Forever21 Business Essay

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A retailer focused on style and strategic growth, Based in Los Angeles, California, Forever 21, Inc. is a specialty retailer that markets inexpensive, chic apparel and accessories. Since cooperatively founding the hip clothing company in 1984, owner and CEO Don Chang and his wife, Jin, have organized Forever 21’s successful business plan. It all started in a 900 square feet shop on Figueroa Street in Los Angeles on April 21, 1984. The store was called Fashion 21. The owner reinvested his success by opening stores every six months, eventually changing the name to Forever 21. The giant clothing company has carefully selected its target market and has placed its products well in the minds of its customers. The target market that Forever 21 basically addresses is the younger generation including teens, college students and young adults who are fashion conscious and so, the prices need to be adjusted according to the affordability of this target market. Their pricing is from as low as $2.50 to $60.00. Their average sale is $45.00. To attract customers, the retailer offers stimulating store environments that feature a daily flood of exciting merchandise. Today, Forever 21 comprises 7,000 employees working in more than 200 retail stores throughout the United States and in select locations overseas. The stores are placed and shopping malls and not in shopping centers. Taking its niche retailing to a new level, Forever 21 has embarked on an aggressive growth plan. In the past year alone, the company opened several new U.S. and international flagship stores; acquired Gadzooks, a national retail chain with more than 240 locations and introduced Love 21, a line of accessories. As these investments take hold, the company expected its sales to grow from $600 million in 2004 to close to $1 billion in 2005. The company’s business model is fast fashion, that is, to quickly imitate

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