Forever21'S Strategy Of Keeping A Close Eye On Competitors

Walking on the streets of Fifth Avenue in New York, you may be surprised to find that the young men and women on the road are not talking about their hands.

(Chanel), nor

(Gucci) shopping bags, but one after another, a bright yellow bag with simple English letters. In a flash, even people will have a bright yellow bag to represent their illusions that are still young and fashionable.

Presumably, someone must have quickly thought of this as a very popular parity in the world.

Brand Forever 21; however, little is known about the fact that this company, one of the largest apparel companies in the United States and emanating a strong American avant-garde style, is actually an emigrant from South Korea.

Attracting young consumers with low prices and popularity

Zhang Daoyuan, the founder of Forever 21, who lived in Losangeles's clothing street in early years, was jealous of clothes shop owners when he was young. Most of them had good cars to drive, and the clothes sold in nearby districts were not close to the people.

And so on, so I planted the idea of "I have to do business in the future, and I want to sell the general public to afford affordable clothes", which prompted him and his wife to open a mini clothing store in 1984.

At first, what Forever21 wanted to do was to introduce the fashionable clothing of South Korea to the United States and sell it to local Korean teenagers in Losangeles. Gradually, many non Korean boys and girls began to notice that the clothes sold in this shop were not only nice and well worn, but also very cheap.

Therefore, under the effect of word of mouth, Forever 21 gradually accumulated stable and high repurchase frequency customers.

For young people, Forever 21's cheap and popular clothing products just cater to their demand that they are at the forefront of fashion, and because of the low price of goods, so these young consumers who are easy to please and are always looking for new fashion sense can continuously buy themselves the latest and most dazzling clothes or accessories.

For example, some young consumers will pack all kinds of goods of different styles and colors because of the low price. Besides, those who like to pursue fashion believe that popularity will disappear, and that clothes that can be discarded without distressed are the most suitable choice for them.

Business strategy of closely monitoring competitors

Compared with other fast fashion brands, Forever21's brand style is more focused on the sweet and sunny youthful route. At the same time, from the order to the shelves, it only takes four weeks to create the competitive advantage of "wearing new clothes every day".

In addition, its diversified brand strategy helps to meet consumer demand of different needs and age groups, and also lets consumers unconsciously buy more.

For example, the target audience of the main brand Forever 21 is mainly more than 20 year old young women, Love 21 is more suitable for the more than 10 year old group, while Forever 21Twist will provide consumers with limited theme clothing at fixed time.

In addition to keeping a close watch on competitors' short turnover and strong strategy, Forever21 also has its little mind under the fashionable youth appearance.

According to the world clothing and shoe net, facing the highly competitive competitors of products and customers, Forever21 adopts the way of setting up a stronghold close to the rival stores. Besides, Forever21 will also carefully observe the daily route of consumers, and try to make the market more advantageous than rivals.

For example, Forever21 in Ginza, Tokyo, which is located between the subway station and H&M, and can attract more customers from the same type of brand clustering effect. The abacus in mind is to make use of the two chance of Forever21 passing between the subway and H&M, so as to enhance the possibility of being noticed by their brands, and finally to enhance the value of commodities through a large and luxurious shop.

However, even though Forever21 is more popular, it has never been able to get rid of the doubts raised by people about its cost reduction. For example, there are news that most of Forever21's products are sweatshops produced by Asian countries and seek greater profits through the way of lowering labor costs. While the factory in the United States has staged workers' accusations against the court because of their working environment and salary problems, the allegations of Forever21's alleged imitation or copying of other brands are even heard.

Perhaps everything has two sides. Behind the popularity, speed and low price is the story of another group of people. For Forever21, the most important thing is to capture the hearts and minds of consumers.

More interesting reports, please pay attention to the world clothing shoes and hats net.