THE FALL OF

Team 6:-
• Bhavin Kumar
• Darsh Ohri
• Lavanya Gupta
• Saksham Sharma
• Swastik Hooda
 ORIGIN
• Do Won Chang and Jin Sook Chang
started the
Company in 1984 with the name Fashion 21
by purchasing a 900 sq feet showroom in LA
using 16,000$
• They made 700,000$ in the first year.
• At first they bought merchandise from
wholesale outlets and sold them under
their brand
 GROWTH
• They changed the name to Forever 21 and sold designer and fancy clothes at low prices
• Do Won Chang was approving more than 400 designs a day which means that the
company could bring new designs into market faster then any one else.
• In 2015, company's sales peaked at 4.4 billion $ globally.
• The company was brought into India in 2010 and did pretty well.
• The brand's appeal to the Indian youth with its trendy and affordable fashion offerings
allowed it to gain popularity and a dedicated customer base. Here are some factors that
contributed to its success in India:

-Trendy Fashion

-Affordability

-Western Appeal

-Store Locations
 PROBLEMS
• The company aimed to become a 8
billion $ company by 2017 and buy
• They also focused more on offline
600 more showrooms
sales and didn't switch to online
• But the company focused too much on
stream but consumers preferred
expansion that the clothes became dull
online shopping more
and there were no new designs.
• The sales went down more and
• They also bought many large show
Forever 21 filed for bankruptcy in
rooms some being around 100,000 sq
2019
feet.They invested too much money
• This led to the downfall of forever 21
• Their sales went down and rivals like
Zara and H&M thrived
FIGHTBACK
• It tried to get into online segment but they
realised it's importance too late
• Company shut down many of its
international store and focused on selling
it's goods in US mainly
• The company even offered clothes at 90%
off to save itself
• After some time they tried to open stores
again
• But they couldn't do much and company
ultimately filed for bankruptcy and was
sold
• In July 2016, Aditya Birla Fashion
AFTERMATH
and Retail Limited acquired the
exclusive online and offline rights to
the India network of Forever 21
hence its bankruptcy didn't effect
India much
• In 2020 Forever 21, which once
generated $4 billion in sales, was
sold for $81 million to Authentic
Brands Group.
• As of 2023, Forever 21 is doing well
under the Authentic Brand Groups
 • Forever 21 got into online market segment too late, if it was faster

W ha t c o u l d than maybe the company could have been saved

• They shouldn't have focused on expansion too much as they forgot
their main motive of selling of unique designer clothes

ha v e b e e n • They should have spent less capital on buying stores.

• They could have advertised more on social media platforms
• In India pricing could have been revised as people prefer cheap

done ?
clothes
THANK YOU