Elaborated SWOT Analysis of Forever 21 – Leading Brand in the Fashion Industry

Updated on: Nov 23, 2021

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Previously we saw the SWOT analysis of Zara, today let’s review the SWOT analysis of one of its biggest competitors- Forever 21.

Forever 21 is one of the most known brands in the fashion industry. It sells clothes of the latest trend and style at affordable prices. The company has a variety of products and is a fast-fashion brand.

The company has a great brand image and is known for its marketing strategies across the world. Marketing is an essential part of any business. After the company started selling products online it saw a boom in sales. Hence we can learn that digital marketing and online presence are a must. If you also want to learn about digital marketing do check out the Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

In this blog, we will look at the SWOT analysis of Forever 21, before that let’s know about the company more.

Digital Marketing Academic Challenge 2024 - DMAC

About Forever 21

Forever 21 is an American fashion brand headquartered in Los Angeles. The company is a market leader in the fashion industry, it has almost 1,000 shops worldwide. It is the fifth-largest forte trend retailer in the United States and poses a primary risk to the trend industry.

Forever 21 store- SWOT Analysis of Forever 21 |IIDE

The company’s low charge is additionally visible when buying online. When you purchase garments online for $50 or more, your purchase receives free shipping. Besides, they have an online part called  “Amazing Discoveries” that will exhibit garments you can purchase at first-rate prices. They have a broad range of launch gadgets along with shoes, add-ons, and the whole thing in between.

It targets high-end fashion designer apparel via creating ready-to-wear tendencies while keeping aggressive prices. Forever 21 caters to all genders, ages and sizes.     

They additionally use psychological pricing – the fee tag commonly appears like $29.95, which makes it lower. Reasons for low-priced apparel corporations are unfair working prerequisites and minimal wages. The enterprise benefits from its employees, most of whom are excessive faculty college students who do not understand what workers’ rights are.

Forever 21 presently operates in about sixty-eight international locations internationally and is the fifth-biggest retailer in the United States with an annual income of $4 billion and greater than 28,566 personnel worldwide.

Quick Stats about Forever 21
Founder Do Won Chang and Jin Sook Chang
Year Founded 1984
Origin Los Angeles, California, United States
No. of Employees 32,800
Company Type Private
Market Cap $1.6 Billion (2021)
Annual Revenue $3.4 Billion (2017)
Net Income/ Profit $0.124 Billion (2011)


Products of Forever 21:

Forever 21 offers many product lines, some of which are as follows.

  • Clothing
  • Accessories
  • Shoes
  • Home Goods
  • Beauty Products


Competitors of Forever 21:

Being in the fashion industry, it faces tough competition from the following companies.

  • Wet Seal
  • Zara
  • Ralph Lauren
  • American Eagle Outfitters
  • H&M


SWOT Analysis of Forever 21

SWOT Analysis of Forever 21| IIDE

SWOT analysis is a tool used to evaluate a company’s strengths, weaknesses, opportunities, and threats. This analysis gives us a very concrete idea of how the company functions and deals with internal and external factors.


1. Strengths of Forever 21 

Strengths are described as what every corporation can do well in its discipline of activity, and what can supply it again over its competitors. Here are the blessings of Forever 21:

  • Stay on-Trend – Forever 21 positions itself as a trendsetting retailer and constantly has the freshest developments in all classes for its shoppers. The fact that Forever 21 units are new trends is its biggest strength.
  • Frequent New Collections – Forever 21 attaches extraordinary significance to innovation, and normal customers will locate something new in the shop each day. It put an end to the boredom of shopping for garments and made Forever 21 a favorite with its customers.

Forever 21 ads- SWOT Analysis of Forever 21 |IIDE

  • Affordable Prices – Forever 21 has garments beginning at $60, and there is something for everyone, whether it is kids, women, men, teens, or even serious adults. This manufacturer is also on hand to most of their shoppers, supplying special apparel at practical prices.
  • Customer-Friendly – A current Forbes survey located Forever 21 to be one of the most customer-friendly manufacturers in the country. The designers working with the manufacturer make certain that most of their designs come from the clients themselves, and the enterprise has a storage gadget in location to report patron voices and make sure comments turn into an actuality throughout all of their designs.


2. Weaknesses of Forever 21 

Weaknesses are used to point out areas where a corporation or manufacturer wishes improvement. Some of Forever 21’s predominant drawbacks are:

  • Private Ownership – Although Forever 21 is a fast-growing company with shops globally and is valued at about $4.1 billion, the enterprise remains a privately-owned corporation with restricted access to families.
  • Centralized Decision-Making – Forever 21 is household-owned, depends closely on the decision-making authority of its organizers, and is now not very open to pointers from different stakeholders. It is believed that the centralized decision-making method of this organization created a lot of dissatisfaction among designers.
  • Focusing only on the Youth – The organization has usually placed itself as a younger brand. Excessive contact with young adults and young adults results in clients aged 21 years and over being reluctant to purchase clothes, and this can ultimately grow to be a danger for retail companies.


3. Opportunities of Forever 21 

Opportunity refers to the methods a commercial enterprise can take advantage of to expand its return on investment. Some preferences include:

  • The craze towards Trends – In city environments, younger adults are now not solely targeted on trends. However, are additionally pressured to gown appropriately, in general, due to the fact of team stress to adhere to trend norms. For a modern-day clothing-related trend company like Forever 21, this is a big opportunity.
  • Fashion is Changing – The trend enterprise is in perpetual evolution, and no style lasts too long. With this skill, garments will go out of fashion quicker and clients store extra regularly to make sure their garments are in fashion with the present-day fashions. This is a possibility for all garb retailers.
  • Tailored Clothing – Gone are the days when humans desired to purchase comfy clothes. Especially with high-end garb brands, interest is usually taken to stand out from the crowd, which is why dresser personalization will be decisive in the future.


4. Threats of Forever 21

Threats are environmental elements that can influence commercial enterprise growth. Some of these threats include:

  • Economic Crisis – A recession will limit the tendency to spend on non-essential objects, and luxurious apparel manufacturers will have a massive impact on sales.
  • Recycling Focus – How garbage can be recycled is turning into an increasing number of essential items, decreasing their carbon footprint, and the subsequent massive style is recyclable clothing, which can be expensive.


Digital Marketing Academic Challenge 2024 - DMAC


Forever 21 is a leading brand in the fast-fashion industry, it has received high customer satisfaction and is known for its efficient services. The company launches new collections frequently and remains updated with the trend. It has affordable prices and receives good customer reviews. The company should diversify its collection for people of all ages rather than focusing only on youth. With sustainability getting important and people getting aware of the amount of waste these fast fashion companies produce the company can face major losses, it should work on its waste management and improve its CSR activities.

The company is known for its smart marketing strategies and tactics to attract customers to the company. Marketing is an essential part of any business and with covid-19 hitting the world, marketing has taken a digital shift. Digital marketing has contributed highly to the growth of various companies. If you also want to learn digital marketing, do check out top-quality courses provided by IIDE.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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