Korean American Fashion Empire

In today’s Los Angeles Times is an article profiling Korean American owned Forever 21, a well known $1.8 billion in revenue clothing retailer selling private label young woman’s clothing. Forever 21 is a huge fashion retail company that has pretty much cornered their niche in the U.S. and is expanding globally into China and Europe. It is ranked as one of the top 500 largest privately-held companies based in the U.S.

Per the article:

Having built a $1.8-billion business by focusing on trend-hungry, cost-conscious young women, privately held Forever 21 envisions its future as a comprehensive fashion department store chain, selling clothes and accessories for teens, women, men and children. The Los Angeles-based company has spent $47 million buying competitors — Rampage and Gadzooks — and has doubled its square footage over the last 2 1/2 years.

The company is majority owned by Don and Jin Sook Chang, who immigrated to Los Angeles from South Korea. Forever 21’s basic business model reflects their Los Angeles Fashion District roots where many Korean retailers sell knock-off, low priced, fast turn around fashion quicker than their competitors.

Similar to businesses like In-N-Out and Chick-fil-A, the company apparently has a religious mission in addition to a business one.

Anyone who has looked at the bottom of a Forever 21 shopping bag has a hint about another important aspect of the Changs’ life. Each bag is inscribed with “John 3:16″ — the New Testament passage that says, “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him shall not perish, but have everlasting life.”

The inscription is “evidence of their faith and their commitment to God,” Senior Vice President Larry Myer said.

However, they also have a history of legal wrangling with labor and competitors.

Forever 21 said it was working to settle what’s left of a couple dozen copyright- and trademark-infringement lawsuits, and the company was embroiled earlier in the decade in a legal battle with employees of Forever 21 subcontractors who claimed they worked six days a week, sometimes 12 hours a day, for far less than the minimum wage. The matter was settled out of court and the company, which admitted no wrongdoing, agreed to take steps to ensure that its garments were not made in sweatshops.

You can read the rest of the article on your own.

13 Comments

  1. JohnT your flag
    Posted June 24, 2008 at 2:00 pm | Permalink

    Good for them.

  2. Posted June 24, 2008 at 2:04 pm | Permalink

    It’s a good business model — note the European success of Spanish “fast fashion” company IndiTex’s ZARA brand which has recently advanced into both the United States and Korea.

  3. Baek du boy your flag
    Posted June 24, 2008 at 5:37 pm | Permalink

    There is a similar chain called Valley Girl run by a Korean-Australian with 50+ stores throughout Australia.

    Clothes are affordable and fashionable modelled (or copied with slight modifications) on the latest designs from London, Paris etc

  4. Posted June 24, 2008 at 8:28 pm | Permalink

    From what I remember Forever 21 is pretty skanky. It’s difficult to jibe my memories of that with John 3:16.

  5. Canadian Mad Cow your flag
    Posted June 25, 2008 at 1:07 am | Permalink

    Yes, but it`s Christian skanky, so that`s okay.

  6. Posted June 25, 2008 at 2:26 am | Permalink

    # 4,

    I had a friend who worked for F21. They gave her a company car (a Mercades C Class) and a jet setting lifestyle. She was always in Tokyo, Milan, Paris and NY. But, they worked her 11 hour days, 16 hour plane rides followed by another long plane ride the next day. They basicily drove her into the ground and the work culture was very Korean-like, meaning hierarchical and inflexible. Do this or we’ll get someone else to replace you, etc. It’s run kind of like a fashion investment bank, which means that a lot of young people who work for them burn out or become purchasing terminators. Some expats here may be familiar with that kind of management style… :P

    However, I’d give them a mulligan for their labor issues with subcontractors. All apparel companies in LA use underpaid subcontractors but you don’t see these smaller companies getting sued. Since F21 is big and has a lot of cash, it’s suable by “enterprising” lawyers.

  7. Lana your flag
    Posted June 25, 2008 at 3:42 am | Permalink

    There clothes are cheaply made and cheap looking. When they’re not ripping, they’re shrinking after one wash. Never again.

    I know quite a few folk who are not happy with their clothes.

  8. Netizen Kim your flag
    Posted June 25, 2008 at 4:30 am | Permalink

    Anyone who has looked at the bottom of a Forever 21 shopping bag has a hint about another important aspect of the Changs’ life. Each bag is inscribed with “John 3:16″ — the New Testament passage that says, “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him shall not perish, but have everlasting life.”

    I weary of Korean-American businesses that openly profess their Christian faith in such a manner. Similar to the “health/wealth” gospel, I know this kind of thinking is all too common in the KA church community, that by religiously going to prayer service at 5:30AM every morning, God will bless the business. For the uninitiated, printing John 3:16 on a shopping bag has too much of a WTF factor.

    Further, the Moonie Unification Church also practices this weird fusion of religion and big business on a grand scale and they’re very successful also. What does that say about the questionable theology of pastors who credit the Chang’s success to their religious zeal? Next thing you know, Korean massage parlors will also quoting John 3:16.

  9. seouldout your flag
    Posted June 25, 2008 at 4:40 am | Permalink

    Next thing you know, Korean massage parlors will also quoting John 3:16.

    Next thing you know?!

    It’s been going on at Indian Joes for years.

  10. Posted June 25, 2008 at 4:40 am | Permalink

    John 3:16 is also found on packaging of In-N-Out drink cups. It’s not just a Korean thing…

    But… In-N-Out is a lot nicer to its employees and no one has ever tried suing them.

  11. Siddhartha your flag
    Posted June 25, 2008 at 8:14 am | Permalink

    #5
    Subcontractor of Forever 21 are “jobbers” in LA and if you know anyone in the business..they all tell you it is very difficult to stay alive without low wage labors from Mexicans…

    #7
    Every KAs goes to Church and I haven’t met anyone that doesn’t (maybe those few lost their gae money from the Church elders) I thought Christians need to spread the gospel and Foever 21 is doing their part..Heck, rest of Americans probably find it good as Apple Pie.

    Namuamitaba

  12. Posted June 25, 2008 at 8:26 am | Permalink

    # 6,

    Well, they must be doing something right. They are making money hand over fist (I know because I saw their investment memorandum).

  13. R. Elgin your flag
    Posted June 25, 2008 at 10:12 am | Permalink

    <blockquote.I weary of Korean-American businesses that openly profess their Christian faith in such a manner. Similar to the “health/wealth” gospel, I know this kind of thinking is all too common in the KA church community, that by religiously going to prayer service at 5:30AM every morning, God will bless the business. For the uninitiated, printing John 3:16 on a shopping bag has too much of a WTF factor.We get this same style of “God of Money” Christianity back in the states. It is an abomination, at its worst since it is a subtle but important detour from the teachings and examples of Jesus.

    I also find this same trickery in one of the bigger churches in my neighborhood. They decided, at one point, to team up with local gang-bae to stick up illegal advertising so as to make money for their church’s building project. They have a very large church today and are very proud of their righteousness — despite the loud cognitive dissonance between their ethics and their function.

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