Forever 21 is one of the world’s most recognized fashion retailers. Founded by South Korean immigrants Do Won and Jin Sook Chang in 1984, it has been the biggest threat to the traditional fashion industry for decades. The Changs had emigrated in 1981 from South Korea to Los Angeles, where they opened their first women’s apparel store. Their vision quickly turned into a worldwide phenomenon. It expanded the concept of fast fashion by anticipating its inventory to match with the eclectic, hip trends coming out of Korea.
This collaboration with Korean clothing manufacturers in the Jobber Market played a decisive role in Forever 21’s rise to the top of the retail industry. This collaboration allowed the brand to bring cutting-edge Korean fashion trends to American consumers, effectively bridging cultural gaps and introducing new styles to the mainstream. Nicole Craig, a global trend expert who helped develop the collection, said, “Korean culture and fashion is in Forever 21’s DNA.”
Located in fast fashion’s headquarters of Los Angeles, Forever 21 took off during the 2010s. This boom came during the global explosion of K-pop and Korean dramas, notably as these series began streaming on services like Netflix. This fashion aesthetic struck a chord with new, young consumers and it reflected the aspirational look of K-pop idols and influential K-drama characters. This fascination ignited a wave of demand for equally stylish garb. This trend allowed for one amazing opportunity for Forever 21. The brand’s marketing genius was positioning fashion as a means by which teenagers and young adults could express their unique identities.
At the peak of its success in 2015, Forever 21 was doing very well with more than 800 locations globally. It nevertheless grossed over $4 billion in ticket sales. The firm’s capacity to deliver fashionable looks just right for K-pop shows shook strikes biggest accomplishments. These daughters of founders Linda and Esther Chang were integral to crystallizing the brand’s mission. Far from being mere tokens, they consistently steered the company’s course from their seats in the executive suite.
In truth, for all these accomplishments, the odds were severely stacked against Forever 21 in continuing its incredible growth trajectory. Then came apparent financial hardships that led to a severe purging of its extensive stable of exclusivity-inducing styles. The company struggled to fight against changing consumer tastes and increased competition. Though analysts praised the company’s meteoric pace of growth, they were quick to note the downsides that accompanied it. Then supply chain and inventory management worked against them to keep up with the rapidly changing world of fast fashion.
In 2020, Forever 21 declared bankruptcy for the second time in six years. This was a sad milestone for a company that not long ago had been the poster child for youthful ferocity and industry innovation. The bankruptcy filing signaled the permanent closure of all U.S. stores, a move that shocked many loyal customers who regarded Forever 21 as a destination at major American malls.
Craig pointed to the brand’s key differentiating factor as its unique selling proposition. As he noted, “Forever 21 was founded on this radically democratizing idea that a teenager, walk into the store with a $20 bill and walk out with this like, edgy new outfit. This idea struck a chord with consumers, creating an opportunity for them to show off their personal style without emptying their wallets.
Christina Moon, who explained just how Forever 21 is tuned in to modern culture. In her words, “They’re pulling from what’s going on in Asia, from celeb culture and K-pop stars. This enterprising approach generated excitement among Millennial and Gen Z shoppers. It also did something else – it created a powerful feeling of connection and community between supporters of Korean culture.
As the economic pressures piled up, Forever 21 was unable to adjust to a growing retail landscape that was more competitive than ever. The brand’s efforts to revitalize its offerings were met with challenges, resulting in a diminished product assortment that failed to capture the attention of its core demographic.