The failure of Forever 21: what is the next move for fast fashion? (by Tian)

On September 29 2019, Forever 21, the fashion company that helped with the popularity of fast fashion, said it would file for bankruptcy. The company will close around 178 stores in the US. The company is going out of business due to the shift of foot traffic from physical stores to online stores and young people’s lack of interest in cheap shopping malls.

Fast fashion companies, like Zara and HM, enjoyed popularity for its fast change of clothes. However, this has also resulted in many problems that force fast fashion companies to change.

Too much damage to the earth

Sustainability is a serious problem in the fashion industry.

Fast changes in clothing means quick response to the market change and consumer demands. However, this also lead to the problem of environment, both to nature and to human being. According to Wicker, almost 85% of the American clothing ends in landfills, creating environmental hazards. Moreover.

The production process also has serious impact on health since most of the clothing is made with cotton or polyester.

This problem has caused several protests worldwide. For example, in 2019, a catwalk show in London was performed to protest fast fashion industry because of its impact on climate change.

This has forced fashion industry to change. One of the brands famous for its sustainability is Reformation. This company recycles about 75% of its garbage and releases annual sustainability report since 2016 to show its sustainable practice. This is a good direction for fast fashion brands since it could help build brand image.

Too many stores

Another thing that made the fast fashion company struggle is the shift from physical stores to online stores.

Forever 21 expanded its stores to 40 countries. This huge number of stores require too much costed while Forever 21 failed to compete with other fast fashion companies online like Zara or ASOS. These brands have paid a lot of attention to the marketing of online stores while Forever 21 focused too much on physical stores. Understanding the shopping habits of the consumers is vital to the survival of fast fashion.

References:

[1]Wicker, A. Fast Fashion Is Creating an Environmental Crisis. Newsweek. September 1, 2016; Available from: https://www.newsweek.com/2016/09/09/old-clothes-fashion-waste-crisis-494824.html.
[2]BCS NEWS: 3 reasons Forever 21 went bankrupt.
https://www.cbsnews.com/news/forever-21-bankruptcy-3-reasons-it-went-bust/
[3] official website of Reformation: https://www.thereformation.com/
[4] Maheshwari, S. (2019). Forever 21 bankruptcy signals a shift in consumer tastes.