Price Management

Forever21 is a retailer mainly catering to teenage girls and young adults who want to have both fashion and value.

Forever21 uses leader pricing. They price their merchandise at different price points, with some retailing to prices as low as $15 (e.g. the basic wear) to attract the customers and crowd so as to boost sales for the other slightly higher priced apparels and/or accessories.

Forever21 usually displays the lower prices merchandise right at the door step so that people notice them when they walk pass. This will lure the customers in to take a look and from there, the customers will go around browsing other products and might even make other complementary products purchases that are at higher prices.