A particular news caught my attention earlier. It says that Forever 21 is close to filing for bankruptcy after facing a significant dip in sales last 2018.
Forbes estimates that Forever 21 faced a 20-25% dip in sales in 2018. The once-unstoppable fashion giant has been lowkey downsizing its biggest stores in the US in recent years after facing stiff competition from brands such as H&M and Zara, coupled with the rise of online-only retailers.
Well, I'm not really a fan of branded clothes, or I must say, I am not very particular about the clothes I am wearing. I mostly acquire my outfits from UK (Ukay-ukay) and TTS (Tabi-tabi stores).
But of course, I know this particular Forever 21 brand too well. I remember lurking around one of their stores and joked about an 800-peso sleeveless sando that looks like a table cloth. The funny thing is it was already down to 50%! Its price was originally 1,600 pesos.
I know, I know. This is not very surprising. Branded clothes cost more because of their quality -- and brand. But I think no one would spend such amount for such a simple garment. (Or maybe I'm the only one who thinks this way?)
The point is, we will probably see more huge companies struggling in sales in the future. It's not just about the brand. It's also about the constant innovation you'll incorporate into your business to meet the ever-changing demand of the market.
Bringing your business online is one. Right now, people just go to online shops and put a sale in one tap. And I think Forever 21 failed on this part. People nowadays are becoming more practical. Aside from the convenience, a lot of quality items which are way cheaper can be found online (or elsewhere).
Every time I read stories like this, I think of Yahoo. Yahoo lost to Google mainly because of one thing -- it failed to embrace changes.
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