September 28, 2014, Hangzhou Hubin in 77 opened in the fourth phase of the mall caused quite a stir in the local, as settled in addition to the year in Asia’s largest Apple flagship store, tide brand collection shop, red restaurant, there are many first time Into the clothing brand in Hangzhou, from the United States, Forever 21 is one of the fast-fashion Zaful Coupons women’s. “Forever21 little distribution in the country, this is the first store in Hangzhou, two months in good condition, the opening day of business that broke through 250,000 yuan.” Mall Design Director Tang Xuecheng was accepted at the “Daily Business Daily” Said in an interview. But three years later, the flagship store covering as many as four floors quietly closed in October 2017. At this point, less than two months before Forever 21 at the Jinghua Center in Causeway Bay, Hong Kong, the previous Shanghai Xinmei United Store and Huaihai Zhong Road store closed in March and July. The next 11, December, Forever 21 in Tianjin, the only one store and the Beijing apm’s first store in the Mainland also closed.
It is learned that the closure of the Jinghua Center in Causeway Bay, Hong Kong is due to the inability to pay rent. The store monthly up to 11 million Hong Kong dollars, monthly sales of at least 60 million Hong Kong dollars to maintain profitability. This means that Forever 21 will need to sell 4 to 5 garments per minute or sell 6667 garments and accessories at HK $ 300 per day in one day. Under such pressure, Forever 21 retains only the shop in Mongkok in Hong Kong. In addition to this store, several other reasons for the closure of the shop are more vague. For example, Shanghai Huaihai Road store is said to be closed due to municipal construction, Pudong Xinmei Gap EU Coupons joint shop is the clerk said the brand due to internal adjustment and closed, the rest no longer reply.
The withdrawal of Forever 21 store in Hangzhou on the issue, the industry believes that the brand because of the target group of low age, everyday style, are more vulnerable to the impact of the network of non-brand name. Coupled with the low purchasing power of the target consumer, and the instability of the dress style and other factors, resulting in the brand can not achieve stable profitability. However, according to the local mall property staff said that fast fashion is still the main store Merchants.
Founded in 1984 Forever 21, the brand as its name, style of 20-year-old girl lively, sweet style. Coupled with the price approachable, faster product updates, rapid logistics and other reasons quickly opened the United States market. Founder Zhang Dongwen and his wife from South Korea brought Forever 21 into the United States, rapidly expanding at a faster rate and approachable price, and now have more than 750 stores around the world.
In recent years, however, competition in the fast-fashion industry has intensified. Forever 21 has also exposed many problems when it comes to capturing competitors such as Zara, TOPSHOP and H & M. For example, the fast-fashion brand in many UK markets, Forever 21 in 2013 pretax loss of up to 18.4 million pounds, and then began to streamline the size and number of shops in April 2016 is a direct exit from the Scottish market. The U.S. market, which accounts for 70% of global sales, is also having frequent problems. According to the “U.S. Mail”, Forever 21 in Naked Zebra Coupon the United States faced a call for delay in payment of bills in 2016, during which it closed two California stores and made offers to Wells Fargo And TPG Capital applied for a loan of 150 million U.S. dollars. EZ Worldwide Expres, the courier company in the United States responsible for shipping Forever 21, abandoned Forever 21 as a result of a smaller workload and lower profits. After the withdrawal of the only store in Sydney at the end of 2017, there was news that Australia will be the market forerunner for Forever 21. Brendan Duke, an analyst at RBC Capital Markets, said Forever 21 will lose its healthy cash flow after five to 10 years under such circumstances.
At this point, Forever 21 first entered the Chinese market for ten years. In 2008, Forever 21 opened its first store in China in Changshu, Jiangsu Province. However, it quickly verified that the differentiation strategy of brands out of the front-line market was not suitable for China. After that, Forever 21 closed the store and exited Chinese market. Returning to 2011, Forever 21 took the lead in launching the official E-commerce and Tmall flagship stores in China at the same time as the Zara and TOPSHOP operators in Tmall in 2014 and H & M in Tmall only much in 2017. In physical stores, the Forever 21 is the first stop in the Chinese market with the recently closed apm Wangfujing apm, which opened on August 8, 2012.
Compared to other fast fashion brand in China’s first stop, Forever 21 this choice is obviously not inflow. More than a decade ago, Zara, UNIQLO and H & M’s first store in China all chose the relatively cosmopolitan city of Shanghai. Even today, as the internationalized city continues to grow, TOPSHOP, which plans to open the first physical store, Chose Shanghai. And Changshu for the ten years ago from the United States fashion women’s brand, is not the right choice to enter the Chinese market. On January 18, 2012, Forever 21 opened its doors at the Jinghua Center, Causeway Bay, Hong Kong after two years of silence in the Chinese market. In August the same year, return to the mainland market, apm shop in Beijing Wangfujing, after the expansion rate significantly slower than many similar brands.
From the consumer’s point of view, one of the fast-fashion brand shopping experience is more shops, often in the large traffic circle shopping district is easy to find. Currently, Zara stores in China nearly 200, UNIQLO nearly 500, H & M has more than 370, these fast fashion giant even in the case of a slowdown in expansion, only in the first half of Romwe Coupons 2017 were also added in China 7, 34 and 21 homes. As a local Chinese brand, Urban Revivo is rapidly expanding to strengthen its competitiveness with international brands in over 120 stores in China and is expanding at a rate of 60-100 per year.
Compared with them, Forever 21 in China 10 years later, the number of physical stores still remain at 20 or so, unlike the fast fashion brand style. We have done a foreshadowing of the opening and closing of Forever 21 stores in China:
According to the store information of Forever 21’s official website, there are currently 22 physical stores in the Chinese market, including Hong Kong and Taiwan, in Beijing, Tianjin, Hong Kong, Shanghai, Shenzhen, Wuhan, Chongqing, Wuxi, Taiwan, Kunming, Xi’an and Nanjing , Haikou, Zhengzhou and Suzhou in these 15 cities and regions. According to public comments and consumer observation, shops in Beijing Wangfujing apm and Tianjin Lihuajia Commercial Building have been closed within the past two or three months, but the official website has not withdrawn from the information, which means that there are currently only 20 stores in the Chinese market . However, counting the Macau store that had closed earlier and the Changshu store that was removed in 2009, the Forever 21 has already accounted for one-third of the total number of stores in China and one of the largest stores in the Forever 21 in 2017 year.
In fact, for many fast fashion brands in 2017, it is a year of frequent closures. H & M removed from Beijing Xidan Joy City 8-year-old shop, Zara China’s first store in the Chinese market also operated in Chengdu six years after the closure, UNIQLO beginning of the year even after the closure of four stores, mostly behind the news of these High-level personnel changes, shopping arcades too high, the brand self-layout and business pressure caused by competition and other reasons. Hong Kong stocks analysis column author Kang Xiaochen once told the “Securities Weekly” that the performance of fast fashion suffered a winter shows fast fashion in the global staking stampede rapid expansion, the “speed sequela” began to appear, the market saturation has become a fact, the store or Will be the norm.
Not only the first-line fast fashion brand, such as South Korea’s SPAO and Spain’s MANGO second-line fast fashion but the situation is more serious. SPAO had nearly 100 stores in China, down from 31 stores as of September 2017; the number of MANGO stores plummeted from about 200 in 2013 to about 50 from 200. As a result, Zara has been opening its stores in China to 8% from 2015 onwards, lower than its previous double-digit growth target; H & M Group has also reduced its target of opening 10% to 15% of its annual physical stores in China; The GAP, which has seen its performance fall for seven quarters in a row, also said it plans to close more than a quarter of retail chains.
Some analysts believe that the AmiClubwear Coupons rapid development of the brand early or Forever 21 into crisis one of the reasons. Although Forever 21 founder Zhang Dongwen once said that stores should be slowly expanding and can not act blindly, but in 2014 Forever 21 launched the cheaper sub-brand Forever 21 Red and plans to deploy 1,200 stores in the world within three years. Jeff Vansinderen, senior analyst at financial services firm B. Riley & Co., said this may also be key to Forever 21, but the three-year plan is a radical expansion.
However, a year after the F21 Red was founded, Forever 21 was accused of a cash-flow crisis, and C. Elizabeth Jain, the company’s chief financial officer, quit that period. And in May 2017, Forever 21 also joined the fast-fashion beauty battlefield, launched the lifestyle brand Riley Rose, which specializes in beauty, home and accessories, as well as popular beauty products such as Elf Beauty And NYX. Whether the new line of business can help Forever 21 boosting sales remains to be seen, but Riley Rose is currently only in the United States layout.
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