Forever 21

Forever 21
Student’s Name
Institutional Affiliation
Forever 21 is an internationally recognized brand famous for its specialization in teen wear that goes for a conveniently low price. The 31-year-old company has had little struggle building its brand identity compared to other competing youth-oriented retailers and instead Forever 21 has recorded steady growth both in revenue and outlets. The firm has a remarkable expansion strategy but simultaneously has numerous scandals that this paper analyzes.
Forever 21 utilizes a “Fast-Fashion” model in which it gets new fashion trends into its stores as quickly as they emerge and ensures to retail them at a relatively low price compared to its competitors. The company’s fast fashion model gives it a competitive advantage such that while other competing retailers spend a considerable amount of time trying to build their brand name using a signature look, the model allows Forever 21 to stock and retail trendy wears as fast as they come. Additionally, Forever 21 has a low-price strategy whereby, the company sells its products at low costs (Bhasin 2013). The firm’s main target group is for consumers that are fashion-conscious but whose economic status cannot allow them to purchase designers wears that are usually too expensive to afford. Additionally, the company’s primary target market involve young adults aged between 18 and 24, an age-group identified with its love and consciousness for fashion, which is similar to other competing retailers (Forever 21 n.

d). This target market is moderately huge and is responsible for the rapid growth Forever 21 has recorded since its foundation.
Another expansion strategy for Forever 21 involves extending its consumer base in which the organization has embarked on occupying larger sized stores at better locations. Previously, Forever 21 had its stores in weak areas taking on small spaces in big malls. However, the expansion plan includes its retail shops occupying larger-sized spaces. Additionally, Forever 21 has over 480 outlets throughout the world with plans to double its stores by 2017 in efforts to extend its customer base (Forever 21 n.d). Also, Forever 21 took on a growth strategy aimed at increasing consumer base by extending its product line in which instead of focusing on teens and young adults only, it also provide products for all family members (Forever 21 n.d). This plan means that the retailer is broadening its target market by offering men clothing as well as wears for older demographics.
Nevertheless, it is also worth noting that the company’s success has had its downside share whereby it is surrounded by numerous controversies tainting its brand. For instance, Hines (2012) reveals a lawsuit filed by Forever 21 workers claiming that the firm failed to compensate for the extra time they worked. Another issue involved allegations by the Labor Department arguing that the organization’s suppliers violated some federal policies on record keeping and wages (Li 2012). A report by Forbes (2014) indicates that Forever 21 have had about 50 copyright infringement lawsuits filed against it by different organizations. While some cases failed to reach an end, some successfully resulted in Forever 21 having to settle outside the court, a process that involved parting away with a percentage of sales made for the product in question. These settlements had a significant impact on the overall profit expectations for the company.
In conclusion, Forever 21 is a successful fashion company with its branches distributed internationally. The firm’s approach includes fast fashion in which it acquires and stocks its stores with trendy wears as fast as they come and at a considerably low price. Also, Forever 21 has an expansion plan involving obtaining larger-sized shops at better locations and expanding its product line to include all family members. However, copyright and labor issues negatively affect the company’s name as well as increases its spending on numerous lawsuits that it loses.
References
Forever 21. “About Us | Forever 21”. Forever21.com. N.d. Web. 10 Dec. 2016.
Hines, A. (2012). Forever 21 Class Action Lawsuit Filed By Employees. The Huffington Post.
Retrieved from http://www.huffingtonpost.com/2012/01/18/forever-21-lawsuit-class-action_n_1214359.htmlLi, S. (2012). Forever 21 Investigated for Vendors’ Alleged ‘sweatshop’ Conditions. Los Angeles
Times. Retrieved from http://articles.latimes.com/2012/oct/29/business/la-fi-mo-forever-21-labor-20121029