Despite the fact that they are both clothing boutiques with a numeral in their names, Forever 21 and rue21 are separate businesses with no ties to one another. In fact, the two businesses are rivals.
According to Forbes, one of the biggest contrasts between the two companies as of 2014 is their size and profitability. With over 30,000 employees and a revenue of over $3.85 billion, Forever 21 is a significantly larger company. rue21, on the other hand, employs only 2,340 employees and has a market capitalization of $741 million.
Rue21 is a niche shop that specialises on selling affordable, low-cost items to people who don’t have access to larger or more costly brands. It doesn’t put its logo on any of its clothing, and it doesn’t advertise; much of its marketing is done by word of mouth. As a result, its biggest competitors are mass stores like Wal-Mart, which normally target the same lower-income audience but have significantly greater advertising budgets and can partner with celebrities like Miley Cyrus to create popular but still affordable clothing and accessory lines.
Forever 21, on the other hand, concentrates on providing a higher-end assortment of men’s and women’s clothing. It has a larger presence, with over 480 locations in the United States, Canada, the Philippines, Japan, South Korea, and Europe. It goes by several names, including Forever 21, XXI Forever, For Love 21, Heritage 1981, and Reference, each aimed towards a distinct demographic or geographic location.