Denim upholds its position - marketing denim jeans - Gallup - Special Supplement: AM Apparel Merchandising

Discount Store News, July 22, 1991

Denim upholds its position

It remains one of the quintessential items in any men's apparel assortment. It is currently the cornerstone of the young men's apparel business, and it is proving its endurance as it stands up to an onslaught of competition in the form of casual slacks, fleece and shorts. In this precarious apparel business environment, denim jeans are proving their mettle. Retailers continue to report increases in the category and many merchants believe the classification will be even stronger in 1992.

An exclusive consumer study conducted for Apparel Merchandising by The Gallup Organization confirms the plans of retailers who have faith in denim's continuing strength. About two-thirds of the men queried in the survey, which was conducted on a national basis, say they'll purchase jeans during the next 12 months. A large proportion of this group plans multiple purchases.

On average, survey respondents indicate that they will buy more than three pair of jeans in the coming year. If those who don't intend to buy any jeans are factored out of the equation, the average jumps to five pair.

It will undoubtedly come as some relief to denim marketers that baby boomers haven't chucked their jeans inclinations to build a casual wardrobe consisting entirely of Dockers and sweatpants. In fact, only 10 percent of the 25- to 40-year-olds won't be purchasing jeans in the next year. Younger men are even more likely to buy jeans; more than 94 percent of the 18- to 24-year-olds plan on making denim purchases during the next 12 months. Ten percent of this group say they'll purchase 10 pair during the period. Just four percent of the 25- to 40-year-olds say they'll buy that many pairs of jeans this year, but a quarter of that group does intend to purchase a substantial four or five pair in the coming 12 months. As might be expected, older customers are less likely to buy jeans. About 54 percent of those between 50 and 65 say they'll buy denim during the next year.

Despite the tapering of jeans popularity among older men, the potential of denim business in the near future is enormous. Profits from the category will, according to the study, be spread throughout a variety of retail tiers.

With nearly a quarter, 23%, of the men who plan to buy jeans during the next year intending to head to a discount store for their denim purchases, this "Born In The USA" apparel item should remain a top priority of mass merchants. This figure suggests that carrying a broad assortment of brands that are prominently displayed, a tack adopted by many discount stores, is well worth continuing for the immediate, if not the long-term, future.

Unfortunate for the mass merchant is the fact that younger men, 18 to 24, who are most prone to buying several pairs of jeans annually, are least likely to purchase denim at discount stores. Only 6 percent in this group say they'll be buying denim in discount stores during the next year. Baby boomers, 25- to 40-year-olds, however, are much more likely to shop for jeans at discount stores. About 24 percent of this group say they'll buy at discount stores during the next year.

Along with department stores and discounters, specialty stores represent a significant presence in the jeans market. About 17 percent of those who participated in the study say they'll purchase denim at men's or young men's stores. It comes as no surprise that these outlets are particularly popular with the 18- to 24-year-olds. Some 22 percent of this group plan to make their jeans purchases at specialty stores. About 18 percent of the baby boomers choose this tier.

Sears remains a contender in the denim market with nearly 16 percent of those in the study naming the Chicago giant as an outlet they'll choose for jeans this year. Only eight percent say they'll buy at off-pricers, while four percent contend they'll order through a catalog, the same percentage that Montgomery Ward garnered.

One advantage discount stores have in the struggle for the denim customer is price. More than half of the survey participants, 53 percent, say they expect to pay less than $25 for jeans. But this doesn't mean that the lowest price should be the driving force of the business. Only eight percent anticipate spending less than $15 for denim, while 23 percent say they'll pay $20 to $25.

The higher end of the denim price spectrum represents a significant opportunity for department and specialty stores. Forty-seven percent of those queried say they'll spend $25 or more for jeans during the next year. But the $35 figure represents something of a cutoff mark. Only 10 percent of those queried say they'll spend more than that for jeans this year.

While price certainly enters into customers' buying decisions, it is far from the only factor influencing buying patterns. The marketing power of brand names also strongly affects which pair of denims a man is likely to buy. It will come as no surprise to discounters, who have been clamoring for product from Levi Strauss & Co. for years, that the San Francisco-based denim giant's merchandise ranks No. 1 with consumers--by far.