Forever 21 analysis ...shortened

UK launch part of a massive global expansion plan
Forever 21 was largely based in its home market, the US, where it competes with the likes of H&M and Aeropostale. In the US, it is one of the leading apparel companies, with sales worth approximately US$3.0 billion, but its strong position in the US market is not enough for Forever 21. They plan to launch in other European markets. It is taking on global giants such as H&M and Inditex.
Oxford Street flagship store shows Forever 21 means business
 27 July 2011 marked the opening of Forever 21's flagship London store in the city's most popular shopping district, Oxford Street. This was a bold move considering the company has little experience of the UK market, having opened its first UK store less than a year before in November 2010 in Birmingham. The company was wise to open a store outside of the capital first to test the UK market at a lower cost but opening its first London store on Oxford Street is nevertheless a risky strategic manoeuvre. Rental costs on Oxford Street are amongst the highest rates in the world, so Forever 21 needed an exceptionally high store turnover to cover costs.
The use of social media to build hype for the brand proved successful through the turnout at the opening. What would be a good thing to learn from this is to enable constant interests to maintain social network updates. Facebook and twitter allow the brand to tell a customer about sales and new stock in advance very quickly to a massive audience with little effort and very low cost ( its only paying someone to keep on top of it ).
 Forever 21 pays slightly more attention to store layout and interior design than its UK counterparts, with quirky store features such as clothes laid out on an imitation ice cream truck. Such gimmicks may prove successful in capturing the hearts of teens and tweens as they search for a fun shopping experience. Forever 21's store interior gives it a significant advantage over Primark, its closest competitor in terms of price, which has a very plain and often messy interior.
Forever 21 have a challenge maintaining consumer interest once the buzz of a new store begins to fade. Once the company is mid way through its plans of opening 100 stores in the UK, it will no longer be a new brand but simply one amongst many in the value fashion market. It will need to continuously refresh stores, especially as this is one of its main selling points, in addition to developing strong PR and marketing campaigns. As it aims to grab attention from the public, its penchant for secrecy may have to be reserved for the US market.






Nicole Warr