Swot Analysis Of Forever 21

the 5th largest fashion specialty retailer in the United States, and is becoming a major threat to those in the fashion industry. Forever 21, Inc. was first lunched in 1984 by Do Won Chang and Jinn Sook Chang, which was originally labeled Fashion 21 but was thereafter renamed as more chains opened. Global sales have estimated to be $3.8 billion USD across 750 stores.
Forever 21’s specialty is cheap chic - trendy apparels at an affordable price. It aims to challenge high end designer clothings through developing ready-to-wear trends while maintaining competitive prices. Forever 21 caters to all genders, ages and sizes. It sells casual checkered outer wears alongside bohemian maxi dresses that can satisfy anyone regardless of their occupation

It brings out the confidence and style in consumers by being adaptable and flexible in changing its designs to meet the needs of the consumers. The actual product is the clothing itself. It caters to consumers of all ages and gender, which includes accessories like shoes and cosmetics. The augmented product is the service encounter and the post-sales service, which refers to friendliness of the staff, empathy towards customers and exchange and refund policy.
Forever 21’s pricing strategy is to make it affordable for everyone, since their consumers tend to be price sensitive. It ranges from $2 and never goes above $100. The company uses promotional pricing strategy, and commonly offers clothings at a lower price compared to competitors such as H&M, Topshop and Zara. They also use psychological pricing – price tags generally look like $29.95, which makes it lower

The reason behind the company’s low-priced clothing is due to unfair labor conditions and minimum wages. The company took advantage of their employees who are mostly high school workers, that have a lack of knowledge of what labor rights were. A recent class lawsuit alleges that Forever 21 have failed to pay employees for the hours they worked, making them work off the clock and also depriving them of their meal breaks. In the case of the manufacturers, most of its production have been moved to Asia following the 2001 lawsuit in which American workers complained that they were working in sweatshop conditions. It has been reported than the company is paying their factory workers $1.12 for each article of clothing they sew, which meant that they could only hit minimum wage if they made 67 clothings in an