Fast fashion is big business and no one does it quite as well as retailer Forever 21. For those who are unfamiliar with the store, it's a the best place at the mall to pay $19.95 for a sweater that happens to be spot on with current fashion and seasonal trends. Forever 21 was founded in Los Angeles in 1984 by Do Won Chang and his wife Jin Sook Chang. Born again Christians, the Changs have infused Jesus themes throughout their business.
Do Won and Jin Sook Chang arrived in Los Angeles in 1981 during an interesting time for the local fashion producers. At the time, Korean immigrants, like themselves, were basically taking over the entire garment industry. A Korean-American culture developed from manufacturing to wholesale to retail. It was insanely competitive, weeding out those who did not have the necessary speed, flexibility, and vision. Do Won and Jin Sook Chang thrived in this environment.
The Changs came to Los Angeles with a bit of an edge. Do Won had started the first coffee and juice delivery service in Korea while Jin Sook had been a hairdresser. As veterans of the service industry, they had an idea of what it would take to make it in the Los Angeles fashion industry. The couple had dreams of owning their own business in Los Angeles and set out with a single minded focus to make this happen. While Mr. Chang worked as a gas station attendant and janitor, the couple scraped together enough to open a 900 square foot clothing store called Fashion 21. It was on a street in the Los Angeles neighborhood of Highland Park, adjacent to the garment district known for low rents. The Changs focused their store on teens, filling it with cheaply made, skimpy clothing all made by Korean-American manufacturers and with each and every item sold in the store personally chosen by Jin Sook.
Jin Sook had a knack for spotting trends that were easy to copy, and this savviness allowed Fashion 21 to make $700,000 in sales in its first year in business. The Changs attribute at least part of their success to God. As born-again Christians, Mrs. Chang has said she was at the top of a mountain in Los Angeles praying when God told her that if she opened a clothing store she would be successful. The couple has donated millions of dollars to Christian missions around the world.
In fact, the Changs make no secret of their faith, displaying in black lettering on the bottom of every bright yellow Forever 21 shopping bag "John 3:16" the Bible verse that states "For God so loved the world that he gave his one and only Son, the whoever believes in him shall not perish but have eternal life."
Fashion 21 caught on quickly because the Changs figured out how best to showcase the merchandise to make sure it moved. What was new, hot and trendy had to be up front in the store. According to industry analytics, Forever 21 turns over 20% of its merchandise every week. That's twice the rate of most other clothing stores. The lesson to the consumer? If you see something at Forever 21 that you want, you better buy it right now because it may not be there tomorrow.
That first Fashion 21 store, eventually renamed Forever 21, is still operating on North Figueroa Street in Highland Park. The company now has stores spread throughout Los Angeles, the U.S., and overseas, but one of the chain's largest is just 25 miles away from its original outpost. Forever 21 at the Los Cerritos Center just over the border in Orange County, California is an 86,000 square foot, two story store divided into 22 mini shops within the store. It is basically a department store that only sells Forever 21 brands with 131 fitting rooms. It used to be a Mervyn's.
Do Won and Jin Sook Chang have built Forever 21 into a multibillion dollar business with no advertising or marketing. The couple rarely grants interviews, and for many years, the Forever 21 company headquarters didn't even have the sign outside. The Changs' reluctance to make themselves or their company's headquarters accessible to the public and press may have something to do with the multitude of lawsuits they've faced.
It is integral to Forever 21's success that customers are able to find the latest fashions they've seen on their favorite celebrity for cheaper. A biker jacket worn by Taylor Swift by designer Rick Owens may retail for $2,675, but the knockoff at Forever 21 is just $37.80. Sure, the Forever 21 version may literally disintegrate after a handful of wearings, but what do you expect at that price point? Their customers understand they are not getting the highest quality, but in fashion, often getting the look that you want is the most important thing.
Forever 21 has moved most of its manufacturing out of Los Angeles. It is simply more cost effective for the company to have its clothing produced in China, Pakistan and Vietnam. Only 20 to 30 percent of Forever 21's merchandise is still made in Los Angeles and that is only because those are items that require very fast turnarounds.
Forever 21 is still a family business. Don is the CEO and Jin Sook is the Chief Merchandising Officer. Their two daughters, Linda and Esther, are also a part of the family business. Linda is a marketing manager and Esther is in charge of the brand's visual elements. The family lives in Beverly Hills.
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