If you love fashion and dream of launching a fast-fashion business, you may want to invest in a Forever 21 franchise. It is not only a rewarding business opportunity but also an exciting one as the company is known for its trendy, and affordable clothes. The company has become a global leader in the fast-fashion industry. If you open it’s franchise, you will be leveraging it’s strong market reputation and a vast loyal customer base for a quick success.
What made Forever 21 a big success?
Every single successful company has a reason or some reasons for becoming popular and Forever 21 is not an exception. There are three major reasons that have lead Forever 21 to success – excellent customer service, quick action and trendy clothes. These reasons are pushing people to fall in love with the company. Millennial generation drives most demand for Forver21 clothes.
Forever 21 listens to its customers. Their need is the company’s priority and serving them with the right products is their mission. Understand your customer better than your competitors is the mantra excercised by the company’s operational policies. The entire company gets in a quick action to bring in and supply trendy fashion for a cheap price to their customers. They go ahead to the expectations of their customers. If customers expect a t-shirt, it would come to her in a way that makes her talk about it with others. This makes the company to win new customers while using the old word of mouth advertising in the most advanced way.
Teens love Forver 21 clothes than other ages of people. Their reason to choose Forever 21 is that the company always stays fresh with new trendy clothes on their store shelves. The company’s clothes resonates with their needs and budget, making them fashionable without letting them break their bank. Forever is one of those few companies that successfully leverages the power of social media while using influencers. This makes the company look more relatable with the expectations of teens.
What’s the history of Forever 21?
Forever 21 has a rich history of success to share with us since it’s day of foundation. It’s inspiring history teaches us a lesson that you can sell quality for a cheap price. Let’s look at the company’s historical journey from being an unknown to becoming a global brand.
Do Won Chang and Jin Sook Chang were a couple who came from South Korea to the United States with the hope of a better life. The couple launched their first store 1984 at Los Angeles, California and named it ” Fashion 21″. Their idea to lauch Fashion 21 was motivated by their love for fast fashion. They decided to target young customers over other ages of people and it worked nicely with their interests. Competition for trendy clothes wasn’t that fierce in those days and became their major reason for success.
The company’s first year itself brought it around $70k in sales. This prompted it’s founder’s to expand the business and it was the time around which the company changed it’s name to Forever 21. The motive to change the name was inspired by the massive rapid growth. It was decided by the company’s upper layer to diversify and serve a wide collection to all ages of people.
The company experienced rapid growth during 1990’s to 2000 and it was the time when it opened a lot of stores in malls. Mall culture had become popular in those years and Forever 21 leveraged it’s benefits. The company brought it’s foot outside the United States in 2000 when it launched stores in Asia, Canada, and Europe. Forever 21 was on its peak of success during 2010 to 2015 as it has launched 800 stores worldwide. However, from 2015 to 2019, the company had to see ups and downs. Over expansion was the reason because it drained the company a lot of money into the operational costs. The company’s other reason for its decline was attributed to the growing online retailers that poured in a lot of pressure on its sales.Forever by 2019 even filed a bankruptcy paper citing the reason that the company’s debt had increased beyond their revenue.
The company’s recovery journey began in 2020 after it shut down hundreds of stores and laying off thousands of employees. Management and operational procedures were restructured. Forver 21 leveraged the power of ecommerce by becoming an online retailer. Despite being trapped by challenges, Forever remains a global champion for its range of clothes.
Does Forever 21 franchise?
Forever 21 does and doesn’t franchise. If you want it’s franchise in the United States, you won’t get it because the company does not franchise on the American soil. However, if it is a different location like India, Philippines, and even some middle east nations, you can own their franchise. The company’s remains privately held in the United States but outside America they do sell franchise opportunities.
How much Does Forever 21 franchise cost?
It depends on various factors like location, size, and market conditions. While Forever 21 has never disclosed their exact figures required to open their franchise, their franchisee partners have revealed the total figures around $300000-$900000 and this excludes royalties, ad fees and several other costs. You will be paying 5-7 % royalty fee on Gross sales and 2-3 % for advertising fee on sales.