American jeans company Levi’s has launched its first Cambodian outlet, but company officials have said its primary competition will initially come from the domestic black market.
Models show off denim and undershirts at a fashion event at the recently opened Lucky Department Store.
Located in Phnom Penh’s Lucky Department store, the outlet is run by licensee DKSH (Thailand) Ltd.
DKSH general manager Kevin Cornning said:“It’s really a venture into the unknown.”
He emphasised DKSH began with similar circumstances in Thailand with one or two stores some 20 years ago, and had since increased its outlets to 145.
DKSH was licensed to produce and sell Levi’s products in Thailand, and its Phnom Penh branch represented its first foray outside the country, he said.
While DKSH does not plan to manufacture any Levi’s products in the Kingdom, the US-based company Levi Strauss & Co does produce clothing in Cambodia.
These Cambodian-produced wares are now exported to foreign markets.
Cornning acknowledged that the Levi’s brand’s local production may lead to genuine products “falling off the back of a truck” and ending up for sale on local markets, which could then compete with sales from the genuine store.