Forever 21: a South Korean wedding that has created a fashion empire from scratch

With very little money in their pocket, they landed in Los Angeles in search of the "American Dream" with the project to install a cafe.

But after three years they radically changed their plans when Do Won saw another opportunity.

"I realized that people who drove the best cars were working in the apparel industry," he said in an interview with the Los Angeles Times.

When they managed to save $ 11,000, the couple decided to buy a clothing store for sale near the apartment of a room where they lived with parents. from Do Won.

The activity consisted of buying wholesale clothing directly from Korean manufacturers at very low prices and selling it.

It was so that in 1984 they opened a company called Fashion 21.

They quickly realized that they were on the right track when first year sales reached $ 700,000.

From that moment, they open new stores every six months and change their brand for Forever 21.

Today, it is an empire valued at 4,000 million US dollars, with 790 stores in 48 countries.

And the couple's fortune is about 3,000 million US dollars, according to the latest estimates from Forbes magazine.

Buy and sell cheap

According to the story told by Do Won Chang, when he arrived for the first time in the United States, he went to look for work in a cafe.

Even though he still did not speak English well, he managed to get them hired thanks to a team that started at four in the morning to prepare food and do the dishes.

"I have earned the minimum wage, about 3 dollars an hour," said the entrepreneur.

But as income was not enough, he found a second job at a gas station to supplement the salary.

And at night, a third job, clean offices.

After a while, Do Won went to work as a salesman in a clothing store, where he gradually learned how the business works.

After the lessons of his boss and felt safe, he embarked on the economic adventure with his wife Jin Sook Chang.

"Even now, but especially at that time, the opportunities were many," said the business man.

That's how it started a business that initially targeted Americans of Korean descent, but ended up extending to all types of customers and became an empire that today makes a difference. It is part of the "fast fashion" (fast fashion), which implies a very fast production, at minimal prices and with poor quality materials.

John 3:16

Little is known about the co-founder of the company, Jin Sook Chang, though it's only that she worked as a hairdresser upon her arrival in the United States.

His profile is so low that there are very few photos and that he is not available for interviews.

What is known is that he is currently working in the marketing department of the company and that both are deeply religious, attend mbad every morning and even print the verse of the Bible John 3:16 in the bags of the store.

"God so loved the world that he gave his only son, that whosoever believeth in him should not be lost, but that he have everlasting life."

A rare message in the marketing world that generally prefers not to badociate brands with religious beliefs.

Although it is a gigantic enterprise, the Chang family continues to hold positions of power within the organization. Besides the co-founders, the couple's two daughters are actively working in the company.

After attending elite universities, Linda and Esther, they went to work full time in the company.

Linda, the eldest daughter, is the director of marketing and, as reported in the local press, the possible successor to her father, while Esther shares several responsibilities.

Both started their own business: Riley Rose, a beauty products company.

Labor rights and "theft" of intellectual property

Forever 21 has had to face litigation before the US court system for allegations of abusive work related to long hours of work and payments below the minimum wage, charges that the company denies.

And on the issue of copyright, the company had to deal with complaints from major brands and independent designers who claim that Forever 21 copies their drawings.

He had to pay thousands of dollars in court agreements to put an end to disputes and look for ways to avoid new demands by incorporating his own projects.

However, as one of the company's goals is to sell the latest fashion trends just as other companies are putting their products on the market, they have had to deal with the constant challenge of selling clothes on time. save and edit them regularly, keeping prices exceptionally low.

In fact, if there is an iconic business of "fast fashion", it is Forever 21.

And for the same reason, he has become the target of virulent criticism of environmental organizations for the damage caused by this type of activity.

The American dream"

In order to expand its customer base, the company has developed several brands that point to different niche markets and has started very early on selling products online so as not to lose ground.

These and other strategies have allowed it to internationalize, although this year, they announced the closure of their online stores in China, due to intense competition in this market.

The history of the Chang is generally presented as an example of the "American dream".

However, it must be said that these cases are the rare exceptions, since on the other side of the coin, there are the stories of immigrants who, despite their efforts, continue to live in difficult conditions. .

And the number of small businesses that can not survive beyond the first five years of their lives (from neighborhood businesses to tech startups) is well over 50%.

Overall, the Chang continue to inspire thousands of immigrants to the world's largest economy with the idea of ​​becoming entrepreneurs.

Although today, unlike the decade of the eighties, the digital economy concentrates most of the new projects of young entrepreneurs trying to break into the global market.

BBC.