Jeans in Sweden

2021 DEVELOPMENTS

Slow recovery, tough competition

Jeans saw a tough year in 2020, partly due to the athleisure trend, and because due to the pandemic consumers refrained from making non-essential visits to retail outlets. Most consumers prefer to try on jeans before purchasing.

Purchasing patterns change

As with the wider apparel market, purchasing patterns for jeans are shifting, with lower turnover, a move towards e-commerce (despite some challenges) and greater consumer choice. This shift is made easier in jeans due to the highly standardised character of the category, with waist and length measurements more or less completely limited to inches (width/length) and practically identical across brands, making it easier for consumers to switch channels and go shopping for alternatives to their normal preferences.

International premium brands perform well, but economy jeans accounts for the largest share

Despite seeing a further value share decline in 2021, international premium brand Levi’s maintained its lead in jeans, thanks to its strong brand recognition and reputation as being high quality. Levi’s also offers frequent discounts, while its business model includes distribution by Levi Strauss Sweden to 23 retail stores managed by regional player Varner Brand Stores, which has good experience of the local economy.

PROSPECTS AND OPPORTUNITIES

Slow recovery and category saturation

Jeans was reaching a stage of consolidation and contraction before the pandemic. The category is saturated, with little potential for innovation and new fashion trends, as consumers focus more on sustainable, classic designs, durability and low cost, rather than pre-patination or glitzy brand identities.

Tougher competition, with growing generalisation and e-commerce

Jeans is a highly standardised category, with small (perceived) differences between different types of brands and price levels. The situation resembles that of near-perfect competition, and the current tendency towards a split into generalists and specialists risks an exacerbation of these conditions.

Second-hand unlikely to break the stability of jeans

Second-hand consumption, which is a growing challenge for many other apparel categories, is expected to play less of a role in terms of competition with jeans, as this is a type of garment that is often worn until it is too worn out to be resold. In addition, these products are frequently sold in a heavily patinated condition even as brand new – for example, stonewashed jeans – rendering second-hand retail value extremely low.