When Topshop empire collapsed, Gap, Old Navy and Forever 21 are on the verge of bankruptcy. Nothing appears to help fast fashion in current situation.
Started booming in the 1960s, the aim of fast fashion is to catch up with the trend of cheap but trendy outfits for young people. Instead of paying hundreds to thousands of dollars for items from catwalks, it is now easier to own clothes with similar designs at a more affordable price. The ability to turn design concepts into outfits within 16 days is the key that enhances fast fashion's image.
The appearance of Zara in 1989 in the US paved the way for the expansion of many fast fashion brands in the world, including H&M, Forever 21 and Topshop. However, the retail fashion industry is facing unprecedented challenges in the US and Europe. The rise of online retail stores is threatening the existence of many famous brands, from Topshop, Gap to Forever 21.
According to Wall Street Journal, May 31 is considered as a dark day for Gap - the company that owns the brands Gap, Old Navy, Banana Republic - when the stock fell 9.6%, the lowest level in the past 5 years. As fast fashion is "stumbling", it seems that Forever 21 is no exception. The sales of the department store in the previous year have fallen by an estimated 20-25 percent. Arcadia Group - the parent company of Topshop and Topman - has also filed for bankruptcy protection in the US. As a result, all 11 stores Topshop and Topman here will soon close. Arcadia Group will also close 23 Topshop stores this year in the UK market. Sadly, "we can't stay forever 21."
Over the time, fast fashion is customer's favorite taste by competitive prices compared to high fashion brands, but high import costs are making it difficult for big companies to escape their losses.