TITLE:
Internal Analysis of Forever 21’s Failure in China
AUTHORS:
Jiarui Liu
KEYWORDS:
Forever 21, Fast Fashion, Failure, SPA Model
JOURNAL NAME:
Chinese Studies,
Vol.10 No.3,
July
26,
2021
ABSTRACT: Forever 21’s bankruptcy sent an alarm to other
players in the fast fashion industry. It failed because of its blind adherence
to its outdated tactics and misinterpretation of the changes taking place in
the industry. It mistakenly assumed that the fast fashion business always stays
the same even though it operates in a sector that has one of the fastest-paced
changes. Thus, a reflection on Forever 21’s failure is a necessity before any one of the fast fashion
brands treads on its heel. This study tries to provide an internal analysis of
its failure in China. This study is divided into four parts. Part one is a
general introduction, including the background and significance of the study.
Part two is an analysis on Forever 21’s failure based on its unique SPA business mode. The
internal analysis is separated into two parts, front and back ends, with an aim
to provide a deeper knowledge on its production cycle. Part three introduces
some recommendations to other industry players from three dimensions, including
sustainability, strategies and design. Part four covers conclusions.