Market Merciless: Forever 21 Continues To Shrink And Has Suspended China's Online Operation.
Forever 21 of China's official website, Tmall and Jingdong stores have suspended online operations since today.
According to the website announcement, consumers can deal with the return service before May 30th, and search for Forever21 in Jingdong and Tmall. They have also been unable to find the flagship store of the brand. The customer service telephone of the official website is already in a state of being unable to call.
In the week before that, the flagship store of the brand was cleared by 2-5 discount.
Forever 21 has shut down stores in Tianjin, Hangzhou, Beijing and Chongqing since last year, and recently closed Xi'an stores that opened less than two years ago.
At the end of March, Forever 21 ended its business in the last gate city of Zhongxiao East Road in Taipei, and has since withdrawn from the Taiwan market.
At present, the only remaining products in Shanghai, Changning raffles, 3 branch of Nanjing East Road and Beijing branch, are launching large scale promotional activities since this month.
Its two storefront store in Yau Tang shopping center, Beijing, has closed one tier of business area since more than a week ago, leaving only two floors for clearance.
In addition to the Chinese market, Forever 21 has also been shrinking in the global market.
As early as the end of 2016, Forever 21 closed its flagship store in Hongkong.
Its flagship store in Tokyo, Japan, was closed in October 2017. In 2018, it closed the flagship store in Amsterdam and three stores in France.
In France, Forever 21 is the only flagship store in Paris.
For many fast fashion brands, China is one of the most important markets to help them grow fast.
But in recent years, even in the Chinese market, fast fashion brands have encountered more challenges: apart from the increasing number of "fast fashion" brands embracing the electricity supplier, the growth of Yu Taobao and Tmall's clothing sellers also makes Chinese consumers more fragmented.
More and more consumers choose to buy clothes online.
However, H&M, Zara and UNIQLO do not effectively occupy the online apparel market. Forever21 has become one of the relatively backward brands in the fast fashion brands that are actively adjusting China's strategy.
In November 2018, TopShop closed the Tmall flagship store on the grounds of "adjustment of international market strategy". Its plan to open China's first offline store in Shanghai has also been postponed several times.
Forever 21 has not officially announced that it will withdraw from the Chinese market until now, but it will be quicker to adjust the online store or redesign the offline store experience.
Source: curiosity daily writer: Tang Yunlu
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