A Study on the Management of FOREVER 21

SUMBITTED BY :
SHUBHANGI SINGH
BCOM(H) – 2ND YEAR
SECTION – 2
294
 INTRODUCTION

• FOREVER 21 was set up in 1984 by a Korean fashion

designer and founded in Los Angeles, California
• Began in a 900 sq ft store in Los Angeles
• It is the 5th largest specialty retailer in the United States.
• Has more than 600 store around throughout the U.S. and in
Canada, Europe, Japan, Korea, India and the Philippines.
• Number of Employees - 30,000.
• Products - Men's and women's clothing and accessories.
• It’s a privately held company
• Revenue p.a – Approx 4B
ADITYA BIRLA GROUP : JOINT VENTURE

• In 2016, Aditya Birla Group acquired the rights of both

offline and online business of FOREVER21 in India for
USD 26 million.
• It owns and operates the stores in India.
• 21 stores currently in India.
• Head of business In India : Abhinav Zutshi
 TOP MANAGEMENT

• Co-Founder and CEO : Do Won Chang and Jin Sook

• President : Won Chang
• Director : Diana Ly
• Chief Financial Officer : Micheal Kramper
• Senior Vice President : Chris Lee
 VISION

FOREVER 21 wants to inspire all customers shopping

experience by providing an captivating and exciting store
environment with a never-ending flow of fun, on trend
fashion at a great value
 MISSION

The company’s mission is to provide with an unprecedented

selection of today’s fashion with affordable prices. They are
known as “always changing and always in style”.
 CORE VALUES

“At FOREVER 21, one of our core values is to encourage

giving, to a lend a helping hand to those who need it most.
Over the years, we have carried product that has helped a
number of organizations. However this year we formally
introduced our GIVE TO LOVE, LOVE TO GIVE brand,
which encompasses a collection of items where proceeds
will go back to a designated charity.”
 STRATEGIC PLANNING

•To expand it on the social media platforms like twitter,

Youtube and Facebook.
• Aiming to keep up with the latest trends of fashion and
with affordable prices.
• Targeting the people of age group ranging from13-30
ages.
• Create online shopping experience by developing
andriod/iOS shopping app.
• Implement an optimized video blog
 SWOT ANALYSIS

STRENTHS WEAKNESSES
• Quality for certain product is
• Prices – reasonable prices
sometimes less than expected
in relation to the product,
• Often Understaffed creating long
good sales
queue and decreased quality of
• Customer service – kind
service at the store.
and accommodating
• Does not have reward system
• Wide variety of product
and coupons
choices
• Flaws in their existing online
• Organization of the store to
shopping system.
be consumer friendly
• Ahead of its competitors
 SWOT ANALYSIS

OPPORTUNITIES THREATS
• Stores like H&M and ZARA
• Stores like Abercrombie and
could be a threat offering similar
Fitch are losing customers who
products and prices
are switching to FOREVER21.
• Customers in colder climates
• Popular celebrities wear and
may be less likely to wear their
endorse their clothes
clothing as its thin clothing.
• Current fashion trends for
• Big trend on second hand
young adults are very similar to
clothing
the products that FOREVER21
sells.
 ORGANISING

• FOREVER 21 has a functional organizational structure.

• It is majorly divided into different departments like Sales
department, Marketing department, customer service etc.
• Through this structure the company easily manages and
run smoothly.
 MARKETING MIX

Products: Variety of clothing for women, men, and kids. Also, beauty products,
shoes, and accessories. If some products are only online, it is guaranteed to be in
stock again, or available in stores.
Place: Forever 21 has over 480 stores in the U.S., specifically in malls; however,
shopping online makes it easier to place consumer's order. All products come
from Los Angeles, California.
Promotion: Advertising is used through social media, via email, and through
postal mail. Forever 21 also uses celebrities such as Iggy Azalea, Nick Young,
etc.
Pricing: Forever 21 ensure that pricing is consistent at all of its locations,
including their online website. In some occasions, there may be price differences
due to promotional events and special offers; however, prices are generally
satisfying for the customer, which makes sales successful.
 STAFFING

• Recruits people from diverse platforms

• Hires people who are talented and hardworking for their
job.
• It uses various platforms for recruiting like :
1) Through social media
2) Direct external recruitment
3) Direct applicants and referrals
4) Company’s Website
5) Internal Recruitment
 EMPLOYEE TRAINING

• FOREVER 21 uses the visual merchandising technique to train their

employees
• The company gives certain training and knowledge about the latest
trends and customer’s current sense of fashion.
• They treat all the employees as a team and one family to create a
sense of belongingness .

“Don’t just start your career, launch your future. Discover

endless possibilities at FOREVER 21.”
 EMPLOYEE’S CONTROVERSIES

• In September 2001, 19 contracted employees received

less than the minimum wage and their job cards were
falsely removed
• Five Forever 21 employees filed a class action lawsuit in
January 2012 saying that they were not compensated of
the time worked during lunch breaks.
• Was also engaged in unfair labor practices
systematically contracting work out to sweatshops.
 DIRECTING
• Work with all the business leaders to create their long term strategic
plan and increase buys
• Developing a strategy that provide insight into complex strategic
issues to help the Executive Leadership Team make key business
decisions.
• Lead a team of Analysts in driving business decisions regarding retail
expansion, global distribution and key corporate initiatives.
• Drive development of corporate vision, strategy, and long-term
strategic priorities
• Lead strategy initiatives to address CEO and other senior executive
objectives, including growth, productivity and efficiency.
 CONTROLLING

FOREVER 21 always ensure the maintenance of quality

and control over stock
They ensures this by :
1) Keeping a check on the designs to ensure it matches the
trend
2) Checking the stock both on online and offline stores
3) Tries to maintain an unique and different style in their
clothing to stand out in the market.
 MARKETING STRATEGY

• The company has been participating in various Fashion

Shows to create brand visibility and brand recall.
• It competes in the market with assortments, availability of
stock, price and trendy clothing.
• Distributes its offerings through mix channels of
distribution such as franchised outlets, company-owned
outlets, retail chains, and e-commerce websites.
• Recently invested in DailyLook, a fashion subscription
service, as part of a Series of funding round valued at $8
million.
 BIBLIOGRAPHY

•https://www.marketing91.com/marketing-strategy-of-forever-
21/
• http://www.adityabirla.com/media/press-releases/ABFRL-
signs-MoU-Forever-21-India-business
•https://economictimes.indiatimes.com/industry/services/retail/
aditya-birla-fashion-and-retail-to-acquire-forever-21-india-
business/articleshow/52435009.cms
• http://articles.latimes.com/2001/sep/07/business/fi-43072
• https://www.indeed.co.in/cmp/Forever-21/reviews
• www.forever21.com
 BIBLIOGRAPHY

•https://www.theofficialboard.com/org-chart/forever-
21
• https://www.forever21.com/us/shop/info/careers
• http://keepingupwithf21.blogspot.com/2015/02/ch-
2-strategic-planning-for-competitive.html
• https://www.encyclopedia.com/books/politics-and-
business-magazines/forever-21-inc
•https://retail.economictimes.indiatimes.com/news/a
pparel-fashion/apparel/abfrl-completes-acquisition-
of-forever-21-for-rs-175-crore/53062241
THANK YOU