Hugh stood in the water of a small tributary stream of the Sacramento River in California and had been washing small gold nuggets from the sand of the riverbed for several hours. Despite the summer heat, he got cold from the long work in the water and was now looking forward to a hot stew prepared by his colleague Tom, who was the owner of the neighbouring claim. Ever since gold was discovered on the banks of the Sacramento in 1848, the river has been a constant hustle and bustle. Hugh and Tom were happy that they were able to stake promising claims on a small stream above the original gold finds.
Hugh was just about to get out of the water when he got stuck on a sharp stone with the bottom of his trousers. There was a short jolt and the characteristic sound of tearing fabric. Hugh knew this all too well: it was already the third pair of trousers that had ripped in the last 14 days. A quiet curse passed his lips and he scolded the makers during the meal: “You know, Tom, I’m a carpenter by profession. Our customers would have beaten us if we had built them tables that collapse immediately when you put a soup bowl on them!”
At the same time, the 24-year-old German immigrant Löb arrived in California. Since the early death of his father and especially after his emigration, he was responsible for his mother and his two younger sisters. In 1853 he also wanted to try his luck, but he had a different plan to most.
It was too obvious to him that only very few of the many thousands of gold prospectors
would become rich and the summer was slowly coming to an end. Autumn would soon be here and the first major rainfalls were to be expected soon.
This thought led him to his business idea: He wanted to sell good tents, sturdy fabrics and sewing kits to the gold prospectors with which they could protect themselves from the coming rain in autumn and snow in the winter, because as a poor immigrant he was sure that every gold prospector would appreciate a dry shelter in the coming months.
Equipped with bales of cloth, tarpaulins and sewing materials, he set off for the Sacramento River looking for a place where he could set up his stall and began to advertise his tents. Although hundreds of people passed by his stand, no one was interested in what he had to offer. Apparently, he was wrong. Despite the summer, most of the gold prospectors had already arrived with tents and had no need. However, the ambitious trader did not give up so easily: He decided to visit the respective claims and directly address those gold prospectors on whose land there was not yet a tent.
But here too, success failed to materialise. The gold diggers were too busy to talk to a merchant and those who exchanged a few words with him made it clear that it was still summer and that the weather was still good. For these men, a tent was only up for discussion when it really started to rain. Everyone was only interested in the things they needed at this moment. Everything else was of no interest to them.
Dejected and soon out of money, he realised that his idea must be clearly wrong and so he decided to sell all his goods at a heavy loss and return to his family. His way back happened to take him past Hugh and Tom’s claim.
They were sitting by the fire and eating their stew as every day. “Hello guys, I see you don’t have a tent yet and soon autumn will come and bring rain. You should buy tents as soon as possible – I have them on offer!” Hugh turned to him, “What am I supposed to do with a tent? It will take weeks before it starts to rain here. The only thing I need are trousers. Do you have any? None of our trousers can take the strain for more than 2 weeks, regardless of whether the sun is shining or it’s raining. We always need trousers.”
Löb froze. What had the man just said? We always need trousers? He immediately realised that his idea was spot on, only the product was wrong. With a pounding heart, Löb led his cart to the next largest camp where he found what he was looking for. A tailor who had also fallen victim to the gold rush along with his entire family. After just a few days, all his tents and bales of cloth were sewn into trousers and thanks to their structure and durability, Löb’s (Levi’s) Strauss Jean’s soon became the trademark of all gold prospectors, and this success could not be outweighed by any gold nugget in the world.
When Levis Strauss died childless in 1902, he bequeathed his company Levi Strauss & Company, founded in 1853, to his four nephews, who ensured that today an estimated 3 out of 4 people in the world own a pair of jeans.
Levi’s plan was good, but not good enough to succeed. It required a personal commitment to go to his potential customers. And it was only when he stopped selling and started listening that he found the missing piece of the puzzle that was missing from his plan.
Plans are of little importance, but planning is essential. Sir Winston Churchill
At Carey, we have had the privilege of seeing many plans and being part of their realisation. And we have also learnt to listen to understand the core of our plan, to recognise the intentions and the ultimate goals. That’s why we support our customers throughout long term, even when it rains or snows.
History shows that it always pays to implement ideas courageously and creatively by using structures. However, it also shows that it is always wise to have these structures accompanied and managed by trusted partners such as, in this case, his four nephews.
At CAREY ZURICH, we are specialist in setting up and managing advantageous structures for our customers and we would be pleased to establish a private structure in the form of a company, trust, foundation or whatever is suitable. We are committed to serving the needs of our customers with all the Swiss thoroughness and reliability that you would expect, because we care(y).