan border are tribal and un accessible. Pakistani nation are not training them nor are fond of terrorism. We have lost a lot blood in fighting terrorism but still we are being blamed. Please, I would request you to be open minded. the Jean manufactured in Pakistan are supporting your economy and so as that of Pakistan. Hating the whole nation and country isn't the solution. Infact many US drone attacks have killed hundreds of innocent people "by mistake as per US statements" in Pakistan but I, should not say that Americans are killing us. I know you are a peace loving nation so do us. Peace
Rodney (not verified) - May 24 2011
Just wanted to add my weight to Liz' Comments (May 10, 2011). I recently purchased a pair of second-hand levis off Ebay and was devastated, upset and angry to see they had been made in Pakistan. Don't see myself wearing them!
Liz (not verified) - May 09 2011
Like Kate who posted on 11-26-10, I was shocked to notice the lable in my Levi's that state made in Pakistan. You were always an American brand. My son wears Levis. My husband wears Levis. I wear Levis. That is changed as of the moment I saw where my Levi's were made. Pakistan knew or should have had every possible reason to know exactly where Osam bin Laden was living for the last 5-6 years but protected him and other known terrorists within their borders. This is a country whose cheap labor you use to manufacture your jeans. I have discussed this with my husband, son, daughters and my sisters and I have asked them to spread the word about where Levi's are made to their twenty something yr old friends. I have been fed up for some time with American companies outsourcing jobs from this country but you are actually helping to support a country whose actions put our fighting men and women in increased danger. Shame on you. This family will not be buying Levi's again. On the other hand, thank you because I will be reading all lables more carefully.
Philip Kent (not verified) - Dec 02 2010
There was a time when Levis were number one in quality, however what I am seeing is quality control that barely meets the Chinese standard. Come on guys get the act right again!
Editor's note: Hi Philip -- and thanks for the comment. No matter where our products are made, we stand behind them. If you have a problem with a pair of jeans, a jacket or any of our products, I encourage you to contact our Consumer Relations team, and they'll work to make things right. You may do so here.
Rick (not verified) - Nov 26 2010
Yeah I got to say, I love Levis, but I'm a working American, I'm the people you see in commericials, well the people you try to portray in some of your work commercials, I where my pants till they die, everyday, one pair of Levis, 25 and working class as it gets. Start manufacturing in the US again, US only, you might not think the youth realize it, but we do, and it'll be your downfall, were the smart, hardworking, new generation building this land, recognize it, we understand why you produce overseas, save the bull, help rebuild this country instead of throwing a few bucks at John Fetterman, who is a great man who's city was killed by work being shipped overseas to 3rd world nations, and you will reap the benefits of your decision. Thats why Carhart is blowing up these days if you haven't noticed, ha.
Kathe (not verified) - Nov 26 2010
As a loyal Levis consumer for over 40 years (supplying 4 males, 1 female with jeans worn everyday), I am saddened to have to discontinue my support for your product(s). I was recently shocked to find an internal label in my Levis (never noticed it upon purchase) that says, made in Pakistan. As a mother of a 22 yr. old Soldier, currently deployed in Afghanistan, I cannot support a company who in turn supports a population who's country allows safe haven to the world's worst terrorist(s), Al Qaeda training camps, etc., thereby putting my son's life and 100,000+ other US citizens at risk everyday. He/they are fighting for YOUR FREEDOM/YOUR SAFETY! Levis, you should be ashamed of yourself. Once again, this seems to provide proof that the Big Money Boys care only for the BIG profits, and not about the people of OUR country who have made you a household/worldwide icon. Family/Country first !!!! I think you would be surprised to find how many people would be more than willing to buy "American" manufactured products. It boggles the mind to think you have jeans costing $ 200-300.00 pr.. and yet with dirt cheap labor. Something is broken here, and if you want "American" loyalty, you'd better "fix" it. Shame, shame, shame....
Editor's note: Thank you, Kathe, for taking the time to comment. I will make sure your thoughts are shared with company leaders.
Désirée (not verified) - Nov 20 2010
"Are you paying too much? Too little?" i think i am paying too much for people like you and too less for the people who actually manufacture the stuff. its a matter of right distribution of the money among the people involved in the process. in your case though, the ones that contribute the most get the least. on top of that, they sacrifice their health and social life. would you personally swap your current position for one of these jobs you are, proudly, creating? i am 100% sure that results of your negotiations about trading costs won't decrease the price of a pair of jeans one bit. the only one who will benefit is you, neither "the economies", nor the workers, nor the customers.
Editor's note: Hi, Désirée, and thanks for your comment. As you know, we're a global company and we depend upon international trade as a vital part of our business. Anything that simplifies trade certainly helps us, as you say, but it also helps our suppliers and their workers around the world. Our Terms of Engagement commits us-- and our vendors -- to treating all of the workers who produce our products fairly and with dignity. We take this responsibility very seriously. And simplifying trade flows around the world, including within the APEC region, helps us to achieve these important objectives.
David (not verified) - Nov 13 2010
How many American jobs were LOST because you guy wanted to save a buck? Levi WAS an AMERICAN ICON, sumggled into foriegn countries at one time because they were AMERICAN MADE. Well shame on you. I will NEVER purchase a levi product again, and with 5 kids and 7 grandkids, that's a lot of word of mouth.
Editor's note: David, thanks for your comment. We do make some of our premium product in the United States, but the competitive reality of the marketplace and the fact that we have customers around the world requires us to produce our product in numerous locations globally. For those interested, Brooks Brothers offers a line of Levi's® made in the U.S. Also our Filson and Pendleton product is also U.S.-made. And we continue to look for ways to produce additional product in the U.S. -- at a price consumers are willing to pay.
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