One of the most popular names of the “fast fashion” industry, Forever 21, finally filed for bankruptcy, after months of reports of potential “restructuring.”
“Fast fashion” is a term used to define the quick manufacturing of the inexpensive versions of latest trends produced by mass-market retailers. This is a fast transition from the runway to store and to then the customer.
Forever 21 which was once successful and flourishing was, however, lacking a plan for sustainability and a series of missteps.
The company’s bankruptcy appears to be a result of accelerated expansion while consumer tastes in both what they wanted to wear and how they wanted to shop evolved significantly in recent years.
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These are probably the 21 reasons that had an impact on its decline:
- Controversial labour practices could be a reason and it’s well known that Forever 21 has faced its fair share of controversy over the years.
- Crowded by fast-fashion rivals gives consumers other options to choose from.
- Customer data hacked could be another reason.Forever 21 confirmed hackers breached payment system for 7 months, admitted encryption was turned off on some POS devices
- Didn’t buy American clothes
- Expanded too quickly while the crowds they catered too weren’t that great in number
- Flailing international operations
- Fractured management
- Gen-Z prefers quality and Forever 21 probably did not realise that
- Lawsuits over alleged copied designs
- Many unprofitable stores meant added cost
- Minimal online presence is a great disadvantage when everything is just a click away
- Missed the trend of thriving which applies the reduce, reuse, recycle principle.
- No cred on sustainability
- No social mission is also a negative in this era.
- Not enough sizes meant more customers left unsatisfied
- Poor in-store experience has probably led to less mall traffic.
- Poor quality would have driven the consumers away. No one wants to invest on products that do not last long.
- Ran out of cash
- The new online competition gave consumers more options
- The Marie Kondo effect which has caused a surge of de-cluttering
- The stores were too big and too expensive.
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Source: Bloomberg
