Forever 21 intends to restart its retail presence in China, setting sights on brick-and-mortar locations.
In the ever-evolving world of fast fashion, Forever 21 is making its fourth attempt at entering the Chinese market. The brand's entry is being facilitated by local operator Chengdi, a company partly owned by e-commerce giant Vipshop Holdings.
After filing for bankruptcy in the US in 2020, Forever 21 is looking to China as a key market for growth. The China and US regions are the focus areas for the near-term, as per a company press release. Authentic Brands Group, the parent company of Forever 21, has reportedly partnered with Chengdi for the Chinese market.
Chengdi's strategy is to localize operations to introduce Forever 21 to young, new customers in China. The initial launch of Forever 21 in China took place in 2022, and the brand made its debut in Shanghai.
Last year, Forever 21 enacted the third relaunch of its business in China and operated some physical stores throughout the country. However, by late 2024, local media had reported the brand's departure from China. It seems that Forever 21 is now making a comeback, backed by Chengdi's expertise in the Chinese market.
Meanwhile, Authentic Brands Group plans to partner with a new company for the brand's relaunch in North America. The new partner has not yet been publicly announced, but further announcements about the partner are expected soon.
The cause of Forever 21's bankruptcy was cited as heightened competition within the fast fashion sector and weak footfall. It will be interesting to see how the brand fares in the competitive Chinese market this time around.
As Forever 21 prepares for its return to China, it's clear that the brand is committed to reaching young, new customers in the region. Plans for physical stores in China include opening them in 2026.
Stay tuned for more updates on Forever 21's relaunch in China and its partnership with Chengdi.
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