Forever 21 bankruptcy does not mean that fast fashion is dead
Forever 21 claims to have filed for bankruptcy
Having the desire to grow fast, Forever 21 bankruptcy has expanded rapidly across the globe, which is more complex and costly than anticipated. And the company is also adapting slowly to the growth of online shopping. In the home market (USA), Forever 21 is too focused on the network of large stores, many of which in the shopping malls have the number of visitors and sales declining.
One of the reasons given is: Fast fashion is dying.
Share with New York Times, the Executive Vice President of Forever 21, Ms. Linda Chang said that the number of customers coming to the stores and the attraction of fast fashion decline is part of the reason for the failure of Forever 21.
Sales of big fast fashion companies in the world such as H&M and Zara have declined in the past few years. In the United States, the combined market share of Forever 21, H&M and Zara has decreased from the highest in 2015.
However, from that point in time, other fast fashion brands developed rapidly. Most notably are the United Kingdom retailers ASOS and Boohoo, both of which thrive with online, super-fast models. Brands such as Fashion Nova and Missguided have also expanded rapidly, using Instagram to reach young female customers.
H&M and Zara did not stand still either. Recently, both have begun to benefit from stopping opening new stores to focus on developing their digital businesses.
Global sales growth of major fashion brands, year on year. Photo: Atlas / Qz.
Recent sales growth of the fast fashion industry is not just happening in newly exploited markets. Mr. Karl Johan – Persson, the H&M CEO, shared with investors in June, about the company’s second quarter results: “The US is one of the strongest growth markets for the company, with 17% “. Boohoo recently reported 62% sales grew in the United States in the first half results. ASOS provided 8% sales growth in the United States for the first half of the year
Forever 21 bankruptcy – Another reason for the rumors of the dedecline
This in fast fashion is the rapid rise of agency businesses, which provide customers with more sustainable ways to shop.
The problems of Forever 21 seem to stem from the intrinsic nature of this business. In the past, they were very fast in copying high-end brands. Their fashion is getting worse and worse. The eye is less influential, while the quality is reduced. In addition, the area of their store is getting bigger and they have some stores up to 20,000 square meters.
Quick fashion is a model with markedly effective. That has motivated a number of clothing brands to develop their supply chains. Perhaps the biggest problem with Forever 21 is that this company is not as good as its competitors.
Trang Le (According to QZ)
* Source: Nhip Cau Dau Tu
