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    Forever21 Seeks Loan Performance In The US

    2015/9/6 16:15:00 27

    Forever21USALoan

    The development of Forever21 in China is also somewhat backward. At present, there are 11 stores in China. Up to the end of August, there were only 45 stores in Beijing, and at the end of March, H&M had 230 stores in China. In fast fashion brand clusters, Forever21's performance is not very satisfactory. Public information shows that Forever 21 store sales have declined rapidly in the past two years and are now at negative growth.

    Others Fast fashion brand For example, the fast selling group of UNIQLO parent company rose 24% in the three quarter of fiscal 2015, while the net profit in the two quarter of H&M 2015 increased 11.1%.

    Forever21, which has just been prosecuted for infringement by Adidas, is sending out bad news again. As growth slows down, Forever21 Recently, it was exposed in the United States, and is negotiating with the Wells Fargo Bank and the US Private Equity Firm about $150 million in loans.

    Forever21 has a history of 30 years. loan Behavior is rare. Cheng Weixiong, general manager of clothing expert and Shanghai Liang Qi Brand Management Co., Ltd., said that there are two reasons for enterprises to seek loans. One is that the development of enterprises is limited, the funds of enterprises are not controllable, and there are difficulties in operation. Two, the development of enterprises is very good, so as to expand other businesses.

    In this regard, Cheng Weixiong said that Forever21 entered China later than other fast fashion brands, making it vulnerable in the market. In addition, the brand positioning is relatively narrower than other brands. Its target audience is the younger generation, while UNIQLO, H&M and other fast fashion design clothing for all ages.

    It is understood that Forever21 opened its first flagship store at APM shopping center in Beijing in 2012, and then opened second stores in Daxing District. In contrast, UNIQLO entered China in September 2002 and entered China in H&M 2007.


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