MBA-FP6012_Assessment2-1.docx - RUNNING HEAD FOREVER 21 COMPETITIVE ANALYSIS Forever 21 Competitive Analysis Capella University 2 RUNNING HEAD FOREVER

MBA-FP6012_Assessment2-1.docx - RUNNING HEAD FOREVER 21...

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RUNNING HEAD: FOREVER 21 COMPETITIVE ANALYSIS Forever 21 Competitive Analysis Capella University
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2 RUNNING HEAD: FOREVER 21 COMPETITIVE ANALYSIS Executive Summary Forever 21 is a direct competitor for Charlotte Russe as they sell similar fast fashion at value price points like Charlotte Russe. The advantages that Forever 21 has are their brand collaborations, popular models/ brand ambassadors, male merchandise, prime locations, and rapid global logistics. Both a SWOT analysis and competitive analysis chart graphic is included for illustration of research on Forever 21 and Charlotte Russe. Also, reviews from customers are included about preferred qualities of both brands. This competitive analysis will provide insight on the various factors as to why Forever 21 is a prime example of a leading global force and how their company can be used as a blueprint for their competitors such as Charlotte Russe to progress. Company Profile Forever 21 is the 5 th largest specialty retailer in the United States. They sell apparel for women, children, and men. Not only do they sell clothing, but they also sell shoes, accessories, and beauty cosmetics throughout the U.S., Canada, Europe, Africa, Oceania, and across Asia. Their Headquarters is located in Los Angeles, California and is the site of California’s 3 rd largest solar power installation according to their webpage. Forever 21 is owned and was founded by Do Won Chang and his wife Jin Sook Chang in 1984, and it remains a private family-owned business. The Chang's have sustained their business by capitalizing on wholesale closeouts. Their goal was to bring new fashions to the working masses at low costs. They bought merchandise for cheap and hit $700,000 in first-year sales which, prompted them to open a new store every six months. The average Forever 21 store is 38,000 square feet, the largest is approximately 162,000 square feet, and the first Fashion 21 store is only 900 square (Forever21.com). Forever 21 is now worth $4 billion with some 790 stores spanning 48 countries per Forbes.
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3 RUNNING HEAD: FOREVER 21 COMPETITIVE ANALYSIS Furthermore, the Forever 21 brand is divided into eight sub-brands according to style. They are all housed and can be found at all Forever 21 locations as well as online. The sub- brands include the following: XXI Forever- Main Forever 21 Line Forever21 Girls- Children’s Line for girls Love21 Contemporary- Contemporary Line for women over the age of 21 Forever 21+- Line for plus size consumers 21Men- Line for men For Love21- Line for accessories such as shoes, jewelry, handbags, cosmetics, and more.
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