Forever 21 Management Analysis


Mission Statement

The company’s mission is to provide is to furnish customers with an unpresented determination of today’s styles with moderate costs. They’re known as” continually changing and dependably in style”. The proprietor is Christian and needs to impart this to his clients.


One of America’s most favored retailers, Forever 21 was set up as Fashion 21 in 1984 by a Korean foreigner in a little 900 sq. feet space. Today, shopping centers house the fashion giant in 9,000 square feet zone and their XXI lead stores are spread more than 24,000 square feet.

Quick design retailer, Forever 21 works more than 600 stores under the Forever 21, XXI Forever, For Love 21, Heritage 1981, and Reference pennants. Always 21 offers men’s and ladies’ apparel and extras. Stores can be found all through the U.S. furthermore, in Canada, Europe, Japan, Korea, and the Philippines. The organization is headquartered in Los Angeles, California.


  1. Employee: They are viewed as inside partners. As they work inside the organization, the representatives have an intrigue and impact the way it is run. In this manner, anyone who works for Forever21 is a partner.
  2. Customers: They are considered external stakeholders. They are slightly different from employees because they do not work for the corporation, however they buy products and services. So, they have an interest in Forever 21.

Structure and Leadership

Structure of Forever 21


Forever 21 has assumed control shopping centers over the world with its stock of popular garments at absolute bottom costs. The stores acquired $135 million in benefits in 2008, the last time the privately-owned business made its financials open. What’s more, the same number of retailers declare store terminations, Forever 21 keeps on growing. This month alone, the affix has declared arrangements to open two new areas: one in Rochester, Minnesota, and one in Santa Cruz, California. A great part of the organization’s prosperity has originated from its interest to spending plan cognizant ladies in their youngsters and 20s. It utilizes the quick design demonstrate, getting new form patterns to stores as fast as it can, then offering at a low cost. Conventional retailers attempt to set up a brand with a mark look, so it’s impossible that others will attempt to duplicate Forever 21 subsequent to investing so much energy and exertion assembling their own brands. Furthermore, it just offers attire for not as much as its adversaries do. “forever 21 offers pants for as low as $15, where youngster retailers by and large begin at $30 for this imperative class,” noticed the Bank of America investigators.

  1.  Do won Chang (CO-Founder and Chief Executive Officer)

With little more than a high school education, the young Korean couple came to the U.S. in 1981 in search for a better life. Husband Do Won, just 22 at the time, worked the morning shift at a coffee shop, pumped gas during the afternoon and started a small office cleaning business that kept him busy until midnight. Jin Sook, 25, toiled as a hairdresser, a skill she acquired back in her home country. While at the gas station, Do Won noticed that wealthy men in the garment industry drove the nicest cars, inspiring him to take a job at a clothing store, where he was determined to learn the ropes. “I treated it like it was my own business,” he told FORBES. After three years in the U.S., the couple pooled $11,000 in savings and opened a 900-square-foot apparel store in L.A. in 1984. Calling it Fashion 21, first year sales reached $700,000. It eventually became fast-fashion juggernaut Forever 21, which has $4.4 billion in revenue from 790 locations in 48 countries. But after years of expansion the company appears to be facing some setbacks; sales have been flat and in the past year it’s reportedly paid some vendors late. Forever 21 denies any financial difficulties and says business remains solid. The devout couple, who goes to early morning prayer at a local church nearly every day, has the Bible verse John 3:16 printed on the bottom of the chain’s shopping bags.

  1.  Jin Sook Chang (CO-Founder/President)
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After moving to the states from South Korea in 1981, Jin Sook Chang and her husband Don worked odd jobs to make ends meet. Three years later, the pair opened up their first clothing store, Fashion 21, a 900-square-foot shop in Los Angeles. The Changs expanded upon first year sales of $700,000 by opening new stores every six months, eventually changing the teen-focused retailer’s name to Forever 21. Today their fast-fashion clothing chain, which has been sued more than 50 times for copyright infringement, has $4.4 billion in sales, flat from year ago. It has closed some stores and was late to pay some vendors. But the company denies any financial difficulties, saying its business is solid and noting the planned opening of 67 more stores this year. Sook works as the chief merchandising with the help of her 2 daughters Ester and Linda, while her husband don is the CEO.

Task Environments

Social factures: forever21 has similar objectives of disposing of tyke and grown-up constrained work, and we are completely adjusted to the soul and reason for Responsible Sourcing Network’s cotton vow. forever 21 has marked the cotton vow compelling October 7, 2016. forever 21’s dedication to this issue is not new. Since 2013, Forever 21 has attempted to guarantee that none of its outsider sellers intentionally acquire their supply of cotton from Uzbekistan.

Our Corporate Social Responsibility program incorporates the Forever 21 Vendor Audit Program. While large portions of our merchants have worked with Forever 21 for various years and are believed, all providers and sellers must give plant contact data and all industrial facilities must take an interest in the review program.

Technological Factors: It reports the accessible techniques for changing or changing over assets into items and administrations. Notwithstanding, supervisors must be watchful about mechanical variables since they must be precise in new innovations and adjust to new condition to dispatch another item or to make a venture.

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Political / Legal Factors: It is alluded to the administration law of business (control and set the do’s and don’ts), business-government relationship (It is vital to have great connection in business as far as economy) and the general political and legitimate circumstance of the nation (It demonstrates that positive circumstance where directors need to work with).

Economic Factors: The economic dimension of an association is the general status if the financial framework in which the association works. The most vital monetary elements are loan fees, unemployment and swelling. These components bring issues for the interest for items. Since, if financing costs are high, purchasers will spend less; if the expansion is high, the organization they pay more for assets, and they need to expand costs to cover costs; and if the unemployment is high, shoppers purchase less on the grounds that there are few individuals working for the association.

Organizational Culture

At Forever 21 Inc. they have a most significant organizational culture, resource is the general population who work for organization. As a quickly developing claim to fame retailer, perpetually 21 appreciates a dynamic and quick paced working condition. They are a fun, adaptable, and vigorous gathering of individuals cooperating to make a novel charming condition. Cooperation is key when sharing the alternate points of view that permit the organization to develop. What’s more, perpetually 21 is focused on supporting differing qualities inside the organization and imparting this dedication to a group.

Organizational Hero

Do Won Chang open his first store in L. A’s. Highland Park neighborhood in 1984, calling it Fashion 21. As deals took off and the demographic developed past the Korean American people group, he changed the name to Forever 21. Different stores soon followed in the U.S. what’s more, abroad, incorporating one in the Seoul neighborhood of Myung-Dong, where Chang grew up.

The financial downturn constrained Chang to make a few cuts. The organization finished 2009 with seven less stores than the prior year. Still, income is climbing. In the last monetary year, Forever 21 posted $1.7 billion in deals. It anticipates income of $2.3 billion this year. A lot of that is from forceful extension – Chang is peering toward Israel and Hong Kong, for instance. Similarly, critical is an expansive lineup. Notwithstanding Forever 21, the chain has seven different arrangements, each serving unmistakable types of shopping center rats, including XXI Forever, which concentrates on higher end couture lines, and Heritage 1981, highlighting vintage-styled garments.

Success of Forever 21

Innovation: One vital thing recognizes Forever 21 from its fundamental rivals is its uniqueness. No dread that you will discover your colleague or companion in the same outfit from yourself, Forever 21 arranges little mounts and learns it customers to purchase promptly and not hold up till the following visit. Not purchasing implies gone. Consistently something new, that is additionally the saying of Forever 21. ‘Get it now, or it’s gone’ is the productive and benefit creating arrangement of Forever 21. Evidently, Mrs. Chang, who is in charge of the gathering of Forever 21, surveys around 400 new outlines a day. The Changs understood that change is fundamental. The perfect idea for the empowering addict’s era of today. No dead stock, development starts things out.

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Easy access and quality: Without any things above $60, Forever 21 is making style open to all and making itself a substantial potential market. They went from one to more than six possess brands, offering garments to children, men, additional vast and pregnant ladies. Everybody can bear to purchase something at Forever 21.


Forever 21 goes into an exhaustive concurrence with each of our sellers and their production lines under which they guarantee to use lawfully qualified laborers, pay them compensation which are reasonable and legitimate in their ward, and give a situation that follows their lawful necessities. Our understanding likewise covers issues of time off, free affiliation rights, nondiscrimination, ecological assurance and security, and forbids the utilization of constrained or slave work, youngster work. They have a profoundly prepared Vendor Compliance Team, which advances and upholds legitimate and moral operations at our outsider manufacturing plant destinations. The Team fulfills this implementation by leading assessments of our dynamic non-US Vendor producing offices on an arbitrary premise to guarantee The Vendor Compliance Standards are comprehended, regarded and taken after. We additionally visit most production lines before We contract them, to guarantee their office and operations meet with our models. After every manufacturing plant visit, the Vendor Compliance Team gives a composed assessment of the processing plant, including any activity things which may require revision before the following visit. We additionally do our best to give continuous data, guidance, and support on reasonable work, wellbeing and security, and related issues. The objective is to work with our industrial facilities to help them enhance and guarantee reliable consistence. In any case, if we find intense infringement or infringement which are not adjusted inside a sensible day and age after our remedial activity arrange has been issued, we may end that plant from our program. Forever 21 trust this procedure helps with guarding against potential hazardous conditions, working environment wounds or abuse, and furthermore brings about a general change in processing plant effectiveness and item quality principles.

The Future of Forever 21

Since first opening its entryways 30 years back, Forever 21 has turned into a universally perceived brand. The organization has possessed the capacity to maintain a strategic distance from the battles of other youth-focused brands. It pulls in solid deals – $4.6 billion worth in 2014, as according to Privco – and hasn’t needed to battle with a brand character like other teenager retailers. This most recent move is a piece of the organization’s objective to end up distinctly a $8 billion organization inside the following two years and to have 600 stores the world over inside the following three years. Forever 21 right now works more than 680 stores in 45 nations.


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