Will fast fashion make a comeback? Forever 21 will use e-commerce to return to the UK and Europe

2022-09-19 06:02

Source: Sina Fashion Synthesis

Last year, it announced that it filed for bankruptcy protection and successively closed its stores, and was acquired by real estate developers early this year...According to Fashion Business Express, Los Angeles fast fashion brand Forever 21 is gradually restarting its business after being acquired by buyers such as ABG Group. And through cooperation with the cross-border e-commerce platform Global-e, return to the UK and European markets, which is part of the brand's expansion strategy in the global online market.

In addition, Forever 21 will also cooperate with Klarna to provide consumers with a more convenient payment experience.

However, on September 30 last year, Forever 21 had already announced that it had filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Law to reorganize its business.

Since it has not kept up with the changes in consumer preferences in time, Forever 21 has already started to shrink its stores in recent years. In 2017, Forever 21 began to retreat in China, closing the 6-storey flagship store in the Jinghua Center, Causeway Bay, Hong Kong that year. Since the end of last year, the company quietly closed stores in Tianjin, Hangzhou, Beijing, Chongqing and other places. In May of this year, Forever 21 officially withdrew from the Chinese market. In April, the Forever 21 Tmall flagship store announced that it would suspend operations on April 29. It also stated that the return of goods will be processed from now until May 30. At the same time, Forever 21 Jingdong flagship store also announced that it will suspend operations on April 29.

Before withdrawing from China, Forever 21 began to withdraw from markets such as Belgium, the Netherlands, the United Kingdom, Germany, France, Japan and Australia. Most of its stores in North America have also been closed.

After declaring bankruptcy, Forever 21 was acquired by a consortium of US Simon Real Estate Group, Brand Management Company Authentic Brands Group and Brookfield Real Estate Company for US$81.1 million at the beginning of this year.

Public information shows that Forever 21 was founded in the United States in 1984 by Korean-born Zhang Dongwen and Zhang Jinshu, and has grown into one of the world's largest fashion chain brands in more than 30 years. Although the brand has no lack of marketing experience and is familiar to consumers in a long history, in recent years, not only Forever 21, a fast-fashion brand, has fallen into a cold trap. Fast-fashion brands such as ESPRIT, Topshop, New Look, etc. are all facing the current situation. Great test. Now that Forever 21 has taken the opportunity of e-commerce to make a comeback after being acquired, can it get a share of the digital consumer era? The difficulties it faces may not hesitate to be easier than the market experience that has been declining over the years.

News from: Fashion Business Express, Beijing News, etc.

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