SWOT Analysis of Forever 21

In this strategic analysis, we are going to cover the detailed SWOT ( Strengths, Weaknesses, Opportunities and Threats ) of Forever 21.

Forever 21 was founded in Los Angles, California in the year 1984 by Do Won Chang who is also holding the position of CEO. It has been operating in clothing (apparel) industry by offering clothing and accessories to girls, women, men and teens.


•    It has employees base of 30,000 in different countries.

•    Offer huge variety of clothing to men, woman and teen girls.

•    Strong online presence via its official website.

•    Various format of stores such as Forever 21+, Love 21 Contemporary and Maternity, Forever 21 Girls and 21 Men.

•    Strong financials in terms of revenues and profits.

•    Converting stores to make them more attractive and convenient for customers.


•    Limited number of stores in Latin America, Asia and Europe regions.

•    Copying the ideas of other designers.

•    It has been known for bad working conditions.

•    Paying low wages to employees.

•    Sued on several occasions.


•    Improve customer services.

•    Market penetration by opening more stores in Latin America, Asia and Europe regions.

•    Research & development to create their own ideas rather than replicating competitors designs.

•    Market development by entering into new countries of Asia such as India, Pakistan and Bangladesh.

•    Reduce the cost of production to lower the prices.

•    Online marketing


•    Presence of strong competitors; Charlotte Russe, H&M, Wet Seal, Urban Outfitters, Guess, and Deb.

•    Security issues in certain countries.

•    Negative perception of customer due to bad publicity.

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