Jenny Chan 陳詠欣
Jan 18, 2012

Forever 21's Hong Kong launch sets stage for mainland China entry

HONG KONG - The soft opening of Forever 21's first Hong Kong store today is preparing the US fast-fashion retailer for its launch in Shanghai and Beijing in spring this year.

Artist's impression of the completed Forever 21 store
Artist's impression of the completed Forever 21 store

The retailer's new store in Causeway Bay's Capitol Center continues the expansion of its Asian operations with locations already established in Japan, Korea, India, Indonesia, the Philippines, Malaysia, Singapore, and Thailand.

Its next footprint in the region is naturally the mainland. Forever 21 executive vice president Larry Meyer told Campaign since "Hong Kong is the gateway to China, it's important for our brand-building; it's also a preview for Chinese consumers of what is to come in China." 

In Hong Kong, Forever 21 will reveal a part of its 51,000 square-foot store before opening all six floors during its official launch in spring 2012, coinciding with the openings of its Shanghai and Beijing stores.

Apparel assortment will follow other global stores, with only sizing adaptations for local consumers. Other sub-brands of Forever 21 such as Heritage 1981, Love 21, and Tween will be available also in spring.

Hailed as America's 'cheap-chic fashion haven', Forever 21's market positioning in Hong Kong against competitors is "fast, fun and affordable" - promising lower price points than those of H&M, Uniqlo, and Gap, who have both been faster in setting up retail presence in the territory.

Meyer said such a retail strategy against the backdrop of the on-going debt crisis was working. "The whole world has a greater sense of value nowadays and this brings great opportunity. Our concept works well when people want more value."

Despite paying "one of the highest rents in the world" of US$1.4 million a month for the prime shopping spot in Causeway Bay, Meyer was confident it was worth it. "We're optimistic we will get good, profitable sales out of Hong Kong."

Responsible for Forever 21's real estate and store development, Meyer has been gearing up for market entry into Hong Kong for the past six years. He signed the lease of the prime shopping spot in Causeway Bay two years ago, taking over from Giordano and a number of restaurants. "Finding the right location for a flagship store was our primary goal, and we will never sacrifice location to rush to enter [Hong Kong]."
 
Minimal mainstream advertising was adopted for Forever 21's arrival in Hong Kong, with only location-specific outdoor ads seen in the Causeway Bay MTR station. Instead, awareness is boosted through viral marketing via fashion blogs and Facebook. Meyer explained the focus is on the store itself.

Allie Piotrowski, Forever 21's digital content supervisor, highlighted how the store's facade will be its own advertising vehicle. Footage of the season's most fashionable looks will be projected on two giant digital billboards when the store is completed. "It's a visually exciting way to communicate with our customers and continously surprise and engage them."

 

 

 

Source:
Campaign China

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