Forever 21, the global fast-fashion brand known for its bold styles and trend-setting looks, is making headlines once again as it undertakes a fourth attempt to re-enter the Chinese market, this time with a focused, localised approach targeting young consumers. Despite past challenges and a second bankruptcy filing in the US this March, the brand is showing renewed determination as it also looks to revive its North American presence through a new partnership.
Fourth Time’s the Charm? Forever 21’s China Comeback
Forever 21’s relationship with the Chinese market has been complex since its initial launch in 2008. After re-entering for a third time in 2022 and experimenting with brick-and-mortar stores outside of China’s fashion capitals, the brand wound down operations again late in 2024. Yet, recent months have seen Forever 21’s trademark bright yellow branding reappear in China’s major cities, popping up at music festivals and plastered across the Shanghai metro, signaling its intent to make a splash in the world’s second-largest economy.
This time, Forever 21 hopes to avoid past missteps by partnering with Chengdi, a brand operator partly owned by e-commerce giant Vipshop Holdings. Chengdi is leading the charge to localise Forever 21’s operations, with plans to tailor collections, marketing, and store experiences specifically to Chinese tastes and youth culture. During a Shanghai press day, Chengdi announced ambitions to open new brick-and-mortar stores in 2026, aiming to introduce Forever 21 to a new generation of style-conscious consumers.
Bankruptcy Challenges and Strategy for North America
Forever 21’s renewed China push comes against the backdrop of significant struggles in its home market. In March 2025, the brand filed for bankruptcy in the US, the second time in six years, amid mounting online competition and declining mall traffic. Authentic Brands Group, Forever 21’s owner since its 2020 buy-out, has stated that China and the US will remain the core focus for the foreseeable future.
As the brand seeks fresh momentum for a North American relaunch, Authentic Brands is actively seeking a new partner to reinvigorate the business in the region. More announcements are expected soon, signaling that Forever 21 is not ready to exit the US fashion scene just yet.
Navigating Past Setbacks
The road hasn’t been easy. Authentic Brands Group CEO Jamie Salter candidly reflected last year that acquiring Forever 21 was probably the biggest mistake she made. However, when asked recently about those remarks, an Authentic Brands spokesperson affirmed that Salter has always believed that having Forever 21 as part of Authentic Brands Group is a good idea, and he still believes that.
Future Outlook: Young, Local, and Bold
By localizing its operations, tapping into Chinese youth culture, and leveraging the power of partnerships like Chengdi and Vipshop Holdings, Forever 21 is positioning itself for what could be its most successful China launch yet. Marketing events, collaboration with music festivals, and eye-catching advertising on public transit illustrate the brand’s intent to become a vibrant part of urban life in China once more. The move to open physical stores in 2026 further underscores the brand’s confidence in brick-and-mortar, even as online competition dominates the sector.
Simultaneously, Forever 21’s search for a new North American partner signals the brand’s commitment to recapturing its former influence not by repeating old strategies, but by adapting to the demands of today’s fast-paced market.
Conclusion
Forever 21’s story is one of resilience, experimentation, and the drive to connect with the next generation of fashion-forward shoppers. As its bright yellow banners return to Chinese cities and new plans unfold for North America, the brand continues to evolve, striving to balance its global reach with a renewed emphasis on local relevance.
