The Chinese fashion company has a new friend. Shein has signed a collaboration agreement with the American company Forever 21 to expand its catalog and reach new customers. As part of the cooperation Shein acquires about a third of the shares SPARC group (linked to Authentic Brands Group) and the SPARC Group becomes a minority shareholder of SHEIN.
A strategic alliance that will not only allow the Chinese fashion brand to sell Forever 21 products and expand its catalogue, but also have physical spaces around the world to bring your products closer to your customers. As reported forever 21 currently on your website They have 540 stores worldwidewhich will provide Shein with many opportunities.
The two retailers target the same demographic as they operate in the fast and affordable fashion sector. However, Forever 21’s most consolidated sales channel is the physical market, so the company will also benefit greatly from this alliance as it can give its online sales a powerful boost through reach The Chinese company has 150 million users.
«We are excited to partner with Shein as it reflects our shared vision of providing consumers with unprecedented access to fashion at affordable prices.“, He said Marc Miller, CEO of the Sparc Group, it is a statement. «By working together, we will offer fashion enthusiasts around the world even more innovative and forward-looking products.«.
A very strategic move by Shein
The Asian company is embroiled in various controversies and this move stands out for its proximity to the recent problems it has been facing in the United States. Shein was accused of violating US customs laws.; This new collaboration could reveal a possible solution to this problem. On the other hand, she has also been accused of filling landfills with cheap items or violating labor laws.
The House of Representatives, which examines economic competition in the United States, has produced a report accusing it of failing to comply with various laws and its competitor TEMU. Shein has denied all allegations.
Additionally, The fast-growing fashion company is preparing for its IPO in the United States. But before you take that step, should distance itself from Chinaas the scrutiny of China-based companies by US regulators and legislators increases, a process that social fashion platform TikTok is also undergoing.
Shein moved its headquarters to Singapore in 2021, and the company doesn’t currently sell its products in China either, although it was founded there in 2012.