Forever 21, an iconic brand that revolutionized the fashion industry by offering young people trendy and budget-friendly clothing, is making a comeback of sorts in Japan. This time, they are revamping their offerings and marketing themselves as a luxurious fashion destination. To have a booming launch in the fashion-savvy nation, our company’s release strategy entails an online sales presence and a physical pop-up store in Tokyo. A substantial portion of our new collection has been crafted in collaboration with Adastria Co., Japan’s third largest apparel manufacturer.
To expand its reach, Forever 21 has decided to target a more upmarket audience in Japan. Adastria’s licensing unit will be responsible for localising the brand there in terms of size, colour and design. This way, the company can provide customised items that fit perfectly with customers’ preferences in the Japanese market.
Atsushi Sugita – the leader of Adastria’s licensing department in charge of Forever 21 in Japan – has stressed that the goal is to build a lasting brand by customising it for their local market. He further explained that most of the initial products don’t meet the needs of Japanese customers.
Adastria intends to open around a dozen physical stores in Japan, with the goal of generating revenue of ¥10 billion in five years. The company aims to have 60% of its sales come from online channels, with an average item costing about ¥4,000 ($30).
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The number of items available in the country has been reduced to between 120 and 150, and physical stores will be smaller, with an improved quality of materials used. The relaunch comes as fast fashion company Shein gains popularity, putting pressure on traditional brands such as Forever 21 and H&M and increasing scrutiny on the industry’s sustainability.
Adastria is interested in expanding Forever 21 to other Asian markets and plans to leverage the brand’s existing recognition to achieve a faster expansion compared to starting from scratch. Forever 21 originated in Los Angeles in the 1980s & experienced immense growth when fast fashion became a global phenomenon. However, it eventually declared bankruptcy in 2019 due to costly store maintenance, inadequate inventory management and losses occurring overseas. The company was subsequently purchased by a consortium led by Simon Property Group Brookfield Property Partners LP and Authentic Brand Group LLC.
The relaunch is being led by Adastria with the support of Itochu Corp., the Japanese trading firm that purchased the commercial rights to Forever 21 in Japan in September.
