Baba Ramdev inaugurated Patanjali’s first apparel store ‘Patanjali Paridhan’ in Delhi last week. The 4,000 sq ft store sells everything from saffron langots to ripped jeans.
ThePrint asks: Can Levi’s compete with Baba Ramdev’s Patanjali sanskari ripped jeans in India?
Those who buy Levi’s are not buying the jeans but the brand, and may never wear Patanjali
Himani Chandna
Reporter
Do you dress just to cover yourself? Of course, not. Your clothes are also a means to communicate your ‘self’ to others.
Baba Ramdev’s plan to destabilise multinational brands may read like an attractive news headline, but in reality, it may not hold any relevance. A customer who wears brand Levi’s may never wear brand Patanjali. He/She is happy to pay ten times more for Levi’s because he/she is not buying the jeans but the brand. Clearly, price plays no role.
In FMCG, ‘giving a tough competition’ to Nestle and Colgate was possible because the food category is not a status symbol. Shoppers consider trust factor while buying food items which Baba Ramdev enjoyed because of his known face and achievements in yoga and herbal medicines. His formula of spending several crores on advertisements also worked well. The firm’s food business made an immediate connection with the consumer.
But the case is not same for apparels. According to a study by Symbiosis Centre for Management Studies, Pune, customers give low priority to advertisements and trust while buying apparels.
Psychological satisfaction rather than utility satisfaction is expected to play a major role in apparel purchase decisions. “I may wait for discounts at Levi’s for the other three months but I will never buy Patanjali,” says a research scholar at Delhi University.
Bernard Arnault, the owner of LVMH, the most powerful group in the world selling luxury items, had said: “We sell dreams, not products.”
In price-conscious India, Patanjali will find many takers, but people who are out to buy dreams will only buy Levi’s.
Patanjali is going to kill local non-branded jeans manufacturers
Nikhil Rampal
Journalist
The Indian consumer no longer believes that everything that Baba Ramdev sells is ayurvedic. Patanjali is now an empire that wants to enter every market sans product quality research.
To say whether Levi’s would be able to compete with Patanjali’s sanskari jeans is an insult to the global brand which has spent a lot of hard work and money for research-based production of durable, easy-fit jeans.
Ripped, slim-fit or torn, the Indian consumer will throw it away if it becomes a rag after one wash, which doesn’t happen with Levi’s.
Consumers will continue to wear Levi’s because of its comfort, quality and fitting. Brand value and consumer habits take time to change. The only product differentiation that Patanjali is offering is of it being ‘swadeshi’ (even with torn jeans). But there are swadeshi jeans that Indians have been wearing ever since jeans became fashion.
So who will wear the Patanjali brand jeans? The desi consumers who wear cheaper, local and non-branded jeans that aren’t advertised, will now have the option of wearing Patanjali brand jeans (cheaper variants) from a glossy store.
Patanjali is basically targeting people who never chose to wear branded jeans due to its price under the garb of swadeshi and lower prices.
Patanjali is going to kill the local non-branded jeans manufacturers.
Baba Ramdev’s Patanjali Paridhan jeans aren’t actually competing with Levi’s at all
Nandita Singh
Journalist
The simple answer is no — because Baba Ramdev’s Patanjali Paridhan jeans aren’t actually competing with Levi’s at all. Just because you’re making a similar product, doesn’t mean you’re vying for space in the exact same market: price points, target demographics, marketing and brand value, among a myriad of other factors, determines the space you will occupy in a competitive marketplace — fuelled by product differentiation.
Sanskari ripped jeans stand as symbols of a swadeshi #throwback — evoking in their branding a sense of nationalistic pride for domestic, home-grown production. In the current climate, Baba Ramdev is cool for a vast number of people led by majoritarian thinking. Levi’s, meanwhile, continues to be reserved for those still nursing a colonial hangover. Like its high price point, Levi’s sits at a shelf high enough to be just of out of reach for middle-class aspirations, but low enough to be scoffed at by brands like Gucci.
There was a time when Levi’s enjoyed one of the highest brand recall values — synonymous with ‘jeans’ altogether. But times are changing, and as the Indian market opened up to a flurry of affordable, yet fashionable, apparel stores from around the world, the era of Levi’s soon faded into the background. The consumer emerges victorious, with a plethora of choices ranging from H&M, Zara, Forever 21, Wrangler, yes Levi’s, to brands like Patanjali. Jeans aren’t FMCG goods – people tend to care more about what people think about the jeans they wear than the toothpaste they use.
Patanjali’s impact on Levi’s will depend upon ideological competition between capitalism and nationalism
Achyut Mishra
Journalist
The impact of Ramdev’s “sanskari” jeans on Levi’s India business will depend upon the competition between two ideological forces: Capitalism and nationalism.
Famous Harvard Business School professor Michael Porter outlined three strategies which firms adopt to compete in the marketplace: Cost leadership, differentiation and focus. A firm that wants cost leadership will price its products at or slightly below market price level, maintain decent quality and cut costs substantially. A differentiator’s product, on the other hand, will have a unique aspect to it for which the differentiator generally charges a premium over normal market price.
In the case of Levis, it’s clear that it’s consumer base isn’t very price sensitive. Jeans of comparable quality from various other brands are available at much cheaper prices but that hasn’t eroded Levi’s market share. The capitalistic urge to appear different, to spend more because you can, is difficult to contain.
“Sanskari” jeans, however, has a differentiating aspect to it at no extra market premium. It is swadeshi. For Patanjali to compete with Levi’s, it needs to stress upon primordial nationalism. In that case, some of Levi’s consumer base may shift towards Patanjali. Although in the long run, I don’t see nationalism overcoming people’s capitalistic impulses.
Also, there is another aspect to this debate. While Levi’s as a premium brand won’t get affected, other low-priced brands most certainly will. Patanjali, with tacit government support, will not only emerge as a low-priced cost leader but will also be a differentiator. It’s an enviable scenario for any market player.
By Neera Majumdar, journalist at ThePrint.
Article is baised, no one thought that Colgate will be affected by patanjali but now it’s proved………
I urge to All brand ambassadors of Levi’s in this article that, Let’s give fair chance to an Indian who want to keep Indian money in India . Time will prove the fact.
Looks like advertisement of Levis. Illogical assumptions. Disappointed.
This is how paid journalists work….
It is disturbing. I think there should have been a disclaimer note below. Why would a reader care what a journalist or anybody think or feels? Public can think for themselves. If individual can’t think for themselves then it is dangerous for democracy and secular structure. We want truth, not judgement based on prejudices. Prejudice because they never even had a trial for it. Never heard of The Print. I could have said it is a shitty news paper reading this article. But I won’t. I will try some other article. This article is useless but cheekily written.
Secondly, anybody can start a business. Always market itself is the competitor, not any particular entity. Comparison is stupid. Truth is market always catch a good product. That should be the idea.your prejudice is ramdev means gawti. Unfortunate to see so many smartly distorted mirror.
Writer has considered urban views and thought process. Rural India has different mindset.
Success and failure of products depend upon many factor , Ramdev group is leveraging it’s brand acceptance which is a true business.
I would ve happy to see desi brand succeeding .
Baba ji, videshi companiyo ke jeans, langot sab faad denge….
I am proud on pure indian company
If Patanjali Garments are of good quality, have aesthetic value and are cheaper then why not support the National Brand?
Colget has seen deep dip against dant kanti. Same will happen to those who bost of wearing brand. Jeans has become common public wear it is no more fashion wear. The best always win, Ramdev has this quality. Wait and watch.
The discussion around this question itself suggests that Patanjali is a brand to reckon with and Levi’s has reason enough to be worried of it’s Indian market. Of course, apparel market is driven more by brand value than utility value but if Patanjali, that has already established itself as a big ticket player in the FMCG space, can effectively combine utility and it’s fast gaining brand value then it is not quite impossible for brands like Levis to lose grounds to Patanjali in the near future. One must not forget that rise of Patanjali during the last couple of years has been more than meteoric. It would take only a few stars to push the brand in the apparel space too.
What about big bazaar and dmart they are selling 1 crore plus jeans together . I think babajis competition will mainly hit these guys rather than levis
Article published without much research and seems to be biased and reflecting journalists personal opinion.
Statements like “Patanjali is going to kill local non-branded jeans manufacturers” is baseless, simple study of Patanjali’s Paridhan apparel price range would have made things clear, even an undergarment cost 299/- Rs which is no where to be compared with local brands. Baba Ramdev’s vision entering apparels segment is to clearly target big MNC’s, when said the products are cheap, it means they are cheaper than big brands like Levis Zara etc. Also another statement mentioning Patanjali spending crores on advertisement is misleading readers to believe that they spend too much but the reality is Patanjali spends less than 10% of what big players spend on advertisements. We should not forget Patanjali’s track record of setting new trends against all odds in several segments, so clearly the MNC’s should not take them lightly. As Indians why shouldn’t we welcome a new swadeshi brand trying to compete big brands providing good quality products at lower price and with a unique vision about 100% charity from profits, who knows tommorow Patanjali’s Paridhan can be a bigger brand than the well established biggies.
Rubbish things these reporters expressing here , these are their personal views , just ignore them and support swedeshi instead of paying excessive overpriced Levi’s or other foreign brands.
India is very big country plus new
Mclass population is huges forbaba jeans
A lot of potential
I don’t understand why do people have problem with baba ramdev..whatever he does people will come with so many non sense stuff like this will kill the local vendors etc. Do some research guys before spitting anything..the employement he is creating, so many people are getting jobs..why can’t you look at positives. Just because he wears bhagwa or has inclination towards modi govt, you can’t write rubbish!
For sure, maybe right now someone with Levi won’t go for Patanjali. But this mentality is exactly what needs to be changed. Brand is a show. Does no good to us ( or maybe just a lil raise in standards for few ). So, be it Levi or Patanjali. These are the very few small steps , mostly unrecognized that create a difference.
Baba Ramdev is only out to make money. He was saying that all profits would be used for public use. I see no proof of that anywhere. He has truly become Lala Ramdev.
One thing to bear in mind before starting the whole “Brand” rhetoric..!!
How many of us have seen the manufacturer label on the top brand’s labels ?? Each one of them are literally procured , stiched and labelled in India itself, most of them by Arvind mills…!!!
Now , what exactly are brands doing here ??!! Playing adds from US and giving sub contracts to Indian companies, taking material from India , and selling in India and take hefty money to their bank accounts outside of India…!!
What are we actually paying higher price for is the non tangible name ..!!
Please don’t delete this article anytime in future, and kindly schedule this post on Facebook page for exactly one year later.
I will say , i dont know what patanjali is giving ,but why not to give it some time and try…. atleast it using resources from our country and giving priority to our people in jobs and not sending major portion of profits to some outside country who use that money to bully others.
People may prefer brand more than product which i think is actually irrelvent mindset.
Levi’s is a good brand or levi’s is just a brand only,,its not like that only levi’s has secret formula to make good jeans.
I had gone for levi’s and other brands in past,used many local brands too and will definately try patanjali also…instead i will give multiple chance to patanjali ( since they are new in this business and will learn soon ).
Patanjali is not competing with Levi. It is like Maruti competing with Mercedes which caters for fractional percentage of car buying. Country of 1.2 billion people 99 percentage belongs to Patanjali range.
Prof PK Sharma,Freelance Journalist,Barnala(Punjab)
Is it not sheer wastage of space, time and energies on a non-issue ?
Why should the Print bring Ram Dev and his Patanjali into the
limelight promoting and encouraging him, his products by making
a mention of his products though in black and negative hues ? Is it
not a blessing in disguise for him and his Patanjali ?
Is it not in a way an act of frittering away our human resources
on trifles? Should not such like issues be discouraged so far as
healthy, constructive and positive deliberations are concerned ?
Are there no worthwhile topics and subjects for instant parleys
quite relevant in the best interests of the nation ?
Prof PK Sharma, Freelance Journalist
Pom Anm Nest,Barnala (Punjab)
I have been using Levi’s for a long time. I don’t use any brand for name sake. I look not only for fashion but also for comfort. I am not a slim type guy and the fit from Levi’s best suits me – both in terms of fashion and comfort. I need no alterations when I buy Levi’s for my waist size.
You have decided that indians are idiots they don’t have thinking power.
They are interested in brand who did not bothered about their own brand
People like you who think about brand and status. But there is middle class as well as rural areas people. Definitely they don’t bother about brand. They want to be healthy and wealthy choice.
Fully baised article
Thats a great job by baba. Every common indian especially village folks are cheated by cheap imitations of branded products. Now they get quality and pride. Keep it up baba lets go desi
Journalist seems to be brand ambassador of Levi’s.
radev will definitley compete with LEVIs provided if ramdev is determined and maintains quality. indians are always stands behind him
too early to predict that LEVI shall not get affected.
lets wait and,watch.
i think, there are bound to be ripples in Levi board room.