Forever21 Accused Of Infringement By Adi Seeks $150 Million In The US

Just been

Tort of prosecution

And then the bad news came out.

In this regard, Cheng Weixiong said that Forever21 entered China faster than other times.

Late brand makes it vulnerable in the market.

Due to slower growth, Forever21 was recently exposed in the United States and is negotiating $150 million with Wells Fargo and Private Equity Firm.

Forever21 has a history of 30 years, and seeking loans abroad is rare.

Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., said that there are usually two reasons for enterprises to seek loans. First, the development of enterprises is limited, the funds of enterprises are not controllable, and there are difficulties in operation. Two, the development of enterprises is very good, so as to expand other businesses.

In fast fashion brand clusters, Forever21's performance is not very satisfactory.

Public information shows that sales of Forever 21 same store have declined rapidly in the past two years, and now it is negative growth.

And other fast fashion brands such as UNIQLO parent company's fast selling group rose 2015 in the three quarter of fiscal year three, while the net profit in the two quarter of H&M 2015 grew by 11.1%.

The development of Forever21 in China is also somewhat backward. At present, there are 11 stores in China.

Up to the end of August, there were only 45 stores in Beijing, and at the end of March, H&M had 230 stores in China.

In this regard, Cheng Weixiong said that Forever21 entered China later than other fast fashion brands, making it vulnerable in the market.

In addition, the brand positioning is relatively narrower than other brands.

Its target audience is the younger generation, while UNIQLO, H&M and other fast fashion design clothing for all ages.

It is understood that Forever21 opened its first flagship store at APM shopping center in Beijing in 2012, and then opened second stores in Daxing District.

In contrast, UNIQLO entered China in September 2002 and entered China in H&M 2007.