Do Won Chang: The Immigrant Entrepreneur Who Built Forever 21 From $11,000

Do Won Chang's story is one of perseverance, adaptability, family, faith and entrepreneurship, from working three jobs in Los Angeles to building a global fashion brand.

What does it take to build a successful business when you arrive in a new country with very little money?

For Do Won Chang, the founder of Forever 21, the answer began with hard work. When Chang and his wife, Jin Sook, moved from South Korea to Los Angeles in 1981, they did not arrive with wealth, business connections or an established career. Chang worked multiple jobs to make ends meet while his wife worked as a hairdresser. Three years later, they had saved approximately $11,000. They used that money to open a small clothing store. That modest beginning would eventually grow into Forever 21, one of the world's best-known fast-fashion brands.

But the story of Do Won Chang is about more than financial success. It is a story about recognising opportunities, adapting to change, taking risks and continuing to learn when circumstances do not go according to plan.

From South Korea to the American Dream

Do Won Chang was born in South Korea in 1954. Even before moving to America, he demonstrated an entrepreneurial spirit, including starting a coffee and natural-juice delivery business in Seoul. In 1981, Chang and his wife immigrated to the United States. The beginning was anything but glamorous. Chang worked long hours in several jobs, including at a coffee shop, a gas station and cleaner. Forbes reported that he was working around 19 hours a day during this period. His wife, Jin Sook, worked as a hairdresser. For many people, working three jobs might simply have been about survival but for Chang, it became an education.

The Observation That Changed Everything

One of the most interesting parts of Chang's story began while he was working at a gas station. He noticed that some of the customers involved in the garment industry were driving expensive cars. Rather than simply wondering how they had become successful, Chang started asking questions and his curiosity led him to take a job in the clothing industry, where he began learning how the business worked. This was an important turning point. Chang was not starting with an expensive business degree or years of corporate experience. He was learning by watching, asking questions and getting involved. That is a valuable lesson for any aspiring entrepreneur: Sometimes your next business opportunity begins with paying attention.

Starting Forever 21 with $11,000

​After three years in the United States, Chang and his wife had saved around $11,000. In 1984, they used those savings to open a small, clothing store in Los Angeles. The store was initially called Fashion 21. The Changs sourced fashionable clothing through wholesale and sold it at affordable prices. The results were extraordinary. Fashion 21 generated approximately $700,000 in sales during its first year, despite starting with only $11,000 in savings. The couple saw an opportunity to expand. They began opening new stores at a rapid pace, reportedly adding a new store approximately every six months. Eventually, Fashion 21 became Forever 21 and a small Los Angeles clothing store became the foundation of a global retail business.

How Forever 21 Became A Global Fashion Brand

The Changs understood people wanted fashionable clothing, but they also wanted affordability. Forever 21 built its reputation around offering trend-driven clothing at relatively low prices. The company became popular with younger shoppers and expanded rapidly across the United States and internationally. By 2009, Forbes reported that Forever 21 had 460 stores in 13 countries and estimated sales of $1.7 billion. By 2016, Forbes reported that the company had grown to approximately 790 stores across 48 countries and $4.4 billion in sales.

The Importance of Adaptability

Forever 21 grew quickly because of its ability to respond to fashion trends. The business developed a reputation for getting new styles into stores quickly. That required constant attention to customers, fashion trends, pricing and supply. Do Won Chang focused heavily on the financial side of the company, while Jin Sook Chang played a major role in merchandising and buying. Their different strengths complemented each other.

When Success Began to Unravel

After years of rapid expansion, Forever 21 faced changing shopping habits, declining foot traffic, increasing competition from online retailers and the costs associated with its large physical-store network. In September 2019, Forever 21 filed for bankruptcy protection. The company faced challenges because of its extensive network of stores and younger consumers increasingly shopping online.

The Changs, who had once been worth billions of dollars, saw their estimated wealth fall substantially as the company's fortunes changed.  The company's assets were subsequently sold as part of the restructuring process.

What Entrepreneurs Can Learn from Do Won Chang

There are several lessons in Chang's journey that remain relevant to small business owners today.

1. Start With What You Have

Chang did not wait until he had millions of dollars before starting a business, he and his wife started with approximately $11,000 and a small store. Start with the resources, knowledge and skills you have and build from there.

2. Pay Attention to Opportunities

Chang's interest in the fashion industry began with an observation at a gas station. His curiosity led him to investigate, which led to learning, eventually leading to a business idea.

3. Learn From the Ground Up

Chang experienced the business world from the bottom. He worked multiple jobs before becoming an entrepreneur. Those experiences gave him an understanding of hard work, customers, costs and business operations.

4. Build Around Your Strengths

Do Won Chang and Jin Sook Chang brought different skills to the business. Their partnership demonstrates the value of combining strengths rather than trying to do everything yourself.

5. Don't Confuse Growth with Permanence

Forever 21's enormous growth shows what is possible. However, growth alone does not guarantee long-term sustainability. Businesses need to continually reassess their customers, costs, competition and business model.

6. Expect The Journey to Change

Entrepreneurship is rarely a straight line, there can be breakthroughs, setbacks, opportunities and unexpected turns. Success is not simply about reaching a particular financial destination, it is also about the lessons along the way.

From Immigrant Worker to Global Entrepreneur

Do Won Chang's journey began with an immigrant couple arriving in Los Angeles and working long hours to establish themselves. Three years later, they invested their savings into a small clothing store and Forever 21 became a global fashion business generating billions of dollars in revenue at its peak.

The Bigger Lesson

The story of Do Won Chang and Forever 21 is a reminder that our starting point does not necessarily define our destination. Chang's journey shows the possibilities that can emerge when perseverance is combined with curiosity, hard work, adaptability and the willingness to take calculated risks.

Building something is only the beginning. The real challenge is continuing to learn, adapt and evolving as the business grows.

You do not have to start with everything. You just have to start with something.