  {"id":13453,"date":"2016-11-04T17:52:10","date_gmt":"2016-11-04T21:52:10","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/levi-strauss-taking-the-water-out-of-jeans\/"},"modified":"2016-11-04T17:53:07","modified_gmt":"2016-11-04T21:53:07","slug":"levi-strauss-taking-the-water-out-of-jeans","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/levi-strauss-taking-the-water-out-of-jeans\/","title":{"rendered":"Levi Strauss \u2013 Taking the Water Out of Jeans"},"content":{"rendered":"<p>From the cotton field to the department store, a single pair of jeans requires nearly 10,000 liters of water in the production process<sup>1<\/sup>. That\u2019s enough water to hose your lawn for 9 hours straight, or to flush your toilet 1,600 times. To make just 250 pairs of jeans, you\u2019d need the same amount of water that fits in an Olympic size swimming pool.<\/p>\n<p>Before they\u2019re tried on for the first time, a new pair of jeans has already been washed for up to 6 hours straight<sup>2<\/sup>. Denim manufacturers do this, along with a variety of other water-intensive techniques, to treat denim to achieve the perfect look and feel. Also contributing to denim\u2019s water usage is the water-intensive nature of cotton \u2013 the main ingredient for denim. These 10,000 liters do not even account for each time a pair of jeans is washed after purchase.<\/p>\n<p>Despite its seeming abundance, water is increasingly seen as a resource that will become more and more scarce as a function of climate change. In fact, by 2030, demand for water is projected to outstrip supply by up to 40%<sup>3<\/sup>. Given the water\u2019s status as a critical input for jeans production, this represents an enormous threat to the business. An unfavorable move in either the cost or availability of water would severely impact Levi\u2019s business throughout the supply chain.<\/p>\n<p><strong>Leading the Charge<\/strong><\/p>\n<p>As the world\u2019s largest denim company, Levi\u2019s is in the unique position to lead the denim industry towards a more sustainable future. Levi\u2019s has already taken strides to reduce water usage, a move that certainly scores points with the environmentally-conscious residents of San Francisco, the location of Levi\u2019s HQ.<\/p>\n<p>Beyond simply good press, the steps Levi\u2019s has taken to date will help set the company up to succeed as the physical manifestations of climate change become increasingly pronounced. They created the Water&lt;Less<sup>TM<\/sup> finish process, reducing the amount of water used by up to 96%<sup>4<\/sup>. They\u2019ve also standardized the process for water recycling within the industry. Together, these initiatives have saved over 1 billion liters of water. Levi\u2019s has doubled down on this commitment by sharing the Water&lt;Less technique with competitors to broaden the initiative<sup>5<\/sup>.<\/p>\n<p>Levi\u2019s has also used its scale to drive sustainability through other members of the supply chain. Through the Better Cotton Initiative (BCI), Levi\u2019s aims to change the way cotton is grown by decreasing the environmental impact<sup>6<\/sup>. This initiative has resulted in an 18% decrease in water used during cotton production.<\/p>\n<p>Levi\u2019s has also encouraged consumers to pitch in. Levi\u2019s CEO, Chip Bergh, famously revealed that he had not washed his jeans in over a year. Instead, he spot-treats stains, and occasionally puts his jeans in the freezer overnight to kill bacteria. In addition to promoting sustainable consumer practices, this served as a high-profile way to draw awareness to a problem not on the radar of most consumers.<\/p>\n<p><strong>What\u2019s Next<\/strong><\/p>\n<p>Levi\u2019s has made great strides to limit water usage, but must do much more as water becomes increasingly scarce. The most obvious path forward is to scale the current initiatives \u2013 Water&lt;Less accounts for 28% of total product volume<sup>4<\/sup>, and Levi\u2019s sources just 12% of cotton from BCI farmers<sup>6<\/sup>.<\/p>\n<p>While expanding these initiatives will help mitigate Levi\u2019s water dependence, more dramatic steps need to be taken. Levi\u2019s should explore the following options to continue the push towards a sustainable denim industry:<\/p>\n<ul>\n<li><strong>Increase Efficacy of Better Cotton Initiative:<\/strong> Levi\u2019s can continue to amplify the impact of the BCI by investing to lower water usage in cotton production beyond the current 18%. Critical to this path is Levi\u2019s ability to leverage scale to motivate suppliers to action.<\/li>\n<li><strong>Explore Vertical Integration of Supply Chain: <\/strong>Alternatively, Levi\u2019s can cut out the independent growers and grow their own cotton. While it clearly would add significant complexity and new risks into their business model, owning the supply chain would result in direct control of the process.<\/li>\n<li><strong>Reduce Own Cotton Demand:<\/strong> Regardless of the source of cotton, Levi\u2019s should reduce the amount of \u201cnew\u201d cotton used in jeans. Levi\u2019s has begun making inroads into the initiative, as earlier this year they partnered with textile startup Evrnu to create the first pair of jeans from post-consumer cotton waste<sup>7<\/sup>.<\/li>\n<li><strong>Facilitate Changes in Consumer Behavior: <\/strong>Reaction to Bergh\u2019s proclamation that he has not washed his jeans in a year was mixed. One understandable reaction was to question the cleanliness of the practice. Would the reaction have been the same if the jeans were made using antimicrobial fabric? Currently, the energy around antimicrobial clothing is focused in the healthcare industry<sup>8<\/sup>. As the technology develops, Levi\u2019s should explore integration into their own product lines to reduce the post-purchase water usage.<\/li>\n<\/ul>\n<p>In 1853, Levi\u2019s invented the denim category. Over 150 years later, Levi\u2019s must reinvent the category to ensure the long-term sustainability of the industry.<\/p>\n<p>(799 Words)<\/p>\n<p>&nbsp;<\/p>\n<p>End Notes:<\/p>\n<ol>\n<li>The Water Footprint Network. <a href=\"http:\/\/waterprint.net\/jeans.html\">http:\/\/waterprint.net\/jeans.html<\/a>, accessed November 2016.<\/li>\n<li>Jeans Info, \u201cHow Jeans Are Made\u201d <a href=\"http:\/\/www.jeansinfo.org\/how_they_make_jeans.html\">http:\/\/www.jeansinfo.org\/how_they_make_jeans.html<\/a>, accessed November 2016.<\/li>\n<li>Henderson, Rebecca; Reinert, Sophus; Dekhtyar, Polina; Migdal, Amram, \u201cClimate Change in 2016: Implications for Business\u201d October 14, 2016, <em>性视界 Business School Publications<\/em>, accessed November 2016.<\/li>\n<li>Levi\u2019s Company Website. <a href=\"http:\/\/www.levistrauss.com\/sustainability\/products\/waterless\/\">http:\/\/www.levistrauss.com\/sustainability\/products\/waterless\/<\/a>, accessed November 2016.<\/li>\n<li>Chua, Jasmin Malik, \u201cLevi\u2019s is Open-Sourcing Its Water-Saving \u2018Water&lt;Less\u2019 Process\u201d, March 25, 2016, <a href=\"http:\/\/www.ecouterre.com\/levis-is-open-sourcing-its-water-saving-waterless-process\/\">http:\/\/www.ecouterre.com\/levis-is-open-sourcing-its-water-saving-waterless-process\/<\/a>, Accessed November 2016.<\/li>\n<li>LS&amp;CO Unzipped Team, \u201cMaking Strides Through the Better Cotton Initiative\u201d, <em>Levi Strauss &amp; Co Unzipped Blog<\/em>, August 10, 2016, <a href=\"http:\/\/www.levistrauss.com\/unzipped-blog\/2016\/08\/making-strides-through-the-better-cotton-initiative\/\">http:\/\/www.levistrauss.com\/unzipped-blog\/2016\/08\/making-strides-through-the-better-cotton-initiative\/<\/a>, accessed November 2016.<\/li>\n<li>Samaniego, Danielle, \u201cLevi Strauss &amp; Co. + Evrnu Create First Pair of Jeans from Post-Consumer Cotton Wate\u201d, <em>Levi Strauss &amp; Co Unzipped Blog<\/em>, May 11, 2016, <a href=\"http:\/\/www.levistrauss.com\/unzipped-blog\/2016\/05\/levi-strauss-co-evrnu-create-first-pair-of-jeans-from-post-consumer-cotton-waste\/\">http:\/\/www.levistrauss.com\/unzipped-blog\/2016\/05\/levi-strauss-co-evrnu-create-first-pair-of-jeans-from-post-consumer-cotton-waste\/<\/a>, accessed November 2016.<\/li>\n<li>Ricks, Delthia. \u201cLI Hospital\u2019s New \u2018Super Scrubs\u2019 Repel Germs\u201d, <em>Newsday,<\/em> October 12, 2016. <a href=\"http:\/\/www.newsday.com\/news\/health\/li-hospital-s-new-super-scrubs-repel-germs-1.12448475\">http:\/\/www.newsday.com\/news\/health\/li-hospital-s-new-super-scrubs-repel-germs-1.12448475<\/a>, accessed November 2016.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Over 150 years ago, Levi&#039;s invented jeans. Today, Levi&#039;s must reinvent the way they make their iconic products to survive 150 more years.<\/p>\n","protected":false},"author":2674,"featured_media":13849,"comment_status":"open","ping_status":"closed","template":"","categories":[114,1828],"class_list":["post-13453","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-apparel","category-water-usage"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Levi Strauss \u2013 Taking the Water Out of Jeans - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/levi-strauss-taking-the-water-out-of-jeans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Levi Strauss \u2013 Taking the Water Out of Jeans - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Over 150 years ago, Levi&#039;s invented jeans. 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