Us Fast Fashion Brand Forever 21 Is In Financial Difficulty.

Forever 21 continued to slide.

Consumers are beginning to wake up and become tired of Forever 21's low quality and cheap products. Analysis indicates that Forever 21 will close more stores in the future.

The sharp change in retail sales has led to the split of the fast fashion performance camp. Besides ZARA and H&M, they continue to maintain growth momentum, including GAP, UNIQLO and so on.

The growth is weak. Now the bad news comes from the fashion industry. The fast fashion brand Forever 21 is in financial difficulty.

The fast fashion brand Forever 21, which was born in Losangeles in 1984, is used to quickly replicate the clothes of various fashion brands and sell them at a low price.

According to reports, Forever 21 is facing a delayed payment in the United States. It has been delayed for at least a month, according to people familiar with the matter. Suppliers and creditors are putting pressure on Forever 21.

Forever 21 closed two stores in big California earlier this year, and applied for $150 million last year to Wells Fargo and TPG Capital.

Obviously, Forever 21 is facing the problem of financial strain after its excessive expansion.

Hilldun, a bank specializing in lending to retailers in New York, said that the loan is the withholding credit for Forever 21 order. Now we can not get timely financial disclosure from the company.

Due to financial pressure, in early April, Forever 21 closed its only store in Scotland and withdrew from the region market. Last year, the brand expansion battle significantly contracted, and only entered two new markets in Taiwan and Egypt.

According to the company's CEO Do Won Chang, Forever 21 earned $4 billion 500 million last year, an increase of 15% over last year.

However, some analysts pointed out that, like other young apparel retailers, in the current downturn of fashion retailing, the blind expansion of shops earlier and the excessive storage of large shops are bringing serious crises.

In the past few decades, Forever 21 has expanded globally, reaching 700 stores in the United States and overseas.

For mainland China

Forever 21 also missed the best market timing. The first tier market was almost split by ZARA, H&M and UNIQLO, and could only retreat to the two or three line market. At present, the size of the shop is still far behind the top three, and there are only 14 shops in the mainland.

Forever 21 was started by a Korean Korean Do Won Chang and Jin Sook couple in a 900 square feet square foot clothing store founded in Highland Park Town, California. At first they named it Fashion 21, and the market targets were children and young people.

In addition to the trouble of over expansion, Forever 21 is facing the dilemma that consumers are beginning to wake up to the concept of consumption. Most of the products of Forever 21 are priced between 4 US dollars and 20 dollars. Now consumers are making choices about the availability and morality of clothing, and are getting tired of Forever 21 inferior quality and cheap goods.

Data show that this kind of awakening of consumers is greatly reducing the number of people visiting Forever 21 shops and the number of e-commerce websites. More and more people are pulling out of this cycle of consumption of mediocrity and no longer buying cheap, mass produced clothes.

Brian Duke, an analyst at RBC capital market, said: "after 5 to 10 years, Forever 21 will lose healthy cash flow. According to the latest business channel survey, the same store sales growth of Forever 21 began to decline in the first few years.

The malignant pattern of rapid satisfaction, discarding and re consumption is the embodiment of fast fashion, which is only profit, good and reckless. It also makes most consumers indulge in, unrestrained, and excessive greed has become the characteristic of the times.

But now consumers are starting to change, which is the real dilemma of Forever 21.