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    Forever21 Line Offline Store Clearance, Tmall Flagship Store Suspended Operation, Quit The Chinese Market Is A Foregone Conclusion?

    2019/4/26 10:55:00 9342

    Forever21Quit ChinaTmall Flagship Store

    Recently, Forever21 store, a fast fashion brand located in Yau Tang shopping plaza in Beijing, has gone through the frenzied clearance. The store opened in 2017 with a history of more than 2 years, with an area of more than 1000 square meters. According to public information, the store with an area of 7000 square on the East Road of Nanjing in Shanghai also takes 75% off and buy one get one free to sell the warehouse, which has nearly 10 years of history.


    Shop in Nanjing East Road, Shanghai

    Similarly, in April 25th, Forever21 Tmall flagship store announced that it would suspend operation in April 29th, and the day before yesterday, Forever21 Tmall flagship store customer service indicated that the line would operate normally.



     Forever21 line offline store clearance, Tmall flagship store suspended operation, quit the Chinese market is a foregone conclusion?


    Forever21 fast fashion brand was born in 1984 in the United States, founded by a pair of Korean American couples. Forever21 is moving towards a sweet route. The style of the dress design is simple and light, the color is bright, and the youths are full of vitality. The target group is a 20-30 year old female consumer. According to the latest data, Forever21 has more than 7000 stores in the world. It should be said that the popularity of civilian prices is a good start for Forever21.


    According to the official website of Forever21, there are 11 stores in the Chinese market, 3 in Shanghai, 2 in Beijing and Nanjing, 1 in Shenzhen, Kunming, Haikou and Suzhou. At the end of 2017, there were only 22 stores in China in Forever21. From the number and speed of opening stores, the advantages of Forever21 have not been highlighted. Including the number of stores in China's inland, Taiwan, China and Hongkong, the number of stores has been hovering around 20.


    Forever21 the layout of the Chinese market in the past ten years will not only keep the number of stores open, but also continue to close. Is it really not suitable for the Chinese market? Perhaps Forever21's first strategy to enter the Chinese market is wrong.


    In 2008, Forever21 chose Changshou City, Jiangsu as the location of its first store, which is obviously contrary to its brand positioning. The fast fashion brand market itself should focus on the first tier city market. The consumption environment, consumer groups and consumption characteristics determine whether the store can persist for a long time. Like UNIQLO, ZARA and H&M, the first store in China is selected in the international fashion city of Shanghai. Although location selection is not the basis for deciding the long-term survival of each brand, but in the long run, it has the courage to choose Shanghai city to set up a store itself, which is closely related to its brand positioning and positioning, and it will also play a good role in the opening up of the Chinese market.


    In fact, a year after Forever21, the first store in Changshu was closed. It was not until 2011 that Tmall returned to the domestic market through the form of flagship store. Unfortunately, it was too late for Forever21 to enter the two time. From the exit from Hongkong to the last store in Taiwan, and then to the crazy promotion of two stores in Shanghai and Beijing, Forever21 seems to be playing down the Chinese market, so that it is rumoured that it will withdraw from the Chinese market.


    The Forever21 store in Yau Tang shopping center in Beijing has found that its more than 1000 level stores have been empty and clothing categories have been snapped up and recycled. At the time, we found that the number of consumers who entered the shop and snapped up the night was very large, and many foreign female consumers consumed.


    Forever21 is located in Yau Tang shopping plaza, which is more conspicuous, and 75% off words can be seen in the distance. However, the gate at the first floor has been blocked, and consumers need to enter the shop on the two floor. At present, the goods in the store have been basically cleared, and the remaining products are out of stock, and there are stains and breakages. It is difficult to pick out clothes that are suitable for them. Some of the goods are already in disorder. The whole store is like a noisy market. Although staff members have arranged it, they still reveal signs that the store is about to close.


    At the same time, all goods in the shop can not be tried and the fitting room has been removed. In addition, 75% off super low price crazy sale is the reason to attract consumers to enter the shop. A dress marked only 139 yuan is sold for 20 yuan, and it is not refunded.


    Forever21 line offline store clearance, Tmall flagship store suspended operation, quit the Chinese market is a foregone conclusion? Forever21 line offline store clearance, Tmall flagship store suspended operation, quit the Chinese market is a foregone conclusion?


    The fast fashion industry has its own rhythm of retreat. It is undeniable that the overall industry environment will inevitably have a negative impact on the development of Forever21. And the era of fast fashion brands dominating the Chinese market is over. The fast fashion industry is facing urgent changes.


    The domestic clothing market is huge. Ten years ago, foreign fast fashion brands faced the traditional Chinese clothing brand, and easily occupied a place in the domestic market. They experienced brilliant moments, and their arrival to a large extent coincides with the consumer's pursuit of cheap consumer psychology. However, with the rise and maturity of domestic electricity suppliers, the emergence of fast fashion brands and many trend brands in China undoubtedly surround the development of fast fashion brands abroad.


    It should be said that the closure of fast fashion brand stores has become the norm in recent years, along with the fact that the brand has withdrawn or is on the way out of the Chinese market.


    For example, ZARA closes the biggest flagship store in China; for example, C&A closes China's first flagship store and so on. Not only that, the fast fashion brand TOPSHOP, the "originator of the British high street", has also withdrawn from the Chinese market. Since its entry into China in 2014, it has not yet opened any offline stores. Almost all of the British fashion brands New Look closed the Tmall flagship store in December 2018, and announced that it completely withdrew from the Chinese market. New Look2014 entered the Chinese market only a short span of four years, and once said that the goal of opening 500 stores in China in three years has not been completed, so that at last all 130 stores are facing the tragic fate of permanently closed stores.


    Perhaps, it is not that Forever21 is not suitable for Chinese market, but the initial entry strategy errors, the late strategic adjustment and the impact of fast fashion industry in recent years have made Forever21's disorder in the layout of the Chinese market.


    Of course, for the international fast fashion brand that withdraws from the Chinese market, the reason for the failure is poor management or missed opportunity is a topic worthy of consideration. What will be the closing of stores and the suspension of Tmall flagship stores?



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