By Gary Symons
TLL Editor in Chief
Above photo by Hans Olav Lien
SHEIN and Authentic Brands Group have announced a major strategic partnership involving the US fashion brand Forever 21.
The deal is between SHEIN and SPARC Group Holdings II LLC, which is the direct parent company for Forever 21, and combines one of the world’s leading online retailers with one of the leading brick-and-mortar retailers.
The partners say the arrangement “will focus on meeting the needs of customers in the U.S. and around the world who enjoy affordable, high-quality fashion.”
Under the agreement, SHEIN acquires an approximately one-third interest in SPARC Group, a joint venture that includes Authentic Brands Group and Simon Property Group, while SPARC Group becomes a minority shareholder in SHEIN.
“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 Marc Miller, CEO of SPARC Group. “By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world.”
The deal certainly offers a number of synergies for both companies.
SHEIN is a massive force in fashion e-commerce, with global reach that will provide SPARC Group a platform to further grow its brands. In fact, SHEIN, with its 150 million online customers, is credited with creating a new manner of on-demand engagement with its customers.
But SHEIN does not play in the brick-and-mortar world of fashion retail, which brings its own advantages. “The partnership also offers the opportunity to test SHEIN customer-focused experiences in Forever 21 locations across the U.S. including shop-in-shops, enabling return to store, and other initiatives,” the partners said in a joint statement.
“Together, SHEIN and SPARC Group plan to utilize their complementary platforms and expertise to accelerate product innovation, explore new business strategies, enhance customer experiences, and grow their presence in the marketplace.”
Donald Tang, SHEIN’s Executive Chairman, says the deal brings together three major companies, each with its own unique expertise and ways of reaching the market.
“SHEIN is thrilled to have SPARC Group as a partner and minority shareholder and we look forward to finding new ways to delight our customers through the potential of this partnership,” Tang said. “The powerful combination of Simon’s leadership in physical retail, Authentic’s brand development expertise, and SHEIN’s on-demand model will help us drive scalable growth and together make fashion more accessible to all.”
The deal is being lauded by financial analysts, but environmentalists are raising concerns due to their opposition to the concept of ‘fast fashion’ that SHEIN embraces in its business model, as its known for clothing that is extremely inexpensive, but quickly replaced. SHEIN, however, says it is simply “committed to making the beauty of fashion accessible to all, leveraging its industry-leading on-demand production methodology since 2012, for a smarter and more sustainable industry.”
Forever 21 and Barbie Go Back to the Metaverse for Summer Collection