Be prepared to see more co-branding and cross-selling between Shein and Forever 21.
A deal announced Thursday between Shein and Forever 21 operator SPARC Group will see the two fast fashion retailers leverage their respective distribution channels to help the other scale.
In the future that would mean Los Angeles-based Forever 21 will be sold through Shein’s online shop, which counts about 150 million users. The groups are also considering a test of Shein shop-in-shops at Forever 21, which has more than 560 stores globally.
“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,” Shein Executive Chair Donald Tang said.
As part of the deal, Shein takes about a one-third interest in SPARC, a joint venture between brand management firm Authentic Brands Group and mall operator Simon Property Group. SPARC acquires a minority stake in Shein.
Financial terms of the deal were not disclosed.
Marketplace Ambitions
Shein, which has been the subject of IPO speculation, has been working to remake its public image after facing scrutiny over its supply chain and sustainability practices in recent years. The company’s also aggressively pushed its operating model in the direction of a third-party marketplace.
The fast-fashion firm continued the rollout of that marketplace globally. It said in June it was eyeing countries such as Mexico, Germany, Spain, France and Italy for future expansion.
Skechers is one example of a brand that has joined the platform.
“By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world,” SPARC CEO Marc Miller said.
The marketplace’s reach could be viewed as a boon for Forever 21, which was acquired out of bankruptcy in 2020 by Authentic, Simon and commercial real estate firm Brookfield Property Partners. In 2022, the company installed Winnie Park as CEO to accelerate growth of the then-$2 billion business.
If Forever 21 finds success with the Shein marketplace, it could open the door for some of SPARC’s other brands to also join the platform, according to comments made by Authentic founder and CEO Jamie Salter to the Wall Street Journal.
SPARC’s portfolio also includes Brooks Brothers, Eddie Bauer, Aeropostale, Lucky Brand, Nautica and Reebok.
Salter’s comments also beg the question of whether he would consider distribution of other Authentic-owned brands in the Shein marketplace.
Authentic is in the midst of finalizing a deal for Boardriders, the parent to Quiksilver, Roxy, Billabong and other big names within the surf industry.
Salter said in March at the time of the Boardriders acquisition announcement the company has potential as “a thriving online marketplace.”
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