Forever 21, the American fashion chain known for its "pile very high, sell very cheap" operation, has achieved phenomenal success. Founded by Do Won "Don" Chang and his wife Jin Sook, the brand has conquered America and the Far East, and has expanded to London.
The Rise of a Fashion Empire
Don Chang and his wife Jin Sook emigrated to California from South Korea in 1981. While working at a petrol station, Chang noticed that fashion retailers drove the most expensive cars. Three years later, he opened his first shop, blocks away from the one-bedroom flat where he eventually brought up his two daughters, Linda and Esther. Chang says, "I feel truly blessed by Forever 21's success. Forever 21 is my American Dream."
The business grew rapidly, with sales climbing from $35,000 to $700,000 in the first year. Within five years, 11 stores opened, and to date, over 440 stores have opened across the world. The original Koreatown shop remains a reminder of how far the family has come. While the Beverly Hills store is white and soaring, the Koreatown shop is dim-lit and jumbled. According to Linda Chang, the Koreatown store is "almost historical," and they want to "keep the integrity."
Forever 21's Business Model
Forever 21's success is attributed to its fast-fashion model, offering trendy clothing at affordable prices. The chain's marketing manager, Linda Chang, emphasizes that it's not about prices, but about value. Mrs. Chang reviews 400 new designs a day. Linda says that Forever 21 does "high fashion, fast," and that there's a difference in quality.
The company's headquarters in downtown Los Angeles features an all-day cafeteria that supplies free meals for staff. A sign on the door proclaims, "We make it happen!"
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Legal Challenges and Controversies
The brand's integrity has been tested regularly, with various lawsuits seemingly being settled quietly out of court. In 2001, factory workers supplying Forever 21 called for a boycott until working conditions improved. An Emmy award-winning film, "Made in LA," documented the protests. In 2007, Diane von Furstenberg filed a lawsuit against them for duplicating her designs, as did Gwen Stefani, Anna Sui, and around 40 other labels, though the family has never been found liable for copyright infringement. The company says its buyers simply trust their vendors not to copy other labels' designs. According to professor of copyright law Susan Scafidi, their design process probably looks like a crime scene, with the chalk outlines of the garments they're copying.
In one instance, Alexis Bittar, Council of Fashion Designer's 2010 accessory designer of the year, was delighted to see a version of his $295 lucite ring selling for $5.80 at Forever 21. He told Business Week, "I thought: 'Great! This is like declaring I'm someone to knock off.'"
In another instance, Forever 21 threatened to sue blogger Rachel Kane for making fun of their clothes, a move that incensed online communities. Kane fought back, stating, "My attorneys and I will not permit Forever 21 to use silence as a strategic tool or intimidation tactic, particularly when the company stood idly by for over a year as I blogged about their design disasters. This is a dark defeat for MC Hammer pants, floral jumpsuits and blinged-out mini hats, but a joyous triumph for those who like to make fun of them. Which is pretty much anyone with eyes."
When asked about the brand's plans to prevent future legal problems, Linda Chang says, "We've never settled. We're not manufacturing goods ourselves, and we've put legal procedures in place [to avoid breaching copyright]. On in-house designs, our influences are always stated."
The Chang Family and Their Faith
The Chang family are devout Christians. Mrs. Chang has been quoted as saying that when they came to America, she went to the top of a mountain to pray, and God told her she should open a store. Mr. Chang keeps a Bible open on his desk, and the bottom of every Forever 21 carrier bag reads "John 3:16", the core Christian message. Linda says that the faith of the founders is separate to the brand, and that the bag is simply a statement of faith.
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Forever 21 in the UK
Verdict's retail analyst Sarah Peters believes it will be trickier for Forever 21 to establish itself in the UK. She says that the value market is growing at a slower rate in the UK than in the US, so it might have trouble. She also notes that Primark dominates the sector, and that there is tough competition from New Look and H&M.
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