As a young adult, I shop in stores that provide me with products of good quality, comfort, and a sense of creativity at the lowestprices that I can afford. After all I am only a young, broke, college student trying to survive. One of my personal favorites has to be Forever 21. I know it may not be a big deal but I absolutely love this store. This brand’s mission is to provide the consumer with an unprecedented selection of modern fashion products at affordable prices. Forever 21 mainly focuses on providing these products to young adults, such as myself. Their clothing is modern and is commonly described as vintage and edge but can be adjusted to fit and suit its customers’ wants and needs.

Stores are constantly competing in the marketplace to gain consumer recognition. Of course, Forever 21 does not fall behind in such case. A few benchmark brands, or competing brands that share target consumers in relationship to Forever 21 include ThreadSence, Urban Outfitters, American Apparel, and Bebe. All these stores target the same age group, individuals between the ages of about 18 and 24, however, they are priced slightly higher than Forever 21.

Mergers and acquisitions are common in the fashion industry, especially between companies that share the same target consumer and the same vision. In this case, American Apparel would be the most suitable for a merger and/or acquisition opportunity with Forever 21. American Apparel is ideal for this strategy because it shares, with Forever 21, targeted young consumers, and a passion and innovation for the fashion industry. I feel like this merger is appropriate because American Apparel will bring Forever 21 a sense of self. That is because American Apparel unlike its other competitors, including Forever 21, makes its own product. It has its manufacturing, distribution, and creative processes integrated together. This would allow the company as a whole or even if they become an acquisition, more efficient than having their product sent offshore or through contracting. It would just be fabulous to have clothing made from two great companies with such classic styles.

There are always advantages and disadvantages when companies decide to merge with or acquire another company. Some benefits of a merger between Forever 21 and American Apparel are as follows. Through this strategy both companies will obtain quality staff and additional skills and knowledge of the product. Since both brands have different ideas they will be able to incorporate feedback into their new products. Making it into one store or simply bringing American Apparel in as its own company, will allow for access to a wider customer base and increase in market share. Finally, the merge between these companies will reduce the company’s costs through shared marketing budgets, increased purchasing power of the consumer, and low costs of the merchandise. Together, these already well-known companies, will accomplish higher success.

The best way to make this work is to make the company as a whole. The name would remain Forever 21. American Apparel will carry over its products and bring them to Forever 21. As a whole the company and its production and management team will share ideas, each season, about the new jacket they want to bring to the consumer this upcoming winter. The clothing lines will come in different sizes: S, M, L, XL, colors, and styles to suit the target market base. The new Forever 21 will make its own product and will not rely on offshore merchandising. The prices will go according to the original Forever 21 standards but will provide the consumer with the already high quality of American Apparel. This merger will positively affect the product because both stores have been extremely successful already and the consumer would be more enticed by the fact that two stores, that already offer great prices, great styles, and great quality, are merged as one.