Forever 21 is finding new opportunities in emerging markets.
The retailer’s trendy styles and budget prices could be the right product for customers in emerging markets.
After filing Chapter 11 bankruptcy last year, the company was acquired by Authentic Brands (USA) and Simon Property Group and Brookfield Property Partners. It barely had a chance to revamp the company before the market was hit by coronavirus pandemic.
Now it looks like Forever 21 has a new strategy: expansion in emerging markets.
In a recently announced joint venture with IB Group, Forever 21 plans to expand its foot print across Mexico.
Mexico is the first step into expanding internationally. Forever 21 has similar plans for Central America, South America, the Philippines and the Caribbean, which are next on its list, according to Adweek.
As part of the deal, IB Group has formed a newly-created entity, Forever 21 Mexico. Forever 21 Mexico and retail and real estate company Grupo Cojab will assume the operation of 37 Forever 21 stores under a licensed model, according to Adweek.
- A key part of the international strategy is a licensed partnership model.
- Forever 21 currently has 590 stores worldwide, including the EU, USA, Asia and Latin America
- Despite its financial problems, Forever 21 has a loyal customer base.
