Shein and Forever 21 Announce Partnership
Shein and Forever 21 have entered into a partnership that will give both brands new ways to reach customers, the retailers announced on Thursday. As part of the partnership, Shein will acquire around a third of Forever 21′s operator, Sparc Group. Sparc will also take a minority stake in Shein. The financial terms of the partnership were not disclosed.
The agreement was first reported by The Wall Street Journal.
New Opportunities for Shein and Forever 21
The partnership will allow Shein to sell Forever 21 clothing and accessories on its site. Shein says the partnership gives it the opportunity to test customer-focused experiences at Forever 21 locations across the United States, including shop-in-shops and in-store returns.
About Shein and Forever 21
Both Shein and Forever 21 are known for affordable fast-fashion, but they cater to customers in different ways. While Shein sells its items online, Forever 21 is known for its physical locations. By leveraging each other’s networks, the companies will be able to reach customers in more ways.
Past Initiatives from Shein
Shein has previously experimented with in-store shopping through limited-time pop-up shops in cities like New York City, Cincinnati, and Los Angeles.
Statements from Sparc Group CEO
“We are excited for the partnership with Shein as it reflects our shared vision of providing customers with unparalleled access to fashion at affordable prices,” said Sparc Group CEO Marc Miller in a statement. “By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world.”
About Sparc Group
Sparc is a joint venture that includes Authentic Brands Group, a brand management company with a portfolio of notable names like Brooks Brothers, Lucky Brand, and Nine West. Its portfolio also includes Simon Property Group, the biggest shopping mall owner in the United States.
Challenges Faced by Shein
The partnership comes as Shein has faced criticism over the environmental impact of its fast-fashion practices, as well as concerns about forced labor. Despite these concerns, Shein remains popular on social media platforms like TikTok, YouTube, and Instagram.
Moves made by Shein
Shein has tried to distance itself from China by moving its headquarters to Singapore in 2021 and not selling its products in China, despite being founded there in 2012.