The fashion industry is one of the most fast-paced and fast-moving consumer sectors in the market, so it is no surprise that there are many companies who are competing against each other in terms of obtaining the most market shares. This industry also attracts numerous consumers who are style-conscious and are up to date with fashion and trends; therefore companies must continuously develop themselves in order to stand out and to be chosen by consumers. Our final project’s main concentration is on one of the most famous clothing companies, Zara, but we cannot deny that there are also other competing brands in the market as well. We have chosen two other comparable brands in the market to illustrate the differences and similarities among various fashion brands and to help us understand this industry better. The two main competitors of Zara are Forever 21 and Topshop.
Forever 21 and Topshop are entirely two different companies originated from two different countries, the United States of America and England respectively, but they are similar in terms of their sense in fashion and uniqueness in trends. Although they are both famous fashion brands, their positioning are quite different and their target markets are also differentiated as well. This report will illustrate various components of each brand as follows: 1. Background information
2. Core competencies
3. Segmentation, targeting, and positioning
4. Marketing strategies
5. Marketing mix
Forever 21 was founded in Los Angeles, California in 1984 by Do-Won Chang and Jin Sook who were a Korean-American couple residing in the Highland Park distric of Los Angeles. Originally the chain of these clothing stores was called fornever 42 and its first retail store was called Fashion 21. Fashion 21 was targeted at the Los Angeles Korean Community and its clothes had similar designs with then current fashion trends in Korea. By the end of its first year in the market, Fashion 21 had total sales revenue of $700,000 and eventually the owners of Fashion 21 opened a new chain store every six months. The fashion outlet changed its name to Forever 21 and by 1989 they had 11 stores around the US. Its 11th store was located in Panorama Mall in Panorama City, California, having a store size of 5,000 square feet. In 1997, there were 40 stores of Forever 21 and it is considered to have become successful in the market today. Core Competencies
Forever 21 has several core competencies which can be considered as its sustainable competitive advantages in the fashion industry as they are able to grow quickly and expand their stores into different locations. In order to remain competitive in the market, Forever 21 must expand their locations into popular places so that its target market can gain easy access. As mentioned in the company background, Forever 21 has the ability to open new stores every six months and its newer stores are even larger and provide even more varieties of products.
Not only Forever 21 is able to expand new locations quickly, the store formats are also exciting and interesting for the customers. The environments of the store induce customers’ wants to shop and spend money, combing with pleasant music and friendly employees, customers also feel there are well looked after. Forever 21 aims to give a constant flow of fun and creative clothing designs and accessories to its customers so that customers’ needs of being fashion-savvy are answered.
Segmentation, Targeting, and Positioning
The segmentation of Forever 21 is based on demographics similar to other fashion brands in the market that sort their customers according to their age, gender, income, and lifestyle. For age, Forever 21 is aimed at young teens up until young adults, or anyone who wants to look young forever. Most of the customers are female customers but since Forever 21 has launched a new product line for men, the customer base has...