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.
Forever 21, Diesel, & Other Fashion Brands That Have Filed for Bankruptcy in 2019
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.
What do you think? Comment and let us know.
Stay tuned to Brandsynario for more news and updates.
Netflix’s Money Heist Promotion Campaign has got the World Talking!
Source: Bloomberg