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Forever 21 shuts down its retail stores, rests on e-commerce now to stay afloat

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Forever 21, one of the world’s leading fashion brand that for every girl’s wardrobe essential is striving hard to survive now. Amidst the brand filing for bankruptcy, Fast fashion brand Forever 21 has announced its e-commerce strategy targeting consumers in Canada, Asia Pacific and Latin America.

The brand has its e-commerce game strong, relying on the internet to stay afloat.

Voicing its bankruptcy: does that mean that the brand will go out of business?

The brand announced that filing for bankruptcy did not mean that the brand was going out of business – on the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future.

The embattled millennial-focused brand filed for bankruptcy protection in the US in 2019 and shut 350 of its 815 global stores. It blames substantial real-estate cost, and lagging innovation and sustainability efforts for the troubles it faced.

“We are confident this is the right path for the long-term health of our business. Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come. We look forward to continuing to provide you with the great service and curated assortment of merchandise that you expect from us,” said a spokesperson of Forever 21.

Over the past ten years, or so, Forever 21 expanded way too quickly and opened more stores than they could sustain.

However, the brand filing for the type of bankruptcy will allow them to keep running under the condition that they restructure their business, and that will involve closing the unprofitable stores.

FOMO as their CTA?

Forever 21 has always been good at calling out to millennials, which in turn haven’t withered away from the brand totally. The brand has been increasingly updating its end season, mid-season, flat 50% sales to tract more customers, with a compelling call to action (CTA) of FOMO – Fear Of Missing out!

The embattled millennial-focused brand filed for bankruptcy protection in the US in 2019 and shut 350 of its 815 global stores. It blames substantial real-estate cost, and lagging innovation and sustainability efforts for the troubles it faced.

Furthermore, Forever 21’s bankruptcy status has done more good for the brand than damage. The brand can now tailor its offering per market according to its marketing strategy and business goals, including running market-specific promotions.

The brand seems to put its best virtual foot forward, and sees e-commerce as its steady hand to help move the brand forward.

 

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