By CHEN Qirui
After establishing a strategic partnership with SPARC Group, the parent company of Authentic Brands Group (ABG), Shein and ABG will create a joint brand with Forever 21.
Shein will be responsible for the design and production of casual wear, swimwear, and accessories, as well as online sales in the US, Europe, and Australia.
Forever 21 is a fast fashion clothing brand established in the US by an American-Korean couple in the 1980s. Despite owning more than 600 global brick-and-mortar stores, it has been losing momentum as many of its counterparts, like H&M and UNIQLO, have accelerated their digital transition to cater to changing shopping habits in Europe and the US. Simultaneously, e-commerce platforms have been eroding Forever 21's market share, posing a threat to its existence.
The online market is where Shein excels. Shein is well-known for its supply chain, allowing it to swiftly respond to customer demand.
The initial step in this collaboration is to capture public attention. Forever 21 has recently launched pop-up stores in the US, with 20 percent of the space allocated to Shein.
As sustainable development gains traction across industries, a flexible supply chain is a universal solution to reduce production waste. Salter mentioned that they are considering including Brooks Brothers, a men's clothing brand, in their cooperation if Shein enhances its manufacturing capabilities for mid-end clothing.
Shein is actively seeking additional partnerships. Since 2021, they have been collaborating with low-key designers through a project named "Shein X" and have plans to host fashion shows with these designers during Paris Fashion Week.
